About the project:
Local market:
Area and production of the berries in Georgia (2015):
- Blackberry: 59.6 hectare; 127 tons.
- Raspberry: 316 hectare. 724 .5 tons.
- Blueberry: 114.6 hectare. 131.4 tons.
Sale of the manufactured products:
On the local market – 95.7%
The seasonal retail selling price of berries
- Blackberry 5-6 GEL/kg
- Raspberry 6 GEL/kg
- Blueberry 6 GEL/kg
Off-season retail sale price of berries (average): 11-12 GEL / kg.
Export market:
The main target market: European Union countries
Product import from non-EU countries:
400 million EUR in 2015 year.
Main importer countries (2015):
- Germany – 108.5 thousand tons;
- France – 45.9 thousand tons;
- Belgium – 34.5 thousand tons.
Major exporter countries:
- Serbia – 120.7 thousand tons;
- Poland – 107 thousand tons;
(The Russian market is used to sell the part of the products)
Advantages of Georgia:
Georgia has a favorable investment environment, as evidenced by:
- Tax-free export to the EU, the US, the CIS, and other regions with a total population of 2 billion;
- The existing infrastructure and communication;
- Low-cost resource – for example, electricity, labor force and water;
- Favorable geographical location: easily accessible European and Asian markets (through the Black Sea ports of Poti and Batumi);
- Growing berries industry and encouragement of small and medium farmers by the government to cultivate berry plantations;
- Agreement on Deep and Comprehensive Free Trade Area with the EU (DCFTA).
Project description:
Company location: Two agro-hubs with the refrigeration facilities: Zugdidi Municipality (Western Georgia) and Mtskheta-Tianeti Municipality (Eastern Georgia);
Cultivation of the plantations:
- Blueberries 10 hectare. (Western Georgia);
- Blackberries 10 hectare, Raspberries 5 hectare. (Eastern Georgia);
Products: thornless blackberry, raspberry and blueberry, frozen with shock technology for the export market, berry seedlings for the local market;
Business activity:
- Production, processing-freezing of the own berry products and their export to the European Union market;
- Purchase of berry products from the local farmers, processing-freezing and export to the EU market;
- Sale of berry seedlings (raspberries, blackberries);
- Servicing local farmers with refrigerated areas;
(53 people will be permanently employed)
Estimated selling price from the warehouse:
| Name | Price | Market |
| Raspberry (frozen) | 11.55 GEL / kg | for export |
| Blackberry (frozen) | 11.55 GEL / kg | for export |
| Blueberry (frozen) | 11.55 GEL / kg | for export |
| Seedling (Blackberry, Raspberry) | 1.0-1.5 GEL/unit | local |
Estimated price of the service of refrigeration spaces:
- Minus mode refrigerator – 35 GEL/tons per month;
- Plus mode refrigerator – 25 GEL/tons per month;
Production quantity
| Name | I year | II year | III year | IV year | V year | |||||
| own | purchased | own | purchased | own | purchased | own | purchased | own | purchased | |
| Raspberry t. | – | 10 | – | 30 | 15 | 40 | 50 | 50 | 75 | 60 |
| Blackberry t. | – | 20 | – | 30 | 80 | 40 | 280 | 50 | 320 | 60 |
| Blueberry t. | – | 15 | – | 30 | 15 | 40 | 60 | 50 | 150 | 60 |
| Seedling unit. | – | 225000 | 500000 | 500000 | 500000 |
Financial indicators
| III year | IV year | V year | |
| Income million GEL | 3.40 | 6.68 | 9.21 |
| Operating profit million GEL | 1.38 | 4.00 | 5.99 |
| ROE | 10% | 52% | 83% |
| ROA | 12% | 37% | 38% |
Total investment: 6.65 million GEL
IRR: 24%
The state resource
The state provides the following financial and technical support:
- 55 Million GEL Grant for Refrigeration Equipment and Plantation Irrigation Systems from ,,Enterprise Georgia” and “Plant the Future”.
- Technical assistance from “Geosilkroud” Group.