Georgia’s Agricultural Exports
Status: Complated
Project Milestones: Start date: 01.10.2014 End Date: 28.11.2014

The goal of this study was to examine Georgia's agricultural export performance and make recommendations for its improvement. The study shows that the current structure of agricultural exports in Georgia is characterized by a high share of processed products. Nevertheless, Georgia's agricultural export is currently concentrated on a few export products and is heavily dependent on CIS countries, being thus vulnerable to political and climate shocks. 

APRC assisted this project by analyzing trade data and providing editorial support to the author of the study - Professor Stephan von Cramon-Taubadel. Agriculture makes an important contribution to economic development in Georgia. Value added in agriculture accounted for 9.3% of Georgian GDP in 2013 and 53.4% of employment (World Bank, 2014a). Agriculture also provides an essential basis for the food, beverages, and tobacco processing industries, which together accounted for just over one-third of value-added in manufacturing in Georgia in 2010 (World Bank, 2014a). Hence, overall agricultural and food production in Georgia accounts for roughly 14% of GDP. In addition, agriculture growth is closely linked to the alleviation of poverty, which is especially concentrated in rural areas in Georgia. While 14.8% of the Georgian population lived below the national poverty line in 2012, this share was only 10.5% in urban areas, but 18.8% in rural areas. Numerous studies have demonstrated that agricultural growth is an especially effective means of reducing poverty: according to evidence cited in the World Development Report (World Bank, 2008), growth in agriculture is 3.5 times more effective in reducing poverty than growth outside of agriculture in China; in Latin America agricultural growth is 2.7 times more effective.