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EU COOPERATION ON AGRICULTURE IN GEORGIA Juan Echanove .EU Delegation

EU COOPERATION ON AGRICULTURE IN GEORGIA Juan Echanove .EU Delegation. Agriculture: profile of the sector. The decline of Georgian agriculture. Dramatic decline in production…. …and dramatic increase In the number of people in agriculture.

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EU COOPERATION ON AGRICULTURE IN GEORGIA Juan Echanove .EU Delegation

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  1. EU COOPERATION ON AGRICULTURE IN GEORGIA Juan Echanove .EU Delegation

  2. Agriculture: profile of the sector

  3. The declineof Georgian agriculture Dramatic decline in production… …and dramatic increase In the number of people in agriculture YearSown Area LivestockEmployment% of GDP 1990 701,900 4,287,000 25.2 29.7 1995 453,100 2,104,300 30.6 41.7 2000 610,800 2,166,000 52.1 20.2 2005 539,600 2,539,600 54.3 16.8 2008 329,300 1,735,600 55.3 8.9 Rural poverty

  4. The potential Labor Comparatively well-educated farmers Land Fertile soils High biodiversity/ecosystems Lots of unused agricultural lands (stated-owned) Markets Internal market (imports’ substitution): Consumers prefer local products External markets: Georgia, good ‘brand’ in former URSS republics Europe; DCFTA (?) …and the proven success Georgia 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 farmers’ income THE MANY COLORS IN THIS MAP INDICATES THE VARIETY OF GEORGIAN LANDSCAPES AND TYPES OF SOILS… THE MORE COLORFUL A COUNTRY IS IN A MAP LIKE THIS, THE MORE FERTIL IT IS. GEORGIA IS EXTREMLY FERTIL!

  5. Geographical diversity/ specialization

  6. 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

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

  8. Government Strategy • Main 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

  9. ENPARD GEORGIA

  10. ENPARD GEORGIA Undertake consultation with stakeholders Evaluate successful experiences Produce a Strategy for the sector Undertake policy/legislative reforms Budget funds EU funds

  11. EU/FAO programme on Linking information and decision-making toimprove food security Initial 'guidance' provided by external expert Preparation of the draft strategy Assessments of farmers' organizations Assessments on information needs (food security) Farmers survey (GEOSTAT) Review of EU-assisted development aid in agriculture Lessons learned from EU+MS projects TAIEX Workshop on agriculture Strategies on EU MS Consultation Approval Preparation Of the Action Plan EU FWC TA to assist in the preparation of the Action Plan OTHER DONORS? TA to assist in the preparation of the Action Plan The process

  12. ENPARD GEORGIA Successful experiences evaluated

  13. Overall objective: it aims at increasing food production in Georgia and reducing rural poverty.The specific objective is to improve the agriculture sector by supporting the implementation of the Agriculture Sector strategyand strengthening small farmers‘ organizations. ENPARD GEORGIA

  14. ENPARD GEORGIA THREE MAIN COMPONENTS….. Strengthened co-operation amongst small farmers Main 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….

  15. Why Cooperatives? • 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)

  16. Small Farmers Co-operation Why ???

  17. Total State budget of Armenia: 2,500 billion EUR 2011 data

  18. EUR 52 M EU contribution (40 M+12M)BUDGET SUPPORT (24.5 M) 47 %EUR 24 M Budget Support (Top-up added 6.5 M)GRANTS (20.7 M) 40%EUR 18 M grants via NGOs (Top-up added 3 M)EUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsTECHNICAL ASSISTANCE (6.8 M) 13 %EUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added 2.5 M)EUR 0.5 communication and visibility EUR 0.5 M other6 years (BS 4 years) ENPARD GEORGIA

  19. EUR 52 M EU contribution (40 M+12M)BUDGET SUPPORT (24.5 M) 47 %EUR 24 M Budget Support (Top-up added 6.5 M)GRANTS (20.7 M) 40%EUR 18 M grants via NGOs (Top-up added 3 M)EUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsTECHNICAL ASSISTANCE (6.8 M) 13 %EUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added 2.5 M)EUR 0.5 communication and visibility EUR 0.5 M other6 years (BS 4 years) ENPARD GEORGIA

  20. EUR 24 M Budget Support • 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

  21. 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

  22. 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

  23. EUR 52 M EU contribution (40 M+12M)BUDGET SUPPORT (24.5 M) 47 %EUR 24 M Budget Support (Top-up added 6.5 M)GRANTS (20.7 M) 40%EUR 18 M grants via NGOs (Top-up added 3 M)EUR 2 M grants via UNDPEUR 0.7 M support to academic/research institutionsTECHNICAL ASSISTANCE (6.8 M) 13 %EUR 2.3 M TA to MoA via FAOEUR 1 M TA to Ajara MoA via UNDPEUR 2.5 M TA to ADCA (Top-up added 2.5 M)EUR 0.5 communication and visibility EUR 0.5 M other6 years (BS 4 years) ENPARD GEORGIA

  24. EUR 18 M grants

  25. EUR 18 M grants

  26. http://enpard.ge https://www.facebook.com/EnpardGeorgia

  27. Thanks

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