Industry Overview

Georgia's agricultural sector – Uncover the potential

Due to huge potential Georgia’s agricultural sector has always been interesting. Throughout last several years multiple projects have been launched by the government to support development of the field, which sparked local business and foreign investments. For several years Agriculture and its related fields have remained top priority for the economic development of the country, support of the industry is increasing and the growth is steady.

Georgia’s Agricultural production delivered strong growth in 2014 and 2015, which was accompanied by increase in import and export, numerous agricultural support programs and promising inflows in FDI. However there’s still a large room for sector growth.

The Georgian government is continuing to support the agricultural sector with unprecedented projects:

Small Farmers Assistance Project is a government initiative aimed to aid rural population to develop into small farms by providing means to purchase agricultural goods and help with the cultivation. In 2013 710,000 farmers participated in the project and around 800,000 in 2014.

Project: Financing Processing Companies while working on Concessional Loan Program 40 under financed regions were identified and 0.2-1.0 mln US dollars was allocated to each within the framework of grant program aimed at financing 50-62 processing enterprises.

Concessional loan Program provides financing to commercially viable projects in wine making, livestock and poultry raising, construction of warehouses, grain dryers, and greenhouse farming projects. Around 264 mln GEL was issued in 2014.

Other Programs:

  • Estimated 9.5 mln GEL has been invested in land reclamation and drainage rehabilitation works by the Ministry of Agriculture.
  • New project launched by the government enables the farmers to become co-operative and secure the resulting benefits including tax credits and grants.
  • Total investment of 59 mln US dollars is expected to be made in two new agricultural projects by the Georgian Co-investment fund, a new 6 bln US dollars private fund.

Industry Specific Data

  • FDI Share of the Agriculture and Processing Industry in 2015 - 15%
  • In 2015 Agriculture sector made up 9,20% of Country's GDP
Trade Balance expressed in thousand U.S. Dollars   2014 2015
Import Export Import Export
Food and Drink 1 164 911,7
760 552,4
1 157 494,7
811 856,7
Agriculture 91 304,6
145 528,8
96 559,9
151 317,2
Technology 41 882,9
41 725,4
Total 1 298 099,1
906 853,0
1 295 780,0
963 657,1