- Georgia has favorable natural resources and micro-climate zones conducive to development of agriculture. Fertile and pesticide-free soil is ideal for organic production. 43.4% (more than 3 million hectares) of the whole territory of Georgia is designated as agricultural land, which also includes pastures and meadows.
- Many endemic species create a perfect source for the development of plant growing and cattle breeding. The country is rich in amelioration and potable water resources.
- Agriculture still accounts for about 52% of the country’s labor force. The employees in agricultural sector receive 30%-40 % less wage than the national average.
- Georgia initiated Preferential Agro Credit Project to improve the processes of primary agricultural production, processing, storage and sale by providing farmers and entrepreneurs engaged in agriculture with cheap, long-term and preferential funds.
Agriculture Land: The climate of Georgia is well suited for cultivation of a wide variety of crops, vegetables, herbs etc. Land fertility in Georgia is very good due to its high organic matter content. Rainfall is evenly abundant round the year and man-made sources of irrigation like canals, artesian wells and water channels also abound. Therefore the conditions for entering into the agriculture business are very favorable. Georgia’s free trade agreement with the EU is already in force. So investing in land for growing different crops and vegetables (both organic and inorganic) for export to the EU seems to be an attractive proposition.
Land prices in Georgia are still very low & competitive as compared to other nearest European countries like Bulgaria and Romania. Over the last 4 years land prices have appreciated by more than 200% and prospects for further increase are very high due to limited availability and growing interest from foreign buyers to invest in land.
Orchards: With the increasing global trend towards healthy living, consumption of fruits is growing exponentially among the masses. Georgia’s climate and soil is ideally suited for growing different fruit bearing trees like apples, plums, peaches, nectarines, mandarins, strawberries, apricots, grapes etc. Nuts like almond, walnuts and hazelnuts can also be successfully grown in such conditions. With abundance of cheap labor and low cost land, venturing into fruit and nut growing is a logical conclusion.
Georgia being a traditional wine producing country, exports of wine are increasing tremendously every year. The government is strongly supporting the growth of this sector. Certain subsidy programs have already been put in place by the Government for the revival and growth of viticulture in Georgia. Planting a new vineyard or buying an existing one will surely bring the investor regular returns year after year.
Agribusinesses: The Georgian government has identified agriculture as a priority sector for development. Georgia still depends on imports for a variety of agricultural products like meat, chicken, dairy products, processed foods etc. The government’s continuous stress on local production of agricultural products has opened up a plethora of opportunities in the agriculture related businesses. Setting up of animal farms for milk and meat production, grain storage and processing, fruit and vegetable processing industries etc. are the main thrust areas for investment envisaged by the government.