Amcham presentation
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The document summarizes opportunities for agricultural investment and business development in Georgia. It outlines that Georgia has excellent climate and soil conditions for agriculture but small plot sizes, lack of training, outdated equipment, and poor infrastructure currently limit productivity. There are opportunities to introduce modern farming techniques and technology, improve seed quality, introduce irrigation, upgrade storage facilities, and improve animal husbandry to substantially increase yields. Successful agricultural investment and development could capitalize on Georgia's trade agreements and local/regional demand while solving problems currently faced by farmers.
Amcham presentation
- 1. USDA Trade and Investment Mission to Georgia 2010David Lee President American Chamber of CommerceCEO Magticom
- 2. An Amcham supported by the highest levels of Government, Multinational Organizations such as the IMF and the US EmbassyMinister of the EconomyUS Ambassador to GeorgiaPrime Mister and Head of the IMF
- 3. American Chamber of CommerceEstablished in 1998
- 5. 2 member’s meeting per month: Embassy Briefing and Luncheon
- 6. Excellent relationship with the Georgia Government
- 7. Ability to lobby and influence legislation
- 8. Magazine “Investor.ge”, published every two months.
- 9. Full time staff“At your service at all times!”
- 10. AgribusinessJim Rogers: “Farming is one of the few areas I am optimistic about.”Policymakers are looking more closely at how the private sector – from agribusinesses to supermarkets – can help ensure food security. In July last year, when world leaders pledged to devote $20bn over three years to a “food security initiative”, part of the commitment reflected a move away from reliance on aid models to a broader approach that includes fostering the growth of the agricultural sector in developing countries.(http://media.ft.com/cms/62017148-0b29-11df-9109-00144feabdc0.pdf)
- 11. The Georgian OpportunityAgro Food Products Exports 2008 US$228Agro Food Products Imports 2008 US$9132008 FDI US$1.6 billion2008 FDI agriculture US$7.8 million, (0.5% of the total)Since 1991 939,000 hectares has been transferred to 1.4 million people, 0.66 hectare average. 75% remains under state control.Historically a major exporter of agricultural produce to the Soviet Union – Soils and climate are excellent for many crops, excellent Brand in local and post-soviet space.
- 12. Universal Internet AccessGeorgia covers a territory of 69,700 km² and its population is 4.436 million -63 people per square kilometre. (India 324, UK 254, China 137, Congo, Tanzania, Uganda, Malawi 25 to 60, USA 32).GSM/HSDPA/fixed CDMA Coverage – World ClassMagticom Provides High Speed Internet to all farming areas
- 13. Positive DevelopmentsGeorgia ranks 11 on the World Bank list of “Ease of Doing Business
- 14. Registration of business, licenses and agricultural land is not a problem
- 15. The tax regime is low with many incentives to farms
- 16. The Government is accessible and supportive
- 17. There are many free trade agreements
- 18. Infrastructure has been massively improved since the Rose Revolution – Roads, Airports, Telecommunications, (internet is available everywhere).
- 19. You have an AMCHAM!Opportunity– Increase plot sizesMost local farming is on small plots of 1 to 5 hectares which is not economic for many crops. Animals are often grazed on common ground. But large plots are available to investors. Farm shown is 220 acres, (600 acres).
- 20. Opportunity– Improve training, knowledge – skills The agricultural institutes are not functioning and land and crops are not being optimized. The number of graduates from agricultural colleges in minimal leading to the use of traditional rather that modern farming techniques. Herbicide and fertilizer use is low.
- 21. Opportunity– Modernize EquipmentThere is a shortage of equipment, particularly in the west. Modern seed drills, sprayers and harvesters would materially improve yields. Innovative financing is required if local market is to be maximized.
- 22. Opportunity- Local testing and correction of soilThere is no source of local lime for the acid soil in the west and testing laboratories are underutilized.
- 23. Opportunity- Improve seeds qualityNo government testing of seed quality is performed and the use of imported seed is limited. (Seed shown is American cecilia hybrid).
- 24. Opportunity– Introduce IrrigationThere are 26,000 rivers but most of the soviet era irrigation systems have been destroyed. Modern systems can be deployed but are rare. System shown is Turkish and capable of irrigation at 100 tonnes per hour
- 25. Opportunity– Upgrade Infrastructure and storageMany storage and greenhouse facilities are destroyed or in poor repair and need renovation. There are insufficient cold storage and drying facilities.
- 26. Opportunity– Improve animal husbandryLocal breeds of cattle and buffalo can be improved through breeding. The introduction of foreign breeds has proven difficult but possible. Better land management and scientific feeding methods would have immediate results. Use of fencing is limited.
- 27. Opportunity - Test the theoryGetting it right - Hybrid Corn Trial on 220 hectare farm using US Pioneer (5 varieties), Spanish (5) Georgian (2) as at 9 July 2010.
- 29. In August 2010, a test of 6 hectares in Imereti harvested 7.8 metric tons of corn cob per hectare using American Pioneer seed despite the drought
- 30. The OpportunityAll the main macro requirements for profitable agribusiness are now in place:Good climate, soils and access to water
- 31. Good roads, airports, telecommunications and ports
- 32. Good free trade agreements with the Mega Markets of Turkey, Europe and the USA
- 35. Good land registry and licensing environmentIndustry leaders with expertise and experience can solve the existing sector problems faced by local farmers quickly and economically, substantially improving yields.A US$40 million RFP primarily dedicated to agriculture was issued by USAID in July 2010
- 36. Thank youThe first movers – Ferrero and HiPP are already here, You should be too!დიდი მადლობა მობრძანებისთვის