In Georgia, FAO and EU spur investments in agriculture through grants

In the last two years, FAO and the European Union (EU) awarded a total amount of circa USD 5.1 million as a matching grant to the agricultural producers in Georgia. The grant support co-funds various capital investments in Georgia’s agriculture sector to increase competitiveness, create extra jobs, and ensure stability in food supplies.

A matching grant is a one-time investment support for agricultural producers who pledge to make a financial contribution, too.

With the fourth cycle of grants launched in 2020, Georgian farmers, rural households, cooperatives, and small and medium producers operating in 22 municipalities could make capital investments – purchase new tractors and machinery, optimize processing and storage with new automated solutions, and buy equipment for large-scale dairy, vegetable, and fruit productions, among many other improvements. The Grants Programme is multidimensional. In addition to the direct investment, the EU and FAO also provide the beneficiaries with the innovative knowledge in production technology. Through the practical and theoretical trainings, farmers learn how to increase the quality and volume of crops, reduce expenses, and minimize the negative impact on the environment.

“The EU and FAO Grants Programme in Georgia is a unique initiative in the region which helps Georgian farmers and agricultural producers to increase their competitiveness and raise incomes,” said Raimund Jehle, FAO representative in Georgia. “Co-funded capital investments – effective and climate-smart agricultural equipment – are aimed to ease producers’ access to innovation and make farms and agricultural enterprises more sustainable and resilient in times of the pandemic.”

One of the selected farmers is Malkhaz Mirinashvili from Kvareli municipality, who, together with his family, has been farming for decades. The family processes a nine-hectare land plot growing tomato, cucumber, cabbage, and maize while also taking care of a vineyard. With the support from FAO and the EU, the farmer was able to purchase a brand-new tractor, plough, and cultivator.

“Our village is quite large and we don’t have enough agricultural machinery for rent available,” stated Malkhaz Mirinashvili. “Sometimes, the wait list for the equipment is so long, that we miss the harvest time and our produce goes bad. With this new equipment, not only can we save time and money, but we also started to look for a new plot of land, about 10 hectares in size, to double our production. Without these new machines, we wouldn’t be able to do it.”

“Winemaking has been our family tradition for centuries,” explained Manana Bolkvadze, a winemaker from Keda municipality in Mountainous Adjara. Manana and her family cultivate a two-hectare vineyard, growing Tsolikauri and Chkhaveri grapevine varieties. Thanks to the EU and FAO, Manana was able to purchase new wine tanks and finish the construction of her wine cellar.

“I wasn’t able to sell as much wine during the pandemic as usual. I had a hard time storing the wine and lost part of the product,” she noted. “With these new tanks, this issue was resolved and the quality of my wine greatly improved.”

EU and FAO grants are awarded to small-, medium-, and large-scale producers with matching grant amounts ranging from USD 1 000 up to 150 000, co-funding up to 60 percent of the investment costs.

“We were overwhelmed by the interest of the farmers and other agricultural actors when we started the programme” said Matthieu Rouviere, the Grants Programme Manager, “but with the close cooperation with the Ministry and the European Union, and thanks to a specific tailor-made online platform, we are managing and can easily replicate the programme.”

A fifth cycle of the Grants Programme will be launched in 2022.

The EU is supporting agriculture and rural development in Georgia through the ENPARD programme. Implemented since 2013 with a total budget of EUR 234.5 million, the main goal of ENPARD is to provide economic opportunities in rural areas and reduce poverty in Georgia. 

8 February 2022, Tbilisi, Georgia