Page 62 - GEORptOct21

Georgia plans to increase hazelnut exports to rank second in the world
Georgia exports 19 tonnes of peaches and nectarines for $17mn in May-July
Rising wheat prices drivers for a sharp rise in Georgian inflation
Georgia plans to increase its hazelnut production and exports until it reaches second place in the world rankings, Prime Minister Irakli Gharibashvili announced on August 26.
"Our task should be to step by step take second place in just a few years. We have an ambitious plan and vision to make Georgia the second largest producer of hazelnuts in the world," Gharibashvili told reporters.
On August 9, the EU decided to simplify export procedures for hazelnuts exported from Georgia.The examination frequency for Georgian hazelnuts will be reduced from 50% to 20%.
According to the prime minister, the hazelnut business is very successful in Georgia. The country is the third largest producer of hazelnuts, behind only first-placed Turkey and second-placed Italy.
Hazelnuts are among the main export goods of Georgia. They are mostly exported to EU countries, as well as to Armenia and Russia.
From August 1 last year to February 9 this year Georgia exported 15.6 thousand tonnes of hazelnuts worth $81.2mn.
The volume of exports of hazelnuts during this period doubled compared to the same period of 2019-2020. In monetary terms, the value of exports increased by $27.7mn.
Georgia exported 19 tonnes of peaches and nectarines worth $17mn from May 1 to July 25. The tonnage was 6.3 tonnes higher than was recorded for the same period of last year, the Ministry of Agriculture of Georgia said. The ministry added that the value of the export increased by $5.9mn y/y.
The peaches and nectarines were mainly exported to Russia (11,935 tonnes) and Armenia (5,872 tonnes).
The Russian government said at the start of February it would impose a floating tax for wheat exports from June 2. In Georgia, about 80,000-100,000 tonnes of wheat are harvested every year. That covers less than 10% of the overall consumption countrywide.
Last year, 87.3% of the wheat imported into Georgia (430,236 tonnes) came from Russia. Georgia plans to partially replace Russian wheat with Kazakh grains with the Russian wheat export tax doubling per tonne, according to executive director of the Georgian Flour Producers Association Levan Silagava, speaking in March.
The main drivers for a sharp rise in inflation, seen by Galt & Taggart analyst Kavtaradze as climbing to above 10% by the end of the year (the IMF’s projection is 9.4%), are base effects following subsidies paid by the government in the winter of 2020-2021 and the increase in the price of bakery products consecutive to rising wheat prices expected on the regional market. Kavtaradze added that “inflation will be affected by rising prices for bread products, although the pressure of other categories may be eased and balanced. But this does not mean that there will be a significant downward trend in inflation in the coming months.”
9.1.10 TMT sector news
Georgia’s post-Covid connectivity plan targets investments of €3.9bn
Connectivity has been put at the top of the agenda in Georgia, following a visit earlier this month from Europe's commissioner for neighbourhood and enlargement, Oliver Varhelyi.
In an address to officials, Várhelyi said the country was facing issues due to its lack of communications connectivity with other nations and to vital utilities such
62 GEORGIA Country Report October 2021 www.intellinews.com