Within the context of a free trade zone along with food safety laws introduced by the European Union (EU), Georgia’s dairy industry has the opportunity to become a competitive market. To achieve such progress, Georgian agribusiness requires capacity building in order to increase competiveness and efficiency of value chains and to attract investments for the upgrading of existing equipment, improvement of food safety and hiring of new employees in accordance with new EU standards.
FAO and the EBRD, with the Association of Milk Producers of Ukraine (AMP), have taken initiative to address the issues at stake with the implementation of the project “Improving food safety through capacity building in Georgia’s dairy sector.”
With the completion of the first phase, experts successfully conducted a technical and economic analysis of the dairy sector for a better understanding of bottlenecks within the industry in order propose recommendations for development and modernization.
Now, FAO with the EBRD and the AMP, are working to address the problems identified in the dairy sector through knowledge transfer including i) raising awareness of the new policy in the context of the free trade zone and ii) improving the standards of safety, hygiene and efficiency of dairy production.
At a glance:
• Georgia has a solid consumer base for dairy products but lacks the necessary technical knowledge for efficient production and farm management
• Not increasing investments in the sector could lead to production costs of high quality milk rising by 50-70 percent.
• The AMP has successful experience in the modernization of dairy farms for high level of safety and quality of milk in several countries across the Caucasus region
• With the expert knowledge from the partners, the project presents a platform for knowledge sharing and technical training
• The First National Dairy Congress and the Caucasion International Dairy Congress was held in Tbilisi in March 2016 garnering great interest within the dairy industry and gathering more than 200 participants – managers and specialists of the leading dairy farms, authorities, commercial companies, dairy companies, industry associations, international organizations, financial institutions and the media. Delegates from 10 countries took part in the successful forum. See more here: (links to press release, photo gallery, etc.)
• The team carried out theoretical and practical trainings on all technological aspects of milk production for a group of 20 managers and specialists of Georgia’s dairy farms over the course of 10 intensive days of workshops on the farms. See more here: (links to photos etc.)
Andriy Yarmak; Andriy.Yarmak@fao.org