Agriculture in Georgia

There are various industries and fields for investment in Georgia. Fertile soil, diverse and suitable climate types, government support, domestic demand and export markets, low production costs, low energy costs compared to some countries, cheap leased land and very low labor salaries have made investment in the agriculture in Georgia very welcome to foreign nationals. The remarkable point here is that during the Soviet Union, Georgia was responsible for supplying the main part of the food and agricultural products of 15 independent countries under the rule. This issue was so important that a quarter of the workforce of Georgia worked in the agricultural industry.

As mentioned earlier, Georgia has fertile soil. Also, the diversity of this soil in Georgia is very high and you can see 49 different types of soil, which is one of the main attractions for investors and agriculture in Georgia. In terms of climate, there are about 22 different climate zones in this country, which makes it possible to grow any crop in Georgia. 39% of agricultural lands in Georgia are located at an altitude of 500 meters above sea level, 29% of them at an altitude of 1,000 meters, 21% at an altitude of 1,500 meters and 11% at an altitude of more than 1,500 meters.

The government of Georgia has supported the country’s agricultural activists well and sometimes provides them with free poisons and pesticides. On the other hand, you can get low-interest facilities from the government to invest in Georgia’s agricultural industry.

After the 0% memorandum was signed between Georgia, the European Union and the former Soviet countries, as well as the tariff reduction agreement with China and Turkey, the export of agricultural products of Georgia increased dramatically. According to the obtained statistics, this country has exported more than 250 million dollars of agricultural products in 2019.

Since Georgia has a good relationship with Eastern European and American countries in terms of trade, and on the other hand, the customs tariffs for importing agricultural equipment and machinery, seeds, poisons, pesticides and other necessary items in the agricultural industry are appropriate, investing in the agriculture in Georgia has become affordable.

In recent years, Georgia has been facing an increase in population and this has increased the country’s domestic demand for agricultural products. Also, Georgia is one of the most popular countries in the world among tourists, and for this reason, the domestic consumption market of agricultural products in this country is always increasing.

One of the main reasons for the desire of foreign investors to Georgia’s agricultural industry is the abundance of water resources in this country. Easy access to Georgia’s water resources has made an important part of agriculture easy.

Access to all types of energy including water, electricity and gas in Georgia is not only easy but also very affordable. For example, irrigation per hectare of agricultural land in eastern Georgia is about £20 and in the west of this country is about £12. This figure is much cheaper compared to European countries.

According to the laws enacted in 2019, foreigners are not allowed to buy agricultural land in Georgia and can only use these lands on lease. The cost of renting agricultural land in Georgia varies based on its size and geographical area, but usually it is determined from 300 GEL to 1,200 GEL per month.

Among the agricultural products that are very common in Georgia, we can mention corn, wheat, sunflower, sugar beet, potato, onion, all kinds of vegetables, grains, soybeans, oil seeds, tea and citrus fruits.