Ministry of Agriculture of Georgia

Transcription

1 Ministry of Agriculture of Georgia Agriculture: The National Priority Create an environment that will increase agricultural competitiveness, promote stable growth of agricultural production, ensure food safety and eliminate rural poverty through the sustainable development 1

2 Strategy of Agriculture of Georgia Strategy Goals: Enhanced Competitiveness of Rural Entrepreneurs Institutional Development Amelioration and Soil Fertility Regional and Sectorial Development - Value Chain Development Ensuring Food Security Food Safety, Veterinary and Plant Protection Climate Change, Environment and Biodiversity 2

3 Agriculture in Figures - GDP Other 28.7% Public Administration 10.1% Transport and Communicatio n 10.5% GDP by sectors, 2013 Agriculture 9.4% Trade 17.3% Industry 17.3% Construction 6.7% Agriculture Industry Construction Trade Transport and Communication Public Administration Other Agricultural GDP at Current Prices (mln USD) % Hotels & Restaurants - 1.4% Proccesing 10.3% Agricultural Share in total GDP, % Construction 5.1% 8.8% Energy Sector 25.3% 8.6% Georgia, Inward FDI, cumulative 2013 Agriculture Mining and Manufacturing Energy Sector 9.4% Financial Sector Source: GeoStat Transport & Communication 14.5% Agriculture 1.3% Financial Sector 17.2% Transport & Communication Other Sectors Proccesing Real Estate 3

4 Agriculture in Figures - Trade Agro Export-Import (mln USD) Export of Main Agro Products (mln USD) citrus Spirits Export Trade Balance Mineral water Wine Nuts Source: GeoStat

5 EXPORT 2014 Export of Agricultural Products (mln USD) Mineral Water In 2014 the value of agricultural exports increased by 7% compared to the previous year and amounted to USD 826 mln Of Which: Non-Alcoholic Beverages Wine 41% 2013 Wine Mineral Water 28% Non-Alcoholic Beverages 65% Tea Tea 3%

6 Untapped Potential Although the production plummeted dramatically, the vast potential still remains Thousand tons average ( ) average ( ) Wheat Potato Vegetables Fruit Grapes Citruses Tea meat Source: GeoStat During the Soviet period Georgia was one of the major suppliers for fruit and vegetable products to the republics of the Soviet Union, exporting various kinds of fruits, tea, greens, nuts, essential oils, citruses, wine, alcoholic/nonalcoholic drinks, mineral waters, canned fruit and vegetable products. 6

7 Competitive Advantage of Georgia 49 types of soil and 22 microclimate zones; Climatic zones from subtropical to semi arid and arid; The Black Sea coastline 315km; Abundant renewable water resources 63.3cu km lakes, 45 reservoirs, appr rivers; Rich Tradition of Winery, Citrus, Grape, Tea, Nuts, Fruits and Vegetables, etc.; Extended growing seasons (both early and late). Diversified high value cash crops: Grapes with up to 500 endemic species; Wide variety of Fruits and vegetable (both early and late); Special tea for high margin markets; Citruses; Greenhouses; Nuts; Greens; Dairy Products. 7

8 Markets With Preferential Trade Terms DCFTA with EU; FTA with CIS countries; FTA with Turkey; GSP with - USA, Canada, Switzerland, Norway and Japan. Russian Market - As a result of successful negotiations, Georgia has resumed exports of agricultural products to Russia. More than 60 Georgian companies (Wine & Mineral water), have been inspected and got an approval to export to Russia; In million liters of wine exported to Russia; Georgia has resumed export of fruits and vegetables to Russia 8

9 Wine as Georgia s National Treasure The world s oldest wine producing country 8000 years of wine-making tradition More than 500 endemic wine grape varieties Export Trend 140, , ,000 80,000 60,000 40,000 20, litres 000 USD QVEVRI Georgian Wine making Method Wine export geography - 48 countries Registered 18 appellations of origin 9

10 Hazelnut Snapshot Favorable climate and soil condition Increasing area under new orchards Proximity to main export destinations Growing exports to EU and CIS markets Fifth hazelnut producer in the World Opportunities Improved post handling and processing Emerging producers in processors associations Exports to EU and South Asian markets Production opportunity for other nuts: walnut, almond, pecan nut Export of Huzelnut (1000 USD) Production Regions: Samegrelo, Imereti and Guria Export of Nuts by Markets, 2013 Germany 166,630 33% 29% Kazakhstan 129,920 Italy 75,109 83,588 17% Czech Republic Ukraine 5% 11% Other Countries 5%

11 Vegetables Snapshot Excellent nutritional characteristics Favorable climate for off-season production Geothermal water sources for off-season production Storability Transportability Increasing share of off-season production in domestic market Awareness and positive attitude to Georgian products in CIS markets Opportunity Export demand higher than supplies for fresh and processed Industrial vegetable production Upgrade of off-season production, post-harvest handling, and value adding infrastructure Value addition Exports to EU markets 13,673 Export- tons Export USD 7,131 7,903 3,895 4,498 5,649 10,971 8, Import - tons Import USD 51,269 55,775 50,216 26,603 36,478 31,721 64, % Structure of Vegetable production 5% 3% 5% 18% 20% 33% 38,587 Tomatoes Cucumbers Cabbages Onions (dry) Eggplants Greens Red beets Garlics Peppers (capsicum, paprika) Carrots 11

12 Fruits Snapshot Excellent nutritional characteristics Favorable climate and soil conditions Increasing area under new orchards Proximity to main export destinations Awareness and positive attitude to Georgian products in CIS markets Growing fresh exports to CIS and EU markets Export tons Export 1000 USD 193, ,088 92,703 96,986 65,471 42,800 42,675 79, Import tons Import 1000 USD 45,955 50,382 47,565 37,644 38,236 36,281 27,840 25,483 Opportunities Development of post-harvest handling infrastructure Upgrade of processing capacity Value addition Export demand for fresh and value added larger than supplies Exports to EU markets Structure of fruit production 9% Citruses 14% 35% Pome fruit Nuts 16% Tsone fruit 26% Subtropical Fruit 12

13 Herbs & Greens Snapshot Excellent nutritional characteristics Favorable climate for off-season production Geothermal water resources Low production cost Storability Transportability Export supplies to EU and CIS markets Opportunity Export demand higher than supplies Upgrade off-season production and post-harvest handling infrastructure Export USD Export - tons 7442 Producer Regions: Imereti, Samegrelo (Tskaltubo, Kutaisi, Samtredia, Zugdidi, Senaki) Khobi) Export of Greens by markets % 10% 2% 27% 41% Belarus Ukraine Kazakhstan EU (Latvia, Lithuania, Poland, Romania and Estonia) Other countries 13

14 Tea Snapshot Quality and competitively priced row materials Growing market share in local market Awareness and positive attitude to Georgian brand in CIS markets Growing supply to export markets in EU and Central Asia Opportunities Upgrade of processing capacity Export demand exceeds supplies High price segment niche export markets Value addition Import substitution Exports to EU, CIS, Middle East 5,364 Export (1000 USD) Import (1000 USD) 5,815 2,445 2,458 2,251 7,039 The main producer: West Georgia Export of Tea by markets % Mongolia 6% Germany 31% 7% Kazakhstan 10% Ukraine Turkmenistan 11% 26% Turkey Other countries

15 Meat Snapshot Increasing livestock population Availability of natural pastures Growing export sales of live cattle Total Import of Meat USD 121, , ,744 73,971 Opportunity Upgrade of processing facilities Import substitution Import substitution of processed products Feed production Live animal exports to CIS market Import share Beef 14% Pork Self-sufficiency Ratio for Meat (2013) 39 % Self-sufficiency Ratio for Beef (2013) 71 % Self-sufficiency Ratio for Pork (2013) 41 % Self-sufficiency Ratio for Poultry Meat (2013) 18 % 58% 28% Poultry 15

16 Dairy Products Snapshot Import of Milk Powder (tons) 4508 Seasonality in fresh milk supply Increasing dairy livestock population Georgian consumer preferences for local milk Opportunity Import substitution Import substitution of processed products Establishment of milk collection centers Breed improvement Improved food safety system infrastructure Milk Powder Import by Markets, 2013 Ukraine 26% 39% Lithuania USA 14% Belgium 7% 7% 7% Other Countries 16

17 Sheep Snapshot Two major dual purpose local breeds, Tushetian and Imeretian Characteristic quality traits Used for meat, wool and milk production Accessibility to alpine, sub-alpine and plain pastures Growing supply of live sheep to export markets in the middle-east Opportunity Export demand for live sheep higher than supply Value addition Regions: Imereti, Kvemo Kartli, Kakheti Sheep Export by Markets (2013 year) Export of Sheep (1000 USD) Export of Sheep (heads) % 0% 90% Azerbaidjan Jordan Iran

18 Access to Affordable Finance Goal Improve access to financial resources for agricultural activities Total number of loans Total Credit Amount 723 mln GEL Key Objectives: Increase competitive agricultural production Support creation of primary and processing enterprises Increase export-oriented production Increase rural employment 18

19 Produce in Georgia Program starting date: June 1, 2014 Goal: Support and development production oriented industries Program directions & budget GEL 46 mln: Agricultural production & processing GEL 30 mln Industrial production GEL 16 mln Program components: Financial assistance Infrastructural support Technical assistance Financial assistance: Co-financing of collateral - at most 30% of total loan (first 2-4 years, up to USD ) At least 80% of the loan - purchase of fixed assets Grace period 24 months - on fixed assets 18 months - on working capital Program directions in Agriculture: High-tech greenhouses: vegetables, berries, greens High-tech, intensive cattle farming (dairy, meat) Cattle, poultry, fish feed factory High-tech, intensive poultry factory (meat, hatching) Fruit, berries, vegetable, citrus processing Nuts processing Wool, leather processing Laurel, tea, tobacco processing Loan Amount Bank Subsidy USD % 10% USD % 10% 19

20 Thank You Ministry of Agriculture of Georgia 20