Indexes
April 2019 | Agri Review
01
May
2019
In 2018, FDI in agriculture constituted 15.9 mln. USD. While the total FDI in 2018 was lower than in 2017, FDI in agriculture has significantly increased (by 28.2%). The highest FDI in agriculture was observed in the second quarter of 2018, while there was divestment (negative FDI) in the first quarter of 2018. The divestment was quite small and was followed by a significant increase in other quarters. Given that demand for food is likely to increase in the future, FDI in agriculture is critical for the expansion of agricultural output.
Traditionally, FDI in agriculture is very low compared to FDI in other sectors. During the last decade, the share of FDI in agriculture ranged between 0.5% - 1.5% of total FDI in Georgia. The only year when the share was relatively high was 2009. In 2009, FDI in agriculture constituted 3.4% of total FDI and more than doubled in absolute terms compared to 2008 (10.6 mln. USD in 2008 and 22.3 mln. USD in 2009). In 2018 FDI in agriculture constituted 1.3% of total FDI. The low attractiveness of the sector for FDI is caused by land constraints, outdated technologies, lack of business-oriented producers, and lacking contract farming practices, as well as the lack of specialists in this field.
As to prices, on a monthly basis, the country’s price levels have increased slightly. The Consumer Price Index (CPI) in March 2019 was 1.0% higher compared to the previous month. While in comparison to March 2018, the CPI experienced a 3.7% increase. For food and non-alcoholic beverages, the month-over-month prices increased by 1.3%, contributing 0.4 percentage points to the change in total CPI.
Recent Publications
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June 2024 | Agri Review
28
June
2024
In June 2024, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2023. The publication estimates that agriculture, forestry, and fishing comprised 6.9% of the GDP in 2023, which is slightly lower than in previous years, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2024 | Agri Review
01
April
2024
In June 2023, responding to appeals from the Georgian Flour Producers Association, the Georgian government imposed a temporary import duty on wheat flour imported from Russia. This advocacy by the Association began after Russia implemented a “floating tariff” on wheat in 2021, making wheat imports more expensive compared to wheat flour.
December 2023 | Agri Review
29
December
2023
Citrus production in Georgia is currently experiencing a declining trend, despite the implementation of a tangerine state subsidy program. Under the program, farmers receive 30 instead of 15 tetri for 1 kg of non-standard (low-quality) tangerines.
September 2023 | Agri Review
29
September
2023
Rtveli 2023 commenced this August. Similar to previous years, the Government of Georgia (GoG) is subsidizing the grape harvest again to support farmers who have suffered from worsening climate conditions. Based on information from MEPA representatives, the subsidy's primary aim is to guarantee that even producers with lower-quality grapes can still sell their products.
June 2023 | Agri Review
30
June
2023
In June 2023, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2022. The publication estimates that agriculture, forestry, and fishing comprised 7.5% of the GDP (constant prices) in 2022, which is lower than the 8% share in 2021, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
