Economic problems of the agricultural sector of Georgia

Briefly about the agriculture of Georgia

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.

Agricultural influence on Georgia’s Economy

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.


Boers people and Agriculture of Georgia

Agriculture of Georgia Georgia is a country, situated on the crossroad of Aisa and Europe. Its soil and climate have made the country's agriculture one of its most productive and beneficial economic sectors. Around 18 per cent of Georgian land is arable provided with approximately 32 per cent of the republic's NMP, dated back in 1990. During the Soviet period, swampy areas in the west were arid and drained regions in the east side of the country that was salvaged by an intricate irrigation system, that allows Georgian agriculture to expand the production tenfold right between the years of 1918 and 1980. Agriculture production was hindered in the Soviet period in Georgia, however, by the misallocation of agricultural lands like the assignment of prime grain fields to tea excessive specialization and cultivation. The country’s emphasis on labour-intensive crops like grapes and tea kept the rural workforce at an unsatisfactory level of productivity. Around 25 per cent of the Georgian workforce was directly engaged in agriculture back in 1990. And, approximately 37 per cent had been engaged in 1970. In the spring of 1993, sowing of Georgia's spring crops was significantly reduced by ⅓ on state land and by a significant amount on private land as well, because of equipment and fuel shortages. For the first half of 1993, the whole agricultural production was 35 per cent somewhat less than for the same period of 1992. Recruiting of Boers people In Georgia, during Mikhail Saakashvili's presidency (who is now Former Georgian President), his Dutch-born wife Sandra Roelofs had promoted a particular program that encouraged Boers people, namely Afrikaans South African farmers to migrate to Georgia. Georgia was actively recruiting Boers people to help revive the country's moribund agriculture. Within the 20 years since the collapse of the Soviet Union, half of the country's farmland gone out of production. Later

About viticulture and agriculture of Georgia

Agriculture of Georgia Considering the fertile soils, water resources and climate, Georgia has ideal natural conditions for the development of agriculture in Georgia. At the same time, the share of agriculture in the country's economy is declining every year and currently stands at only 7.7 per cent. Over the past five years, Georgia has imported approximately $ 5.9 billion worth of agri-food products. The country spends an average of around $ 1.2 billion annually on the wages, production costs, and profits of those foreign-employed agricultural workers. Despite the ideal natural resources - fertile soils, water, climate - Georgia will not be able to realize the potential of its agriculture if a sign of equality remains between the development of agriculture and the development of small farms. In rural areas, food production is the only way for families to survive and survive. But this is not the way to create competitive, import-substituting and export-oriented agricultural products in the country that will contribute to the country’s rapid economic growth. What are some challenges and perspective of small farms in Georgia Around 80 per cent of the consumer basket is imported to Georgia. At the same time, Georgia has all the necessary natural resources and conditions to produce these products locally instead of importing them. However, local production cannot replace imports. This data needs to be explained and analyzed. Most of the food products imported to us are the result of the industrial output, be it dairy products, meat products or cereals. Economies of scale and modern technologies are crucial for the competitive production of food products in the twenty-first century. Industrial production, the technologies used in it, and economies of scale are the only way for competitive production of mass-produced agricultural products. Besides,