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) 847,0 1100,2 1170,8 1319, ,4% Financial Sector 17,2% Other Sectors 16,1% Transport & Communication 14,5% Source: GeoStat Agricultural Share in total GDP, % 8,8% Georgia, Inward FDI, cumulative 2013 Agriculture 1.3% Construction 5,1% Proccesing 10,3% Energy Sector 25,3% 8,6% Agriculture Mining and Manufacturing Hotels & Restaurants Health and Social work Real Estate 9,4%

4 Agriculture in Figures - Trade Agro Export-Import (mln USD) Export of Main Agro Products (mln USD) ,7 512,5 774,3 825,9 Nuts 166,6 183, Wine 127,9 180, Mineral Water 106,9 137, ,8-517,3-479,6 Spirits 95,2 99, Export Trade Balance Source: GeoStat 4

5 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. 5

6 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. 6

7 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 7

8 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 200,0 150,0 Export of Wine (mln litres) Export of Wine (mln USD) 127,9 180,7 QVEVRI Georgian Wine making Method 100,0 50,0 0,0 54,1 41,1 32 9,6 12,9 16,9 20, ,9 Wine export geography - 48 countries Registered 18 appellations of origin 35,9 45,9 8

9 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 Production Regions: Samegrelo, Imereti and Guria Export of Hazelnuts by markets Italy Germany Kazakhstan Spain Slovakia Chezch Republic Belgium Other countries Export of Huzelnut (1000 USD) % 20% % % 5% 5% 7% 8% 9

10 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 % 3% 5% 9% Structure of Vegetable production 18% Export (tons) 20% 33% Export (thousand USD) Import (tons) Import (thousand USD) Tomatoes Cucumbers Cabbages Onions (dry) Eggplants Greens Red beets Garlics Peppers (capsicum, paprika) Carrots 10

11 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 (thousand USD) 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 Import (tons) Import (1000 USD)

12 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 of Greens (tons) Producer Regions: Imereti, Samegrelo (Tskaltubo, Kutaisi, Samtredia, Zugdidi, Senaki) Khobi) Export of Greens by Markets % 3% 13% 56% Belarus Ukraine Kazakhstan Other countries 12

13 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 Export (1000 USD) Import (1000 USD) The main producer: West Georgia Export of Tea by Markets % 23% Mongolia Turkey Germany 12% 17% Russia 12% Kazakhstan 15% Other countries 13

14 Meat Snapshot Increasing livestock population Availability of natural pastures Growing export sales of live cattle Total Import of Meat - (1000 USD) Opportunity Upgrade of processing facilities Import substitution Import substitution of processed products Feed production Live animal exports to CIS market Import Share % Beef 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 % 56% 30% Poultry meat 14

15 Dairy Products Snapshot Import of Milk Powder (tons) 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 Import of Milk Powder by markets Ukraine 20% Lithuania 5% 37% Belgium 5% Netherlands 7% Turkey 11% 15% Other countries 15

16 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 Export of Sheep by Markets Export of Sheep (1000 USD) Export of Sheep (heads) Jordan 35% Lebanon 4% Azerbaijan 61%

17 Thank You Ministry of Agriculture of Georgia 17