The total value of agricultural produce exported from Georgia in 2021 is USD 1,142 million which is 21% more as compared to 2020’s figure. The major export items were: wine (21%), spirits (14%), mineral and drinking water (12%), nuts and fruit (mostly hazelnuts) and non-alcoholic sparkling drinks (5%).
In 2021, Georgia’s agricultural produce was exported to 99 countries. If we exclude the export of cigarettes, tobacco and raw tobacco, which are re-export items, the volume of agricultural produce export increased by 21% in 2021 as compared to 2020 and amounted to USD 1,086 million.
Table 1: Foreign Trade Year-by-Year (USD Million)
Source: Ministry of Environmental Protection and Agriculture
As seen by the graph, the export of agricultural produce in 2021 increased by 21% as compared to 2020 whilst import increased by 12% and the negative trade balance decreased by 22%.
The top export destinations for Georgia’s agricultural produce in 2021 are: Russia (USD 386 million), the EU (USD 180 million), Ukraine (USD 108 million), Azerbaijan (USD 108 million), Armenia (USD 88 million) and Belarus (USD 35 million).
Russia accounts for the bulk (34%) of Georgia’s total export of agricultural produce, followed by Ukraine (9%), Armenia (8%), Germany (4%), Belarus (3%), Italy (3%), Kazakhstan (3%), Lithuania (2%), China (2%), etc.
In the reporting year, export to Russia increased by USD 98.8 million (34%) and reached USD 386 million. The list of products stipulating growth of export is variegated but the biggest increase is found in mineral and drinking water, potatoes, non-alcoholic sparkling beverages and wine. As compared to the previous year, their export value increased by USD 17 million (39%), 13.7 million (21 times), 11.6 million (81%) and 11.2 million (9%), respectively, in 2021.
Export to Armenia increased by USD 34.6 million (64%) and reached USD 88 million. The growth of exports of spirits, pork, poultry, crushed soybeans and hazelnuts was main factor behind the export growth. As compared to the previous year, their export value increased by USD 8.7 million (5.9 times), 4.2 million (2.9 times), 3.9 million (2.2 times), 3.6 million (2.2 times) and 3.5 million (78%), respectively. However, export of spirits, crushed soybeans, pork and poultry falls under the category of re-export.
Export to Ukraine increased by USD 15.3 million (16%) and reached USD 108 million. The export growth is largely attributable to the growth of the export of spirits as well as mineral and drinking water. As compared to the same period of the previous year, their export value increased by USD 6.1 million (16%) and 5.5 million (26%), respectively.
Export of agricultural produce to Italy increased by USD 11.1 million (53%) and reached USD 32 million. The growth of the export was stipulated by the increased export volume of hazelnuts. In particular, its export value increased by USD 11.1 million (55%).
Export to Saudi Arabia increased by USD 8.8 million (59%) and reached USD 24 million. The export growth was attributable to the growth of live sheep and hazelnut export by USD 5.1 million (39%) and 3.0 million (4.1 times), respectively.
Export to Azerbaijan increased by USD 7.9 million (8%) and reached USD 108 million. The reason behind this export growth is the increased export of tobacco leaves, crushed soybeans and livestock. In particular, their export value increased by USD 9.2 million (66%), 3.4 million (122%), and 3.0 million (22%). However, tobacco leaves and crushed soybeans fall under the category of re-export.
In 2021, Georgia exported agriculture produce worth USD 180 million to EU countries which is 14% (USD 22 million) more as compared to 2020’s figure. The share of EU member states in the total agricultural produce export constitutes 16%. The major export items are as follows: raw and processed hazelnuts (50%), wine (16%), spirits (12%), mineral and drinking water (11%).
As compared to 2020, the growth of the export of agricultural produce in 2021 is largely stipulated by increased exports of wine (21%), non-alcoholic sparkling beverages (5%), mineral and drinking water (12%), nuts and fruit (mostly hazelnuts – 10%), spirits (14%) and potatoes.
As compared to 2020, the value of the export of agricultural produce destined to Turkey and Kazakhstan significantly dropped by USD 5.2 million (19%) and USD 3.5 million (10%), respectively, in 2021. The volume of the export of agricultural produce to Turkey decreased by USD 5.2 million (19%) and dropped to USD 22 million. The shrinking export is largely stipulated by the lower export of fish fat and fish flour by USD 3.5 million (37%) and USD 2.4 million (27%), respectively. The volume of export of agricultural produce to Kazakhstan decreased by USD 3.5 million (10%) to USD 31 million. The export reduction was caused by the decreased export of mineral and drinking water as well as poultry by USD 3.6 million (22%) and USD 3.5 million (80%), respectively. Of note is that poultry falls under the category of re-export.
In regard to the import of agricultural produce, its total value in2021 was USD 1,349 million which is 12% more as compared to the previous year.
The major exporter countries are: Russia (26%), Ukraine (16%), Turkey (11%), Brazil (5%), Germany (3%), etc.
In 2021, the major import items were as follows: wheat (7%), poultry (5%), sugar (4%), chocolate (4%) and sunflower oil (4%).
In 2021, Georgia imported agricultural produce from EU countries worth USD 295 million which is 16% (USD 41 million) more as compared to the previous year’s figure. The share of EU member states in Georgia’s total import of agricultural produce is 22%. The major import items from the EU are as follows: food additives (8%), spirits (7%), animal food (6%), poultry (6%), plant saplings (5%) and sugar (5%)
