Before independence from the Soviet Union in 1991, Georgia was a leading agricultural region. Output grew by 10 percent a year and the sector contributed 45 percent to the country’s gross domestic product (GDP). But with the collapse of the Soviet Union and Georgia’s independence, agriculture has been steadily declining. In 2007 it fell to 12 percent of the GDP and in 2009 it was just 9 percent. Georgia’s President, Mikheil Saakashvili, said his country was stuck in The Middle Ages with highly fragmented and unproductive farms and dependence on imported goods.
A UNDP report published in October 2010 indicated that farmers represented 50 percent of the workforce in Georgia, yet the country imports 70 percent of the food it needs. This increases the price of food.
With donor support and government planning to bring Georgia’s agriculture into the 21st century, the focus is on improved technologies and increased income generating skills in farming regions. The strategy is to improve food security, grain, high-value crops, and organic production. The government is keen to acquire foreign technical assistance from countries such as South Africa, the United States, and France to provide training, advice, and demonstration plots.
One of the challenges is the size of the local farms. Georgia’s average farm is less than one hectare. However, there are 150,000 hectares of state-owned agricultural land not currently in production, but available to investors and existing farmers. The US government has provided substantial financial and technical support to rebuild the agricultural sector, but now the Georgian government recognizes the need for sustainable farming and funding. Hence, there is now a transition from donor dependence to a greater push for foreign investment and government action.
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