EU COOPERATION ON AGRICULTURE IN GEORGIAJUAN ECHANOVE .EU DELEGATION

Agriculture: Agriculture: profile of the sectorprofile of the sector

Agriculture contribution to GDP 9%

Total number of farmers 2.5 million

% of employed population on agriculture sector

55%

Average size of land per farmer 1 ha.

% of farmers producing for self consumption 82%

Share of the MoA in the national budget (2008) 1.3%

% of foodstuff imported (Tbilisi) 80%

Year Sown Area Livestock Employment % of GDP1990 701,900 4,287,000 25.2 29.71995 453,100 2,104,300 30.6 41.7 2000 610,800 2,166,000 52.1 20.22005 539,600 2,539,600 54.3 16.8 2008 329,300 1,735,600 55.3 8.9

Dramatic decline in production…

……and dramatic increaseand dramatic increaseIn the number of peopleIn the number of people in agriculturein agriculture

The declineThe declineof Georgian agricultureof Georgian agriculture

Rural poverty

The potentialThe potential

LaborLabor Comparatively well-educated farmersComparatively well-educated farmers

LandLand Fertile soilsFertile soils High biodiversity/ecosystemsHigh biodiversity/ecosystems Lots of unused agricultural lands (stated-owned)Lots of unused agricultural lands (stated-owned)

MarketsMarkets Internal market (imports’ substitution): Consumers prefer local productsInternal market (imports’ substitution): Consumers prefer local products External markets: Georgia, good ‘brand’ in former URSS republicsExternal markets: Georgia, good ‘brand’ in former URSS republics Europe; DCFTA (?)Europe; DCFTA (?)

……and the proven successand the proven success Georgia had very efficient agriculture system during URSS and beforeGeorgia had very efficient agriculture system during URSS and before (10% of URSS production) Many small-scale projects have proven that it is not that difficult to increase productivity and Many small-scale projects have proven that it is not that difficult to increase productivity and

farmers’ income farmers’ income THE MANY COLORS IN THIS MAP INDICATES THE VARIETY THE MANY COLORS IN THIS MAP INDICATES THE VARIETY

OF GEORGIAN LANDSCAPES AND TYPES OF SOILS…OF GEORGIAN LANDSCAPES AND TYPES OF SOILS…

THE MORE COLORFUL A COUNTRY IS IN A MAP LIKE THIS, THE THE MORE COLORFUL A COUNTRY IS IN A MAP LIKE THIS, THE MORE FERTIL IT IS. GEORGIA IS EXTREMLY FERTIL!MORE FERTIL IT IS. GEORGIA IS EXTREMLY FERTIL!

Geographical Geographical diversity/diversity/

specializationspecialization

New trends:From Cinderella to princess

Strong political commitment

Strategy and Action Plan

New programmes by Government

Dramatic increase in the budget

More resources by donors

Budgetary expenditures on agriculture, in million GEL (left) and as % of the total budget (right)

Government StrategyMain directions… •Competiveness improvement trough private sector development

Including Straightening farmers' groups

•Capacity improvement of the institutions and stakeholders (MoA local extention offices, training, extension, VET…)

•Development of food production chains

•Rural infrastructure •Irrigation…

•Food security

•Environment, agri biodiversity

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Evaluate successful Evaluate successful experiencesexperiences

Produce a Produce a Strategy Strategy for the sectorfor the sector

Undertake Undertake policy/legislative

reforms Budget fundsBudget funds

Undertake consultation with stakeholders

EU fundsEU funds

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Preparation of the draft strategy

Preparation of the draft strategy

ConsultationConsultation

PreparationOf the Action

Plan

PreparationOf the Action

Plan

ApprovalApproval

Initial 'guidance' provided by external expert

Assessments of farmers' organizations

Assessments on information needs (food security)

Lessons learned from EU+MS projects

EU/FAO programme on Linking information and decision-making to improve food security

Review of EU-assisted development aid in agriculture

Farmers survey (GEOSTAT)

TAIEX

TA to assist in the preparation of the Action Plan

EU FWC

TA to assist in the preparation of the Action Plan

OTHER DONORS?

Workshop on agricultureStrategies on EU MSThe process

Successful experiences evaluated

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Overall objective:Overall objective: it aims at increasing food it aims at increasing food production in Georgia and reducing rural production in Georgia and reducing rural poverty.poverty.

The specific objectiveThe specific objective is to improve the is to improve the agriculture sector by supporting the agriculture sector by supporting the implementation of the implementation of the Agriculture Sector Agriculture Sector strategystrategy and strengthening small farmers‘ and strengthening small farmers‘ organizations. organizations.

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ENPARD GEORGIAENPARD GEORGIA

THREE MAIN COMPONENTS…..

Strengthened co-operation amongst small farmersMain beneficiaries: Cooperatives and other farmers groups

Access to capacity building by small farmers improved Main beneficiaries: ALL farmers

Improved efficiency of institutions involved in agriculture main beneficiaries: Ministry of agriculture, Cooperatives Agency….

              

              

              

A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit.

It has nothing to do at all with a kolkhoz!

Cooperatives…– supply their members with inputs for agricultural

production (seeds, fertilizers, machinery, TA) – And/or undertake transformation, packaging,

distribution, and marketing of farm products

Cooperatives are the dominant form for agricultural production in Europe (i.e. over 50% of agri-food industry ) and elsewhere in the world where there are small farmers (including many areas of USA)

Why Cooperatives?

Small Farmers Co-operation

Why ???

Total State budget of Armenia: 2,500 billion EUR

2011 data

EUR 52 M EU contribution EUR 52 M EU contribution (40 M(40 M+12M))

BUDGET SUPPORT (24.5 M) BUDGET SUPPORT (24.5 M) 47 %47 %EUR 24 M Budget Support (Top-up added EUR 24 M Budget Support (Top-up added 6.5 M6.5 M))

GRANTS (20.7 M) GRANTS (20.7 M) 40%40%EUR 18 M grants via NGOs (Top-up added EUR 18 M grants via NGOs (Top-up added 3 M))EUR 2 M grants via UNDPEUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsEUR 0.7 M support to academic/research institutions

TECHNICAL ASSISTANCE (6.8 M) TECHNICAL ASSISTANCE (6.8 M) 13 %13 %EUR 2.3 M TA to MoA via FAOEUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added EUR 2.5 M TA to ADCA (Top-up added 2.5 M2.5 M))EUR 0.5 communication and visibility EUR 0.5 communication and visibility EUR 0.5 M otherEUR 0.5 M other

6 years (BS 4 years) 6 years (BS 4 years)

ENPARD GEORGIAENPARD GEORGIA

EUR 52 M EU contribution EUR 52 M EU contribution (40 M(40 M+12M))

BUDGET SUPPORT (24.5 M) BUDGET SUPPORT (24.5 M) 47 %47 %EUR 24 M Budget Support (Top-up added EUR 24 M Budget Support (Top-up added 6.5 M6.5 M))

GRANTS (20.7 M) GRANTS (20.7 M) 40%40%EUR 18 M grants via NGOs (Top-up added EUR 18 M grants via NGOs (Top-up added 3 M))EUR 2 M grants via UNDPEUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsEUR 0.7 M support to academic/research institutions

TECHNICAL ASSISTANCE (6.8 M) TECHNICAL ASSISTANCE (6.8 M) 13 %13 %EUR 2.3 M TA to MoA via FAOEUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added EUR 2.5 M TA to ADCA (Top-up added 2.5 M2.5 M))EUR 0.5 communication and visibility EUR 0.5 communication and visibility EUR 0.5 M otherEUR 0.5 M other

6 years (BS 4 years) 6 years (BS 4 years)

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(1)Strengthened co-operation amongst small farmers

(1.1) Legislation to promote business-oriented small farmers group, which is approximated with European criteria and standards and that removes disincentives and establish incentives is adopted.

(1.2) 30% increase in the percentage of small farmers in the targeted areas who are aware about business-oriented co-operation

(1.3) At least 50 agriculture cooperatives officially registered

(1.5) Registry of agricultural cooperatives granted status is listed on the public website of the ACDA, plus a related database containing the activity details of registered cooperatives is updated on a regular basis

EUR 24 M Budget Support

EUR 24 M Budget Support

(2) Capacity building for small farmers- EXTENTION

(2.1) At least 30 district-level MoA Information and Consulting centres to provide consultation, information and advice to small farmers, are officially established and staffed.

(2.2) At least 30 district-level information and consulting centres already providing consultation and advice to small farmers, based on international standards and proven models

(2.3) A training programme for agriculture cooperatives managers is provided to managers of all already registered cooperatives

(2.4) State Budget provisions for ACDA are included in successive State Budget Laws

(2.5) A financing scheme to support agricultural cooperatives is adopted by the Government

EUR 24 M Budget Support

(3) Capacity building of the institutions involved in agriculture

(3.1) Policy unit established in the MoA, individual responsibilities in the unit defined and staff recruited and working according to the unit's mandate

(3.2) Approval by MoA of a 'human resources appraisal, training and development programme' and allocation of funds for its implementation

(3.4) Extension / information packages delivered to the farmers through the Information and Consultation Centres

EUR 52 M EU contribution EUR 52 M EU contribution (40 M(40 M+12M))

BUDGET SUPPORT (24.5 M) BUDGET SUPPORT (24.5 M) 47 %47 %EUR 24 M Budget Support (Top-up added EUR 24 M Budget Support (Top-up added 6.5 M6.5 M))

GRANTS (20.7 M) GRANTS (20.7 M) 40%40%EUR 18 M grants via NGOs (Top-up added EUR 18 M grants via NGOs (Top-up added 3 M))EUR 2 M grants via UNDPEUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsEUR 0.7 M support to academic/research institutions

TECHNICAL ASSISTANCE (6.8 M) TECHNICAL ASSISTANCE (6.8 M) 13 %13 %EUR 2.3 M TA to MoA via FAOEUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added EUR 2.5 M TA to ADCA (Top-up added 2.5 M2.5 M))EUR 0.5 communication and visibility EUR 0.5 communication and visibility EUR 0.5 M otherEUR 0.5 M other

6 years (BS 4 years) 6 years (BS 4 years)

ENPARD GEORGIAENPARD GEORGIA

EUR 18 M grants

EUR 18 M grants

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https://www.facebook.com/EnpardGeorgia

              

              

              

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