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connections across the country. Following in their footsteps, Georgia is also working on Internet connectivity and promoting tech start-ups. The project will comprise four parts, namely the development of an innovation infrastructure through the creation of a network of innovation hubs in selected cities and town; the provision of innovation services; ensuring financing through technical assistance and matching grants; and project implementation support.
9.1.7 Retail sector news
Georgia exported 45.4mn 0.75 litre bottles of wine to 50 countries around the world in the first seven months of 2018, a 19% increase compared to the same period of 2017. In value terms, the increase was even sharper; Georgia sold $90.3mn worth of wine overseas during the period, a 28% y/y hike. “Georgian wine exports have been increased in Georgian wine strategic markets both in Europe and Asia, as well as in US and other traditional markets,” the National Wine Agency that provided the data said in a statement on August 7.
Russia was the top export market for Georgian wine, buying over 28.5mn bottles in the seven months. Russia was followed by Ukraine (5mn bottles), China (3.5mn), Kazakhstan (2.0mn) and Poland (0.9mn).
While all these are well-established markets for Georgian wines, the data also showed that Georgian producers are making inroads in a diverse range of markets. Sales to Japan were up by 124% to 166,032 bottles in the first seven months of 2018, while exports to South Korea rose by 130% albeit to a still modest 40,980 bottles, and Georgia managed to hike sales to Romania by a stunning 390% to 84,654 bottles. Other markets that are saw a sharp increase in sales included Kyrgyzstan (up 81%), the UK (67%), the Czech Republic (68%) and Kazakhstan (41%).
In addition to the increase in wine exports, Georgia also boosted brandy exports by 20% to 9.9mn 0.5 litre bottles during the same period.
A further 219,500 0.5 litre bottles of the Georgian liqueur Chacha were sold to 24 countries worldwide, an increase of 114%. Put together, sales of wine, bandy and Chacha amounted to $173.3mn, a 21% y/y increase.
9.1.8 Agriculture sector news
Output increased in Georgia’s agricultural sector in 2017, but the sector continued its gradual decline in importance in the country’s GDP, statistics office Geostat’s annual report on agriculture showed.
Output of agriculture, hunting, forestry and fishing reached GEL4.1bn (€150mn) in 2017, continuing the upward trend of the past few years. Agriculture accounted for the lion’s share of this amount, GEL3.9bn. Similarly, value added generated by the sector maintained its steady rise.
However, as a percentage of GDP, agricultural output declined to 8.2%, down from 9.0% in 2016, after the two previous years also showed a fall.
Within agricultural output, animal husbandry accounted for 50% of the total, plant growing for 45% and agricultural services for 6% (the figures are rounded up, which explains why the total adds up to over 100%).
Lower fluctuations have recently been observed in the “Khachapuri Index” that measures the cost of cooking one standard Imeretian khachapuri. The ISEP Policy Institute which produces the index speculates that they could be connected to efforts to modernise Georgia’s dairy sector. The Tbilisi-based research centre compiles the index,
40 GEORGIA Country Report September 2018 www.intellinews.com