• NAME OF RESEARCH

    Georgia's Agricultural Sector - Uncovering the Potential

  • NAME OF AUTHOR

    Bank of Georgia Research

  • CATEGORY

    Agriculture

  • YEAR

    2013-06-05

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Georgia’s variety of fruits, vegetables, and nuts drove agriculture to hold a 29% share of GDP at the time of the fall of the Soviet Union in 1991. By 2011, its contribution fell to 9%.

Georgia’s 49 soil types and 22 microclimate zones support a variety of fruits and vegetables, while low pesticide use is favourable for organic farming. Georgia is rich in water resources, with average annual renewable per capita water resources some 3.5-6.0x higher than Turkey, Armenia, Azerbaijan, and Ukraine and annual average precipitation double that of regional peers. Georgia has yet to realize its potential in affordable agricultural land (the average arable land price is 1/4 that of France and 1.2x below that of Bulgaria), cheap labour, and ease of access to European markets. Agricultural yields in Georgia remain 2.9x below the global average on fruit and 2.5x on vegetables, and 1.7x and 2.6x lower than Eastern European fruit and vegetable yields, respectively.