In March 2014, Heifer Georgia launched its “Comprehensive study on the Georgian sheep value chain” project. Heifer Project International, the umbrella organization of Heifer Georgia, intends to support the development of the Georgian sheep sector for the next decade, starting with sheep wool processing. In order to ensure a sound basis for implementing further projects, this study presents an analysis of the current situation and future challenges in the Georgian sheep value chain. The objectives of this study are to document current sheep and sheep product value chains (focusing on wool), show its structure and the interrelations between the different links of the value chain, identify strengths and weaknesses and give recommendations for further development. The study was undertaken by the five members of the team from April to June 2014.

Georgia has a sheep population of about 850,000 heads. Approximately 50,000 households are active in sheep farming, which makes up about 4% of the total Georgian households. Georgia’s gross domestic product (GDP) at current prices is 15.8 billion USD (2012). The agricultural sector contributed only 8.6% to the country’s GDP in 2012, despite the fact that almost half of the population is engaged in agriculture (as a primary or secondary job). Sheep (lamb) and sheep products (wool, cheese, and sheepskin) exports hold 8th position in the list of the country’s agricultural products exported in 2012 (worth approximately 20.5 million USD), which is slightly more than 4% of total agricultural products exported and about 0.9% of the country’s total exported goods in 2012.