Overview

Georgia’s fertile soil and favorable climate support production of a wide variety of high‐value agricultural products, including grapes, berries, nuts (hazelnuts, almonds, walnuts, and chestnuts), citrus fruits, apples, peaches, and apricots. Russia and former Soviet countries are the primary export destinations for the bulk of Georgia’s agricultural and related products, owing to their close proximity and similar approaches to agricultural policy. Georgia also grows an increasing quantity of crops, including vegetables and corn, for domestic consumption but heavily relies on imported powdered milk, meat products, and wheat.

Agriculture accounted for seven to eight percent of GDP for the last ten years. According to the World Bank’s assessment, 64 percent of registered agricultural land, being pasture and hayland, belonged to and was managed by public authorities as of 2021. The share of commercial farms in agricultural production remains low and commercial farming remains underdeveloped.

Georgia’s 2018 Constitution imposed restrictions on the sale of agricultural land to foreigners. Parliament adopted a law in 2019 which allows foreigners to purchase land under an investment plan and other preconditions.

The Georgian government identified agriculture as a priority for development and considerably increased funding for the sector, although priorities and programs change frequently and oftentimes without notfication to the World Trade Organization. It also set up the Agriculture Investment Fund to support the sector by providing credit to farmers. Governmental programs implemented through the Rural Development Agency, such as Plant the Future, Preferential Agrocredit, etc., may create additional demand among farmers for equipment and inputs supplied from abroad, including from the United States.

Leading Sub-sector: Food Processing and Packaging

Georgia’s strategic location positions it to be an ideal exporter to regional and European markets for certain bulk commodities like citrus fruit and hazelnuts. Georgia imports 80 percent of packaged food products and 70 percent of overall food, which has a significant negative impact on its trade balance. However, the food processing industry is growing steadily but slowly following the privatization of state enterprises and an increasing demand for locally produced goods. Opportunities for growth in the sector exist to enable Georgia to increase food production for domestic consumption and become an exporter of niche agricultural goods to the broader region, including Europe, Asia, and the Middle East. Georgian wines and spirits enjoy an excellent reputation in Russia and other former Soviet countries, and improved bottling and packaging now allows Georgian firms to sell products across a wider export market.

The United States exported $110 million of agricultural and related products to Georgia in 2024, including transit products

Opportunities for U.S. Exporters

Georgia is an upper middle-income country with great potential for U.S. exporters seeking to both establish themselves in the Caucasus region, as well as position their products for entry into Central Asia by utilizing the Trans-Caspian Trade Corridor. Georgia is frequently recognized for its ease of doing business, and local laws and tariff structures support trade with the United States. This report provides a blueprint for identifying and capitalizing on opportunities in this emerging market. Exporters from the United States interested in exporting to Georgia and the region should refer to the U.S. Department of Agriculture Foreign Agricultural Service’s (FAS) Exporter Guide or contact the FAS staff at the U.S. Embassy in Tbilisi.

There are opportunities for U.S. exporters of food processing and packaging equipment for fruits, nuts (particularly hazelnuts and walnuts), vegetables, citrus, meat, and dairy products. Based on information provided by local authorities and managers, the best sales prospects are for small and medium capacity bottling lines, production plants for wine and juices, and machinery for tea processing and packaging. Additional prospects involve seed crushing and oil refining machinery. There is also demand for mini-bakeries and machinery for the manufacture of confections. Price and payment terms are important factors affecting customers’ purchasing decisions. In many cases, the lease or purchase of used equipment may be a means by which local enterprises can acquire plant machinery and equipment for restarting production.

There are also opportunities for tree nuts, animal feed, and livestock genetics, although a lack of clear regulations for genetically engineered feed, for instance, have stymied U.S. exporters, and attention on better animal breeding has only recently emerged as a focus in Georgia.