Georgia is traditionally an agricultural country, which has 22 micro-climates varying from cool to dry, warm to humid. These diversified micro-climates allow for a longer than normal harvesting season and a wide range of growing conditions. Soils are of volcanic origin located in the river valleys. They tend to be quite fertile and reasonably easy to cultivate.
Georgia as an agrarian-oriented country has a significant rural population. The country was renowned as a quality food supplier during the Soviet times and the Georgian food & beverage products are still well-recognized as healthy and supreme quality brands in CIS region.
Georgia has a quite big opportunity in terms of agricultural development. Georgia is considered as as an ideal country not only for initial production, but for processing industry, as well.
The scale of exported products grows from year to year. As the most popular exported product, still remains wine, followed by mineral water and nut cultures. Lately, some products have shown some good grow in export figures, such are berry, meat and vegetables. Though, local demand in most products still remains higher then supply, so investment in Agriculture are still very interesting.
Georgia’s natural resources and various micro-climatic zones are perfect for production a wide range of grains, vegetables, fruits, etc.
Rich and pesticide-free soil is ideal for organic production.
Meat produced in Georgia is well-known for its taste which is due to the feed consumed by the animals. Also water, surrounding climate and other local factors play the role in the taste of produced meat. Therefore amount of meat export keeps rising year to year.
The employees in agricultural sector receive 30%-40 % less wage than the national average. As Georgia has big amount of water resources, the access to water is easy and cheap. Other utility prices such are electricity and gas are comparably low.
On the one hand, the investors can benefit from the rising consumption on the local market, which is on the other complemented by the Duty-free access to 900 million markets under Free Trade Agreement with Turkey, Ukraine and CIS countries a DCFTA (Deep and Comprehensive Free Trade Agreement) with EU.
Incentives for processing plants
The projects of building new agricultural products processing plants can get grant from the government with a total value of up to 250 000 USD (maximum 40% of the value of project). Additionally investor can buy state owned immovable nonagricultural property for 1 GEL (symbolic price) if the investment made on processing plant is 4 times more than its market value.
Was prepared according to the information of Georgian National Investment Agency