32 BFC Georgia Agriculture Finance Bulletin

04/2015

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32 Ge o r g i a Agriculture Finance Bulletin Prime Minister: Huge Potential for Tourism and Agriculture in Mtskheta-Mtianeti EBRD and EU Support Innovative Farming in Georgia Georgian Wines Exhibited in Japan Turkey Imposes Quota for Tax-Free Imports of Georgian Oilcake

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Georgian Agriculture Finance Bulletin Edition #32, April 2015

Contents State Initiatives ........................................................................................................... 3 1) 2) 3) 4) 5) 6) 7)

Researchers Review Success of Recent Subsidy Programs Designed to Boost Smallholder Georgian Agriculture ....................................................................................................................... 3 Government to Help Farmers Suffering from Devaluation of the Lari ............................................ 3 Ministry of Agriculture Launches Media Tour of New Enterprises in Kakheti Region .................... 3 Georgia and Belarus Announce Joint Agricultural Venture ............................................................. 4 Prime Minister: Huge Potential for Tourism and Agriculture in Mtskheta-Mtianeti ...................... 4 Ministry of Agriculture: 52,236 Ha Currently Under Cultivation Under State Assistance Program 4 Ministry of Agriculture: Rehabilitation of Zemo Samgori Irrigation System Completed ................ 5

Foreign Aid ................................................................................................................. 5 8) 9) 10) 11) 12) 13)

EBRD and EU Support Innovative Farming in Georgia..................................................................... 5 Biosafety Centres to be Established, and Routes for Seasonal Cattle Movement to be Restored . 5 BGCC Offers Training Program in Wine Marketing ......................................................................... 6 EU’s “Eastern Partnership” to Develop Agricultural Consulting Systems ....................................... 6 Agricultural Modernization Project Begun by IFAD and Ministry of Agriculture ............................ 6 USAID’s REAP Program Continues to Foster Agricultural Development and Works toward Integration with the EU Market ...................................................................................................... 7

Private Sector.............................................................................................................. 7 14) 15) 16) 17)

Georgian Entrepreneurs Face Problems in Turkish and Azerbaijani Markets ................................. 7 "Entrance Fee" for EU Imports Will Not Trouble Georgian Exporters............................................. 8 Modern Greenhouse to Open in Gardabani.................................................................................... 8 “Honey Sachino” Cooperative to Invest GEL 100,000 in Cultivation of One-Year Crops in Vani Municipality ..................................................................................................................................... 8 18) Overview of Recent Policies Stimulating Georgian Tangerine Production ..................................... 9 19) Georgian Wine Exports Down 67%.................................................................................................. 9 20) Turkey Imposes Quota for Tax-Free Imports of Georgian Oilcake .................................................. 9 Note: The Georgian Agriculture Finance Bulletin presents a monthly roundup of headlines and news stories related to investments and financing flows to Georgia’s agricultural sector.

This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Georgia. Currently, BFC is implementing the Agricultural Lending Programme for KfW. Read more »

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info@bfconsulting.com www.bfconsulting.com

BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

21) Georgian Wines Exhibited in Japan ............................................................................................... 10 22) Georgian Wine Exports to China’s Xinjiang Province to Increase Threefold ................................. 10 23) Enterprise Georgia and BGCC Organize “Taste Georgia” .............................................................. 11 24) Egg Imports Soon to Be Unnecessary ............................................................................................ 11 Corrigendum........................................................................................................................................... 12

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

State Initiatives 1)

Researchers Review Success of Recent Subsidy Programs Designed to Boost Smallholder Georgian Agriculture

March 31st, 2015, http://finchannel.com/index.php/epaper; Edition of March 31st, 2015

A in-depth article by Ia Katsia and Pati Mamardashvili, from the Agricultural Policy Research Centre at the ISET Policy Institute, has reviewed the efficacy of the Agricultural Card Program (launched in 2013 by David Kirvalidze, then minister of Agriculture), to support smallholder agriculture in Georgia. The review made use of official statistics on land usage and agricultural production, as well as interviews with focus groups and beneficiaries of the subsidies.

The authors note that the program has had a positive impact through increasing the amount of land under cultivation and encouraging the use of fertilizers and pesticides, but observed that, overall, design flaws resulted in an “inefficient use of scarce public resources”.

Problems encountered included the swapping or exchange of ACP cards (sometimes collected by medium-sized farmers at a significant discount) and Georgia’s inadequate cadastral map, whose inaccuracies led to a number of farmers being denied subsidies because they did not formally own the land they cultivate. The report also indicates that the program was hampered by a failure to take account of the diversity of climate and soil conditions across Georgia, suggesting that, in several areas, the money could have been better spent on meeting the specific needs of local farmers.

The report concludes by endorsing the words of one interviewee: “it would be far better if government support programs were region- and sector specific” because a “one-size-fits-all approach” is inadequate.

Read More »

2)

Government to Help Farmers Suffering from Devaluation of the Lari

April 7th, 2015, http://commersant.ge/index.php?m=5&news_id=20708&cat_id=5

The Ministry of Agriculture and the Project Management Agency are in active negotiations with banks to help farmers who receive preferential agro-credit, by converting loans released in US dollars to the Georgian lari.

The chairman of the Farmers' Association, Nino Zambakhidze, stressed the government’s concern over the issue, and told Commersant that the current round of negotiations is deciding when and how the policy will be implemented.

Reports indicate that some 610 farmers who have taken a loan of between USD 30,000 and USD 600,000 as part of the preferential agro-credit program are facing problems.

3)

Ministry of Agriculture Launches Media Tour of New Enterprises in Kakheti Region

April 20th, 2015, http://moa.gov.ge/index.php?menuid=17&lang=2&id=471#.VT0LtdKqpBc

On April 19-20 the Ministry of Agriculture held a media tour in Kakheti to allow journalists to visit companies that have been financed to develop Georgian agro production. The tour was organized by the International Fund for Agricultural Development (IFAD) and the Agricultural Support Project (ASP).

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

The data released by the Ministry indicates that it has already funded 119 new enterprises, creating approximately 3,700 new jobs, in addition to allowing over 600 companies to expand their operations.

In total, some 10,000 jobs will be created, at a total investment cost of USD 100.8 million.

The various branches of agriculture funded in Kakheti include wine production, animal husbandry, warehouses, poultry farming, sheep breeding, fruit processing, pig farming, animal feed production, oak barrel production, and greenhouse construction.

4)

Georgia and Belarus Announce Joint Agricultural Venture

April 22nd, 2015, http://en.bpi.ge/index.php?option=com_content&view=article&id=19699:georgia-belarus-announce-jointventure-in-agricultural-sector&catid=49:2011-11-06-16-56-03

The Georgian Ministry of Agriculture and the Belarusian Ministry of Industry have signed a Memorandum of Cooperation, confirming mutual interest in a joint venture to produce agricultural machinery, with joint enterprises to be started within both countries.

Georgia’s Minister of Agriculture Otar Danelia said that Belarus’s agricultural sector was "very developed” as a result of the country’s "thoughtful and patriotic policy” and stated that Georgia could learn some valuable lessons from the experience of Belarus. His opposite number, Leonid Zayats, the Belarusian Minister of Agriculture and Food, praised the work ethic and hospitality of the Georgians, stating that the relationship between the two countries is about to enter "a new era”. Meanwhile Alexander Lukashenko, the president of Belarus, paid a two-day visit to Tbilisi on the 22nd of April.

5)

Prime Minister: Huge Potential for Tourism and Agriculture in MtskhetaMtianeti

April 22nd, 2015, http://sarke.com/cgi/search/news.asp?Code=10044344

While in Mtskheta-Mtianeti, Prime Minister Irakli Garibashvili declared that the region’s tourism and agriculture industries have huge potential for development.

He stressed the potential of various industries in the Mtskheta district, including the production of textiles, confectionery, and mixed fodder; likewise, for the Kazbegi district he spoke of the potential for logistical centres, and the production of wool and construction materials.

Garibashvili noted that 124 infrastructure projects have been completed in the region, and a further 132 projects are underway, at a total investment cost of GEL 56 million.

With these funds the Agriculture Ministry has financed the issuing of 290 preferential agrocredits, the modernization of 9 existing companies, in addition to the establishment of 8 new enterprises and 29 agricultural cooperatives.

6)

Ministry of Agriculture: 52,236 Ha Currently Under Cultivation Under State Assistance Program

April 27th, 2015, http://sarke.com/cgi/search/news.asp?Code=10044386

The Ministry of Agriculture reported that 52,236 ha are already under cultivation under the 2015 state assistance program, which aids the spring works of land-poor farmers.

The Ministry noted that works are being conducted by the state-owned company LLC Mekanizatori as well as 105 contractor companies, and specified that 390 tractors are in operation in Western Georgia, in addition to the 510 operating in Eastern Georgia.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

The Ministry stated that this year’s program, with a budget of GEL 50 million, will benefit some 800,000 farmers: 478,074 farmers will receive the so-called “arable cards”, while “agrocards” have been issued to 286,186 beneficiaries. This year represents the final stage of the program, launched in 2013.

7)

Ministry of Agriculture: Rehabilitation of Zemo Samgori Irrigation System Completed

April 29th, 2015, http://sarke.com/cgi/search/news.asp?Code=10044421

The Ministry of Agriculture declared that the Georgian Company of United Melioration will finish rehabilitating the Zemo Samgori irrigation system this later this month, a project begun in 2013. The cost of the project totals GEL 9.496 million.

The Ministry announced that, as a result of the work, 20,000 residents of 10 villages in the Kvemo Kartli region will be able to use 7,120 ha of desert land, which will be watered by the new system.

The Georgian Company of United Melioration is currently conducting works on 8 projects in Kvemo Kartli.

Foreign Aid 8)

EBRD and EU Support Innovative Farming in Georgia

March 31st, 2015, http://agenda.ge/news/32544/eng

The European Union is providing a grant of EUR 4.8 million (GEL 11.5 million) to train Georgian bank staff, to develop lending strategies for agriculture projects, and to improve existing financial products.

The funding will also allow the sharing of lending risks and the introduction of innovative financing for agricultural businesses—helping, for example, to link local milk farmers to larger dairy producers.

To date, 15,352 industrial enterprises and farmers have received credit lines from the European Bank for Reconstruction and Development (EBRD). To avoid foreign exchange rate risks, beneficiaries can also take out loans in the local lari.

9)

Biosafety Centres to be Established, and Routes for Seasonal Cattle Movement to be Restored

March 31st, 2015, http://sarke.com/cgi/search/news.asp?Code=10044154

On March 31st Georgia’s Agriculture Ministry and National Food Agency signed a memorandum with Mercy Corps, outlining plans to create 5 biosafety-centres. These will be situated in two towns in Kakheti (Dedoplistskaro and Signagi) and three towns in Kvemo Kartli (Gardabani, Marneuli, and Bolnisi).

Two will be equipped by Mercy Corps, and three by the Agency.

These provisions aim to reduce the risk of cattle disease, to assist the development of animal husbandry, and to strengthen the capacity of various governmental structures.

The memorandum also provides for the restoration and modernization of routes required for the seasonal movement of cattle, which have not, the Ministry pointed out, been restored since the collapse of the USSR. Page 5

BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

10) BGCC Offers Training Program in Wine Marketing April 9th, 2015, http://www.georgiatoday.ge/article_details.php?id=13465

The British Georgian Chamber of Commerce (BGCC) has signed a Memorandum of Cooperation with Plumpton College in the UK, with the aim of improving the success of Georgia’s international wine marketing. The memorandum was also supported by the Georgian National Wine Agency and the Georgian Agricultural University.

Mako Asatiani, Director of BGCC, noted that Plumpton College is a leading agricultural college, whose wine department has a worldwide reputation. It possesses its own winery, a well-equipped laboratory, tasting facilities, and vineyards, enabling its students to study all aspects of winemaking.

The joint program planned by the BGCC will offer intensive three-day courses in English, starting in June 2015, and will cover wine marketing, branding, and trading. These will be offered both on-location in Plumpton College and in Tbilisi.

Asatiani stressed the importance of wine marketing in Georgia in the wake of the country’s signing of the EU association Agreement and joining of the Free Market.

11) EU’s “Eastern Partnership” to Develop Agricultural Consulting Systems April 16th, 2015, http://sarke.com/cgi/search/news.asp?Code=10044283

The Ministry of Agriculture announced that the participant countries of the EU’s Eastern Partnership have agreed to deepen their cooperation in agricultural sphere.

The declaration, which supports the development of agricultural consultation systems, was signed in Riga. It aims to support small and medium business by developing agricultural consultation centres, the Ministry reported.

The countries of the Eastern Partnership are Armenia, Belarus, Georgia, Moldova, and Ukraine.

12) Agricultural Modernization Project Begun by IFAD and Ministry of Agriculture April 23rd, 2015, http://moa.gov.ge/index.php?menuid=17&lang=2&id=473#.VT0JItKqpBc

The Ministry of Agriculture has announced that the project “Agricultural Modernization, Market Access, and Resilience” (AMMAR) has now begun. This will be implemented jointly with the International Fund for Agriculture Development (IFAD).

The IFAD has allotted a fund of USD 19 million for the project, including a grant of USD 6 million. The AMMAR is the 5th Georgian program to be funded by the IFAD. The Ministry declared that the new project aims to promote the development of agricultural infrastructure, introduce modern technology, and attract investments, with the wider goal of reducing poverty in Georgia.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

13) USAID’s REAP Program Continues to Foster Agricultural Development and Works toward Integration with the EU Market April 23rd, 2015, http://www.georgiatoday.ge/article_details.php?id=13536

On April 21-22, the program “Restoring Efficiency to Agricultural Production” (REAP), supported by USAid, hosted a training program in Batumi to provide technical assistance to around 40 REAPsupported agribusinesses across Georgia. The event aimed to help companies to develop competitive business strategies and to take advantage of new commercial opportunities.

The training was led by the business consulting company Innova, and included guest speakers from leading private sector firms.

REAP is actively involved in preparing Georgian agribusinesses to comply with the conditions of the Association Agreement with the EU, signed in June 2014. A recent training program was held in partnership with the Free University of Tbilisi and the Agricultural University of Georgia to help agribusinesses understand the benefits of the Association Agreement and the requirements for export.

In cooperation with the Ministry of Agriculture, REAP has developed a detailed roadmap that provides comprehensive instruction on the requirements for export to the EU. Read More »

Private Sector 14) Georgian Entrepreneurs Face Problems in Turkish and Azerbaijani Markets April 1st, 2015, http://commersant.ge/index.php?m=5&news_id=20466&cat_id=6

A number of Georgian entrepreneurs have spoken of the problems encountered in attempting to enter the Turkish and Azerbaijani markets—primarily technical barriers and customs taxes—in consequence of which products are sometimes smuggled into neighbouring countries. Some local entrepreneurs have demanded that Georgia, in response, protect local producers by introducing restrictions on imports.

Gigla Agulashvili, the Chairman of the Agricultural Committee, has spoken against the imposition of restrictions on imports. Such a measure might have an immediate positive effect, he said, but would be unhelpful in the long run.

In the opinion of George Kepashvili, President of the Georgian Beekeepers’ Association, the main problem encountered by Georgians in the Azerbaijani market is corruption.

With regard to Turkey, Kepashvili suggested that the Turkish government lacks the political will to officially allow the importation of Georgian honey, and so hides the information that 200 tons of honey can be brought from Georgia without any customs duties. As a result the 200-ton quota remains largely unknown, honey is smuggled across the Georgian boarder into Turkey, and Georgian businesses suffer.

Zurab Uchumbegashvili, President of the Poultry Association, also talked about problems in exporting products to Turkey. Despite bilateral trade agreements and Turkey’s membership of the World Trade Organization, he said, Turkey has developed mechanisms to protect its market.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

15) "Entrance Fee" for EU Imports Will Not Trouble Georgian Exporters April 2nd, 2015, http://commersant.ge/index.php?m=5&news_id=20534&cat_id=5

The Association Agreement between Georgia and the EU is designed to facilitate free trade and the removal of export tariffs. However, a complication is posed by the "entrance fee", which stipulates a minimum price for goods imported to the EU. If the value of goods exported from Georgia to the EU is less than a quarter of the price of the same products in the EU, the exporter will have to pay the difference between these two prices. The entrance fee covers 28 types of product (including 8 varieties of grape juice, tomatoes, cucumbers, artichokes, zucchini, citrus, and 9 kinds of fruit) and is adjusted according to the seasons. In effect, the lower the price of the exporter, the more he must pay.

Yet the Chairman of the Parliamentary Committee on Agrarian Policy, Gigla Agulashvili, believes that this will not pose problems for Georgian exporters, because EU agricultural products are typically produced at a lower cost. He said that the higher yields of European farmers are due to their superior land resources and technology. As a result, Agulashvili said, exporters will not have to pay an entrance fee into the market.

16) Modern Greenhouse to Open in Gardabani April 2nd, 2015, http://www.georgiatoday.ge/article_details.php?id=13433

April saw the opening of a 35 ha greenhouse in the village of Kapanakshi, in the Gardabani municipality (Kvemo Kartli region). The project involves French, Georgian and Ukrainian agro engineers, biologists, and technology experts. Machinery and vegetables are imported from France and Holland.

According to Giorgi Bachiashvili, CEO of the Fund, the first phase of construction has now, after 6 months work, been successfully completed, creating a 44,000 sq. meter greenhouse and employing 108 local residents.

The second stage of the construction will involve an additional greenhouse covering 85,000 sq. meters with an investment of GEL 20 million. By September, the area of land covered by the greenhouse should riple, and the number of employees should reach 200 people.

17) “Honey Sachino� Cooperative to Invest GEL 100,000 in Cultivation of OneYear Crops in Vani Municipality April 3rd, 2015, http://sarke.com/cgi/search/news.asp?Code=10044201

The Prime Minister has declared that four state-owned agricultural sites in the Vani municipality (Imereti region), with total area of 22.74 ha, will be sold to the agricultural cooperative Honey Sachino for GEL 15,921.

The cooperative has committed to cultivate at least 80% of this land with one-year crops, to which end it should invest at least GEL 100,000. The privatization agreement envisages that at least 50 people will be employed within 3 years.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

18) Overview of Recent Policies Stimulating Georgian Tangerine Production April 6th, 2015, http://finchannel.com/index.php/epaper ; Edition of April 6th, 2015

In an article on tangerine production in Georgia, Irakli Kochlamazashvili discussed a number of recent measures taken to improve the industry both by the Government and by external sources.

Since 2013 there have been substantial government subsidies for tangerines, of which a sizeable proportion have focused on creating a market for “non-standard” tangerines, i.e. those slightly damaged or misshapen (particularly numerous due to unfavourable weather which damaged crops in 2014 and 2015).

The author also discusses attempts to effect longer-term improvements in tangerine production through focusing on skills and technology. Such programs include the Economic Prosperity Initiative (EPI), funded

by USAid, which saw experts from California share their experiences with Georgian farmers on tree trimming, land cultivation, fertilization, and harvesting.

According to statistics from Commersant, farmers who adopted these techniques achieved a yield of between 55 and 100 kg per tree, less than the Californian norm of 200 kg, but well above the Georgian average of 35 kg. Read More »

19) Georgian Wine Exports Down 67% April 8th, 2015, http://commersant.ge/index.php?m=5&news_id=20813&cat_id=6

Georgian wine exports have fallen dramatically in the first quarter of 2015 compared to the same period last year. In January-March, Georgia exported 5,100,184 bottles of wine (0.75 l) to 25 countries—67% less than the first quarter of 2014.

The National Wine Agency explained that the decrease results from the decline of the two largest export markets: Ukraine and Russia. Due to political and economic events, Georgian wine exports to Russia fell by 83%, while exports to Ukraine fell by 63%. At the same time, exports in strategically important markets have increased, including China (+ 64%), Japan (+ 194%), Canada (+ 250%), the UK (+ 130%), Estonia (+ 15%), and Poland (+ 3%).

The Wine Agency noted that exports in March (2,198,535 bottles) were significantly higher than those of January (1,343,018 bottles) and February (1,558,631 bottles). Entrepreneurs predict a further increase in April-May, since the stabilization of the ruble after its initial fall.

Despite this significant reduction, Russia remains the primary export destination for Georgian wine, receiving 1,823,241 bottles during the last quarter, compared with Kazakhstan (1,028,592 bottles), Ukraine (655,110 bottles), China (364,778 bottles), and Poland (352,658 bottles).

20) Turkey Imposes Quota for Tax-Free Imports of Georgian Oilcake April 14th, 2015, http://www.geotimes.ge/en/index.php/en/2014-05-06-22-51-46/geopolitic/item/3460-turkey-imposes-animport-quota-for-georgian-oilcake

Turkey has submitted a document to the Parliament of Georgia imposing an import quota for oilcake derived from sunflowers. The quota limits imports to 15,000 tons annually, after which amount imports will no longer be tax-free.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

Although the ratification document has only now been submitted, Georgia and Turkey agreed on this quota as early as in 2010.

According to Gigla Agulashvili, the Chairman of the Parliament’s Agrarian Committee, Turkey presented documents in 2010 showing that a sizeable portion of oilcake exported from Georgia to Turkey was not produced in Georgia, since this exceeds the volume of sunflowers actually produced in Georgia.

Agulashvili stated that this extra oilcake was in fact produced from the sunflowers brought to Georgia from Ukraine.

The MP attempted to reassure Georgian producers by stating that the new regulation should not cause them problems, since the country cannot produce more than 15,000 tons of oilcake from its domestic sunflower resources.

21) Georgian Wines Exhibited in Japan April 15th, 2015, http://sarke.com/cgi/search/news.asp?Code=10044272

The National Wine Agency reported that Georgian wines were presented at the exhibition “Wine and Gourmet Japan 2015” in Tokyo on April 15-17.

6 Georgian companies exhibited their produce: Kakhuri Gvinis Marani (Kakheti Wine Cellar), Tbilgvino, Schuchmann Wines Georgia, Kindzmaraulis Marani (Kindzmarauli Wine Cellar), Besini, and Kakheti Traditional Winemaking.

The Agency noted that, in 2014, 181 companies from 22 countries took part in this exhibition and the number of visitors exceeded 74,000. In November 2014 Georgian companies took part in the “Tokyo Natural Wine Festival”, and in March they also exhibited in “Foodex Japan 2015”.

According to the Agency, wine exported to Japan exceeded 55,000 bottles (0.75 l) in the 1st quarter of 2015.

22) Georgian Wine Exports to China’s Xinjiang Province to Increase Threefold April 21st, 2015, http://agenda.ge/news/33706/eng

One of the biggest importers in China’s Xinjiang province is planning to import half a million bottles of Georgian wine, representing a threefold increase on current levels, the National Wine Agency has announced.

The agreement was made on April 20th when Maia Tskitishvili, an Agency representative, met with the leaders of Xinjiang Beifangjianda Trade. While in China, Tskitishvili was introduced to several other projects run by the Chinese company such as the Georgian Wine Club, the Georgian Wine Saloon, and Georgian wine shops and offices. The company also intends to organize additional wine tours to Georgia.

Tskitishvili explained that Georgian wine is relatively popular in Xinjiang province, particularly in the cities of Urumqi and Korgas. She also noted that Xinjiang Beifangjianda Trade is planning to build a Georgian Wine Shopping Centre in the China and Kazakhstan International Trade Center in Korgas, a city located in the free economic zone near the border with Kazakhstan.

Chinese demand for Georgian wine has been rising recently, with 217,000 bottles exported to China in the first two months of 2015, a 64% increase on the same period in 2014.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

23) Enterprise Georgia and BGCC Organize “Taste Georgia” April 23rd, 2015, http://www.georgiatoday.ge/article_details.php?id=13537

On the 24th and 25th of April the event “Taste Georgia” took place in the Georgian Embassy in London.

The event was launched by Enterprise Georgia, in tandem with the British Georgian Chamber of Commerce (BGCC), the Embassy of Georgia to the United Kingdom of Great Britain and Northern Ireland, and the British Embassy in Tbilisi.

Day one saw B-to-B meetings between Georgian food and beverage companies; on day two a public event was held at the Duke of York Square, where attendees had a chance to taste the finest Georgian food and become familiar with “Tone”, the traditional Georgian bread baked in a round clay oven.

The companies which took part were: Bagrationi 1882, Kula, Lukasi Winery, Popkultur, Shalvino, Aromaproduct, Chelti, Georgian Products Renaissance, Twins Wine Cellar in Napareuli and Geoplant.

24) Egg Imports Soon to Be Unnecessary April 27th, 2015, http://commersant.ge/index.php?m=5&news_id=21485&cat_id=6

There will be soon no need for Georgia to import eggs, Otar Danelia, Minister for Agriculture, announced during a visit to a poultry farm in the village of Ninotsminda.

"We can say that there will soon be no need to import eggs into Georgia. The cost of products will be regulated by competition. There will be healthy competition in the country, which is a natural process.

This competition will not be between imported products but between local products, and this will naturally balance the price", Danelia said.

According to George Mchedlishvili, director of the poultry farm in question (named “Ninotsminda 1 Ltd”), the farm has 12,600 chickens and produces 150,000 eggs a month. The price of an egg is approximately 20-21 tetri.

"Ninotsminda 1 Ltd" was founded last year. The company took a loan of USD 100,000 in the first phase of the preferential agro-credit project. Later, it became necessary to take additional USD 250,000 at 1% for 5 years.

George Mchedlishvili says the price of eggs will be relatively low in the near future, as producers plan to produce food crops for chickens.

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BFC. Georgian Agriculture Finance Bulletin. Edition #32, April 2015

Corrigendum Article 19, in Edition #31 of the Georgian Agriculture Finance Bulletin, March 2015, erroneously transcribed the source article, reading "...Loans worth GEL 800 Billion Issued through Preferential Agro-lending Program" and "... loans worth GEL 799,324 million were issued through the preferential agro-lending program."

The correct figures stated in the source article read as follows: "799.324 million lari" or “roughly 800 million lari worth of loans, were issued.�

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Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content.

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