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April 23, 2024

Country Spotlight: Georgia & Agriculture

Georgia stands out on the global agricultural stage as a beacon of opportunity, attracting attention for agricultural and agritech investments supported by robust data and tangible prospects. Endowed with fertile soil and a favorable climate, Georgia produces a diverse array of agricultural products, from grapes and berries to nuts, citrus fruits, and grains. The sector has remained a stalwart contributor to Georgia’s GDP, consistently representing 7-8% over the past decade, with notable double-digit economic growth recorded in 2021-2022 at 10.5% and 10.1%, respectively. The country’s agricultural tradition is deeply rooted, with over 40% of total employment stemming from agriculture, playing a significant role in fostering economic development.

Moreover, Georgia’s strategic geographic location plays a significant role in East West trade while positioning itself as a pivotal supplier to regions grappling with food insecurity. With convenient access to markets in Europe, Asia, and the Middle East, Georgia is well-positioned to alleviate pressing food shortages taking over some of the burden from Ukraine. Georgia’s dedication to grains accounted for 45% of the total production of Annual crops in 2022, of which wheat constituted around 19% and Maize constituted around 18% of the total crops production. Notably, the European Union stands as Georgia’s largest trading partner, accounting for 15.4% of exports and 22.6% of imports in 2022, underscoring the country’s integration into global markets.

In tandem with traditional agriculture, Georgia is witnessing a rapid expansion of its agritech sector. Mechanization and technological advancements, including crop-spraying drones, precision farming technologies, and mechanical harvesting, are increasingly prevalent across the country. This shift towards modernization addresses practical needs like labor shortages and rising wages.

Furthermore, digitalization efforts extend beyond farm operations, encompassing initiatives such as the Blockchain based land-titling project and the Agronavti mobile app, empowering farmers with valuable market insights and connections. Recently, the Asian Development Bank approved a $48 million loan aimed at modernizing agricultural irrigation systems, aligning with Georgia’s Agriculture and Rural Development Strategy (2021–2027) and Irrigation Strategy (2017–2025), marking ADB’s inaugural engagement in Georgia’s agriculture.

Furthermore, according to IMF forecasts, Georgia is poised to achieve the most rapid economic growth in the medium term (2023 – 2028) among regional and European countries, with a projected rate of 5.3%. In 2022, there was a remarkable 67.5% surge in foreign direct investment (FDI) in Georgia, amounting to USD 2.1 billion, with the European Union contributing 46% of the total FDI inflows. Delphos, leveraging its expertise and resources, remains steadfast in its commitment to fostering sustainable development and economic prosperity within Georgia’s agricultural sector. By seizing the abundant opportunities within the sector, Delphos aims to contribute significantly to regional stability and enhance food security.

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