Georgian Agriculture Minister nominee announces $1 bln investment in sector over next 4 years

David Songulashvili, the Chair of the Parliament's Sectoral Economy and Economic Policy Committee who on Monday was nominated for the post of the country’s Minister of Environment and Agriculture, on Wednesday said up to ₾3 billion ($1 bln) would be allocated over the next four years to support the sector.

In his remarks at a joint meeting of parliamentary committees, Songulashvili noted the next stage of development of  domestic agriculture concerned “targeted use of its potential and the definition of investment policy”, while also emphasising the importance of development of rural settlements and improvement of the economic situation of the population involved in agriculture for the purpose.

The official also pointed out “important areas” where the Ministry would focus its efforts, including improving the primary production, processing and sales processes, introducing modern technologies, providing access to services and developing new agricultural projects, as well as improving the knowledge of farmers and entrepreneurs and providing them with necessary infrastructure.

He said  the Ministry's efforts would also involve improving the agricultural insurance system and strengthening land reclamation services, which he said would contribute to “sustainable development of agriculture and increase the economic potential of the sector”.

He also mentioned the Ministry’s plans to modernise and rehabilitate reservoirs, irrigation, and drainage systems, with the goal of improving amelioration services for 70,000 farms on an area of ​​more than 50,000 hectares, and promoting the development of aquaculture.

In this regard, the design and construction of an irrigation reservoir on Ilto [river in eastern Kakheti region] is of particular interest. As you know, this reservoir will guarantee an increase in the quality of water supply on more than 40 thousand hectares of land in Kakheti, which will have an impact on improving the socio-economic conditions of more than 50 thousand families employed in the agricultural sector”, he said.

Songulashvili also highlighted other “important initiatives”, including support for primary agricultural production, processing, and storage-sale processes, providing affordable funds to individuals and legal entities, as well as programmes aimed at addressing shortages in agricultural professions, improving agricultural insurance to mitigate risks for those in the sector, and supporting cultivation of perennial crop gardens would continue to receive support from the Ministry.

The official also pointed out creation of “modern farm administration systems”, including a farm register and a land plot identification system, and noted sustainable pasture management would be regulated at the legislative level, and new, flexible mechanisms for farmer cooperation will be introduced to encourage collaboration between farmers and producer organisations.

He also said Georgia would complete alignment of national standards in food safety, veterinary and plant protection to European Union requirements as part of its commitments under the Deep and Comprehensive Free Trade Area agreement.

Active work will continue to strengthen the capabilities of the State Agricultural Laboratory, which is an important component of providing safe food to consumers”, he added.

The Agriculture Minister nominee also announced marketing activities and programmes aimed at diversifying markets to raise awareness of Georgian wine and other agro-food products.

After the completion of the above works, we expect that by 2028, wine exports should reach $500 million, agribusiness output should reach ₾24 billion ($8.7 bln), and agri-food exports should reach $2.3 billion”, he noted.

Songulashvili highlighted viticulture and winemaking, noting a 70 percent rise in vineyard areas in recent years, as well as increased grape processing from 52,000 tonnes to 300,000 tonnes, while adding wine exports had grown from $65 million to $259 million and winegrowers' income had seen a five-fold increase from (₾)70 million ($25 mln) to (₾)350 million ($128 mln).