Georgia - Food Processing and PackagingGeorgia - Food Processing and Packaging
Overview
Georgia’s location positions it to be an ideal exporter to markets in Russia and the EU, offering high-quality raw materials and a good location for food processing. The sector has suffered from the collapse of traditional links among post-Soviet states, decades of negligence towards state‐owned enterprises in the sector, obsolete equipment, lack of investment, and lack of current technical knowledge. Georgia imports 80 percent of its packaged food products 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. In addition, a number of foreign aid programs (including USAID, MCC, etc.) target agricultural development and provide financial or material support to individual farmers or bigger enterprises to enable them to meet the requirements of international markets. Opportunities for growth in the sector are ripe, as natural conditions (climate, soil, widely available labor) enable Georgia to become an exporter of agricultural goods to the broader region, including Europe and Asia. This sector is growing steadily with a proliferation of Georgian‐brand products ‐ wine, beer, dairy, nut, sausages, fruit juices and mineral waters ‐ filling local stores and beginning to find new export markets. Several years ago Georgia imported the majority of such products. Georgian wines and spirits have long enjoyed an excellent reputation in Russia and CIS countries, and improved bottling and packaging now allows Georgian firms to sell across a wider export market.
There are opportunities for U.S. exporters of food processing and packaging equipment for fruits, nuts (particularly hazelnuts), vegetables, citrus, and meat and dairy products. Currently many of the existing processing plants use old Soviet equipment which does not provide for high productivity or technical safety. Existing alternatives mostly include Turkish technologies or second‐hand lines from Europe. 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. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Georgia’s location positions it to be an ideal exporter to markets in Russia and the EU, offering high-quality raw materials and a good location for food processing. The sector has suffered from the collapse of traditional links among post-Soviet states, decades of negligence towards state‐owned enterprises in the sector, obsolete equipment, lack of investment, and lack of current technical knowledge. Georgia imports 80 percent of its packaged food products 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. In addition, a number of foreign aid programs (including USAID, MCC, etc.) target agricultural development and provide financial or material support to individual farmers or bigger enterprises to enable them to meet the requirements of international markets. Opportunities for growth in the sector are ripe, as natural conditions (climate, soil, widely available labor) enable Georgia to become an exporter of agricultural goods to the broader region, including Europe and Asia. This sector is growing steadily with a proliferation of Georgian‐brand products ‐ wine, beer, dairy, nut, sausages, fruit juices and mineral waters ‐ filling local stores and beginning to find new export markets. Several years ago Georgia imported the majority of such products. Georgian wines and spirits have long enjoyed an excellent reputation in Russia and CIS countries, and improved bottling and packaging now allows Georgian firms to sell across a wider export market.
There are opportunities for U.S. exporters of food processing and packaging equipment for fruits, nuts (particularly hazelnuts), vegetables, citrus, and meat and dairy products. Currently many of the existing processing plants use old Soviet equipment which does not provide for high productivity or technical safety. Existing alternatives mostly include Turkish technologies or second‐hand lines from Europe. 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. Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.