Newsletter Issue 26 | January – February 2019

Export potential of Georgian agro-food products in the EU market

With 29%, agro-food products make up for a significant share of Georgian exports. Despite having a free trade agreement with the EU, however, Georgian agro-food exports to the EU underperform. About 2/3 of all agro-food exports go to the CIS region. In terms of dynamics, exports to the CIS surged by 43% in 2018, whereas exports to the EU market only increased by 14%.

Against this background, we assess the export potential for Georgian agro-food products and identify the most promising export destinations in the EU. The assessment is based on multiple indicators capturing the Georgian export performance, demand of potential destination markets and trade cost proxies.

The analysis reveals that fresh berries – especially blueberries – are top on the export list. Moreover, juices, jams and nuts show high potential. Additionally, some vegetables and oils, which might not have been on the radar of some exporters in the first place, could prove to be potential export products.

Among most promising export destinations Austria, Poland and Germany stick out. They are followed by Spain, Italy, the United Kingdom and Finland.

Our research shows that there is potential for higher agro-food exports to the EU. Making use of the given potential could help to boost total exports, allow for higher prices and profits as well as diversify the Export structure to be better shielded against external shocks. On the back of the DCFTA with the EU, Georgia has the institutional basis in place to benefit from the given opportunities.

Download Newsletter 26/2019