Promote service for farmers

The food supply and incomes of the Community’s farmers largely depend upon the agricultural activities on small plots of lands owned by them. The major traditional agricultural crops produced by local farmers are citrus, kiwi, pekoe, persimmons, maize, vegetables and some livestock. Non-existence of service system of agricultural machinery and processing equipment greatly hampers opportunities for increasing production of agricultural products and processing. Due to above mentioned approximately 30-35% of the vegetables, citruses and fruits produced by the households are lost and cannot reach the consumer markets as they do not have added market value. As a result, the households are not able to sell some of the products at prices that could provide them with opportunities to generate incomes adequate to supply their needs and overcome poverty.
Due to non-existence of machinery for production the local farmers cannot increase yields. In addition no possibilities exist for adding-value grading, cleaning, and storing the fast spoiling crops and vegetables.
The business plan envisages: Rehabilitation of building premises of 200 m2 in village Likhauri of Ozurgeti District for organizing Machinery Park; 100 m2 area for value-added processing and 100 m2 for storage. Acquisition of machinery and equipment; Developing Cooperative for Use of Agricultural Machinery, Post-Harvest Handling and Storage of Citrus Crops and Fruits; Providing services to local farmers in ploughing, cultivation, harvesting, spraying, application of fertilizers, value-adding (cleaning, grading, and packaging) and storing crops; Deliveries of the fresh and processed products to the local and export wholesale and retail markets as appropriate. Organizing seminars and trainings of farmers on use, maintenance and repair of the equipment, post-harvest handling and storage of crops. Beneficiaries of business are small farmers (1550 people) of community of Likhauri, Chanieti and Makvaneti villages. These are community farmers who own some 0.75-1.0 ha of agricultural land that can increase the incomes through increased production of agricultural products, and will benefit from sales of their products directly at the farm level. Also the farmers from neighbors villages will have the opportunity to use machinery services and also to deliver to the cooperative and sell their products.

Cooperative "Agro-product" is oriented on producing and selling of subtropical cultures. In terms of project was organized round table meeting for the research potential buyers, where the agreement was developed about 50 tons of raw tea leaves obtaining for two micro tea factories, functioning in Ozurgeti District: LTD "Georgian Banch" and Ind. enterprise-"Zaza Mameshvili", which are mainly providing high tea quality export in Ukraine. Tea factories are paying USD 0.40 for raw tea leaves per kilo that is a significant for the Guria region. From the mentioned amount USD 0.02 goes in income of cooperative fund. Nowadays, tea leave purchasing prices are fluctuating between USD 0.06 - 0.15 in the micro factories existing in the region. They must not be considered as a competitors.
According to the research, on local market were identified fruit purchaser exporters; enterprises of chestnut and citrus processing, which are the potential buyers: Chestnut processor enterprise "Rubikoni", Citrus processor enterprise, the larger realization Ind.enterprise "Giorgi Chkhartishvili". The representatives of these enterprises will be attended at "Round table "meeting organized in Batumi and Tbilisi cities planned in July. At this meeting will be singed the contract between cooperative members and buyers.

Tea,citrus,kiwi, chestnut - with its treatment and flavor features are higher in-demand. Tea is a widely produced worldwide commodity but niche markets are rapidly developing for specialty trendy teas. Mandarins have traditionally been sold as whole fruit but they can become a value-added product for niche markets in fruit juice. chestnuts are in demand worldwide by food processors and bakeries.

Since January 2007, the organization is implementing the project financed by the International Executive Service Corps (IESC) entitled “Mobilizing Agribusiness for the Market Economy”. In terms of the project there were selected 12 targeted communities. In each community were conducted workshops:
Agribusiness Association Development and Advantages, Market Chains for the New Economy, Preparing of marketing plan. During the workshops implementation was identified member farmers of cooperative in each community. Nowadays, the cooperative "Agro-product" is registered where is united 120 farmers who are producing aggregate products like tea, citrus, kiwi, persimmon, and chestnut. There was prepared informational database by the members of cooperative about produced agricultural product, which will be based on negotiation promotion with the buyers. One of the key issues is identification of potential buyers.

According to the represented business plan will be achieved development of Agricultural Machinery, Post-Harvest Handling and Storage Cooperative. The cooperative will run Machinery Park and Post-Harvest Handling and Storage center. The profits gained from the activities will be allocated in a Development Fund of the cooperative and used for further extension of the production, purchasing new machinery and equipment and developing other services for its members. We think that, this will be accomplished by training beneficiaries, signing long-term contracts, and transferring responsibility for the implementation of the market chains to growers associations and buyers. After the trainings and Round table meetings, in future years cooperative "Agro-product" members, exporters, and buyers will have the knowledge and skills necessary to negotiate trade deals and keep the market chain moving.
Totally will be achieved:Development of sustainable market chains, from the farm to the store shelf for tea, citrus, chestnuts, persimmon, kiwi, and pekoe. Increase the incomes of farmers and create new job opportunities in agriculture especially in high-value farming, food processing, and exporting. Equip rural farmers with the skills and knowledge they need to get their products to market and receive a fair and continuous income. Develop contractual trade deals between growers associations and buyers. Maintain buyer-seller relationships and continuously share timely production information through a database. Support agricultural SMEs development in Georgia and eliminate any and all barriers to the success of agribusiness.