Georgian olive oil is preparing to conquer the global market
For Georgia, olive production is a new, but very promising business segment in which both private investors and large companies can successfully invest their capital. Despite that he state today’s only beginning to implement its program for the cultivation of olives, in the future it will be able to occupy its own niche in the world market and become one of the leading exporters of olive oil.
We have olives from Georgia and investors from around the world
The situation was unusual: in the zero years, few people heard about Georgian olive plantations, but now it is a commercial product with a great future, for which there is everything necessary. Post-Soviet Georgia has the image of a state where reforms were successfully carried out, bribery and bureaucracy were defeated, and investor confidence was won. And trust, as you know, is an important condition for long-term planning.
Today, Georgia’s perceived as a reliable trading partner, since many entrepreneurs have experienced firsthand how safe it is to conduct business in this region. Today, Georgia’s perceived as a reliable trading partner, since many entrepreneurs have experienced firsthand how safe it is to conduct business in this region. In the annual ranking of the World Bank, which assesses the country on the ease of doing business, Georgia ranks sixth in the world, overtaking the United States, China and the United Kingdom. And according to such criteria as the protection of investors and the ease of registering enterprises, Georgia takes second place in the world.
For business people World Bank ratings are the best hints in matters of financial investments. The trend is easy to follow through the numbers: foreign investment in the local economy, according to the results of 2018, reached a level of $ 1 billion. This is about $ 280 per inhabitant of the country (for comparison: in Italy — $ 215, in China — $ 251, in Greece — $ 267). Exports abroad rose by 24%.
The growth of indicators is associated with a change in the government’s approach to economic policy, which is paid today a lot of attention to supporting individual industries. Then, olive business gained priority developing. In 2010, when the first 20,000 seedlings were planted in Kakheti, the importance of this event was highlighted at the government level. In particular, it was emphasized that olive production is a new segment in the country’s agriculture, allowing provincial residents to earn a good income.
“It is important to promote this culture, because it is in demand in all countries”
said Agriculture Minister Levan Davitashvili noting Georgia’s high potential in terms of growing perennial crops.
“Therefore, we launched the program “Implement the Future”, stimulating the development of fruit growing. For the country’s economy, this is of great importance. “
concluded Minister and this means that olives in Georgia are under reliable protection.
The olive industry is developing steadily: today, hundreds of hectares of land in Kakheti have been turned into “investment” fields that have received state support. Anyone who today invests in this business, in the near future, can count on broad export opportunities and, of course, on the profit that the Georgian olives promise.
By increasing the yield of olives, Georgia has chances to outperform the competition
No doubt that only desire to build a business is not enough, it is also important that there are good conditions. In the case of the olive business, the basis of prosperity is the “right” climate. Kakheti is on the same latitude with the leaders of the olive industry: Greece, Spain and Italy. It even has advantages in terms of humidity, which can be further increased with the help of modern irrigation systems. If you start to use these systems immediately after planting the seedling, then with an average yield of adult olive in 60–80 kg. from one tree in Kakheti, the harvest can reach up to 100 kg.
Productivity depends on many technological factors: the distance between trees, the design of the irrigation system, the composition of the soil, the specific variety of cultivated olive, etc. When it comes to innovation, the youth of plantations becomes their first trump card. Today, thanks to attracting qualified pros from around the world and investing in state-of-the-art technologies, an opportunity to produce a high-quality product has appeared in Kakheti. If Georgia got down to business, it will have no more olives than European ones.
It is important that the return on investment in this case can be predicted: it is known that with the right selection of seedlings and proper care for them, the harvest can be collected starting from the fourth year. Therefore, for many businessmen, the Kakhetian olive as a source of passive income has become a good substitute for bank deposits and real estate investments.
Global demand for olives and products from it also contributes to a high level of payback. Last olive season, traditionally lasting from October to October, only for 2 months, imports of olive oil in the USA grew by 5%, to Australia by 42%, and to China — by 65%. All leading economic platforms mark an upward trend in demand, so investing tens of millions of dollars in olive plantations in Georgia is no surprise to anyone. This young business really has great potential, the disclosure of which is a matter of the next few years.