ISET

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 compared to 2018. In real terms agriculture, forestry, and fishing contributed 7.4% to the GDP in 2019, lower than its contribution of 7.9% in 2018. Regarding changes in the output of the sector, the real output declined by 4% in 2019 compared to 2018. Though, the share of income from the sale of agricultural production in the total income of households did not change from 2018; which stood at 5.5% and amounted to a monthly average of 60.3 GEL.

The sown areas of winter and spring crops continued to decline, dropping from 207.1 thousand ha in 2018 to 203.0 thousand ha in 2019. The production of vegetables increased by 13% overall.

Regarding animal husbandry, the number of sheep and poultry increased, while the number of bovine animals, pigs, goats, and of beehives decreased. The production of meat declined by 4%, wool decreased by 5%, while milk and egg production increased by 1% and 4%, respectively. Though, there was no change in honey production.

In May 2020, the year-over-year food and non-alcoholic beverage prices increased dramatically, by 14.7%; contributing 4.58 percentage points to the change in the total CPI. The main drivers were price fluctuations in the following sub-groups: fruit and grapes (+47.1%), milk, cheese, and eggs (+24.6%) and fish (+17.1%).

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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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