Overview of Agriculture Sector in Ajara Ministry of Finance and Economy of Ajara A.R. 2012

Transcription

1 Overview of Agriculture Sector in Ajara Ministry of Finance and Economy of Ajara A.R. 2012

2 CONTENT Agriculture Snapshot Agriculture Varieties / Success Stories Trade, Export & Import Indicators Export Potential of Regional Agriculture Production Investment Perspectives in Agricultural Sector of the Region

3 AGRICULTURE SNAPSHOT Population: (52% rural) Administrative units: 1 Administrative centre Batumi 5 municipalities Kobuleti, Khelvachauri (coastline) is characterized with humid subtropical climate - Keda, Shuakhevi, Khulo (mountainous) - continental climate Labour force: 65.4% of overall population Land structure of Ajara: Forest/shrubs 187 th. ha 64%) Arable land 72 th. ha 25% Others 31 th. ha 11 % Area: 290 thousand ha (4.1% of country s territory) Ajara s diverse climatic conditions and natural resources coupled with implemented structural reforms and favourable investment conditions, provides the unique opportunity for various investment projects and development of the competitive agro-business sector in the region.

4 AGRICULTURE SNAPSHOT Advantages of Agricultural Sector in Georgia Favourable trade regimes -Free Trade Agreement with CIS countries and Turkey -MNF Tariffs with WTO members -Generalized System of Preferences (GSP) with the USA, Canada, Switzerland, Norway and Japan -GSP + Programme Advantageous export conditions with European Union Competitive labour force Fertile soil and diverse climate conditions Other economic instruments to support agricultural production: Cancelled social tax; Income tax 20% Dividends tax 5% Profit tax 15% 0% profit tax on primary production, if turnover is less than GEL 0% VAT on primary agricultural products 0% Property tax (for first 5 years) on newly mastered land 0% Property tax on land with the area of 5 hectares and less

5 AGRICULTURE VARIETIES Branches of Agriculture Main Citrus Growing Arboriculture Vegetable Culture Livestock Breeding Traditional Viticulture Fishery Grain Growing Beekeeping Supplementary Tea Breeding Silk Growing Tobacco Growing Medical Plants Breeding

6 AGRICULTURE VARIETIES- Citrus Growing Citrus occupies 5200 ha in Ajara. 16 citrus varieties are most well known, among them are five are spread in Ajara: lemon, mandarin, orange, Grape fruit and citron. Most wide spread mandaring breeds are: Mandarin Unshiu, Kovane Vase, Mikho Vase, Georgian Earlier, Shiva Mikan, Italian mandarin, Clementine. 95% of plantations are occupied with broad-leave Unshiu. During , about tons of citruses were produced, out of them 80 % was exported. Exporting countries: Azerbaijan (48%), Ukraine (29%), Armenia (18%), Belorussia (2%), Kazakhstan, Kuwait, Moldova, Czech Republic, Uzbekistan. Transportation means for export - sea, road and railway transportation.

7 SUCCESS STORIES Established in 2005 Production: packaged citrus in Euro-standard boxes, Since 2008 citrus concentrate, puree, essential oil Offers processed and wrapped product complying with modern technologies Mandarin is processed on high quality Italian line Operational capacity 12 tones per hour Realization market local and export Ukraine, Central Asian countries Ltd Georgian Product In 2007, citrus processing factory was build by Ltd Georgian Product in Kobuleti. The classification-grading-packaging and modern processing technological lines from Italian production company Fenco were installed at the factory. The overall investment reached 15 million USD. Production: packaged citrus in Euro-standard boxes, Since 2008 citrus concentrate, puree, essential oil Operational capacity 25 tones per hour Realization market local and export Ukraine, Central Asian countries

8 AGRICULTURE VARIETIES- Arboriculture Fruit is cultivated on 4420 ha Subtropical fruits, pome fruits, stone fruits and nuts are produced in Ajara 45% of fruit produced is pome fruit Monthly Average Air Temperature in Ajara (C ) Average Air Temperature Subtropical persimmon export (2011)- Ukraine (86%), Belarus, Moldova, Armenia 1300 t of nuts were produced(2011) 350 t of chestnuts were produced(2011) 220 t of blueberry were produced(2011)

9 AGRICULTURE VARIETIES- Vegetable Culture Nowadays, demand of local population on vegetables is satisfied by 10-15%. Together with development of tourism and resort infrastructure deficit has doubled. Greenhouse Farming dates back to 70s of last century Up to 40ha in Kobuleti & Khelvachauri suitable for greenhouse farming Modern technologies less dependency on soil characteristics High proximity to gas pipeline Favorable local climate minimizes power consumption ICON GROUP LTD Established in 2009, total investments of 3 mln USD Employs 70 people Tomatoes, eggplants, cucumbers & peppers are grown without using hormone technologies and chemical substances m 2 of land was utilized for greenhouse farming in 2009 & the rest m 2 in 2010 In 2011, more than 600 tons of tomato were produced Realization Market: Georgia, Ukraine, Armenia.

10 AGRICULTURE VARIETIES Livestock Breeding Livestock Breeding is one of the strongest fields in agriculture sector of Ajara region There are approximately 115 thousand heads of livestock in the farms of region Livestock breeding farm Ltd "Nusret Georgia started operating in the municipality of Kobuleti,village Sachino in 2011 (120 heads of livestock) At the beginning of 2012, livestock breeding farm Ltd " Batumi Meat Mombinat will start operating in village Erge, the municipality of Khelvachauri (150 heads of livestock) Two modern equipped slaughter-houses: Ltd "Baqara Meat Products" and Ltd " Batumi Meat Combinat will start operating at the beginning of 2012 in Khelvachauri municipality.

11 AGRICULTURE VARIETIES- Fishery Unique conditions for trout aquaculture Home to Black sea salmon & river trout Potential annual production of brown trout in Ajara is estimated at tons Number of small scale trout rearing farms Around 100 fishing farms are functioning in Ajara Around 600 tones of trout are produced annually About 200 people are employed in fishery farms

12 AGRICULTURE VARIETIES- Tea Breeding In 2010, 645 tons of tea leaves have been processed in the region. Following companies have been involved in tea processing: Ltd Agrofirm Kobuleti ; Ltd Ajara Invest Tea ; Ltd Agroexport ; Ltd Naziri & Company AGRO-FIRM KOBULETI LTD Established in 2007, total investments of 1.1 mln USD Re-equipment activities were carried out The Turkish sorter machine of half-finished product was installed, which cleans tea from fuzz and sticks completely Technological production line Agura'' tea was installed as well Product assortments: black and green Baikh tea, green Agura tea and granulated tea Production capacity amounts to 50 tons of tea leaves in 24 hours Realization Market: Georgia, Ukraine, Mongolia, Holland, Middle Asian Countries

13 AGRICULTURE VARIETIES- Tobacco Growing ADJARIAN TOBACCO LTD Established in 2009, the pioneer manufacturer of the first Georgian cigar Cultivating quality tobacco varieties in the Adjara region In the first year of production, quality tobacco from mountainous villages of Adjara was sent to Honduras for processing. The result was a mixture of Ajarian tobacco and Latin American black tobacco, which was united in the firstever Georgian cigar Gonio Adjara Tobacco brought elite black tobacco from Honduras such as Korokho, Krioio, Havana and Connecticut, which were successfully adopted in Ajara Approximately tones of tobacco leaves were produced in 2011

14 PROCESSING INDUSTRY CANNING INDUSTRY Ltd Nariji, Ltd Georgian Product, Ltd Citro WHEAT PROCESSING Ltd Ortsva, Ltd Baraka 2005, Ltd Nash-3, Ltd Urekhi, Ltd Samsuni BREAD-PASTRY PRODUCTION Ltd Khelvachauri Bakery, Ltd Bread House TEA PRODUCTION Ltd Agroexport, Ltd Agrofirm Kobuleti, Ltd Ajara invest tea, Ltd Naziri & company DAIRY PRODUCTION Ltd Sista, Ltd Kakhaberi, Ltd Nusret Georgia, Ltd Ango. LIVESTOCK PRODUCTION Ltd Ango 21, Ltd Kakhaberi, Ltd Nusret Georgia OIL PRODUCTION Ltd Batoil FISHERY Ltd Oraguli, Ltd Kobrona, Akavreta 2007 WINE PRODUCTION Ltd Ajarian winery BEER PRODUCTION Ltd Batumi Beer Brewery MUSHROOM PRODUCTION Ltd Choloki, I.E. Mirza Ebralidze MINERAL WATER PRODUCTION Ltd Kokotauri, Ltd Shansi PLASTIC PRODUCTION Ltd Georgian plastic TOBACCO PRODUCTION Ltd Ajarian tobacco, Ltd Imeri MACARONI PRODUCTION Ltd Jeoloki

15 SUCCESS STORIES Established in 2006, total investments of 20 mln USD Located on 3 ha area (3 operating reservoirs) In 2011, the company has processed: liter of sunflower; Producing: kg non-refined oil; Equipped with Italian high quality technology and modern laboratory for quality control 100% ecologically pure production (complies with European standards) 30% share of local market and also exports to foreign countries Established in 2008, new capital investments of USD for reconstruction and technological improvement Technological lines of producing and bottling yoghurt, sour milk, cottage cheese and sour cream were installed It is one of the largest producers of diary products in Ajara since 2008 About 120 people are employed in the enterprise

16 SUCCESS STORIES Ltd Kokotauri Ltd Kokotauri is located in the high mountains municipality of Ajara (Keda), which produces mineral, sparkling and drinking water Kokotauri. The company is licensed for 25 years. In 2009, the company has re-equipped its technological base. The mineral and sparking water is bottled in 0.5, 1.0 and 5.0 liter bottles. In 2011, bottles of mineral water were produced Realization is done at local consumer markets.

17 Trade, Export & Import Indicators MAJOR TRADE PARTNERS IN AGRICULTURAL EXPORT IN 2011 Ukraine Armenia Belorrusia Italy 5% 3% MAJOR TRADE POSITION IN AGRICULTURAL EXPORT IN 2011 Citrus Nut Perssimon Oil Laurel leaf 4% 16% 16% 76% 22% 48% MAJOR TRADE POSITION IN AGRICULTURAL IMPORT IN % Grain Vegetable Fruit Oil 8% 8% 33% 51%

18 EXPORT POTENTIAL OF REGIONAL AGRICULTURAL PRODUCTION Product Estimated Quantity, tons Product Estimated Quantity, Tons Citrus, total Including: mandarin orange lemon Tea, total 800 Including: black and green tea (packaged and un-packaged) 300 Brick tea 500 Subtropical persimmon Kiwi 100 Chestnuts 300 Fruits (apple, pear, plums) Vegetable (cucumber, tomato) 500 Fish (trout) 300 Mandarin concentrate 200 Georgian cigar Gonio (unit) Sunflower oil Mziuri Mineral water Kokotauri (lt) Honey 200 Dry blueberry 25 Nuts 2 000

19 Supply indicators of foodstuffs produced locally to the population and tourists of the region (2012) Product Description Annual Consumption Per Capita, Kg Production Prognosis (tons) Demand of Ajara Population (tons) Demand of Tourists (tons) Demand Total (tons) Deviation, % Bread and Breadproducts ,5 Potato 96.7 Vegetables 146 Fruit 110 Sugar 36.5 Meat and Meat Products 73.0 Fish 18.3 Milk and Milk Products 434 Vegetable Oil 7.3 Egg (thousand) , , , , , , Population of Ajara , Tourists Source: Ministry of Agriculture of Ajara A.R

20 SUCCESS STORIES During years, 90.7 million GEL* of foreign and local investments have been made in agriculture sector of Ajara. Currently, 27 investment projects are proposed to the Ministry of Agriculture of Ajara A.R. for development of the sector. In frame of proposed projects, 30 million GEL investments will be made and new jobs created for the next 2-3 years in agriculture sector of Ajara region. (* exchange rate 1 USD = 1.78 GEL) Ltd Nusret Georgia Ltd Ajara Wine House Bee-keeping House Ltd V&T agro Ltd BATUM MEAT COMBINAT

21 SUCCESS STORIES Ltd Naziri & Company Ltd Jeoloki Ltd Subtropic Fruits Ltd Ikhtiosi Ltd Agro Invest Service Ltd Baqara Meat Production

22 INVESTMENT PERSPECTIVES IN AGRICULTURAL SECTOR OF THE REGION Development of greenhouses (40ha) Development of cattle-breeding farms for meat production Development of poultry and egg production Development of fruits and vegetable processing enterprises Development of processing lines for fish, meat products, bakery, potato and other products Development of refrigerated storage facility for fruits and vegetables Promotion of ecologically safe products via Farmers Markets

23 Batumi Investment Agency (BIA) 74, Baku str., Batumi 6010, Georgia Tel: Mob: info@investinbatumi.ge Skype: lelaputkaradze