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A recent paper, "Are Mega-Farms the Future of Global Agriculture? Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine,” by Klaus Deininger, Denys Nizalov and Sudhir K. Singh, was presented on 16 September at ISET. The presentation was made by one of the paper’s authors, Denys Nizalov, an economics professor with the Kyiv School of Economics.
Ukraine’s agriculture started progressing after the land reforms of 2001, which established an effective land rental market. While the titles to land still belong to former kolkhoz and sovkhoz members, agricultural land can now be easily aggregated and leased to interested businesses.
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At least on paper, Georgia has all it takes to be a successful agricultural producer: a favorable tax environment, mild climate, long growing season, inexpensive labor force and abundant water resources.
There are also many other factors that make Georgia’s agricultural sector a target for foreign investors, such as Simon Appleby: great access to markets thanks to a strategic geographic location and transport links, relatively low land prices, and the ability of foreign-invested entities to acquire freehold land titles (quite an exception considering the international practice!). Yet, as ISETers learned from Mr. Appleby’s SWOT analysis, there are also many bottlenecks to be addressed.
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