Analysis of the current projects in the Georgian agricultural sector

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Ivane Javakhishvili Tbilisi State University Press
As the results of the survey show, small and medium farmers are not ready to engage and effectively use state initiatives, grant projects or other activities. This is confirmed by the fact that all the supporting projects are still used by medium and large farmers, or those persons who were engaged in a certain business-activity and wanted to expand it. Theoretically, it is not bad and may be good on one hand, but the efficient development of the field is possible only through the scale effect and for this it is necessary to have small agricultural lands in full engagement. Therefore, we believe that it is necessary to improve communication with small and medium-sized farmers, with people living in the regions and agro-producers. In order to make these people massively engage in state programs, they need: more information in their understandable language; not general trainings on the design of the business plan, but experienced consultants to help them in the selection of legal forms, planning in production (agricultural consultant), etc. In addition, during our empirical research, one more flaw was identified – different projects initiated by the state, which actually have one and the same targeted segments, require different legal forms of registration which causes more confusion among the peasants and strengthens their alienation from common initiatives. Uniformity of such type of activities is necessary. Farmers should be convinced of the necessity of cooperatives and also the forms and means of the unions are to be elaborated. In our previous studies we published an agrarian cluster model [6, p. 111], which in our view is a more efficient way to unite. However, in the focus group, the research showed that farmers are not nearly ready to participate in similar “experiments”. The most important – the way of the country’s development should be the production of bio (organic) products that will be exported to the European market. The European consumer is certain about product quality standards and along with the increase of living standards the demand for ecologically clean food products continues to grow. This is not a very fast market, as the resource for producing fresh products is limited, which in our opinion can become a competitive advantage for Georgia. In the case of correct agricultural and export policy, this will be a real, stable and profitable niche for Georgian products. Promotion of bio-production development should be carried out through the farmers’ monetary compensation for environmental and sustainable development activities, setting premiums for non-use of chemical fertilizers, and most importantly, through the setting of high subsidized price on ripened products. The subsidized price should be set on products that have export potential. Decision on setting the price should be made on the basis of special studies and the demand of associations. In addition, the price should be reimbursed only when handing raw material in the processing plant. Formation of the market price should usually be made according to market laws.
1. ხარაიშვილი ე. ღვინის ბაზარი და მევენახეობა-მეღვინეობის დივერსიფიკაციის კონკურენტული მოდელები საქართველოში. გამომცემლობა `“უნივერსალი“, თბილისი, 2017 ISBN 978-9941-26-082-7. 2. ხარაიშვილი ე. კონკურენციისა და კონკურენტუნარიანობის პრობლემები საქართველოს აგროსასურსათო სექტორში. გამომცემლობა `“უნივერსალი“, თბილისი 2011. 3. ხარაიშვილი ე. მამარდაშვილი ფ. საქართველოს აგრარული პროდუქტების კონკურენტუნაროანობის შეფასება, ჟურნალი «ეკონომიკა» , მაისი, 2009. 4. მეწარმის სამაგიდო წიგნი, მეწარმეობის მხარდამჭერი საერთაშორისო ცენტრი, ახალგაზრდა ეკონომისტთა ასოციაციის კვლევა, თბილისი, 2008. 5. განვითარების სტრატეგიები“ 6. The Ways of Increasing Profitability and Competitiveness of Farming in The Caucasus Region on Example of Georgia Republic 7. Nino Rukhaia-Mosemgvdlishvili. “How to sell”-Opportunity for small farmers to global market. International Academic Conference on Management, Economics, Business and Marketing, Vienna, Austria. hps:// sec=frontcover&dq=iac+proceedings+2017&hl=ka&sa=X&ved=0ahUKEwjenrDOwfzeAh VDYVAKHdzwAYYQ6AEISzAF#v=onepage&q=iac%20proceedings%202017&f=false
Bio-Production; Cooperative; Agro-Export; Agrarian Sector; Farmers’ Disposition
Economics and Business, №1, 2019, pp. 110-121