Home / Economy / ENPARD Report: Total Revenues of Cooperatives Rose by Averaged 19% Year on Year
Enpard

ENPARD Report: Total Revenues of Cooperatives Rose by Averaged 19% Year on Year

European Neighborhood Programme  for Agriculture and Rural Development (ENPARD) has published an annual report on development of agriculture cooperatives financed by EU in Georgia.

Under the report, the program has financed more than 260 cooperatives (financial component will be maintained in 2017 too). ENPARD has invested about 12 million GEL, while the co-financing ratio of cooperatives marked 4 million GEL.

The report covers performance of ENPARD-financed cooperatives in 2014-2015, excluding Ajara Region; However, the indicators were submitted by cooperatives themselves and, in most cases, they are not confirmed by official documents.

The report covers performance of 118 cooperatives that unite total of 1180 members (10 members in one cooperative on average).

In 2015 one cooperative owned long-terms assets of 99 000 GEL, on average, up 12% compared to 2014. Cooperatives purchased 39% of long-term assets by EU financial support, while other part was purchased by such sources as: cooperative membership fees, leased assets and so on.

Only 79 cooperatives of 118 ones inquired submitted report on revenues. According to the mentioned indicators, total revenues of organizations made up about 6 million GEL, 30% of which  (1.8 million GEL) were net profits. As to inquiry conducted in 2014, only 48 cooperatives of 82 ones submitted indicators about revenues. As compared to 2014, in 2015 total revenues of one cooperative increased by 19% on average (up to 77 000 GEL from 64.6 thousand GEL).

In 2014, forty-five cooperatives of 82 ones inquired  received profits, in 2015 — 74 cooperatives out of 118 ones received profits, while 8 cooperatives ended the year in losses. Net profits of one cooperative increased by 21%  for a year. As compared to 2014, in 2015 net profits (only in cooperatives with positive profits) rose by 41% (from 16.6 thousand GEL to 23.5 thousand GEL); 8 cooperatives saw 8.800 GEL losses on average in 2015.

A major part of cooperatives (85%) reinvested a major part of profits in production for development purposes.

Inquired cooperatives were involved in about 25 various  chains of agriculture sector and they used to produce a wide range of assortments. For example, in 2015 fifteen cooperatives produced 34 tons of honey (2.3 tons by one cooperative on average); twelve cooperatives produced 1 726 tons of potato (144 tons by one cooperative on average); 8 cooperatives produced 250 hectoliters of wine (31 hectoliters by one cooperative on average); 8 cooperatives produced 90 tons of vegetables (11.2 tons by on cooperative on average); 6 cooperatives produced 143 tons of berry (23.8 tons by one cooperative on average).

By 2013-2019 the ENPARD budget in Georgia marked 102 million EUR. Priority of the first phase of the program was the agriculture sector development, while the second phase aims at enhancing potential of economic development of village residents.

The ENPARD small cooperation component for small farmers  is carried out by CARE, OXFAM, Mercy Corps, PIN and UNDP Georgia.

eugeorgia.info