Rural Economic Development in Southern Regions of Georgia
Georgia
Overview
The Rural Economic Development Program (RED) (2012-2016) for the Southern Regions of Georgia was a joint Danish-Swiss program that aimed to contribute to the economic growth of the agriculture sector and reduce poverty in the Samtskhe-Javakheti and Kvemo Kartli regions. The four-year, $11.5 million Rural Economic Development Program focused on three main initiatives: increased productivity and profitability of seed and ware potato producers, increased productivity and profitability of commercial dairies, milk, and beef producers, and private investment in potato, dairy, and livestock value chains.
Impact
- 45 entities involved in the potato value chain, including retailers, wholesalers, input/service providers, storage facilities, and seed growers/multipliers
- 1,500 ware potato growers on 1,200 hectares of potato fields trained
- 55% increase in ware and seed potato productivity and 18% reduction in production costs
- 150 entities involved in the dairy and livestock value chain, including farmers, service providers, and processors
- 550 dairy farmers, service providers, and processors received technical assistance
- 15% increase in the quantity of milk produced and a 10% increase in revenue
- $8 million in private investments facilitated in dairy, livestock, and potato value chains
Approach
- Improved Productivity and Marketing: The program advised and provided guidance on production and marketing of seed and ware potatoes, raw milk, and other dairy products.
- Boosted Investment in Key Value Chains: RED stimulated direct private investment in program-targeted activities using two financing mechanisms: a secured lending facility and a co-investment fund.
The impact of RED on smallholder farmers and agricultural enterprises involved in the target regions was substantial. With the tailor-made technical assistance and increased private investment in the potato, dairy, and livestock value chains, targeted value chain actors – including farmers – reached higher productivity and improved incomes, in turn leading to the economic growth of the region.
