Georgia: Private Sector Development Programme South Caucasus: SME Development and DCFTA

Project Background

The three countries of the South Caucasus, Armenia, Azerbaijan and Georgia, faced the challenge of creating broad-based, inclusive growth to reduce the urban-rural divide and poverty, especially in rural areas. Given the small domestic markets with low purchasing power, the primary goal was to expand foreign trade. Diversifying the economy and improving the competitiveness of export products was therefore given high political priority. The greatest export potential was in processed agricultural products. Within the framework of the GIZ project Private Sector Developments South Caucasus (PSD SC), GIZ identified the trout sector as one of the good agricultural candidates for this goal.

Objectives

COFAD was contracted in order to verify the previous sector study done by the Georgian institute “ISET” and identify existing gaps and opportunities and need of the trout farming sector. The following aspects were assessed through interviews, meetings with producers and visits of trout farms in Georgia: 

• Trout feed production
• Training, extension  and professional education services 
• Management and marketing of SME (small and medium enterprises)
• Trout farmer association / framework
• Laboratory facilities, services providers and veterinary care
• Financial services (credit)
• Product diversification
• Export – labelling (incl. DCFTA - Deep and Comprehensive Free Trade Area)
• Agritourism

Activities and Results

• Carried out of a sector study in Georgia, covering natural potential, current production, market situation, institutional framework, veterinary situation, ecologic conditions and other aspects
• Drafted a further development program for 2017-2018
• Delivered a report on the findings and outcomes of the assessment