Frozen berries

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:

Raspberry (frozen)11.55 GEL / kgfor export
Blackberry (frozen)11.55 GEL / kgfor export
Blueberry (frozen)11.55 GEL / kgfor export
Seedling (Blackberry, Raspberry)1.0-1.5  GEL/unitlocal

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

NameI yearII yearIII yearIV yearV year 
Raspberry t.1030154050507560
Blackberry t.203080402805032060
Blueberry t.15301540605015060
Seedling unit.225000500000500000500000     

Financial indicators

 III yearIV yearV year
Income million GEL3.406.689.21
Operating profit million GEL1.384.005.99

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.