Page 56 - GEORptDec21

Georgian persimmon exports hit eight-year high
Georgia hazelnut production up, but exports increasingly rejected by EU
Georgian wine exports grow by 9% y/y, while spirits exports also jump
Georgian persimmon exports have hit an eight-year high, according to reports from EastFruit.
According to the Georgian Ministry of Finance, the country exported 5,800 tonnes of persimmons worth $3mn in October 2021. This is two times more than the average for October 2014-2020, both in value and volume.
The main export destinations of Georgian persimmons are Russia, Ukraine and Armenia, which together accounted for 97% of exported persimmons in October 2021. At the same time, there is a significant difference in prices in export markets. The price of persimmons on the Russian market is 41% higher than the average export price of Georgian persimmons, which is $510 per tonne.
According to EastFruit estimates, given the very high external demand and accumulated volumes, some key market players believe that exports in November 2021 will be even higher. Record high volumes of Georgian potato exports were also seen in October, far higher than previous totals.
Hazelnut production in Georgia has grown in volume this autumn, but increasing rejections of exported hazelnuts to the EU is harming revenues.
Georgian hazelnut exports in October 2021 grew by 9% year on year, amounting to 3,300 tonnes on a kernel basis, according to Georgia’s Ministry of Finance as reported by Eastfruit. From August 1 to November 7, the figures were higher – a 39% increase y/y with a corresponding 14% ($7mn) revenue jump. However, Eastfruit notes that Georgian hazelnuts were rejected at EU borders 19 times in only three months (from August 1 to October 31) as a result of quality issues. This is a sharp increase from eight total rejections in the 2020 hazelnut season (from August 2020 to July 2021).
The quality issues are especially concerning, as Georgian farmers are increasingly looking to diversify from grapes as climate change-driven hailstorms cause millions of dollars in damage. Reuters reported in late October that about 100 grape producers in Georgia’s eastern region of Kakheti have switched to nuts in recent years.
Georgia’s National Wine Agency has released new statistics on wine exports in the first ten months of 2021, indicating that the revenue from wine exports has increased by 9% over the same period last year.
The primary growth markets were Czech Republic, which saw a 275% rise in the number of bottles of Georgian wine exported there, Turkey (209%), Mongolia (174%), Canada (84%) and the United Kingdom (72%). The top five export markets for Georgian wine remained Russia, Ukraine, Poland, China and Belarus. Total revenue from wine exports in January-October 2021 was $194mn.
Brandy and chacha (a Georgian spirit) exports also grew significantly. Revenue from brandy exports was $57.7mn in the first ten months of 2021, an increase of 7% year on year, while chacha export revenue hit $1.8mn, a 77% increase.
9.1.10 TMT sector news
EU may finance undersea fibre-optic cable to Georgia
The European Union (EU) is considering financing the construction of a new fibre-optic cable in the Black Sea, said Lawrence Meredith, the European Commission's Director for Relations with the Eastern Neighborhood and Institution Building, who paid an official visit to Georgia in mid-October.
"Strengthening digital connections is being considered by laying fibre-optic
56 GEORGIA Country Report December 2021 www.intellinews.com