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ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
25

Is Less, More? On “Usakhelauri” Wine

  This summer I bought a small piece of land (0.15ha) in the village of Okhureshi to grow a vineyard. About 700 “Usakhelauri” vine seedlings planted on that land in November this year will soon provide the most scarce and expensive grapes in Georgia. In just in a couple of years the vines will mature, and I will enjoy something as nice as the neighboring vineyard depicted in the photo. NO NAME… Usakhelauri is an ancient red-wine grape variety unique to Georgia. The grapes are cultivated in just a couple of villages in the Lechkhumi region (West Geor...
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Nov
20

Asian Invasion: Stink Bug in Georgia

Nikoloz M., 65, from the Imeretian village of Jikhaishi, invested around 15,000 GEL into his 8.5 ha hazelnut orchard in 2012, hoping that one day his initiative would turn into a profitable business. Nikoloz was on his way to success up until this year, before the stink bug, or Asian pharosana, as Georgians call it, appeared in his orchard. While Nikoloz expected to harvest 800 kg – 1000 kg of hazelnuts per ha, the stink bug infestation reduced his harvest by 30-35%, resulting in a loss of more than 1,000 GEL per ha. For a rural household with average an...
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Oct
16

Strong Leader = Successful Team?!

The cooperative movement in Georgia started back in 2013 with EU support, through the launching of the ENPARD project, a major component of which is the development of agricultural cooperatives across Georgia. According to the Agricultural Cooperatives Development Agency, there are 1,500 agricultural cooperatives in Georgia, and more than 250 of them have been supported by the ENPARD program (for locations of these cooperatives see the map). Not all those newborn cooperatives will be successful, and their sustainability depends on many factors. THE THEOR...
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Jul
03

Georgian Wool: Can It Become the “Golden Fleece” Again?

Back in 2014, Georgia and the European Union (EU) signed an Association Agreement, which included the Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia. While this agreement creates new opportunities for Georgia’s agricultural exports, high food safety standards in the EU market make it difficult to fully utilize these opportunities. This is particularly true for products of animal origin, which are subject to strict regulations. The necessary standards were successfully met last year for Georgian wool (fleece), and it became the ...
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Jun
17

How Safe Is Your Food?

  Food safety has become an important aspect of agricultural policy for many countries (see, e.g., CAP). By definition, “Food safety refers to the conditions and practices that preserve the quality of food to prevent contamination and foodborne illnesses.” In other words, food safety aims to protect the health of humans, animals and plants at every stage of the food production chain in conformance with the "farm-to-table” principle established by the EU. FOOD SAFETY IN GEORGIA On June 27, 2014, Georgia and the EU signed the Association Agreement (AA...
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