Georgia still has a lot to do in the agricultural sector to be effective, and it needs to move quickly

Georgian agriculture remains extremely unproductive. EastFruit checked the yields of Georgian fruits, nuts and vegetables per hectare and found that, on average, Georgia’s yields lag 70% behind the region’s leader Turkey and 72% behind the top five producers.

Who are the “leading manufacturers”? – In this article, these are the top 5 countries with the highest yields per hectare for each product. These manufacturers are also among the top 10 manufacturers by volume. Thus, we get large manufacturers who are also very efficient. Average yield is calculated for these five countries and compared to Georgia’s yield for each product available.

Performance of Georgia Compared to Performance from Top Countries and Turkey in 2019

Sources of data: FAOSTAT, GeoStat.

In the case of Georgia, almost all grapes are wine grapes, and garden strawberries (strawberries) are the harvest of open ground

Of the 27 products for which yield data are available, productivity in Georgia exceeds the leading producers in only one case, cauliflower and broccoli. For 21 products, the difference in performance between the top group and Georgia is over 60%. Strawberries are the most unproductive, 96% behind.

The average yield in Georgia is about 30% of the yield of the leading producers. This means that Georgia uses 3.3 times more land than if the yield was as high.

Thus, there is room for improvement in Georgia, and it must start to improve quickly, otherwise Georgian farmers risk losing market share to more productive producers from other countries, especially from neighboring Turkey. Imports of products such as onions, oranges and carrots already account for over 70% of supplies to Georgia. Typically, these imports are dominated by Turkey.

The main factor affecting all products is the lack of modern knowledge and technology in Georgian production.

Below EastFruit provides tables to compare yields per hectare between Georgia and the top five countries.

The comparison is made for all products with available data on production, yield and area harvested. These are products with significant production volumes that fall into national statistics. There are 27 such goods in total. The data used mainly come from FAOSTAT, which is supplemented by data from GeoStat, the National Statistical Office of Georgia. Data from 2019 is used as this is the most recent data available on FAOSTAT. The selection of previous years for comparison does not change the global picture that the yield per hectare in Georgia lags far behind when we compare it with the leading producers. Moreover, GeoStat data for 2020 does not show a clear improvement in yields per hectare compared to 2019.

Price offer in the Georgian market and performance comparison by product, 2019

Sources of data: FAOSTAT, GeoStat, Ministry of Finance of Georgia (foreign trade);

The fresh food market size is estimated by EastFruit based on Georgia prices, production and import statistics.

Yield per hectare for leading producers with high yields and yields in Georgia in 2019 in hectograms per hectare

Data sources: FAOSTAT, GeoStat