Frozen Berries

Production and Export of Frozen Berries

Project Resume

Precondition

Domestic market:

  • Land area and Production of Berries in Georgia in 2015:

Blackberry- 59.6 ha, 127 tons, Raspberry- 316 ha. 724 .5 tons, Blueberry-114.6 ha. 131.4 tons

  • 7% on Produced berries sold on domestic market
  • Retail prices during harvesting season:

Blackberry 5-6 GEL/kg, Raspberry 6 GEL/kg, Blueberry 6 GEL/kg.

  • Retail prices during non harvesting season: average 11-12 GEL/kg
  • Insufficient level of Freezing tecbology development in the country

Export Markets:

  • Main Target market: EU
  • Import of Berries in EU from nonmember states: 400 EUR 2015 წ.
  • Main importer EU countries in 2015:

Germany – 108.5 thou. tons, France – 45.9 thou. tons, Belgium – 34.5 Th. Tons

  • Main Exporters:

Serbia – 120.7 thou. Tons, Poland – 107 thou. (Part of exports to Russia market)

  • Exports of Georgia (Tons)
Product201320142015
Raspberry0.02
Blackberry0.6
Blueberry0.629.240.3

Export Ex-work price of Georgian berries 5.25 USD/kg 

Advantages of Georgia:

  • Export of products to EU, USA, CIS and other countries are free form taxes
  • Favorable climatic condition
  • Cheap resources – electricity, water, workforce
  • Favorable geographical location: easy access to EU market via Batumi and Poti ports
  • Growth of berries farming and the state support to small and medium size farmers to plant berries new plantations
  • Deep and Comprehensive Free Trade AreaDCFTA ) agreement with the EU. This regime increases market access between the EU and Georgia

Project description

  • Location of the company – establishment of 2 agriculture hubs with freezing warehouses and equipment
  • Anaklia, Zugdidi Municipality, West Georgia
  • Mtskheta -Tianeti Municipality, East Georgia

 

  • Plantations:
  • Blue berry 10 ha. West Georgia
  • Blackberry 10 ha, Raspberry 5 ha. East Georgia

 

  • Products:
  • Shock frozen blackberry, raspberry and blue berry for the export markets
  • Raspberry and blackberry seedlings for the local market

 

  • Business Activities
  • Cultivation and harvesting of berries from the company’s plantations, processing, freezing and export to EU market
  • Purchase of berries from the local farmers, processing, freezing and export to EU market
  • Sales of raspberry and blackberry seedlings to local farmers
    • Refrigerator storage service to local farmers and companies
  • Number of permanent employees: 53
  • Ex-work sales price:
ProductPriceMarket
Raspberry (Frozen)11.55 GEL/kgExport
Blackberry (Frozen)11.55 GEL/kgExport
Blue Berry (Frozen11.55 GEL/kgExport
Seedlings (Blackberry, Raspberry)1.0-1.5 GEL/UnitLocal
  • Refrigerator storage service for the local farmers:
  • Minus temperature storage – 35 GEL/Ton per month
  • Plus temperature storage – 25 GEL/Ton per month
  • Production volumes
ProductYear IYear IIYear IIIYear IVYear V
1*2*1*2*1*2*1*2*1*2*
Raspberry tons1030154050507560
Blackberry tons203080402805032060
Blueberry tons15301540605015060
Seedlings   units225000500000500000500000

1* – Harvested from own plantations

2* – Purchased from local farmers

Financial Data

Total Investment: 6.65 mln.Gel

Year IIIYear IVYear V
Sales                         mln. GEL3.406.689.21
Operation Profit      mln. GEL1.384.005.99
ROE10%52%83%
ROA12%37%38%

IRR: 24%

State support and Resources

The state provides the following financial and technical assistance

„Produce Georgia”  and “Plant The Future” programs Grant amount 1.55 mln./GEL for the purchase of Freezing equipment and for the irrigation systems of berries plantations

Technical assistance from Geo Silk Road Group

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