1. EPI aims to improve competitiveness by identifying and targeting key factors to enhance the growth rates and productivity of Georgian enterprises, thereby enhancing the economic well-being of workers in the economy GROWING TOGETHER

2. Vegetable Sector Analyses Summary Georgia has a strong tradition of vegetable production. Many Georgian farmers depend not only on the food itself (subsistence), but also on the income. The country exports a substantial quantity of vegetables. Its moderate climate, varying soils and multitude of micro-climates means that some sort of vegetable can be found growing just about everywhere. Certain areas focus on root crops while other areas focus on field production of vegetables. In 2004, over 28.4 MMT of fresh vegetables were traded globally, which is about 3% of global production. The limited export of vegetables indicates a high level of self-sufficiency for most countries. Still, global vegetable trade is growing steadily at annual growth rates of 4.6% from 1994-2004. Improvements and innovations in cool logistics and increased availability of cool chain infrastructure in export countries will continue to have a positive impact on global trade. Tomatoes, onions, peppers and cucumbers are the top four traded vegetables. Georgia is 5% above the world average in vegetable consumption, but is far less than #1 ranked Turkey. Market Growth

3. Skills & Capacities With the long history of vegetable production in the country, there are many experienced producers and specialized agronomists available. In southeast Georgia, irrigation is more common; it is less common in west Georgia, due to the higher precipitation levels. While hectares planted have dropped, production has remained steadier, suggesting an increase in yields. There are currently about 41,000 hectares of vegetables planted in the country. Although the Russian embargo initially harmed processors and exporters, many of them have now developed contracts abroad and have the specialized equipment available to produce and sell canned vegetables and vegetable juices abroad. Market Constraints As a result of the break-up of the Soviet Union, Georgian vegetable producers and exporters suffered greatly due to the loss of their primary markets. Input costs greatly increased and processing plants fell into disrepair, as did irrigation systems. These factors led to lower yields, higher costs and a greater inability to export. Even today, there is a reticence to trying new plant seeds or varieties, using better, more appropriate fertilizers and using adequate and correct herbicides to reduce weed pressure and increase yields. Likewise, there is a shortage of agricultural machinery, although the MCC Farm Machinery Centers have helped to alleviate this issue.

4. TOMATO Budget Summary

5. BEET Budget Summary

6. PARSLEY Budget Summary

7. PEPPERS Budget Summary

8. CABBAGE Budget Summary

9. POTATO Budget Summary

10. ONION Budget Summary

11. CARROT Budget Summary

12. EGGPLANT Budget Summary

13. CUCUMBER Budget Summary

14. DILL Budget Summary

15. LETTUCE Budget Summary

16. GARLIC Budget Summary

17. SUMMARY

18. OPPORTUNITIES FOR GROWTH In recent years, Georgia has installed a world-class business environment through significant policy reforms. The country is also endowed with many strengths including: A strategic location Natural beauty A deep and rich history Lucrative natural resources, and Talented, energetic people The next step is to take advantage of this enabling policy environment and Georgia’s endowments to meet market opportunities and increase investment. USAID’s Economic Prosperity Initiative (EPI) is a four-year $40 million program to improve enterprise, industry, and country- level competitiveness in Georgia.

19. EPI is designed to be a collaborative effort. For more information about the project and how you can be a part of helping to shape the future of Georgia, please contact us 6 Samgebro street 0105, Tbilisi Tel: 995 32 438924/25/26 Fax:995 32 438927 E-Mail: info@epigeorgia.com Analyze and identify key agriculture and non-agriculture sectors with high potential for growth Enhance value chains for increased productivity Increase access to market opportunities Attract new investment and drive innovation and entrepreneurship Promote public-private dialogue to engage key players