Olive cultivation in Kakheti
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Step by step, Georgian agriculture is growing and changing to meet world market demands. The latest example of this trend is the introduction of olive production in the East of Georgia. It has transpired that Kakheti’s climate is ideal for the crop. Its export may even eventually become more profitable than the grapes the region is famed for.
This new direction for Georgian agro-business has been predicted to be a great success by local experts. As a result of Dutch-Turkish investment, the opening of the very first Kakhetian olive grove – planted by Geolive and containing 34,000 saplings over six hectares - was held in Sighnaghi to an enthusiastic reception.
The plot was seen as nothing special before the project. Due to its dry soil, nothing was able to flourish but withered bushes. Investors and locals hope that the soil will prove perfect for olive production. The first harvest is expected in six years, and by that time, the company will have built factories for the further development of the product.
The public opening, held by Geolive and Capital Partners of Georgia, was attended by Georgian President Mikheil Saakashvili, who planted the first olive sapling.
Geolive was founded in 2009, with Capital Partners of Georgia as its partner company. It is also implementing similar projects in Guria and Samegrelo. Geolive offers plants to regular farmers absolutely free of charge under one condition – that farmers will plant, take care of the plants and receive the yield under preliminary guarantee.
Capital Partners of Georgia (CPG) was established by an enthusiastic, young Georgian businessman, George Svanidze. Together with his partners, Mark Haynes Daniell, Tom Singh, and Robert Michael Vancko, CPG is investing millions of dollars in the hospitality and agriculture sectors.
The company has already invested 1.2 million GEL in the agriculture sector and owns 1,200 hectares of land in Kolkheti Valley, between the regions of Guria and Samegrelo.
“Turkish businessmen and Georgian entrepreneurs working in Turkey offered us the opportunity to establish olive production in Georgia,” stated Svanidze. “We have already invested several million lari and are developing one of the largest kiwi farms in the country. We are also planning to produce tomatoes, corn, and vegetables as well as palm trees and various other exotic trees and plants.”
The Turkish side arranged for research to be conducted and it transpired that the regions of Kakheti, Imereti, Marneuli and Guria have the perfect climate for olive production.
According to Svanidze, the company’s experts carefully studied Kakheti’s soil and climate, finding in them all the conditions for a successful project. Markets for export have already been identified.
Is the largest employer in the village of Mashnaari, which is located three kilometers from Signhnaghi. 30-40 people work there daily, with the village youngsters also engaged in the production.
20,000 saplings were imported from Turkey, and this number is expected to rise up to 100,000 by the end of the year. In 2009, Turkish government made a change in its legislation as a direct consequence of the project.
Merab Gogrichidze has a long-term experience in the business and owns some of the largest olive plantations in Turkey: “Around 500 saplings are planted on each hectare and the harvest reaches around 25 tons, with 15,000 dollars of profit. The plants need watering during the first few years but after five years it becomes incredibly simple to take care of the plantation,” he stated.
Olive culture in Georgia is still in its infancy, but the project’s heads see a lot of opportunities in the product. They plan to use 20 percent of the yield for fruit with the rest for producing oil.
“The business is dedicated to entrepreneurs, smallholders and large investors as well. The establishment of an olive culture in Georgia will improve the Georgian economy as well as the livelihoods of rural communities,” stated Svanidze.
Story by Natalie Mchedlishvili
29.07.2010 |
