Sector Analysis

With substantial investment in technological and infrastructure capacity building, Georgia’s agricultural sector has the potential to export varied agricultural products ranging from wheat, cereal, soya, cooking oil, corn, nuts, tea, citrus, and herbs.

General trends over the last 10 years show agribusiness as one of the largest contributors to Georgian GDP.  Since 2000, Agribusiness has contributed between 1.2 to 1.7 billion GEL to the Georgian GDP.  However, in relationship to other sectors, Agribusiness’s contribution to the GDP has fallen from 20.6 in 2000 to 11.7 in 2006.  This doesn’t represent a decline in the agribusiness sector, rather, represents the improvement of the Georgian economy in other previously untapped areas. 

Impediments to the sector’s development include lack of access to financing, absence of modern agriculture technology, and irrigation and drainage systems in need of renovation. The creation of a favorable investment climate, development of the land market, and protecting the domestic market from counterfeit and smuggled goods will all help to mitigate these impediments.

Additional investment opportunities are presented by the lack of modern agricultural technology and equipment, including processing centers, and equipment ranging from graders to harvesters. In addition, the underdeveloped livestock feed and seed production business offer areas for investment.  Currently over 50% of Georgia’s population is employed by the agricultural industry.  According to the USAID financed project implemented by AgVANTAGE, the current capital utilization in the agricultural sector in Georgia falls in the 360 million range USD.  Experts estimate that the capital required for Georgian agriculture reaching its full potential is 1,200 million USD.  In 2005 Millennium Challenge – a US government sponsored cooperation, signed a five-year 295.3 million USD compact with Georgia, of which 15 million USD is to be used on Agribusiness Development Activity.

Agricultural Statistic

AmCham and/or EUGBC Members

 ACDI/VOCA - AgVANTAGE
Website: http://www.agvantage.org.ge
ACDI/VOCA is a U.S. not-for-profit development organization headquartered in Washington D.C. ACDI/VOCA has been in Georgia since 1995 providing Technical Assistance to Georgian rural farmers, SME's and banks. ACDI/VOCA is currently implementing two projects in Georgia: AgVANTAGE and Farmer to Farmer.

 Begi Company
Website: http://www.begicompany.com
Begi Company has a vertically integrated structure uniting companies specializing in production, processing and storage of agricultural products as well as food manufacturing and distribution. Begi Company is one of the leaders in Georgian wheat milling industry. Begi Company comprises the enterprises striving for a common goal of building and developing the modern agrarian and industrial structure aiming to manufacture food products from domestic raw material using an advanced  non-polluting technologies.