This report covers the process and results from the value chain analysis conducted on the hazelnut sector in West Georgia. The study presents a basis to shape interventions of the forthcoming ‘Phase II: Fairtrade & Organic Hazelnut Value Chain Development for Small Farmers in Western Georgia’ project, which is to be implemented by the Consortium (ELKANA, HEKS/EPER, ANKA, and PAKKA) with the financial support of DANIDA.

The main purpose of the study was to map the current hazelnut value chain, describe the key actors and the interrelations between them, identify the main constraints, and provide recommendations for further development. The study mainly focused on service providers.

Georgia is located in the Black Sea coastal area, which has suitable soil and climate conditions for the growing of hazelnuts. Although hazelnuts are grown in almost every region around Georgia, production is mainly concentrated in the three regions of Samegrelo-Zemo Svaneti, Guria, and Imereti.

In 2016, Georgia was placed 5th among hazelnut-producing countries in the world by production amount, ranking behind Turkey (56.5%), Italy (16.2%), the US (4.6%), and Azerbaijan (4.6%), with Georgia contributing the final 4.0%. By the average yield per ha, Georgia ranked 7th in the world, while Turkey stood at 17th. In 2016, the export price of Georgian hazelnuts on global markets was 6.83 USD/kg, which was lower than the corresponding price for Turkish hazelnuts (8.68 USD/kg). Hazelnuts present an important crop in terms of employment in Georgia, as approximately 107,000 households are involved in hazelnut production.