Georgia is a developing country with a slightly weak economy with a population of around 3,720.4 million. About 57.2 per cent of the country's population lives in cities, and approximately 42.8 per cent of them in rural areas, according to 2016s data and statistics. The territory of Georgia covers 69,700 square kilometres or 7 million hectares. Georgia is a very diverse country along with its rich nature, physical- geographical, soil and climatic features. Around 1/3 of the country is covered by forests and only up to 40 per cent of the total arable land is suitable for agricultural land and hence, is used, which is relatively low.
In Georgia, as a country of ancient agriculture, agriculture has occupied a leading place for millennia. According to 2018 data, about 17 per cent of the country's national economy is directly dependent in the agricultural sector, and the average yield potential is only 1/3 equals. About 1/3 of arable land is not used in production. Concerning imports of food and farming products predominate by 43 per cent Exports, agriculture employs an able-bodied population of about 54 per cent, the same figure and data in 1990 was only 25 per cent. It is noteworthy to mention that imports of agricultural products in 2016 exceeded exports by 34 per cent.
The main stage of the transition from a socialist agricultural economy to a rural market economy has virtually ended in Georgia. The agrarian structure has now changed completely, in particular, the process of privatisation of farming enterprises. A new system of local relations was established. Accordingly, agriculture, one of the main sectors of the country's economy, began to function in a completely new, market economic environment and quickly acquired the specifics and features of a market economy of the country.
Changes have also been made in the layout and specialisation of agricultural production. For example, the food market has been formed, the process of integration in the field, agricultural cooperation has started again, entrepreneurship and agribusiness continue to develop in the agro-sector, etc. It can be said that the desired conditions have been created for the equal functioning of various forms of agricultural enterprises of ownership since competition conditions have been created. But the results in the agricultural sector indicate that it is still in crisis.
The crisis in agriculture and the decline in production is taking a heavy toll on the entire economy of Georgia. However, this leads to a significant loss of natural resources, and the country has to compensate for these losses by importing food. Therefore, great importance is attached to identifying the development problems of the world and Georgian agrarian sector and setting essential prospects.
The main factor that will help to overcome the crisis in the agricultural sector is to implement reforms in this particular sector properly, to spend the funds allocated to agriculture purposefully. It is thought that the targeted budget funding in agriculture would be better to be used primarily to increase soil productivity, for land reclamation, for infrastructure, and it is also necessary to produce highly competitive, in-demand goods.