ISET

On December 10, the parliament of Georgia approved the state budget for 2020. The budget includes allocations of around 14.4 billion GEL. Out of which, the Ministry of Environmental Protection and Agriculture (MEPA) will receive 353 mln. GEL (2.4% of the total budget allocation). MEPA will direct approximately 293 mln. GEL (2.0% of the total budget allocation) towards agricultural development and 60 mln. GEL (0.4%) will be spent on environmental protection.

Compared to 2019, the budget for agricultural development will increase by around 4%. More state funds will be allocated to the Scientific-Research Center (SRCA), the Agriculture and Rural Development Agency (ARDA) and Georgian Amelioration, while the budget will slightly decrease for the National Food Agency (NFA), the Agriculture Development Program (MEPA administration), and the National Wine Agency.

Although the redistribution of funds has changed slightly, as in previous years, the biggest share of MEPA’s funds will further support ARDA (143 mln. GEL), Georgian Amelioration (76 mln. GEL), and the NFA (41 mln. GEL). ARDA will continue financing about ten programs, including a preferential agro credit project with the highest budget of 74 mln. GEL. It should be noted that the Agricultural Cooperative Development Agency (ACDA) is now also under ARDA’s umbrella.

MEPA will allocate approximately 2.4 mln. GEL for establishing a new agency focusing on land issues. Specifically, the national agency for sustainable land management and land use monitoring, with 70 employees, will be in charge of developing an agricultural land policy, collecting data on agricultural land use, and establishing a unified database for the land balance in Georgia.

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Agri Review Recent Publications


  • OCTOBER 2020 | AGRI REVIEW

    The National Statistics Office of Georgia (GeoStat) recently published its economic review for Quarter II 2020. The publication highlights that agricultural production increased by 4.7% in the second quarter of the year compared to the same period in 2019. Furthermore, agriculture contributed to 10.2% of the country’s total GDP during the same period. In the second quarter of 2020, Foreign Direct Investments (FDI) in agriculture also increased and were almost six times higher than the Read More
  • JUNE 2020 | AGRI REVIEW

    On 15 June 2020, the National Statistics Office of Georgia published its annual publication for the agricultural sector - Agriculture of Georgia 2019. The publication shows that agriculture, forestry, and fishing comprised 7.2% of the nominal GDP in 2019, slightly lower than the 7.8% share in 2018, but in line with the general trend over the last five years (on average 7-8% of GDP). In nominal terms, the output of agriculture increased by 4% in 2019 Read More
  • DECEMBER 2019 | AGRI REVIEW

    On December 10, the parliament of Georgia approved the state budget for 2020. The budget includes allocations of around 14.4 billion GEL. Out of which, the Ministry of Environmental Protection and Agriculture (MEPA) will receive 353 mln. GEL (2.4% of the total budget allocation). MEPA will direct approximately 293 mln. GEL (2.0% of the total budget allocation) towards agricultural development and 60 mln. GEL (0.4%) will be spent on environmental protection. Compared to 2019, the Read More
  • OCTOBER 2019 | AGRI REVIEW

    On 30 August 2019, a public hearing to discuss Georgia’s Rural and Agricultural Development Strategy for 2021-2027 was conducted at the Ministry of Environmental Protection and Agriculture (MEPA). The new strategy document represents a roadmap for Georgia’s rural and agricultural development for the next decade. The strategy outlines three major goals to be achieved by 2027: 1. Increasing the competitiveness of agricultural and non-agricultural sectors; 2. Sustainable management of natural resources, preservation of ecosystems, and Read More
  • JUNE 2019 | AGRI REVIEW

    The share of the rural population in the total population decreased slightly, from 42.6% in 2015 to 41.3% in the beginning of 2019. The share of agriculture in total GDP has also declined, from 9.1% in 2015 to 7.7% in 2018. While production figures have gone up, there was a 6.4% increase in agricultural production in 2018 compared to the previous year. Production in the plant-growing sector increased by 10.9%, and animal production experienced an Read More
  • MAY 2019 | AGRI REVIEW

    An agro insurance program was started in September 2014. The program is subsidized by the state and eight insurance companies participate in the program. The insurance package covers losses caused by hail, flooding, and storms, as well as by autumn frost (covered only for citrus). Since the beginning of the program, 49.3 thousand farmers (unique beneficiaries) have purchased insurance. The demand was particularly high in 2014 and dropped afterwards due to the reduction of the Read More
  • APRIL 2019 | AGRI REVIEW

    In 2018, FDI in agriculture constituted 15.9 mln. USD. While the total FDI in 2018 was lower than in 2017, FDI in agriculture has significantly increased (by 28.2%). The highest FDI in agriculture was observed in the second quarter of 2018, while there was divestment (negative FDI) in the first quarter of 2018. The divestment was quite small and was followed by a significant increase in other quarters. Given that demand for food is likely Read More
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