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EU co-operation in the agriculture sector Georgia: ENPARD Juan Echanove February, 2013.

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Presentation on theme: "EU co-operation in the agriculture sector Georgia: ENPARD Juan Echanove February, 2013."— Presentation transcript:

1 EU co-operation in the agriculture sector Georgia: ENPARD Juan Echanove February, 2013

2 Background Profile of the sector The decline The potential New trends Sector strategy Donor coordination

3 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%

4 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

5 Why? Agriculture remains the forgotten sector of the economy –No strategy –Lack of public policies. No strategy – –Modest investment by either the public or private sectors – –No provision of veterinarian and extension services Farms are too small, so farmers cannot… – –secure credit – –purchase inputs and equipment competitively – –acquire critical production information – –market their products competitively Negative background on farmers' co-operation No legal support to farmers’ coops/associations Policies: – –Policy favours importing ( low import costs) – –Lack of non-trade barriers (no SPS in place)

6 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!

7 Geographicaldiversity/specialization

8 donor co-ordination set-up in place 40 individuals from 30 organizations attending regularly –IOs, bilateral donors, NGOs, etc. –MoA is part, but not chairs yet FAO chairs, EUD sis secretariat Sub-groups along the lines of the strategy priorities Presentations and discussions on technical topics Blog to collect technical documents More resources by donors

9 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

10 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

11 ENPARD GEORGIA

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

13 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

14 Successful experiences evaluated ENPARD GEORGIA

15

16 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

17 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

18 Strengthened co-operation amongst small farmers Adoption of legislation to promote business-oriented small farmers' groups Promotion of small farmers' co-operation Establishment of business-oriented small farmers' groups Capacity building to farmers' groups Complementary limited investment support to the farmers' groups Access to capacity building by small farmers improved Organization of the extension system, district level Improved efficiency of institutions involved in agriculture Capacity building/support to the MoA of Georgia Capacity building/support to the MoA of Adjara Capacity building to agriculture-related education and research institutions Improvement of agriculture-related information systems and statistics Geographical Indications regulated and developed ENPARD GEORGIA

19 EUR 40 M EU contribution EUR 18 M Budget Support EUR 15 M grants EUR 2 M TA to MoA via FAO EUR 3 M suport to Adjara (UNDP) EUR 1 M academic instiutions EUT 1 M other 5 years (BS 3 years) ENPARD GEORGIA

20 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?

21 Thanks!!!!


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