Market Opportunities for Livelihood Improvement in Kakheti, Georgia

Agriculture is merely the fourth most important economic sector of Georgia, accounting approx. to ten percent of GDP but employing roughly half of the country’s labour force. Despite an overall economic recovery, the agricultural sector in Georgia stagnates. The Kakheti region is one of the leading agricultural regions in Georgia and shows significant levels of unemployment and poverty. Its population relies to a large extent on (semi-) subsistence agriculture.

The income of farmers in Southern Georgia shall be increased by contributing to the transition towards a sustainable market economy in the livestock sector. The purpose of the project is to enable the livestock market system to function more inclusively for subsistence and semi-subsistence livestock farmers in Kakheti, resulting in improved incomes, well-being and resilience to livelihood related disaster risks. By the end of the proposed phase, 6’500 households will have benefitted directly from improved access to services, inputs and markets.

The principle target group are those market players with whom the project engages to achieve systemic change that benefits the rural population: a) private enterprises, traders of all sorts, shops, veterinaries, and business consultants which are supplying goods and services to livestock farmers; and b) voluntary and professional membership associations and public sector organizations providing services to livestock farmers and livestock related enterprises. The beneficiaries of the project are around 6’500 subsistence and semi-subsistence livestock producing households, totalling approx. 20’000 people in the three target districts.

The following three outcomes shall be achieved during the present project phase :

• Subsistence and semi-subsistence livestock farmers have increased production due to improved access to services, inputs and information on animal health, breeding and nutrition
• Subsistence and semi-subsistence livestock farmers have increased their income due to a more favourable market access and terms of trade for dairy and meat products
• Local and regional governments have enhanced capacities to support the inclusive and coherent growth of the agricultural sector which is more resilient to livelihood related disaster risks

As a result of more efficient production and better sales opportunities, it is expected that farmers will be able to increase their income by 10 to 20% during the phase

Results from previous phases:  

During the planning phase several in-depth analyses of the livestock market system, of the beneficiaries and their environment, and of relevant market players and other stakeholders were conducted. These assessments revealed that livestock farming in the Kakheti region is a promising because of its potential for growth, among others owing to the low cost of key inputs, good pastures and adequate land for fodder production, as well as favorable marketing opportunities due to the vicinity to the capital Tbilisi. However, it was also found out that the livestock sector faces a number of constraints which significantly limit inclusive and sustainable sector growth. The Project intends to address some of those key constraints, e.g. the inadequate supply of veterinary services and information on seed, feed and fertilizers.

Phase 1 01.11.2011 - 30.11.2015   (Completed)