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:

NamePriceMarket
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 
ownpurchasedownpurchasedownpurchasedownpurchasedownpurchased 
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
ROE10%52%83%
ROA12%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.