Agriculture has both big economic and social functions in Georgia. The sector employs more than half of the country’s work force and for many families, income from agriculture is the only source of their livelihood. At present, interest in the private sector, as well as in the volume of investment is not very high. However, there are many examples of successful projects owing to local and foreign investment.<\/p>\n
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Here are the main reasons for a favorable investment environment in the agricultural sector of Georgia.<\/p>\n
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Natural <\/strong>Conditions<\/strong><\/p>\n Georgian agriculture has favorable natural conditions and resources for agricultural production. We have 22 different climates in the country, including both cold and dry as well as warm and humid. Almost half of the country\u2019s total area can be used as \u200b\u200bagricultural land. Further, there are naturally favorable conditions for grain, vegetable, fruit and sub-tropical crops.<\/p>\n <\/p>\n Almost the whole territory of the country can be considered as fertile land where a variety of agricultural crops are able to be harvested. At the same time, the country is rich in water resources and irrigation systems exist in almost every region.<\/p>\n \u00a0<\/strong><\/p>\n Investment Direction:<\/em><\/strong> \u00a0<\/em>Nowadays<\/em>, cultiva<\/em>rs such as<\/em> nuts<\/em> or<\/em> so-called “<\/em>d<\/em>warf nuts<\/em>,<\/em>” blueberry, blackberry<\/em> and p<\/em>istachio<\/em> are <\/em>popular. They are well adapted to the <\/em>local <\/em>environment, characterized by <\/em>their <\/em>high productivity, selling price and <\/em>a core<\/em> market <\/em>that <\/em>perfectly satisfies producer<\/em> interest<\/em>.<\/em><\/p>\n <\/p>\n Low <\/strong>P<\/strong>roduction <\/strong>C<\/strong>osts<\/strong><\/p>\n Hiring workers in the agricultural sector is quite inexpensive. More than 60 percent of workers are employed in agriculture. Between the country\u2019s industrial sectors, agriculture is the lowest paid overall. In the first half of 2016, the index was GEL 1 per month. This number is much lower as compared to the salaries in most EU countries. Additionally, the local labor force, as a rule, is quite experienced and well aware of the agricultural production process. Most Georgian farmers have been involved in agricultural activities since their childhood and they possess a significant amount of knowledge.<\/p>\n <\/p>\n Energy resources required and used in the agricultural production process in Georgia are considered to be low volume. Irrigation water per hectare in eastern Georgia costs GEL 75 and GEL 45 in western Georgia. To compare these prices with those in Europe, it is higher in many European countries: \u00a0Greece, EUR 73 to 210, Italy EUR 30 to 150, Spain EUR 62 and Portugal EUR 120.<\/p>\n <\/p>\n It should also be noted that the purchase or lease of agricultural land in Georgia is also inexpensive and without any limitations.<\/p>\n <\/p>\n Investment Direction:<\/em><\/strong> \u00a0<\/em>wheat, <\/em>berries<\/em>, corn<\/em> and<\/em> potatoes.<\/em><\/p>\n <\/p>\n DCFTA with the EU<\/strong><\/p>\n After the Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU, Georgia can produce agricultural products to meet the required safety and security standards which would then able them to enter the EU market with a zero custom tariff. Additionally, Georgia has an agreement with China, Turkey and the former Soviet countries about tariff reduction. These contracts simplify product export and expand the market for goods produced in Georgia which, of course, is attractive for investors.<\/p>\n <\/p>\n In the process of trade with the EU, sector modernization and increasing its efficiency is needed in order for Georgia to meet required standards as well as further enable the entry of foreign companies into the country.<\/p>\n <\/p>\n Investment Direction:<\/em><\/strong> \u00a0<\/em><\/span>Bio<\/em><\/span><\/b>productio<\/em><\/span><\/b>n.<\/em><\/span> Every day, the demand for bio products is increasing both in<\/em> the <\/em>EU and <\/em>on <\/em>the world market. <\/em>A<\/em> wide range of bio<\/em> products<\/em> can be produced by Georgian farmers<\/em>. <\/em>R<\/em>elevant legal <\/em>data about b<\/em>io<\/em> production<\/em> also exists in the country<\/em>. In 2006, the Parliament adopted the Law <\/em>\u00a0on <\/em>Biological Agricultural Industry<\/em> which serves to <\/em>regulate<\/em> issues concerning the <\/em>biological agricultural industry.<\/em><\/p>\n <\/p>\n In Georgia, bio products such as wine, fruit juices, honey, various kinds of fruits (for example, persimmon, which is quite popular in European countries), vegetables, dairy products and others can be produced.<\/p>\n <\/p>\n State <\/strong>S<\/strong>upport<\/strong>s<\/strong> Agriculture<\/strong><\/p>\n Financing for the agricultural sector has increased sharply since 2012 and the development of this sphere is one of the top priorities for the country. The state implements various large-scale projects to support agriculture and increase agricultural production.<\/p>\n <\/p>\n In the 2017 state budget, agriculture will be financed by GEL 238 million. Of particular note: \u00a0low interest agro credit (GEL 42 million), viticulture development (GEL 32.4 million), food safety and plant protection (GEL 22.7 million), modernization of ameliorative systems (GEL 49 million), support for agricultural cooperative development (GEL 5.3 million), implementing agricultural research activities (GEL 6.6 million) and agricultural insurance (GEL 5 million).<\/p>\n <\/p>\n Of particular note is that Georgia\u2019s agro credit program has financed more than 700 existing and 150 new enterprises at low interest rates since 2013.<\/p>\n <\/p>\n Additionally, the state is actively engaged in the following directions: \u00a0farmer awareness raising and effective agricultural extension services, data collection for market information, information gathering, processing and effective delivering of this information for workers employed in agriculture sector, compiling a farmer register, etc.<\/strong><\/p>\n \u00a0<\/strong><\/p>\n Investment Direction:<\/em><\/strong> \u00a0The s<\/em>tate actively supports the development of cooperatives and <\/em>provides <\/em>certain benefits and <\/em>preferences<\/em> for them<\/em>,<\/em> especially for <\/em>multi-functional cooperatives<\/em>. The cooperatives need to have <\/em>sufficient financial <\/em>as well as <\/em>human resources<\/em> in order<\/em> to develop several <\/em>directions<\/em> of<\/em> agricultural production as well as relevant services<\/em> for farmers<\/em>.<\/em><\/p>\n <\/p>\n Agrotourism<\/strong><\/p>\n In 2016, the number of visitors to Georgia exceeded 3 million while revenue from international tourism amounted to USD 2.16 billion. There are extensive opportunities for tourism development in the country with foreign visitors coming to Georgia year round. They can take part in agro tours and be involved in local agricultural activities or participate in the vintage process, harvest time, learning to make traditional Georgian products and spend time in a unique rural environment which is both new and interesting for them.<\/p>\n <\/p>\n When discussing the issue of agro tourism, a look at the list of existing opportunities shows 102 resorts, 182 lands for resorts 2,400 mineral springs, 12,000 historical and architectural monuments (three are included in UNESCO\u2019s Intangible Cultural Heritage of Humanity list), 11 national parks, 41 natural monuments and two protected landscapes.<\/p>\n <\/p>\n The Georgian National Tourism Administration offers free training for those who want to start up a business in the agro tourism sphere.<\/p>\n \u00a0<\/strong><\/p>\n Investment Direction:<\/em><\/strong> \u00a0<\/em>Village<\/em> hotels, farms, wine tours, historical <\/em>monument tours.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Agriculture has both big economic and social functions in Georgia. 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