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Fruitful Land, Good Climate Conditions and Free Business Environment Do not Suffice for Success

Stable business environment free of corruption and transparent and simple payment system are one of the important factors for drawing investments to Georgia.

Georgia occupies an important location, as a country connecting Europe and Asia. Transport infrastructure, seaports, air and railway systems have been developed and this is very important for Georgia, as a transit country. Construction of Anaklia deep-water seaport is underway and it will have particular importance for international commercial traffic.

Georgia has already started applying the free trade agreement with EU. A free trade agreement was also signed with China in 2016. The mentioned agreement will come into force in 2017. Under this agreement, 95% of Georgian products will penetrate Chinese market without customs taxes.

Based on the above-mentioned, our country becomes attractive for foreign investors as an important transit country and as a producer of agrifoods with a free access to European countries and Asia.

Consequently, we should use the mentioned environment and conditions. Georgia’s agribusiness sector is being developed at low paces. Along with development, new challenges arise too. Along with the sector development, a lack of innovative professional knowledge becomes more evident.

Heavy social and economic and political environment of 1990s made significant effect on formation of new professional staff in both agrarian direction and in all fields.

Today Georgian universities grow professionals. Vocational schools are opening and new  programs are being developed. Both state and private sectors show serious interest in this direction.

Naturally, all these efforts will bring results in several years, however, this problem is relevant today and the field will not be developed due knowledge.

We have 3 problems in agribusiness:

  1. in some directions we do not have specialists.
  2. We have specialists but they lack for due modern knowledge and they should be trained.
  3. We have specialists, but farmer, peasant, producer do not use their knowledge. They do not have skills and culture of use of knowledge.

Everybody, especially agrarian sector representatives and businessmen see that the problem exists. However, it is difficult to seek the problem resolution ways.

Several businessmen invited foreign specialists, but in this case everything is related to mathematics – a big company may pay high salaries to foreign specialists, while small businesses cannot take similar costs. A cooperative is to diversity expenditures. Consequently, if cooperative members share expenditures for specialists (Georgian, foreign), the problem will be resolved partly.

One of the important ways for imports of modern professional knowledge is related to foreign investments. Besides financial benefits, foreign investments also bring huge knowledge and experience. Consequently, all these factors make positive effect on domestic production. Investments bring information and technologies on modern agribusiness achievements.

We should remember that only fruitful land, good climate conditions and free business environment do no suffice for success. Like all other fields, innovative knowledge and professional staff are one of the important factors for attaining success in agribusiness.

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