Livestock industry in Georgia

One of the most lucrative industries in Georgia is animal husbandry. Proper and temperate climate, easy and abundant access to water resources, vast natural pastures and abundant fodder at reasonable prices along with government support in the transfer of free land, easy and cheap access to advanced machinery and necessary tools, labor Cheap compared to European and neighboring countries, the growing variety and need of domestic and foreign target markets has made the livestock industry in Georgia profitable.

Georgia, with 22 different climates and four seasons, as well as uniform and extensive rainfall, has become a country where more than 40% of its area is capable of cultivating agricultural products and raising livestock and aquaculture. Extensive and lush plains, abundant springs and rivers, and high mountains provide special conditions for raising a variety of animals. In most parts of Georgia, there is no need to buy fodder to feed livestock due to its suitable and acceptable vegetation. However, it is necessary to choose places for production and breeding that have more suitable coverage than other areas.

The Georgian government also supports investors in this area. Since 2019, the Georgian government has been directly supporting domestic production in a project called Made in Georgia. These include the provision of low-interest facilities, the transfer of free land, the exemption from livestock industry in georgia tax plans, as well as the provision of cross-sectional support packages, which greatly address the concerns of investors. On the other hand, the import of agricultural machinery and tools and equipment from Europe and the United States is possible without customs tariffs, which has a significant impact on reducing costs in the livestock industry in georgia. One of the most important factors influencing the economicization of livestock industry projects is energy costs. The cost of energy carriers (water, electricity and gas) in Georgia is very low compared to European countries, which reduces the cost of producing livestock products and the economic justification for exporting these products to the European Union.

Industrial electricity prices in different parts of Georgia

USD per kilowatt hour, including 18% VAT	GEL per kilowatt hour including 18% VAT	GROUPING	AREA
0.087	0.198	220/380 Volt	TBILISI
0.067	0.153	6 – 10 Kv	TBILISI
0.062	0.140	35 – 110 Kv	TBILISI
0.077	0.175	220/380 Volt	KAKHETI
0.073	0.165	6 – 10 Kv	KAKHETI
0.057	0.130	35 – 110 Kv	KAKHETI
0.088	0.199	220/380 Volt	OTHER AREA
0.063	0.142	6 – 10 Kv	OTHER AREA
0.060	0.136	35 – 110 Kv	OTHER AREA

Consumers who consume more than one million kWh of electricity per year can introduce themselves to the government directly from electricity distributors (ESCO) or from power plants that are widely available throughout the country. Buy at a bargain price.

Water prices in different parts of Georgia

USD per cubic kilometer, including 18 percent VAT	GEL per cubic kilometer, including 18% VAT	GROUPING	AREA
1.566	3.555	DRINKING WATER	TBILISI
0.372	0.845	SEWAGE SYSTEM	TBILISI
1.487	3.375	DRINKING WATER	OTHER AREA
0.411	0.175	SEWAGE SYSTEM	OTHER AREA

Industrial gas price

USD per cubic kilometer, including 18 percent VAT	GEL per cubic kilometer, including 18% VAT	Gas prices offered
0.282	0.641	At least
0.355	0.845	Middle
0.469	1.064	Maximum
USD per cubic kilometer, including 18 percent VAT	GEL per cubic kilometer, including 18% VAT	Distribution tariff
0.008	0.018	High pressure
0.027	0.062	Medium pressure
0.062	0.141	Low pressure

Gas consuming industrial units can negotiate with any of the 37 gas distribution companies in Georgia and get the best price.

In recent years, the livestock industry in Georgia has received a lot of attention. It includes the production and breeding of meat and dairy animals (cows and calves, pigs, sheep and goats) and poultry (chickens, quails, turkeys and ostriches). Poultry fans in Georgia are more numerous than other poultry, and turkeys, quails and ostriches are grown for export to European markets (given the zero-percent export and import agreement between Georgia and the European Union). Exports and imports into European markets are very low. Due to the religious beliefs of Christians in Georgia, the consumption of mutton is very low, but due to the suitable market in neighboring Muslim countries, as well as in the Persian Gulf, the export and export of mutton is very common.

Livestock opportunities in Georgia according to statistics:

Despite the potential for livestock farming, most of Georgia's white and red meat is imported. Eighty percent of chicken meat consumption, 50 percent pork consumption, and 25 percent beef consumption have been imported in the past few years. A study of import statistics shows that in 2019, a total of $ 64.3 million in chicken, $ 30.5 million in pork, $ 14 million in beef, and $ 33 million in fish were imported from various countries.

The per capita consumption of pork in Georgia is 7 kg per year, and as mentioned above, more than 50% of this amount is provided by imports. Statistics shows, that if you invest in this sector, the market for selling products is guaranteed. On the other hand, the shortage of dairy cows and the shortage of milk production in Georgia have led to higher prices for raw milk than in Europe, indicating the potential for investment in dairy farming in Georgia.

About 12 percent of Georgia's meat consumption is fish. Therefore, freshwater fish farming (salmon) is very profitable due to the rich water resources of Georgia.

Our purpose in presenting this article is to help you gain information about investing in the livestock industry in Georgia, and we hope to achieve this. If you are planning to invest in the livestock industry in Georgia, SisnoGroup consultants and experts are ready to provide free advice to you dear ones.

Frequently asked questions about investing in the livestock industry in Georgia

1-Does Georgia's livestock industry have a target market?

Yes, the increasing diversity and need of domestic and foreign target markets, and high imports of white and red meat in Georgia, ensures the livestock products market

2. How does the Georgian government support the livestock industry in Georgia?

The government supports investment in the livestock industry in georgia by providing low-interest facilities, free land transfers, and tax-free livestock projects.

3. Is the livestock industry in georgia economically justified in terms of energy costs?

Energy costs in Georgia are very low compared to European countries, this leads to lower cost of production of livestock products and economic justification for exporting these products to Europe.

Our goal in providing this article is to help you gain information about investing in the Georgia livestock industry, and we hope to make it happen. If you are planning to invest in the livestock industry in Georgia, our consultants and experts at the Cisnu Group are ready to provide you with a free consultation.