Rural Economic Development in Southern Regions of Georgia

The Rural Economic Development Program (RED) for the Southern Regions of Georgia is a joint Danish-Swiss project that aims to contribute to the economic growth of the agriculture sector and reduction of poverty in Samtskhe-Javakheti and Kvemo Kartli regions. The four-year, $11.5 million Rural Economic Development Program focuses 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 the potato and dairy/livestock value chains.

Program Approach:

  • Advise and provide guidance on production and marketing of seed and ware potatoes;
  • Advise and provide guidance on production of quality of raw milk and other dairy products and marketing;
  • Stimulate direct private investment in project targeted activities using two financing mechanisms: a secured lending facility and a co-investment fund.

The impact of the RED program on smallholder farmers and agricultural enterprises involved in the target regions will be substantial. With the tailor-made Technical Assistance and increased private investment in the potato and dairy/livestock value chains, targeted value chain actors – including farmers – will reach higher productivity and improved incomes, in turn leading to economic growth of the region.

Expected Impact:

  • Approximately 45 entities involved in the potato value chain, including retailers, wholesalers, input/service providers, storage facilities, and seed growers/multipliers;
  • Training delivered to 1,500 ware potato growers with 1,200 ha of potato fields;
  • 55% increase in ware and seed potato productivity, and an 18% reduction in production costs;
  • Approximately 150 entities involved in the dairy/livestock value chain, including farmers, service providers, and processors;
  • Technical Assistance provided to about 550 dairy farmers, service providers and processors;
  • 15% increase in the quantity of milk produced, and in increase in revenue by 10%;
  • More than 8 million USD in private investments in dairy/livestock and potato value chains facilitated.