#56 Georgia Agriculture Bulletin, BFC

04/2017

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56 Geo r g i a Agriculture Bulletin State of agroinsurance in Georgia PAFAI and Terabank hold conference for female farmers The potential of “AgTech” in Georgia New study examines the future of Georgian walnuts

All materials are published “as is” and are the property of their respective owners.

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Contents State&Initiatives&...........................................................................................................&2!

1)!

Mandatory!seed!certification!proposed!..........................................................................................!2!

2)!

New!equipment!for!livestock!cooperatives!.....................................................................................!2!

3)!

State!of!agroinsurance!in!Georgia!...................................................................................................!2!

4)!

Amendments!to!be!proposed!to!the!State!Organic!Law!.................................................................!3!

Foreign&Aid&..................................................................................................................&3!

5)!

New!rural!development!program!in!Tetritskaro!.............................................................................!3!

6)!

ENPARD!report:!cooperative!revenues!increasing!..........................................................................!3!

7)!

PAFAI!and!Terabank!hold!conference!for!female!farmers!..............................................................!4!

8)!

ENPARD!launches!new!development!program!in!Akhalkalaki!........................................................!4!

9)!

Rural!development!project!launches!in!Dedoplistskaro!..................................................................!4!

Private&Sector&..............................................................................................................&4!

10)! The!potential!of!“AgTech”!in!Georgia!..............................................................................................!4!

11)! Hazelnut!quality!is!a!major!problem!in!Georgia!..............................................................................!5!

12)! New!study!examines!the!future!of!Georgian!walnuts!.....................................................................!5!

13)! Wine!exports!increase!in!the!first!quarter!of!2017!.........................................................................!6!

14)! Preferential!agrilending!declines!in!2016!........................................................................................!6!

15)! Crop!area!in!2016!was!239,200!hectares!........................................................................................!7!

16)! Meat!imports,!livestock!exports!both!growing!...............................................................................!7! ! ! !

Note:& The$Georgia$Agriculture$Bulletin$presents$a$monthly$roundup$of$headlines$and$news$stories$related$to$Georgia’s$agricultural$ sector.$$ This$bulletin$is$prepared$by$Business$&$Finance$Consulting—a$SwissAbased$development$finance$consulting$company$with$a$long$ history$of$working$in$Georgia.$Read$more$»$

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Phone: +41 44 784 22 22 Fax: +41 44 784 23 23

info@bfconsulting.com www.bfconsulting.com

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BFC$Georgian$Agriculture$Bulletin$ $

State%Initiatives% 1)! Mandatory%seed%certification%proposed% April$12th,$2017,$http://cbw.ge/economy/governmentAproposesAseedAmandatoryAcertificationAinitiative/$

The! Ministry! of! Agriculture! has! proposed,! and! Parliament! is! considering,! an! initiative! to! make! the! certification!of!seed!materials!mandatory.!The!purpose!of!the!proposed!measure!is!to!ensure!the!supply! of! top]quality! seed! material! in! the! market! as! well! as! maintain! an! inflow! of! investments! into! Georgian! agriculture.! !

If! passed,! the! government! must! approve! a! list! of! agriculture! plants! subject! to! mandatory! certification! within! one! year.! Once! created,! the! sale! of! seed! materials! for! agricultural! plants! which! require! mandatory! certification! will! not! be! permitted! if! not! included! on! the! national! list.! Certifications! will! be! carried!out!by!an!authorized!body!of!the!Georgian!Ministry!of!Agriculture!or!another!accredited!body,!as! determined!by!Georgian!legislation.!Fines!for!the!sale!of!uncertified!seed!materials!will!be!between!GEL! 500!–!1,000.! ! !

2)! New%equipment%for%livestock%cooperatives% April$19th,$2017,$http://sknews.ge/index.php?newsid=12429$

The! Agricultural! Cooperative! Development! Agency! of! the! Ministry! of! Agriculture! is! implementing! a! program! which! delivers! processing! and! laboratory! equipment! to! agricultural! cooperatives! involved! in! livestock.! The! program! includes! equipment! for! the! receiving! and! processing! of! raw! milk! and! field! laboratory! testing! devices! as! well! as! artificial! insemination! equipment! to! improve! cattle! breeds! and! breeding.! Involvement! in! the! state! program! requires! that! cooperatives! construct! a! building! for! the! equipment,!which!will!be!considered!as!a!capital!investment.! ! !

3)! State%of%agroinsurance%in%Georgia% April$26th,$2017,$http://cbw.ge/business/agroAinsuranceAmustAstepAstepAmoveAfullyAcommercialAbasis/$

The!state!program!of!agroinsurance!started!in!2014!and!has!been!ongoing!for!3!years!now.!The!aim!of! the! program! is! to! develop! the! agroinsurance! market,! support! agriculture! activities! and! maintain! the! income! of! people! who! are! engaged! in! these! activities! by! reducing! their! risks.! In! total,! more! 47,485! policies! have! been! issued! under! the! program,! covering! 39,138! hectares.! Harvests! worth! GEL! 326.8! million! have! been! covered,! with! the! state! subsidizing! GEL! 22.1! million! in! payments! and! insurance! companies!compensating!GEL!19!million!to!farmers!for!losses.! !

This!year,!the!state!will!subsidize!the!cost!of!70%!of!insurance!payments!for!all!crops!except!for!vines,! which! will! be! subsidized! at! 50%.! Farmers! with! unregistered! land! will! receive! an! additional! increase! of!

10%.! Under! the! state! program,! farmers! can! apply! to! insurance! 5! hectares! of! land! (or! 30! hectares! for! wheat).!The!insurance!will!protect!farmers!from!damages!due!to!hail,!flooding!and!storms.!Citrus!crops! will!also!receive!protection!against!autumn!frosts!(from!September!1!through!November!30).!This!year,! the!budget!for!the!program!will!be!GEL!7!million,!GEL!3!million!less!than!last!year.! !

The! reviews! from! farmers! about! the! program! are! mixed.! While! some! are! happy,! other! feel! frustrated! about!issues!that!still!need!to!be!worked!out!such!as!increasing!awareness!about!the!program!and!the! lack! of! a! common! set! of! loss! assessment! methods.! The! program! also! needs! to! move,! step! by! step,! towards!being!fully!commercial!and!not!reliant!on!state!funding.!In!such!a!way,!it!will!become!attractive! to!insurance!companies,!stable!and!drive!Georgian!agriculture!to!be!more!modern.!

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4)! Amendments%to%be%proposed%to%the%State%Organic%Law% April$27th,$2017,$http://cbw.ge/economy/threatsAadvantagesAbanAlandAsales/$

With!the!Constitutional!Commission!scheduled!to!submit!a!bill!of!amendments!to!the!State!Organic!Law,! debate! regarding! the! ban! on! the! sale! of! agricultural! land! to! foreign! citizens! has! increased,! especially! since! the! members! of! the! Commission! cannot! fully! reach! an! agreement! on! the! issue.! The! opinions! expressed! range! from! those! who! believe! it! is! categorically! unacceptable! to! allow! the! sale! of! Georgian! land!plots!to!foreigners!to!those!who!believe!lifting!the!current!ban!could!benefit!the!agricultural!sector! with!increased!investments.!The!consensus!is!that!the!Law!will!most!likely!soon!be!modified!to!allow!for! the!sale!of!agricultural!land!to!foreigners!in!a!way!which!ensures!that!lands!are!used!for!public!needs! and!the!strategic!interests!of!the!country,!although!it!remains!unclear!exactly!what!this!will!entail!at!the! moment.! !

Foreign%Aid% 5)! New%rural%development%program%in%Tetritskaro% April$11th,$2017,$http://enpard.ge/en/europeanAmodelAruralAdevelopmentAwillAintroducedAtetritskaro/$

The!European!Neighborhood!Program!for!Agriculture!and!Rural!Development!(ENPARD)!has!launched!a! new! rural! development! project! in! Tetritskaro.! The! ‘Rural! Development! for! Sustainable! Growth! of! the!

Tetritskaro! Municipality’! project! is! being! implemented! in! partnership! with! the! Rural! Development! for! the! Future! of! Georgia! (RDFG)! association! and! aims! to! improve! the! quality! of! life! in! the! Tetritskaro! municipality! through! the! introduction! of! innovative! social]economic! models! and! the! engagement! of! local! private! and! public! sectors! in! decision]making.! The! project! will! create! new! social! and! economic! opportunities!in!the!Tetritskaro!municipality!inspired!by!the!best!practices!of!the!European!Union!(EU).! !

The!project!follows!previously!EU]supported!rural!development!actions!under!ENPARD!in!the!Borjomi,!

Lagodekhi!and!Kazbegi!municipalities.!This!year,!ENPARD!is!launching!rural!development!projects!in!five! new!municipalities:!Tetritskaro,!Dedoplistkaro,!Akhalkalaki,!Keda!and!Khulo.! ! !

6)! ENPARD%report:%cooperative%revenues%increasing% April$11th,$2017,$http://cbw.ge/economy/enpardAreportAtotalArevenuesAofAcooperativesAroseAbyAaveragedA19AyearAonAyear/$

The!European!Neighborhood!Program!for!Agriculture!and!Rural!Development!(ENPARD)!has!published! its! annual! report! on! the! development! of! Georgian! agriculture! cooperatives! financed! by! the! European!

Union! (EU).! Thus! far,! the! program! has! financed! more! than! 260! cooperatives! with! a! total! of! approximately! GEL! 12! million.! Cooperatives! have! co]financed! an! additional! GEL! 4! million.! The! latest! report!covers!the!performance!of!118!cooperatives!with!a!total!of!1,180!members.! !

According! to! the! report,! the! average! value! of! long]term! assets! owned! per! cooperative! grew! by! 12%,! amounting!to!GEL!99,000.!Additionally,!39%!of!cooperatives’!long]term!assets!were!purchased!using!EU! financial! support,! with! financing! for! the! other! 61%! coming! from! other! sources! such! as! cooperative! membership!fees!and!leased!assets.!Total!revenues!for!the!cooperatives!increased!19%!to!GEL!6!million,!

GEL!1.8!million!of!which!was!net!profit.!74!cooperatives!recorded!net!profits!of!GEL!23,500!on!average,!a!

41%!increase,!while!8!cooperatives!recorded!a!loss!of!GEL!8,800!on!average.!A!majority!of!cooperatives!

(85%)!reinvested!most!of!the!profits!for!further!development.!15!of!the!cooperatives!produced!34!tons! of!honey;!12!produced!1,726!tons!of!potato;!8!produced!250!hectoliters!of!wine;!8!produced!90!tons!of! vegetables;!and!6!produced!143!tons!of!berries.! !

The! ENPARD! small! cooperation! component! for! small! farmers! is! being! carried! out! by! CARE,! OXFAM,!

Mercy!Corps,!People!in!Need!(PIN)!and!the!United!Nations!Development!(UNDP)!Georgia.!

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7)! PAFAI%and%Terabank%hold%conference%for%female%farmers% April$13th,$2017,$http://georgiatoday.ge/news/6318/PAFAIA%26ATerabankAPromoteAProductsA%26AFinancialALiteracyAforA FemaleAFarmers$

30!female!farmers!gathered!for!a!conference!which!included!financial!literacy!trainings!and!specialized! banking!products.!The!purpose!of!the!conference!was!to!help!female!farmers,!who!face!a!disadvantage! in! access! to! finance! as! the! majority! of! land! and! property! in! rural! Georgia! is! owned! by! males.! The! financial!literacy!training!covered!topics!such!as!budgeting,!savings,!credit!history,!financial!institutions! and!interest!rates.!Terabank!also!explained!new!offers!exclusive!to!female!farmers!which!include!lower! collateral!requirements,!specialized!services!and!flexible!seasonal!repayment!schedules.! !

The!conference!was!held!as!part!of!the!‘Promoting!Access!to!Finance!and!Agricultural!Insurance’!(PAFAI)! project!being!implemented!by!Business!and!Finance!Consulting!(BFC)!and!funded!by!the!Swiss!Agency! for! Cooperation! and! Development.! The! project! began! in! April! 2015! and! will! close! at! the! end! of! April!

2017.! ! !

8)! ENPARD%launches%new%development%program%in%Akhalkalaki% April$18th,$2017,$http://eugeorgia.info/en/latestarticle/346/evrokavshiriAaxalqalaqshiAsoflisAganvitarebisAaxalAproeqtsAiwyebs/$

The! European! Union! is! continuing! its! support! for! rural! development! in! Georgia! through! the! European!

Neighborhood!Program!for!Agriculture!and!Rural!Development!(ENPARD).!ENPARD!has!announced!the! launch! of! a! new! rural! development! project! in! Akhalkalaki.! The! ‘Promoting! a! New! Rural! Development!

Approach!in!Akhalkalaki’!project!is!being!implemented!by!the!Georgian!Rural!Development!Department! of! Georgian! Institute! of! Public! Affairs! (GIPA)! in! partnership! with! Mercy! Corps,! Elva! Community!

Engagement! and! West! Cork! Development! Partnership.! The! project! aims! to! promote! a! bottom]up,! inclusive! rural! development! approach! in! Akhalkalaki! that! fully! engages! all! communities! in! the! municipality,!especially!women!and!youth.! ! !

9)! Rural%development%project%launches%in%Dedoplistskaro% April$27th,$2017,$http://cbw.ge/economy/europeanAunionAlaunchesAruralAdevelopmentAprojectAdedoplistskaro/$

The! European! Union’s! European! Neighborhood! Program! for! Agriculture! and! Rural! Development!

(ENPARD)! is! continuing! its! support! of! rural! development! in! Georgia! with! a! new! rural! development! project! in! the! Dedoplistskaro! municipality.! The! ‘Promoting! Citizen! Engagement! for! Economic!

Development’! (PROCEED)! project! will! be! implemented! by! HEKS]EPER! Georgia! in! partnership! with! the!

Biological!Farming!Association!ELKANA.!The!project!aims!to!contribute!to!the!reduction!of!poverty!in!the!

Dedoplistskaro!municipality!by!supporting!the!improvement!of!community!members’!employment!and! income!opportunities.! ! !

Private%Sector% 10)! The%potential%of%“AgTech”%in%Georgia% April$1st,$2017,$http://www.investor.ge/article.php?art=5$

Even!though!53%!of!the!population!is!currently!working!in!agriculture,!the!income]share!of!agriculture!in!

Georgia's!GDP!is!only!about!12%.!This!is!partly!due!to!the!fact!that!about!70%!of!the!farms!in!Georgia! have!less!than!1!hectare!of!land.!The!small!size!of!these!farms!and!farmers'!lack!of!access!to!knowledge,! finance!and!the!consumer!market!are!hindering!further!development.!Technical!innovations,!however,!

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are!looking!to!change!that.!With!the!arrival!of!the!internet,!the!future!of!farming!is!about!to!be!pushed! to! another! level.! And! the! small! scale! of! Georgia's! agricultural! landscape! and! the! business]friendly! climate!has!made!Georgia!an!experimental!playground!for!so]called!"AgTech"!startups.! !

Among!the!most!popular!initiatives!in!recent!years!are!those!that!seek!to!create!online!communities!in! one!form!or!another.!These!communities!provide!a!variety!of!services!from!instructional!videos!about! modern!agricultural!techniques!to!online!shops!where!farmers!can!buy!high]quality!agricultural!inputs! which!are!delivered!to!their!door!and!other!online!shops!which!serve!as!markets!for!farmers!to!sell!their! products.!One!of!the!more!interesting!“AgTech”!startups,!Agropark,!has!even!gained!the!government’s! attention.!Agropark!allows!people!to!buy!land!with!the!press!of!a!button.!The!price!of!land!includes!the! cost!of!agricultural!labor!and!technology!such!as!sensors!and!portable!water!pumps.!Local!farmers!then! work!the!land!for!a!fixed!salary,!a!share!in!the!profits!and!access!to!technology.!The!key!is!that!these! startups!are!not!taking!much!away!from!rural!people!like!Amazon.com!does!with!bookstores.!Instead,! they!are!making!something!possible.! !

While! most! startups! are! thought! of! as! scaling]up! rapidly! and! having! a! quick! impact,! these! “AgTech”! startups! will! need! more! patience! and! encouragement.! And! the! Georgian! business! community,! increasing! rural! internet! usage! and! a! young! and! educated! population! mean! that! these! sorts! of! businesses!are!just!getting!started.!Read!More!»! ! !

11)! Hazelnut%quality%is%a%major%problem%in%Georgia% April$4th,$2017,$http://cbw.ge/economy/instableAqualityAmakesAgeorgianAhazelnutAcheaperAcomparedAcompetitorAcountries/$

Georgia! ranks! fourth! among! hazelnut! producing! countries! worldwide,! and! hazelnut! exports! are! occupying!a!greater!and!greater!ratio!of!Georgia’s!agricultural!exports!each!year.!Despite!this,!Georgian! hazelnuts! bring! a! lower! price! than! foreign! competitors.! This! is! because! quality! standards! are! not! protected! in! Georgia.! In! fact,! all! actors! involved! in! Georgia’s! hazelnut! sector! agree! that! the! quality! of!

Georgian! hazelnuts! in! 2016! was! poor.! The! main! reasons! for! this! were! incorrect! care! and! improper! picking!and!storing!as!well!as!farmers!focusing!on!quantity!over!quality.!Moreover,!a!majority!of!farmers! also!blame!the!spread!of!disease!and!pests!in!2016.! !

To!raise!the!level!of!hazelnut!quality,!Georgian!farmers!need!to!begin!work!early,!starting!with!hazelnut! roots.! High]quality! nuts! come! with! treatment]cleaning,! making! channels! in! marshlands,! fertilizing! soil! and!cleaning!the!soil!from!grass.!Hazelnut!farmers!also!need!to!pick!nuts!multiple!times!as!this!reduces! humidity! and! provides! for! a! more! qualitative! product.! For! their! part,! Georgian! producers! need! to! demand! higher]quality! raw! products! from! farmers! and! install! international! quality! standards.! One! example!of!a!company!moving!towards!this!is!Nutex,!which!has!installed!controls!for!microbiological!and! chemical!pollution!and!is!monitoring!its!raw!material!suppliers.!It!also!uses!temperature!and!humidity! regimes!in!production!and!in!storehouses!and!has!implemented!a!control!and!fumigation!system.! !

With!hazelnut!production!forecasted!to!considerably!increase!globally,!it!is!vital!for!Georgian!hazelnuts! to! improve! in! quality! quickly! so! they! can! compete! with! competitors! in! Azerbaijan,! Turkey! and! Italy.! If! not,!Georgia!risks!losing!out!on!a!major!agricultural!product.! ! !

12)! New%study%examines%the%future%of%Georgian%walnuts% April$4th,$2017,$http://www.sarke.com/cgi/search/news.asp?Code=10050405$

The!European!Neighborhood!Program!for!Agricultural!and!Rural!Development!(ENPARD)!funded!a!study! on! the! prospects! of! walnuts! as! an! agricultural! crop! in! Georgia.! The! study,! conducted! by! PMCG! and!

Batumi!State!University,!revealed!that!the!walnut!industry!in!Georgia!is!still!in!its!infancy.!Until!recently,!

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walnut!trees!had!not!been!grown!in!farms,!with!walnuts!being!gathered!from!trees!planted!alongside! roads.!It!is!estimated!that,!in!a!few!years,!walnut!orchards!will!begin!to!be!able!to!be!harvested!and!will! produced!approximately!GEL!7,000!in!profit!per!hectare.! !

The!study!indicated!that!a!shortage!of!nursery!farms,!the!high!cost!of!saplings!and!a!lack!of!knowledge! about! planting! and! caring! for! trees! and! walnuts! are! hindering! the! industry! along! with! the! absence! of! contract!relations!between!chain!participants!in!the!market!(farmers,!intermediaries,!supermarkets!and! retailers).! At! the! same! time,! the! study! concludes! that! the! future! for! walnut! production! in! Georgia! is! bright! and! that! the! industry! will! shortly! need! to! search! and! diversify! export! markets! once! production! increases.! !

Georgia! currently! produces! 6,000! tons! of! walnuts! annually! and! imported! 395! tons! (valued! at! USD! 890,500)! in! 2015! and! 256! tons! (valued! at! USD! 817,100)! in! 2014.! 75%! of! walnut! imports! were! from!

Ukraine!while!21%!came!from!Kyrgyzstan.! ! !

13)! Wine%exports%increase%in%the%first%quarter%of%2017% April$5th,$2017,$http://georgianwine.gov.ge/eng/new/13070$

According! to! National! Wine! Agency! data,! 14,199,018! bottles! of! wine! valued! at! USD! 32.2! million! were! exported!to!38!countries!between!January!and!March!2017,!an!85%!year]on]year!increase!in!terms!of! volume! and! a! 77%! year]on]year! increase! in! terms! of! value.! The! top! five! countries! to! import! Georgian! wine! were:! Russia! (8,987,745! bottles),! China! (1,794,200! bottles),! Ukraine! (1,305,508! bottles),! Poland!

(561,294! bottles)! and! Kazakhstan! (473,515! bottles).! The! countries! with! the! largest! increases! in! wine! exports!were!China!(a!383%!increase),!Israel!(a!333%!increase),!Russia!(a!120%!increase)!and!Canada!(a!

55%!increase).! !

In!addition!to!the!wine!exports,!3,302,962!bottles!of!brandy!worth!USD!8.7!million!were!exported!to!13! countries,!a!51%!year]on]year!increase!in!terms!of!volume!and!a!71%!year]on]year!increase!in!terms!of! value.! Georgia! also! exported! 46,990! bottles! of! Chacha! worth! USD! 137,000,! a! 142%! year]on]year! increase!in!terms!of!volume!and!a!114%!year]on]year!increase!in!terms!of!value.! !

In! total,! alcoholic! beverage! exports! amounted! to! USD! 58.5! million! in! the! first! quarter! of! 2017,! a! 76%! year]on]year!increase.! ! !

14)! Preferential%agrilending%declines%in%2016% April$6th,$2017,$http://www.sarke.com/cgi/search/news.asp?Code=10050408$

In!2015,!3,482!loans!worth!GEL!143.74!million!and!436!loans!worth!USD!37.10!million!were!issued!for! entities! engaged! in! agricultural! activity! through! preferential! agrilending! schemes.! In! 2016,! 650! loans! worth!GEL!30.30!million!and!677!worth!USD!35.26!million!were!issued!through!preferential!agrilending! schemes.! This! amounts! to! a! year]on]year! reduction! of! 4.7! times! for! the! sum! issued! in! GEL! and! a! 5%! year]on]year! decline! for! the! sum! issued! in! USD.! Civil! organizations! note! that! this! hurts! small! farmers! who!already!have!very!limited!access!to!finance!in!Georgia.! !

The! same! organizations! are! also! skeptical! about! the! general! efficiency! of! the! state’s! agroinsurance! program.!They!point!out!that,!although!the!number!of!insurance!policies!has!increased!in!the!country! from!6,895!policies!to!15,134!in!2016,!the!number!of!policies!is!still!very!small!in!light!of!the!fact!that! farmers!own!agricultural!lands!totaling!787,700!hectares.! ! !

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15)! Crop%area%in%2016%was%239,200%hectares%

April$18th,$2017,$http://www.sarke.com/cgi/search/news.asp?Code=10050496$

According! to! preliminary! data,! the! area! of! agricultural! crops! totaled! 239,200! hectares! in! 2016,! down! from! 308,400! hectares! in! 2015.! The! area! of! autumn! sowing! for! wheat! and! barley! in! 2016! was! 59,000! hectares,! compared! to! 59,900! hectares! in! 2015.! The! area! of! spring! sowing! in! 2016! was! 180,200! hectares,! compared! with! 248,500! hectares! in! 2015.! Grain! and! bean! crops! were! cultivated! on! 121,000! hectares! in! 2016! (174,100! hectares! in! 2015)! while! potato! and! vegetables! were! cultivated! on! 38,800! hectares! (48,700! hectares! in! 2015).! The! area! for! other! crops! in! 2016! was! 20,400! hectares! (25,000! hectares!in!2015).! ! !

16)! Meat%imports,%livestock%exports%both%growing% April$20th,$2017,$http://www.commersant.ge/index.php?m=5&news_id=50376&cat_id=5$

Meat!production!in!Georgia!declined!in!2016,!from!62,000!tons!in!2015!to!52,500!tons!in!2016.!At!the! same!time,!meat!imports!have!increased!by!184%.!Imported!meat!comes!mainly!from!the!United!Arab!

Emirates,!Brazil,!Ukraine,!Argentina,!the!United!States,!Belgium!and!India.! !

Local! producers! note! that! they! cannot! compete! with! imported! products! as! many! countries! with! a! developed!meat!processing!industry!have!cheap!feeds!that!allow!them!to!sell!products!at!lower!prices.!

Reduced!local!production!is!also!a!result!of!the!growth!of!the!export!of!live!animals.!Livestock!from!all! regions!of!Georgia!is!currently!exported!abroad!—!mainly!to!Azerbaijan,!Kuwait!and!Iraq.!This!proves!to! be!beneficial!to!farmers!as!they!are!spared!the!costs!associated!with!slaughtering,!meat!processing!and! selling!in!markets.!In!fact,!sheep!exports!are!growing!and!expected!to!continue!to!increase.!Last!year,!

100,000!sheep!were!sold!to!Iraq!alone.! ! !

Page!7!

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