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Agriculture industry in Georgia

Agricultural industry in Georgia

Agriculture industry in Georgia

In Georgia, one of the best economic topics for investment is the agricultural industry in Georgia. The diversity of fertile soils, diversity of climates, government support, domestic demand and export markets, low production costs, low energy costs compared to many countries, cheap leased land and very low labour salaries make agricultural investment in Georgia attractive to foreign investors. During the time of the Soviet Union, the main part of the food and agricultural products of 15 independent countries under the rule of Georgia was supplied, which was equivalent to one third of the total gross domestic product of this union. At that time, a quarter of the workforce worked in the agricultural sector in Georgia.

Attractions of investment in agriculture industry of Georgia

Ability to produce and cultivate a variety of crops and orchards: 3 reasons for the diversity of fertile soils (49 different types of soil), climate diversity (22 different climate zones) and topography and altitude diversity of agricultural lands (39% of lands at an altitude of 500 metres above sea level, 29% of lands at an altitude of 1,000 metres above sea level, 21% of lands at an altitude of 1,500 metres above sea level and 11% of lands at an altitude of more than 1,500 metres above sea level) has made agriculture in Georgia capable of cultivating all types of agricultural and garden crops and created many opportunities to invest in the agriculture industry in Georgia.

Agricultural industry in Georgia

- Simple and inexpensive access to the required equipment and materials: Due to good trade and international relations with European countries and the United States, as well as appropriate customs tariffs for the import of agricultural equipment, machinery, seeds, pesticides and pesticides. Other necessities of this industry have been able to create suitable prices for the activists of this industry along with the variety of products.

- Government support for agricultural industry in georgia: In some cases, free distribution of poisons and pesticides is done by the government. Also, investors in the agricultural industry can enjoy low-interest government facilities up to $250,000 up to a maximum of 40% of the value of their project. This has attracted investors to invest in the agricultural sector in Georgia.

- Increasing domestic consumption of agricultural products in Georgia: Due to the increase in population of this country and also a significant increase in the number of tourism industry in Georgia, the domestic consumer market of these products is growing significantly.

- Ease of export to world markets: With the signing of a zero percent agreement between Georgia and the European Union and the former Soviet Union, as well as a tariff reduction agreement with China and Turkey, the country's exports are increasing so that in 2019 they were able to more than To export $ 250 million in agricultural products in georgia, and this statistic shows the growth of this industry.

-Georgia's abundance of water resources: Definitely one of the most attractive drivers for foreign investors in the agricultural industry in georgia is the abundance of water and easy access to water resources in this country.

- Easy access and low energy costs: In addition to easy access, the cost of using energy sources such as water, electricity and gas is very low and affordable. (Irrigation cost per hectare in eastern Georgia is 20 euros and in western Georgia 12 euros is). To compare these prices with European prices, we can mention Greece (73 to 210 euros), Italy (30 to 150 euros), Spain (62 euros) and Portugal (120 euros).

- Easy access and low energy costs: In addition to easy access, the price of using various types of energy such as water, electricity and gas is very low and affordable (the cost of irrigation per hectare in eastern Georgia is about €20 and in western Georgia is about €12). To compare these prices with European prices, we can mention Greece (€75 to €210), Italy (€30 to €150), Spain (€65) and Portugal (€120), which makes agriculture in Georgia attractive.

Important Note: Under the new rules from 2019, agricultural land in Georgia can only be leased to foreign nationals (short-term or long-term). The cost of renting land varies from 300 to 1200 GEL per month, depending on the area and geographical area.

Agricultural industry in Georgia

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Major Georgian agricultural products:

Major crops grown in Georgia include corn, wheat, grapes, sunflowers, sugar beets, potatoes, onions, a variety of vegetables and grains, soybeans, oilseeds, tea and citrus fruits. If you need more information to invest in Georgia after reading this article, our experts are here to provide you with free advice.

Agricultural industry in Georgia

Frequently asked questions about investing in the agricultural industry in Georgia

1 Is it possible to obtain a residence permit in Georgia by renting agricultural land?

No, you can get Georgian residency only by buying non-agricultural land

2 Can agricultural products produced in Georgia be exported to other countries?

Yes, Georgia exports agricultural products to neighboring countries.

3 What are the most agricultural products produced in Georgia?

Corn, wheat, grapes, oilseeds, tea, citrus fruits

4 How does the Georgian government support the agricultural industry in Georgia?

Free distribution of poisons and pesticides by the government and low-interest government loans

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