Sector Analysis

The food processing industry was one of the most developed sectors of Soviet Georgia. The market for this production included all the Soviet republics which Georgia supplied with wine products, tea, canned fruit and vegetable, citrus, essential oils and mineral waters. After the disruption of Soviet economic ties, Georgia lost not only the market but also the financing, becoming a country dependent on imports of food products. This resulted in vineyards, orchards, and tea plantations gradually dying out. Today, with large capital investments in technology and infrastructure, Georgia could once again be the breadbasket to its regional neighbors, while also supplying its domestic market.

Wine

Wine is one of Georgia’s leading exports. Foreign capital investments into modern growing and production techniques and a strong counterfeit crackdown by the government all helped to increase both the visibility and quantity of Georgian wine on the export market. Recently, Georgian wine producers have formed an Association of Georgian Wine Producers to better protect the brand www.wine.ge

There are 500 types of vine in Georgia and vineyards occupy over 70,000 ha of land, mainly in the eastern part of Georgia known as the Kakheti region. Bottles of Georgian wine and alcoholic drinks supplied to the EU market should bear a label in compliance with EU standards, and should also have a certificate of analysis No 7 attached. The leading wineries and spirits companies are GWS, Khetsuriani, Manavi Wine Cellar, Taro, Tbilvino, Telavi Wine Cellar, Teliani Valley, Samtresti, Sarajishvili and Eniseli, and Aia.

Fruits & Vegetables / Nuts

Opportunities exist for capital investments in the fruit and vegetable processing industry. Out of 58 existing processing plants, 55 stand idle. The situation is better in the canned-foods industry where most of the plants have already been privatized. As a result of the privatization, the productivity of this sector increased. The demand for canned goods is strong both in Georgia and in various CIS countries.

The hazelnut and walnut business shows promising growth, with consistent quality and increased exports to European countries.

Tea

Georgia was the largest supplier of tea to the Soviet market. 162 tea processing plants need to be re-equipped with modern machinery and renovated. Huge volumes of fuel are needed to dry tea leaves and the cost of electricity also adds to the price of the production. Consequently, the production of granulated and packaged tea has nearly ceased and growth is seen only in primary tea processing and raw green tea production.

Dairy

Until 1990 there were some 50 medium-size dairy factories in Georgia. Now, only 10 factories operate and around 15 enterprises are engaged only in seasonal production of ice-cream from imported milk powder. The entire milk processing industry is represented by 15 product types, including yogurt, sour cream, cottage cheese, several types of cheese, ice-cream, milk (including pasteurized milk), butter, etc. Over the past decade the dairy sector has grown rapidly. For investment opportunities in dairy, please visit www.agvantage.org.ge.

Meat

The meat processing industry faces serious problems with only 5-7 functioning facilities. Local production cannot meet demand with imports comprising 1/3 of total meat product consumption. Within the framework of the USAID assistance project, several enterprises should be converted into medium-size enterprises applying modern technologies. The company Nikora, which is equipped with German technology, operates successfully and supplies its product to a wide network of outlets.

AmCham and/or EUGBC Members

 Nikora Ltd.
Website: http://www.nikora.ge
The company "Nikora" was legally registered as Joint Stock Company in 2008. It was established a new integrated system of quality management and food safety. (ISO 9001:2000 and 22000:2005) The company is developing in innovative way in compliance with the International Standards. Priorities are: Reinvestment in fixed assets and enhancing the productive capacity; Own distribution-retail system; Establish raw materials base - trout breeding, cattle farms, vineyards. Prospects are: Support in Fishery and Farming development; Growth of the Distribution net and Customer Service Improvement; Innovative production by using additional capacities .

Aleksandreuli
Website: http://www.aleksandreuli.ge
"Alexandreuli" Ltd. was founded in 1998 and it is the enterprise preserving the culture and traditions of Georgian wine-making and vine-growing. It aims at rescuing such unique species of grape in Ambrolauri Region, as "Alexandreuli", "Mujuretuli", "Tetra" and promoting the growth of the areas the mentioned species grow on. The enterprise in engaged in producing high-quality Georgian wines and realizing them on local and international markets. There is a full production cycle introduced at the company implying production starting from breeding a vine and up to wine bottling.