Production of goods is one of the key points that analytics of Georgian economy must focus on. Assessing production issues includes either volume of production or moreover the quality of it. Fields of greater potentials must be identified, main problems that the industries are facing nowadays and that are interrupting the process are worth - value to consider. So, this will be the objective of next business tour organized by Business Georgia – to open the topic, to involve all decision maker parties in the activities and somehow at least go one step ahead in the process of gaining the solution.
To get insight about the current situation in Georgia regarding production and potentially beneficial industry issues, you can follow the information below.
Source: geostat.ge 2016
Source: geostat.ge 2016
FOOD & BEVERAGES
Wine and Spirits
Georgian people have been producing wine in Qvevri for 8000 years, which was approved by UNESCO in 2013 for inclusion in its list of Intangible Cultural Heritage. There are more than 500 varieties of grapes in Georgia. In 2012, the EU registered the slogan “Cradle of Wine” as exclusive for Georgia’s use.
The top five countries that imported Georgian wine in January-October 2016 were:
Russia – 20,531,892 bottles
China –4,307,825 bottles
Ukraine – 4,212,110 bottles
Kazakhstan – 3,019,147 bottles
Poland – 1,819,542 bottles
Fresh and Mineral Water
Georgian water is respected for its high quality and good taste. Georgia is home to over 2,000 mineral water springs and several are bottled for domestic consumption and export. Besides well-known Georgian brands in different parts of the world there are many lesser-known springs worth sampling located in small towns and alongside roads throughout the country. Georgia’s mineral springs were discovered over one-thousand years ago and the use of Georgian mineral water has been recommended by Georgian and foreign researchers for the complex treatment of several digestive diseases, as well as diabetes mellitus.
West Georgia’s humid sub-tropical climate and mineral-rich soils contribute to the original taste and high quality of Georgian tea, and this is where tea plantations are mainly found. Tea leaves are picked 4-5 times per season (May – October). Georgian tea can compete on western markets with the likes of India or Sri-Lanka due to its fine quality and, in most cases, in savings on transportation. It is believed to have a unique taste, tender shoots and a special aroma, and is especially good for blending different types of tea leaves. Georgian green tea stands-out by its very interesting, strong taste.
Georgia is the second largest exporter of processed hazelnuts, next to the world leader Turkey. Western part of the country has been traditional production area for nuts. Six types of naturally grown nuts are cultivated in Georgia on 1500-1800 meter altitude: 1. Corylusavellana; 2.Coryluscolurna; 3.Corylus pointica; 4.Corylus imeretina; 5.Corylus colchica; 6. Coryluscachetica. Due to a powerful root system of local varieties, very limited amount of fertilizers are applied and many producers even started conversion to Bio. Hazelnut diseases are very rare and pesticides are also used in very moderate amounts.
Hazelnuts are the number one agriculture export product in Georgia, and currently 95% of the total share is exported. EU accounts for 75% of Georgia’s hazelnut exports, followed by CIS.
Georgia is the third largest nut exporter as of now, after Turkey and Italy. But we have full potential to overtake Italy’s export.
Georgian Soft Drinks, Lemonades and Juice
Soft drinks are very popular in Georgia, and beverages are important part of Georgian culture and history. With genuine Georgian water taste, soft drinks are prepared using classic recipes and high technology. Georgian soft drinks with unforgettable taste and flavor meet all modern standards.
Unique taste and high quality of Georgian juices is preconditioned by local water which is rich in minerals.
A multitude of micro-climatic zones and a favorable environment have contributed to commercialization of fruit production in Georgia since the early 1960s and it became a significant export product.
All large scale juice producers in Georgia are equipped with modern technological lines and satisfy all international standards necessary for export to developed countries.
The export of Georgian Juice products in 2014 increased by 43% compared to 2013. The major export destinations of Georgian juices are the European Union and USA, which account for more than 50% of the total export.
Georgian honey has a high chance of making an impression in Europe and becoming Georgia’s leading exported products alongside wine, hazelnuts and blueberry.
Georgia produced about 4,000 tons of honey last year. In 2014, Georgian beekeepers exported 5.4 tons - valued at 54,200 USD - mainly to Libya, the United Arab Emirates, Saudi Arabia, Iraq and Lebanon.
A multi-million dollar blueberry plantation and processing plant will soon be established in Georgia in a bid to counter Europe’s high demand of blueberries.
The new blueberry plantation and processing plant would be developed on a 70ha piece of land in Laituri village, Guria region in Georgia’s west. At this site the blueberries will be washed, assorted, snap frozen and prepared to be transported and sold in the European market.
Georgia has an excellent investment climate, ideal agro-climatic conditions for dairy farming and strong demand for milk, cheese and other dairy products
Most of the milk produced comes from smallholders and is sold through informal channels. Even among the country's few commercial farmers, most lack the technical skills and knowledge needed to produce high-quality milk.
Livestock & Poultry farming
There are many small farms in Georgia, which are managed by individual households. Because of the lack of modern and efficient approaches in breeding, species selection, resource management and in other factors, many of them just remain small household with small scale production.
Many will agree there is a need and capacity to build modern farms and supply local market and even think about exporting. The investors could easily benefit from the rising consumption on the local market, as well as take advantage of the Duty-free access to an over 900 million market under Free Trade Agreements with Turkey, Ukraine and CIS countries and Deep and Comprehensive Free Trade Agreement with the EU.
Fish farming, Aquaculture
In Georgia the aquaculture sector is growing rapidly, but currently only small amount of it's potential is utilized and investors can develop vast amount of feasible projects. Easy and cheap access to clean mountainous water opens an opportunity to run profitable freshwater fish farming business with high quality output. The Georgian Black Sea shore is ideal for mussel and saltwater fish farming.
Source: geostat.ge 2016
Source: geostat.ge 2016
See more information about Georgian Products Business Tour