EPI aims to improve competitiveness by identifying and targeting key factors to enhance the growth...

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

Vegetable Sector Analyses

SummaryGeorgia 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

Skills & Capacities

With the long history of vegetable production in the country, there are many experienced producers and specialized agronomists available. In southeastGeorgia, 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.

TOMATO Budget Summary

HA in case of30 40 50

400

500.00 /ton 15,000 20,000 25,000

0.5 kg/Ha 1600 800 800 800 80020000 ha 800 800 800 800 800

Mulch film 5000 m/ha 0.5 2,500 2,500 2,500 2,5000

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organic Fertilizer 20 T/Ha 50 1,000 1,000 1,000 1,0004 lit /Ha 90 90 90 90

10 lit /Ha 54 54 54 543 lit /Ha 45 45 45 45

10 kg /Ha 65 65 65 65Water Ha 90 90 90 90 90

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 70

Mulching 1 /Ha 175 175 175 175 1752 /Ha 30 60 60 60 60

Hoeing 2 /Ha 175 350 350 350 350

5 sprays 30 150 150 150 150

1 /Ha 100 100 100 100 1001 /Ha 370 370 370 370 3704 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing- in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 953 953 953 953

10,482 10,482 10,482 10,482

4,518 9,518 14,518GROSS PROFIT

PRICE PER

Miscellaneous/unsuspected costs

TOTAL COSTS

Cutting of beds

IrrigationHarvesting

Land leasing

Pesticide SprayingHired Labor

Planting of seedlings

CultivationRidge beds

Fertilizer Application

Custom Spraying

Microelements

Land handlePlowingDisking

Nitrogen

Herbicides FungicidesInsecticides

Seed

Mineral Fertilizer PK

UNIT/GEL

RECEIPTS

VARIABLE and FIXED COSTS

Seedling production

Tomatoes

ITEM EXPLANATION PRICE PER Yield (Ton/Ha)

BEET Budget Summary


700.00 /ton 24,500 28,000 31,500

15 kg/Ha 16 240 240 240 240

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organoc fertilizer 20 T/Ha 50 1,000 1,000 1,000 1,0002 /Ha 60 120 120 120 1203 /Ha 80 240 240 240 240

3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

8 kg /Ha 60 60 60 60

1 /Ha 110 110 110 110 1101 /Ha 70 70 70 70 704 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 900 900 900 900 900

Bringing-in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 468 468 468 468

5,148 5,148 5,148 5,148

19,352 22,852 26,352

Yield (Ton/Ha)

RECEIPTS Beet

ITEM EXPLANATION PRICE PERUNIT/ GEL

Total cost

VARIABLE and FIXED COSTSSeedMineral Fertilizer

PKNitrogen


MicroelementsLand handle

PlowingDiskingCultivationRidge bedsPlanting

Fertilizer ApplicationCustom Spraying



Land leasingMiscellaneous/unsuspected costs

TOTAL COSTS

GROSS PROFIT

PARSLEY Budget Summary


500.00 /ton 22,500 25,000 27,500

6 kg/Ha 40 240 240 240 240

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organic Fertilizer 20 T/Ha 50 1,000 1,000 1,000 1,0002 /Ha 60 120 120 120 1203 /Ha 80 240 240 240 240

3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

8 kg /Ha 65 65 65 65

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 502 /Ha 40 80 80 80 801 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1200 1,200 1,200 1,200 1,200

Bringing in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 489 489 489 489

5,374 5,374 5,374 5,374

17,127 19,627 22,127

Yield (Ton/Ha)

RECEIPTS Parsley


Total cost

PKNitrogen

Herbicides


FungicidesInsecticides






Land leasing

GROSS PROFIT


TOTAL COSTS

PEPPERS Budget Summary


1,200.00 /ton 21,600 24,000 26,400

1 kg/Ha 300 300 300 300 30041700 ha 1500 1,500 1,500 1,500 1,500

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.7 175 175 175 175


3 lit /Ha 50 50 50 50ha 90 90 90 90 90

8 kg /Ha 90 90 90 90

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 502 /Ha 40 80 80 80 801 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing-in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 680 680 680 680

7,475 7,475 7,475 7,475

14,126 16,526 18,926

Yield (Ton/Ha)

RECEIPTS Pepper


Total cost

Nitrogen

Herbicides Fungicides


Mineral Fertilizer: PK

Insecticides


Plowing

Water

DiskingCultivationRidge bedsPlanting



Custom SprayingPesticide Spraying

Hired Labor

Seedling productionSeed

TOTAL COSTS

GROSS PROFIT

Irrigation Harvesting

Land leasing

CABBAGE Budget Summary


300.00 /ton 15,000 18,000 21,000

0.5 kg/Ha 1200 600 600 600 600 20 000 ha 500 500 500 500 500

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organic Fertilizer 20 t/Ha 50 1,000 1,000 1,000 1,0002 /Ha 60 120 120 120 1203 /Ha 80 240 240 240 240

3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

8 kg /Ha 70 70 70 70

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 502 /Ha 40 80 80 80 801 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 150 600 600 600 6001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 625 625 625 625

6,875 6,875 6,875 6,875

8,125 11,125 14,125

Yield (Ton/Ha)

RECEIPTS Cabbage


Total cost

VARIABLE and FIXED COSTSSeed

Fertilizer PK

Seedling production

Nitrogen







Land leasingMiscellaneous

TOTAL COSTS

GROSS PROFIT

POTATO Budget Summary


800.00 /ton 24,000 28,000 32,000

2500 kg/Ha 1.5 3,750 3,750 3,750 3,750

750 kg/Ha 0.9 675 675 675 675500 kg/Ha 0.7 350 350 350 350

Organic Fertilizer 40 T/Ha 50 2,000 2,000 2,000 2,0002 /Ha 120 120 120 120

18 /Ha 240 240 240 2405 /Ha 150 150 150 1508 /Ha 60 60 60 60

Water Ha 90 90 90 90 90

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1602 /Ha 70 140 140 140 1401 /Ha 50 50 50 50 502 /Ha 30 60 60 60 60

5 sprays 30 150 150 150 150

4 /Ha 150 600 600 600 6005 /Ha 50 250 250 250 2501 /Ha 1,500 1,500 1,500 1,500 1,500

Bringing in 1 Ha 200 200 200 200 2001 /Ha 50 50 50 50

10% /Ha 1,076 1,076 1,076 1,076

11,831 11,831 11,831 11,831

12,170 16,170 20,170GROSS PROFIT

PRICE PER UNIT/ GEL

Soil shelling

Planting

SeedFertilizer


TOTAL COSTS

Irrigation

Harvesting

Land leasing




Microelements


Nitrogen


PK

RECEIPTS Potato


ITEM EXPLANATION TOTAL COST Yield (Ton/Ha)

ONION Budget Summary


800.00 /ton 20,000 24,000 28,000

10 kg/Ha 170 1,700 1,700 1,700 1,700

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organic Fertilizer 10 T/Ha 50 500 500 500 5002 /Ha 60 120 120 120 1203 /Ha 80 240 240 240 240

3 lit /Ha 50 50 50 5010 kg /Ha 120 120 120 120

Water Ha 90 90 90 90 90

1 /Ha 120 110 110 110 1101 /Ha 100 50 50 50 504 /Ha 40 40 40 40 401 /Ha 80 70 70 70 701 /Ha 100 30 30 30 302 /Ha 60 120 120 120 120

Hoeing 3 /Ha 175 525 525 525 525

6 sprays 30 180 180 180 180

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in 1 /Ha 125 125 125 125 1251 /Ha 50 50 50 50

10% /Ha 644 644 644 644

7,084 7,084 7,084 7,084

12,916 16,916 20,916GROSS PROFIT

Planting

Miscellaneous /unsuspected costs

TOTAL COSTS


Land leasing




Custom Spraying

Microelements


Nitrogen



PK

Yield (Ton/Ha)

RECEIPTS Onion

ITEM EXPLANATION PRICE PER

Total Cost

CARROT Budget Summary


500.00 /ton 25,000 27,500 30,000

6 kg/Ha 30 180 180 180 180

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150


3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

10 kg /Ha 120 120 120 120

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 70

Hoeing 2 /Ha 175 350 350 350 3501 /Ha 50 50 50 50 502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in 1 /Ha 120 120 120 120 1201 /Ha 50 50 50 50

10% /Ha 576 576 576 576

6,336 6,336 6,336 6,336

18,664 21,164 23,664

Harvesting


TOTAL COSTS

GROSS PROFIT


Hired Labor Irrigation


PlantingFertilizer Application


PlowingDisking

Nitrogen



PK

Yield (Ton/Ha)

RECEIPTS Carrot

ITEM EXPLANATIONPRICE PER

UNIT/ Total Cost

EGGPLANT Budget Summary

HA60 70 80

500.00 /ton 30,000 35,000 40,000

0.6 kg/Ha 250 150 150 150 15022 200 ha 550 550 550 550 550

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150


3 lit /Ha 50 50 50 5010 kg /Ha 60 60 60 60

Water Ha 90 90 90 90 90

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 701 /Ha 50 50 50 50 502 /Ha 30 60 60 60 60

Hoeing 2 /Ha 175 350 350 350 350

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in 1 /Ha 200 200 200 200 2001 /Ha 50 50 50 50

10% /Ha 680 680 680 680

7,480 7,480 7,480 7,480

22,520 27,520 32,520

Yield (Ton/Ha)

RECEIPTS Eggplant


TOTAL COST

VARIABLE and FIXED COSTSSeed

Mineral Fertilizer PK

Seedling production

Nitrogen

Herbicides FungicidesInsecticidesMicroelements



Hired Labor

CultivationRidge bedsPlantingFertilizer Application



TOTAL COSTS

GROSS PROFIT

CUCUMBER Budget Summary

HA30 35 40

in case of

600.00 /ton 18,000 21,000 24,000

4 kg/Ha 200 800 800 800 800

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150


3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

10 kg /Ha 120 120 120 120

1 /Ha 120 120 120 120 1201 /Ha 100 100 100 100 1004 /Ha 40 160 160 160 1601 /Ha 50 50 50 50 501 /Ha 100 100 100 100 100

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

6 sprays 30 180 180 180 180

4 /Ha 150 600 600 600 6001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in Ha 200 200 200 200 2001 /Ha 50 50 50 50

10% /Ha 617 617 617 617

6,787 6,787 6,787 6,787

11,213 14,213 17,213

Yield (Ton/Ha)

RECEIPTS Cucumber


Total Cost

VARIABLE and FIXED COSTSSeedMineral Fertilizer :

PKNitrogen



PlowingDisking


Hired Labor

CultivationRidge bedsPlanting



Land leasingMiscellaneous

TOTAL COSTS

GROSS PROFIT

DILL Budget Summary

HA8 10 12

in case of

3,000.00 /ton 24,000 30,000 36,000

12 kg/Ha 25 300 300 300 300

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150


3 lit /Ha 50 50 50 508 kg /Ha 65 65 65 65

Water Ha 90 90 90 90 90

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringingin 1 Ha 150 150 150 150 1501 /Ha 50 50 50 50

10% /Ha 486 486 486 486

5,341 5,341 5,341 5,341

18,660 24,660 30,660

Yield (Ton/Ha)

RECEIPTS Dill


Total cost


PKNitrogen


Land Handle:PlowingDiskingCultivationRidge bedsPlanting




Land leasingMiscellaneous/unsuspect costs

TOTAL COSTS

GROSS PROFIT

LETTUCE Budget Summary


800.00 /ton 8,000 9,600 12,000

3 kg/Ha 30 90 90 90 90

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150


3 lit /Ha 50 50 50 50Water Ha 90 90 90 90 90

8 kg /Ha 65 65 65 65

1 /Ha 110 110 110 110 1101 /Ha 50 50 50 50 504 /Ha 40 160 160 160 1601 /Ha 70 70 70 70 701 /Ha 50 50 50 50 50

Hoeing 2 /Ha 175 350 350 350 3502 /Ha 30 60 60 60 60

4 sprays 30 120 120 120 120

4 /Ha 100 400 400 400 4001 /Ha 1200 1,200 1,200 1,200 1,200

Bringing in 1 /Ha 150 150 150 150 1501 /Ha 50 50 50 50

10% /Ha 435 435 435 435

4,780 4,780 4,780 4,780

3,221 4,821 7,221

Yield (Ton/Ha)

RECEIPTS Lettuce


Total cost


PKNitrogen


MicroelementsLand Handle





Land leasingMiscellaneous/unsuspect costs

TOTAL COSTS

GROSS PROFIT

GARLIC Budget Summary

HA in case of6 7 8

2,500.00 /ton 15,000 17,500 20,000

1400 kg/Ha 2 2,800 2,800 2,800 2,800

300 kg/Ha 0.9 270 270 270 270250 kg/Ha 0.6 150 150 150 150

Organic fertilizer

Fertilizer Application 10 T/Ha 50 500 500 500 500

2 /Ha 60 120 120 120 1203 /Ha 80 240 240 240 240

3 lit /Ha 50 50 50 5010 kg /Ha 120 120 120 120

Water Ha 90 90 90 90 90

1 /Ha 120 110 110 110 1101 /Ha 100 50 50 50 504 /Ha 40 40 40 40 401 /Ha 80 70 70 70 701 /Ha 100 30 30 30 302 /Ha 60 120 120 120 120

Hoeing 3 /Ha 175 525 525 525 525

6 sprays 30 180 180 180 180

4 /Ha 100 400 400 400 4001 /Ha 1500 1,500 1,500 1,500 1,500

Bringing in 1 /Ha 125 125 125 125 1251 /Ha 5 5 5 5

10% /Ha 750 750 750 750

8,245 8,245 8,245 8,245

6,756 9,256 11,756

Yield (Ton/Ha)

RECEIPTS Garlic

ITEM EXPLANATION PRICE PER UNIT/ GEL

Total Cost


PKNitrogen


Land handlePlowingDiskingCultivationRidge bedsPlantingFertilizer Application


Hired Labor IrrigationHarvesting

Land leasingMiscellaneous /unsuspected costs

TOTAL COSTS

GROSS PROFIT

SUMMARY

Sales Costs Profit Labor

Eggplant 35,000 7,480 27,520 2,450

Dill 30,000 5,341 24,660 1,900

Beet 28,000 5,148 22,852 1,300

Carrot 27,500 6,336 21,164 1,900

Parsley 25,000 5,374 19,627 1,600

Onion 24,000 7,084 16,916 1,900

Pepper 24,000 7,475 16,526 3,400

Potato 28,000 11,831 16,170 2,350

Cucumber 21,000 6,787 14,213 2,100

Cabbage 18,000 6,875 11,125 2,600

Tomatoes 20,000 10,482 9,518 3,170

Garlic 17,500 8,245 9,256 1,625Lettuce 9,600 4,780 4,821 1,600

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.

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 street0105, TbilisiTel: 995 32 438924/25/26Fax:995 32 438927 E-Mail: [email protected]

• 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

EPI aims to improve competitiveness by identifying and targeting key factors to enhance the growth...

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Transcript of EPI aims to improve competitiveness by identifying and targeting key factors to enhance the growth...