1. EU COOPERATION ON AGRICULTURE IN GEORGIA J UAN E CHANOVE.EU D ELEGATION

2. Agriculture: profile of the sector Agriculture contribution to GDP9% Total number of farmers2.5 million % of employed population on agriculture sector55% Average size of land per farmer1 ha. % of farmers producing for self consumption82% Share of the MoA in the national budget (2008)1.3% % of foodstuff imported (Tbilisi)80%

3. Year Sown Area Livestock Employment % of GDP 1990 701,900 4,287,000 25.229.7 1995 453,100 2,104,300 30.641.7 2000 610,800 2,166,000 52.120.2 2005 539,600 2,539,600 54.316.8 2008 329,300 1,735,600 55.38.9 Dramatic decline in production… …and dramatic increase In the number of people in agriculture in agriculture The decline of Georgian agriculture Rural poverty

4. The potential Labor Comparatively well-educated farmers Comparatively well-educated farmersLand Fertile soils Fertile soils High biodiversity/ecosystems High biodiversity/ecosystems Lots of unused agricultural lands (stated-owned) Lots of unused agricultural lands (stated-owned)Markets Internal market (imports’ substitution): Consumers prefer local products Internal market (imports’ substitution): Consumers prefer local products External markets: Georgia, good ‘brand’ in former URSS republics External markets: Georgia, good ‘brand’ in former URSS republics Europe; DCFTA (?) Europe; DCFTA (?) …and the proven success Georgia had very efficient agriculture system during URSS and before 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 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. Geographicaldiversity/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 )

9. 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

10. ENPARD GEORGIA

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

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

13. Successful experiences evaluated ENPARD GEORGIA

14. 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 strategy and strengthening small farmers‘ organizations. ENPARD GEORGIA

15. 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….

16. 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) Why Cooperatives?

17. Small Farmers Co-operation Why ???

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

20. EUR 52 M EU contribution (40 M) 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 ) EUR 2 M grants via UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) 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 UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) ENPARD GEORGIA

21. EUR 52 M EU contribution (40 M) 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 ) EUR 2 M grants via UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) 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 UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) ENPARD GEORGIA

22. (1)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 EUR 24 M Budget Support

23. (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

24. 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

25. EUR 52 M EU contribution (40 M) 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 ) EUR 2 M grants via UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) 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 UNDP EUR 0.7 M support to academic/research institutions TECHNICAL ASSISTANCE (6.8 M) 13 % EUR 2.3 M TA to MoA via FAO EUR 1 M TA to Ajara MoA via UNDP EUR 2.5 M TA to ADCA (Top-up added 2.5 M) EUR 0.5 communication and visibility EUR 0.5 M other 6 years (BS 4 years) ENPARD GEORGIA

26. EUR 18 M grants

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

30. Thanks