Agricultural Performance and Impact

In 1998, 67% of total sown area (616K hectares) were for grains and legumes, 14% for potatoes, vegetables and melons, 10% was provided for technical crops, and only 9% to fodder crops.

Although in the post-soviet period the use of fertilisers and plant protection as well as modern techniques and technology decreased, the decrease in the yields of crops is much less than would be expected. In some labour-intensive crops (potatoes, maize) the harvest has even increased, which may be attributed to the increased application of manual labour.

The Ministry of Agriculture and Food officials expressed in 1997, the hope that Georgia will be self-sufficient in grains. This may be possible but not necessarily the most profitable course of action for Georgia, because resources may be better used in other crops or agro-processing activities. For example, in the past, Georgian tea was known world-wide for its high quality and good taste. But then its quality decreased and it became impossible to sell without being mixed with foreign tea.

The future of citrus growing is rather uncertain in Georgia. In the past, about 90% of the harvest was shipped to the rest of the Soviet Union, but now these markets have been captured by Mediterranean countries.

In order to realise its full potential, the agricultural sector should produce that which is most profitable to the farmer. Unfortunately, at present in Georgia there is a lack of information and a multitude of distortions such as subsidies in addition to an uncertain economic climate, which make it difficult for a farmer to assess profitability in the long term. Farmers are therefore more likely to adopt risk averse production strategies such as low input/low output, or a continuation of existing production patterns thereby avoiding the need for significant investment.

Since 1989, production of all livestock, as well as the livestock population (except horses) has declined. Grain based livestock, together with poultry and pig production has contracted the most. The livestock sector should continue to be a supplier mainly for domestic markets. There are about 0,16m ha of natural meadows and 1,8m ha of pastures in Georgia. Most pastures areas (1,3m ha) are for summer grazing, and are mostly characterised by salty soils with extremely low fertility.


Project Supported by TACIS