Page 58 - GEORptSep22

9.1.9 Agriculture sector news
Georgia intends to reduce share of wine exports to Russia and expects significant boost to US
Georgia to ban export of wheat and barley for a year
Georgian blueberry suppliers ‘have global ambitions’
Georgia's National Wine Agency's Chairman Levan Mekhuzla said that wine exports to Russia should decrease to 40% in the next five years. It currently stands at 60% in 1H22.
"Last year, wine exports to the USA increased by 16%. This year we have an outstanding marketing campaign and the increase in exports to the US market will become more visible. In general, we are working very diligently on other markets such as the UK and Germany as well as Eastern European countries, primarily Poland and the Baltics. We think that Russia's share in wine exports will drop below 40% in about five years," said Mekhuzla.
According to him, the government intends to steadily sell five million bottles of Georgian wine annually on the US market by 2025. In 1H22, a total of $98mn worth of wine was exported from Georgia, 58% of which went to Russia. Georgian Minister of Agriculture Otar Shamugia expects a significant increase in wine exports to the US.
According to Shamugia, his ministry spends around GEL12mn ($4mn) on the promotion of Georgian wine, and these funds were directed to predetermined priority markets, including the US.
In 2022 to date, Georgia has exported $2mn worth of wine to the US. Wine exports to the US exceeded one million bottles in 2021. In 2021, total sales of Georgian wine abroad generated $250mn.
The Georgian government will ban the export of wheat and barley for a year starting from July 4, 2022. The decree has already been signed by Prime Minister Irakli Garibashvili and shared on the official Facebook page. The reason is the Russian invasion of Ukraine, according to Minister of Environment and Agriculture Otar Shamugia, "given the situation in the region, it is important to sell locally produced wheat and barley only on the domestic market to ensure food security", he said. According to him, despite the fact that Georgia is completely dependent on wheat imports (500,000 tonnes of wheat per year) and wheat cannot be exported from Georgia due to low production, “the current situation creates a risk that a certain amount of wheat may be exported for export".
As for barley, according to the ministry, the barley produced in the country is exported to Iraq and Iran, but it is important that "at this stage" it be sold only on the local market. According to the ministry, the forecasted barley harvest for 2022 fluctuates around 60,000 tonnes, of which more than 2,500 tonnes have already been exported. At this stage, restrictions do not apply to corn exports.
Georgian blueberry suppliers believe they possess the potential to become a significant global player thanks to modernisation and expansion efforts in blueberry production and export, according to horti daily.
By 2024, over 1,500 hectares of blueberries will be in full production in Georgia, according to growers, with the planted area garnering a minimum of 15,000 tonnes of fresh blueberries every year, the trade media outlet reported. The developments might be especially of interest to blueberry buyers in the UK, where blueberries remain the fastest growing berry in the market.
Wrote horti daily: “The up-and-coming country supplier presents a great opportunity for UK buyers, importers, wholesalers, distributors, and retailers to strengthen their sourcing of quality blueberries from around the world. “According to data provided by the Fresh Produce Consortium (FPC), berries overall rank second among the top five fresh fruits imported into the UK;
58 GEORGIA Country Report September 2022 www.intellinews.com