Sectors & markets

Finance & Extension Services & Cooperative Development for Georgian Farmers

Agence française de développement

Finance & Extension Services & Cooperative Development for Georgian Farmers

3 October 2019


The agriculture sector is strategic for the Georgian government, so the focus is on its development. Today it is carried out according to the rural strategy set up by the State and in cooperation with the various donors. Agriculture accounts for 6% of GDP and 40% of the population works in this sector.

In order to fulfill its specifications, the Ministry of Agriculture has undergone a structural reorganization that has resulted in the creation of a new institution, a new agency, now in charge of all agricultural projects: ARDA (Agricultural Projects Management Agency ). The agency wants to focus directly on farmers by helping them develop a sustainable business. This support will not be only technical but also will take into account trainings.
The agricultural sector is now greatly supported by the United States, particularly in the production of nuts. Following the bug that had destroyed many hectares, the US support helped revive the sector.

The FINEXCOOP program is funded by the European Union through the French Development Agency (AFD) and set up by the Frankfurt Scholl of Finance & Management and the Chamber of Agriculture of Loiret de France.
The goal of the program is to help small farmers to have better access to information, to define their value chains and to organize themselves into cooperatives. The primary goal is to develop SMEs as they create jobs and are essential to a country's economic growth. However, these SMEs, as of their small sizes, face the difficulty of having access to financing, which is why the program will allow them easier access.


Fin- as Finance

With the support of Credo and Crystal:
• Develop the latest generation of agri-scoring and agri expert computer systems using international know-how. They will require a systematic analysis of gross farm margins for all strategic products in all regions.
• Develop new financial technologies that may include warehouse financing or insurance-based financial products based on the innovative use of satellite surveillance technologies.
• Promote value chain finance through large scale replication pilot projects.


Ex- as Extension

• Promote advanced methods based on farmers' participatory approaches and systematic evaluation tools for improvement (gross margin before and after the implementation of the recommendations).
• Develop financial education programs for "extensioinists"
• Train "extensioinists" in new technologies and farming practices through large-scale pilot projects


Coop - as cooperatives

• Promote advanced methods of managing cooperative enterprises and improve their economic sustainability.
• Train the "extensioinists" in the principles and management of cooperatives
• Promote cooperative service enterprises, including machine cooperatives, using the experience of French cooperatives.


Through the project, around thirty pilots will be established throughout Georgia. First, relatively large farmers will be chosen for these pilots to study and retrieve data. Then these farmers will have the mission to transfer their knowledge to farmers of smaller sizes.
A pilot is especially planned in Touchetie to develop honey. Gori is also considered in order to set up modern techniques. Among these new technologies have been mentionned, organic agriculture, embryo transfer, satellite monitoring of fields, etc.

The agriculture agency said they had opened consultations with farmers in 54 municipalities to provide the necessary knowledge.

An agricultural school has been opened in the regions to sensitize the younger generation to agriculture and new technologies used in this sector.

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