Assessment of Farm And Machinery Service Centers in Georgia


    Deloitte Consulting LLP



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The success of the agricultural sector as it relates to the USAID Economic Prosperity Initiative (EPI) depends largely upon the quality, quantity, and accessibility of crop input supplies, including fertilizers, pesticides, seeds/seedlings, machinery, technology, and affordable credit for the commercial farmer. A key player in this arena is the network of 33 FSCs established in part through the assistance of the MCC program. Therefore, it was considered necessary to 1) assess the business acumen of the managers; 2) analyze the distribution system to determine if gaps existed in the supply and demand of agricultural inputs; and 3) determine the profitability and key accounting ratios of each FSC (if possible).

Realization of the business acumen of managers of the newly created farm service center (FSC) and machinery service center (MSC) network and gaps in the supply and demand of agricultural inputs are of critical importance to the USAID-funded Economic Prosperity Initiative (EPI). Strengthening managerial skills and identification of interventions to close those gaps are within the scope of the program. The purpose of this report is to assess those factors and identify steps to rectify any shortcomings.