Livestock industry in Georgia

Investing in livestock industry in Georgia is considered one of the most successful and profitable ways of investing in this country. Due to the favorable climate, abundant water resources, vast pastures and the possibility of providing cheap fodder, as well as government support in allocating free land to investors, investment in the livestock industry industry in Georgia has become attractive. In addition, the easy and cheap access to advanced machinery and cheap labor in this country, the wide domestic and foreign target market and the ever-increasing need for livestock products have made this industry a profitable and fast-growing investment.

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Advantages of livestock industry in Georgia

✔️The suitable nature of Georgia

More than 40% of the area of Georgia has the ability to grow agricultural products, raise livestock and water plants, and has uniform and wide rainfall, 22 regions with different climates and 4 seasons nature. The presence of green and vast plains, springs, rivers and high mountains provide special conditions for livestock industry in this country. There is no need to buy fodder in most areas to feed livestock due to suitable and acceptable vegetation. However, you should choose areas for livestock industry in Georgia that have more suitable vegetation than other areas.

✔️The support of the Georgian government

Government support for livestock industry in Georgia is very diverse. In the "Made in Georgia" project, which started in 2019, the government supports domestic production and attracts investors to the livestock industry industry by providing low-interest facilities, giving free land, tax exemptions for livestock industry projects, and providing temporary support packages. It is also possible to import agricultural and livestock industry machinery and tools from Europe and the U.S. without customs duty, which has reduced the investment costs in the livestock industry industry in Georgia.

✔️Low cost of energy in Georgia

Energy costs are also one of the influential factors in the economization of livestock industry industry projects in Georgia. The cost of energy carriers (water, electricity and gas) in Georgia is lower than in European countries, and this reduces the cost of producing livestock and livestock industry products in Georgia and economically justifies the export of these products to the European Union. Gas consuming industrial units can negotiate with any of the gas distribution companies in Georgia and get the best price.

The price of industrial electricity in different regions of Georgia

USD per kWh including 18% value added tax	Lari per kilowatt hour including 18% value added tax	Grouping	Area
0.087	0.198	220/380 Volt	Tbilisi
0.067	0.153	6 – 10 Kv	Tbilisi
0.062	0.140	35 – 110 Kv	Tbilisi
0.077	0.175	220/380 Volt	KAKHETI
0.073	0.165	6 – 10 Kv	KAKHETI
0.057	0.130	35 – 110 Kv	KAKHETI
0.088	0.199	220/380 Volt	Other areas
0.063	0.142	6 – 10 Kv	Other areas
0.060	0.136	35 – 110 Kv	Other areas

Consumers who consume more than one million kilowatt-hours of electricity per year can, by introducing themselves to the government, purchase electricity directly from commercial electricity distributors (ESCO) or from power plants that produce electricity widely across the country. They are buying at an agreed price.

The price of water in different regions of Georgia

USD per cubic kilometer including 18% value added tax	Lari per cubic kilometer including 18% value added tax	Grouping	Area
1.566	3.555	Drinking water	Tbilisi
0.372	0.845	sewage system	Tbilisi
1.487	3.375	Drinking water	Other areas
0.411	0.175	sewage system	Other areas

The price of gas for industrial use

USD per cubic kilometer including 18% value added tax	Lari per cubic kilometer including 18% value added tax	The price of supplied gas
0.282	3.555	Drinking water
0.355	0.845	sewage system
0.469	3.375	Drinking water
USD per cubic kilometer including 18% value added tax	Lari per cubic kilometer including 18% value added tax	Distribution tariff
0.008	0.018	full of pressure
0.027	0.062	Medium pressure
0.062	0.141	low pressure

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Gas consuming industrial units can negotiate with any of the gas distribution companies in Georgia and get the best price.

Livestock industry situation in Georgia

In recent years, the livestock industry industry in Georgia has attracted the attention of many foreign investors. This industry includes production and breeding of meat and dairy animals such as cows, calves, pigs, sheep, goats and poultry such as chickens, turkeys, quails and ostriches. In Georgia, fans of chicken meat are the most numerous, and turkeys, quails and ostriches are bred for export to European markets. According to the export and import agreement with 0% tariff between Georgia and the European Union, excellent conditions have been provided for exporting and entering the European markets. In addition, in Georgia, due to the religious beliefs of Christians, the consumption of sheep meat is low, but due to the suitable market of the neighboring Muslim countries and the countries of the Persian Gulf, the breeding and export of sheep meat is also very popular.

Livestock industry investment opportunities in Georgia according to statistics

Despite the fact that Georgia has a lot of potential for livestock industry, most of the red and white meat it needs is imported. In the past years, 80% of chicken meat, 50% of pork and 25% of beef were imported. According to import statistics in 2019, more than 64 million dollars of chicken meat, 30 million dollars of pork, 14 million dollars of beef and 33 million dollars of fish were imported into Georgia from other countries.

In Georgia, per capita pork consumption is 7 kg per year and more than 50% of this amount is imported. According to the statistics, investing in the field of livestock industry in Georgia provides a guaranteed product sales market. Also, the lack of dairy cows and the decrease in milk production in Georgia have caused the price of raw milk to increase in this country compared to Europe, and this shows the high potential of investment in the field of dairy cattle breeding in Georgia.

Approximately 12% of Georgian people's meat consumption is fish. For this reason, the cultivation of freshwater fish such as trout and salmon in Georgia is highly profitable and highly productive due to the presence of rich water resources.

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Frequently asked questions about investing in the livestock industry in Georgia

1What is the status of the target market of the livestock industry in Georgia?

The increase in the variety and needs of domestic and foreign target markets and the large import of white and red meat in Georgia guarantee the livestock products market.

2Does the Georgian government support the livestock industry?

Yes, the government supports investment in the livestock industry by providing low-interest facilities, free land transfers and tax-free livestock projects.

3 Is investing in the livestock industry in Georgia cost-effective in terms of energy costs?

Energy costs in Georgia are very low compared to European countries, and this leads to a reduction in the cost of producing livestock products and the economic logic of exporting these products to Europe.