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Georgia Agriculture Sector Bulletin

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Georgia Agriculture Sector Bulletin 2012 AGRICULTURE SECTOR FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS MINISTRY OF AGRICULTURE, GOVERNMENT OF GEORGIA SUPPORTED BY THE EUROPEAN UNION Agriculture Sector Bulletin 2012 Editors and Publishers Food and Agriculture Organization of the United Nations (FAO) in Georgia Ministry of Agriculture, Government of Georgia Cover Photo FAO Georgia Photographs Food and Agriculture Organization of the United Nations (FAO) in Georgia World Wide Web Layout and Content FAO Georgia This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of FAO and can in no way be taken to reflect the views of the European Union. All opinions, data and statements provided by individuals undersigning the texts in the bulletin are exclusively their own and do not reflect in any way the views of FAO and of the Ministry of Agriculture, Government of Georgia. @ FAO GEORGIA 2012 Food and Agriculture Organization of the United Nations 5, Marshall Gelovani Avenue Tbilisi, 0159, Georgia Phone: (+995 32) 2 453 913 5, Radiani Street Tbilisi, 0179, Georgia Phone: (+995 32) 2 226 776; 2 227 705 Contents Foreword . 3 Agriculture Policies and News . 4 Policy . 4 Production . 4 Trade . 5 Investment . 6 Training . 6 Donor Support and Aid Activities . 7 Theme: Food safety . 16 Trade, Agriculture and Food . 20 Trade . 20 Prices . 23 Winter 2012 2 Winter 2012 Foreword Dear Colleagues, I am honoured to present the winter 2011 Edition of the Georgia Agriculture Sector Bulletin regularly published by the Food and Agriculture Organization of the United Nations in collaboration with the Ministry of Agriculture and the Delega- tion of the European Union to Georgia. As the previous ones, the present edition features the most recent developments and trends in the field of agriculture. One of the key themes of this bulletin is food safety, which is one of the necessary conditions of the conventionally acknowledged basic human rights – protection of the human health and life. We, in FAO, often quote an old proverb saying “we are what we eat”, which is true as our nutritional status, health, physi- cal and mental faculties depend on the food we consume. Thus, the main efforts are directed towards protection of the consumers against the risks related to food consumption and the assurance of an equal access to safe and quality food for people. People in developing countries are exposed to a reasonably wider range of potential food safety and quality risks, which in turn have an impact on the food security. The Government of Georgia is taking further steps in the process of development of agriculture and improvement of food safety in the country. A Comprehensive Strategy and Legislative Approximation Programme in Food Safety has been elaborated, which was followed by the drafting of the Georgian Code on Food Safety, Veterinary and Plant Protection. Through these actions, Georgia demonstrates its commitment to embark on the process of negotiations to conclude the Deep and Comprehensive Free Trade Agreement with the European Union. I would like to take this opportunity, on behalf of FAO, to thank the Government of Georgia as well as our loyal donors for their constant support and excellent cooperation, which enables us to better serve the needs of the most vulnerable rural households in the country to rebuild their agricultural productive capacity and contribute to strengthening food security in Georgia. Mamuka Meskhi Assistant Representative The Food and Agriculture Organization of the United Nations 3 2012 Agriculture Policies and News Policy medium tea producers. The tea festival was also focused at pro- moting high quality, environmentally clean local tea brands and The Ministry of Agriculture plans to import soya and sunflower coverage of internal market. Twelve tea producer companies par- seeds ticipated in the festival, including those from Georgia and other The Ministry of Agriculture of Georgia is starting two new pro- regions of the Caucasus as well as tea importers. The festival grams to import high quality soya and sunflower seeds. Purpose presented unique tea types from all over Caucasus, including of the program is to increase local production and reduce import. black, green and herbal treatment products. The event was orga- There is an increasing demand on crops from poultry and cattle nized by Georgia Tea Producers’ Association with support from farms and it’s necessary to increase production of crops, like the Ministry of Agriculture. sunflowers and soya, that could significantly decrease costs and therefore make local products more accessible for the popula- Over the past year Consumption of local tea on Georgian market tion. (www.moa.gov.ge) has increased from 5% to 20%. During 2010 Georgian tea was exported to Armenia, Kazakhstan, Tajikistan, Mongolia, Moldova, GeoStat conducts agricultural research Ukraine, Belorussia, Czech Republic, Germany, UK, USA, Can- The National Statistics Office of Georgia has started a selective ada and India. It will soon appear on new export markets. (www. field research on agriculture production during the third quarter medianews.ge) of 2011. As a result of this survey, GeoStat will have different in- dicators for agricultural statistics: key livestock production (meat, International seminar to support fish production milk, eggs) and information on numbers of domestic animals Georgia hosted a seminar on sustainable use of water resources (cows, pigs, sheep, goats, and poultry). (www.medianews.ge) for aquaculture development with participation of Georgian and foreign farmers. Purpose of the seminar was to support fishery development by introducing modern technologies and price reg- Production ulation mechanisms for making fish products accessible to the users. The event was organized by the Ministry of Agriculture International tea festival in Tbilisi and supported by the Norwegian Ministry of Foreign Affairs, and Tbilisi hosted the 6th annual international tea festival with the was conducted by Akvaplan-Niva, a Norwegian environmental aim of encouraging economic development of tea production, research and consulting organization. Foreign guests introduced fostering joint economic projects and supporting local small and various principles and regulations regarding the use of water 4 2012 and aquatic resources of the European Union to their Georgian As a result of the collaboration between the Ministry of Agricul- counterparts. Akvaplan-Niva will further provide consultancy to ture and TAV Holding, Georgian wine shops featuring a wide as- Georgian farmers and fish producers on introduction and use of sortment of Georgian wine brands have also been opened in duty modern technologies. (www.maf.ge) free areas of Istanbul Ataturk airport as well as Ankara and Izmir international airports. (www.moa.gov.ge) Trade Georgian wine awarded in Hong Kong Georgian wine has been successful at the international wine and Wheat supply of Georgia spirits competition China-Eurasia Expo 2011, held in Hong Kong. According to the Wheat Association, Georgia does not have to Georgia won 2 golden, 1 silver and 13 bronze medals. Golden worry about wheat shortages on local market. Wheat supply of medals were awarded to Saperavi aged in oak by Kindzmarauli the country is much higher than during the previous months. Up Cellar, and Chacha of Chateau Mukhrani. Kindzmarauli Cellar to 120 000 tonnes of wheat has been imported from the Ukraine also received a Grand Prize. Such success provided a unique and Kazakhstan, which is sufficient for at least three months. Ne- chance for introducing Georgian wine in the Asian market, since gotiations are being held with European countries as well as the Hong Kong dictates modern trends to China market. The Nation- US and additional volume of wheat could be imported if needed. al Investment Agency of Georgia will ensure that winner wine However, the price of European and American wheat is higher brands are included in a popular iPhone application that is widely than that from Kazakhstan and the Ukraine. Each month the used by wine lovers while ordering drinks at restaurants. population of Georgia consumes approximately 40 000 – 50 000 tonnes of wheat. (www.medianews.ge) Web-site to promote trade The National Investment Agency of Georgia recently introduced the new web-page www.tradewithgeorgia.com. This page pro- Wine shop at Tbilisi International Airport vides an online database of Georgian exporters and catalogue of A new shop called “Georgian Wines” was opened in the duty-free products, and is user-friendly for foreign leaders. The system al- area of the Tbilisi International Airport. It sells wines produced lows the search of products by names as well as H codes. Over- by Badagoni, Georgian Wine Corporation, Khvanchkara Ltd, Kin- all, 401 Georgian products have already been registered on the dzmarauli Cellar, Tbilvino, Sarajishvili, Teliani Valley, Bagrationi web-site, that also allows companies to post information on their 1882, Kakheti Traditional Wine Production Ltd., and other prod- products and upload various photo materials. (www.maf.ge) ucts. This shop of exclusively Georgian wines was initiated by the Ministry of Agriculture of Georgia and support from TAV Hold- Supporting trade opportunities ing. Such display of variety of wines at Tbilisi airport, a transit In Autumn Georgia hosted the exhibition-forum of Georgian alco- place for thousands of travellers each day, will support promotion holic and non-alcoholic drinks “Trade with Georgia 2011 – Trade- of Georgian wines and raise the awareness of the international show and B2B Forum (TWG 2011)” with the purpose of promoting community. Georgian products. The event was conducted with the support 5 2012 from the Georgian National Investment Agency and Ministry of relief period. The project also envisages development of skills Economy and Sustainable Development. Up to 60 local compa- for agriculture lending and diversification of the loan portfolio for nies presented their products, while over 80 foreign traders, wine participant financial institutions. Technical assistance will be tar- experts and journalists participated in the exhibition.
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