This nationwide cluster mapping was conducted under EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC), implemented by UNDP, FAO, UNIDO and IOM, and funded by EU. UNIDO’s component of the UNJP aims at strengthening the capacities of policy-makers and other stakeholders to identify and develop clusters.

According to the Georgian socio-economic development strategy, “Georgia 2020”, the economic politics of the Georgian government is based on the following principles:

The cultivation of berries is becoming increasingly popular among farmers in Georgia. The necessity of diversification in agricultural production and opportunities in the EU market have led farmers and the state to placing greater focus on the sector.

On April 3rd, 2015, the government of Georgia adopted the Technical Regulation on Milk and Dairy Products that was enacted on August 1st, 2015. The technical regulation aims “to determine unified principles for regulating production, processing, and distribution of milk and dairy products as well as the protection of customers’ rights”. It provides definitions of terms “milk and dairy products”.

The agricultural cooperative movement started a few years ago in Georgia and the registered farmer groups are currently still at the embryonic stage of development. The Soviet legacy and rather negative attitude towards earlier forms of cooperation (Kolkoz and Sovkhoz) has gradually faded among farmers, and today more than 1,400 cooperatives are registered with the Agricultural Cooperative Development Agency under the Ministry of Agriculture of Georgia.

With EU financial and technical assistance, as well as training and education on cooperation and agribusiness, small farmers in Georgia are benefitting from economies of scale, cutting their production costs and increasing efficiency.