Assessment of The Organic and Healthy Foods Industry in Georgia

Assessment of the Organic and Healthy Foods Industry in Georgia
Project/Thesis submitted to the University of Georgia

In partial fulfillment of the requirements for the award of the Degree of
BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.)
Submitted by:
NatiaGvasalia (1401849)
Medea Iremadze (1310307)
LevaniGvasalia (1401850)
Project Supervisor:Mr. Revaz Chichinadze
University of Georgia
Tbilisi, 2019
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Abstract
Today, all countries of the world are involved in international trade, since none of them
coproduce in be self-sufficient and only produce its own production and population. Under the
international division of labor, the country always needs resources, consumer goods and services
to the imported and the main source of import costs is the income received from export.
In the recent years the demand for organic food products appears to have expanded due to
consumers’ view that organic products are safe, clean and ethical. The biggest growth in
consumption has been in the developed countries, such as the United States, Western Europe and
Japan that are major importers of organic foods. The objective of this thesis is to provide an
overview of the Georgian organic and healthy food products industry, including production,
marketing and certification of the organic foods, with the aim of assessing whether the
opportunity presented in the world market will be able to be taken. Major issues facing the
Georgian organic and healthy food industry are discussed and areas for future research are
identified. When applicable, market situations for organics in Europe and the United States are
reviewed to serve as a reference point for comparison.
The article of Sunflower Health Food Store: Organic Change states that in 2001 people
gathered around at a conference table at a Soviet-era tobacco collective in Lagodekhi, located near
the Azerbaijan border. Paul Rimple told them that their tobacco was natural and had no
chemicals. It was heard from almost any type of farmer that indeed it was natural and it was so
because fertilizer was too expensive. A worker in NGO once found out that the farmers were
using old stockpiles of Soviet fertilizers and pesticides, including DDT. The products consumers
get at the market were fresh and natural in a way that it was not genetically modified, though not
organic, which is a term that is being understood by Georgian now. Georgians usually tend to
brag about their wines being natural maybe because it has no sugar or water but if it was spayed a
month or two before harvesting it isn’t organic nor natural. Back then when mentioning bio to
someone they would be confused. It wasn’t a word that was understood. As we all know “Bio”
produce is good for our health and for our environment. Organic farming requires more work and
produces lower yields than conventional farming, it is hard to convince small farmers who are
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struggling to make ends meet. Though there are few farmers who are able to grow organic foods
that do not use any chemicals. They do however have a problem with being able to afford the
complicated process of getting organically certified that costs around $800 a year. (Sunflower
healthy food store -organic change, 2018)
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Abstract _____________________________________________________________________2-3
Table of Contents
Introduction _________________________________________________________________ 6
Hypothesis ___________________________________________________________________ 6-7
Purpose of the project___________________________________________________________ 7
Organic Vs. Natural vs. Bio/Eco__________________________________________________7-11
Environment conditions _____________________________________________________ 12-13
Trade,bio certificate “Caucasusesti”_____________________________________________ 13-15
Tax Regimes__________________________________________________________________15
Amazon _____________________________________________________________________ 16
Organic Study in Stanford ______________________________________________________ 16-20
Ch.1 Organic and Healthy Food Industry
1.1 Advantages and Disadvantages of Organic and Healthy Foods_______________________21
1.2 Advantages and Disadvantages of domestic and foreign organic and healthy grown foods 21-22
1.3 How organic and healthy food consumption effects our health and economy__________22-24
1.4 Prioritizing Agricultural Development in Georgia _______________________________ 24-37
1.5 Herbia ___________________________________________________________________ 37
1.6 Winery-Khareba __________________________________________________________ 38
Ch.2 Research Methodology____________________________________________________39
2.1 Research objective_________________________________________________________39
2.2 Research Methods_________________________________________________________240
2.3 Research Design___________________________________________________________40
2.4 Research problem _________________________________________________________ 40
3. Research Findings __________________________________________________________ 40-55
4. Conclusion ________________________________________________________________ 55-56
5. Recommendation ___________________________________________________________ 56-57
6. Estimated Structure of Work ____________________________________________________ 58
7. References_________________________________________________________________ 59-62
Survey/Questionnaire for Supermarket managers__________________________________ 63
Survey/Questionnaire for consumers_____________________________________________ 64-65
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Survey/ Questionnaire for producers/ company ____________________________________ 66

Survey/ Questionnaire for Wine Producers _______________________________________ 67
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Introduction
Organic food industry has been getting a lot of attention from decision makers for the last
twenty years because many have seen the benefits it offers. Governments have also had a part in
promoting organic foods industries. The number of producers changing to organic foods
production have increased, mostly in Europe. Organic foods industry is seen to be beneficial to
the developing countries by offering opportunities to export to the world market.Organic food
industry is targeting customers that are educated with extra income and are aware of organic food
importance.
To achieve this goal, it is necessary to solve the following tasks:
1. Identify the concept and highlight the advantages and disadvantages of the organic food
industry system.
2. To study economic situation in Georgia.
3. To know what kind of investment needed for this business
4. Disclose problems and outline the prospects for organic food industry in Georgia.
5. The analysis of evolution, the basic tendencies of development and features of formation
of the Georgian market of public
6. Customer research analyses
Kretter explains to apply successfully in the market, it is necessary to recognize

consumer’s needs and possibilities and attract consumer’s interest. It is necessary to
explain strengths and weaknesses as well as opportunities and threats of both organic and
healthy agriculture production and market in Georgia.
What is the hypothesis of the work?
The outlook regarding the organic foods industry in Georgia looks bright as the country
has great opportunities for its development.
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Hypothesis 1:For Georgian producers of organic and healthy foods industry, foreign market is
more profitable than domestic market.
It is cheaper for Georgian producers to export their products than to market their products
locally. In Georgia, elder farmers do not have enough knowledge of what foreign regulations
demand to be able to export their products. Unfortunately, our country and our products are not
well known, yet. It is important that the quality component is protect during the delivery of
information about the country. The first impression is very important.
Purpose of the Project
The purpose of this project is to identify the factors of development and successfulness in
the market with organic and healthy market industry. More than 90% of organic agricultural
products are oriented toward export. From the received information Georgia is able to provide
organic and healthy foods domestically and internationally. The paper deals with the factors of
the successfulness in the market with organic and healthy products, from agriculture enterprise,
processor ,trade consumer, these relate to the active market with eco-product in Georgia.
Organic Vs. Natural vs. Bio/Eco
When you go to the supermarkets, you usually see labels on the foods as “natural” or
“organic”. Natural labeling is more simple than organic, which is more complicated. According to
the USDA, natural must contain no artificial ingredients or added color, and must be only
minimally processed[ CITATION Bra18 \l 1033 ]. Minimal processing is when the food product is
processed it is not fundamentally altered. When food product is labeled natural it must explain if
it has no added color or no artificial ingredients or minimally processed.
Foods that are organic labeled, they must be produced through approved methods.
According to a USDA publication, the methods "integrate cultural, biological, and mechanical
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practices that foster cycling of resources, promote ecological balance, and conserve biodiversity.
Synthetic fertilizers, sewage sludge, irradiation, and genetic engineering may not be used."
The use of the organic label requires USDA certification. "Organic is the most heavily regulated
food system," said Jaclyn Bowen, director of QAI (Quality Assurance International), a division of
NSF International, a leading USDA-accredited organic product certifying agency located in San
Diego, California. QAI and inspectors like them verify organic integrity, from the land where
products are grown to post-harvest facilities and processing plants to the retail stores. "Organic
producers and processors also are subject to rigorous announced — and unannounced —
certification inspections by third-party inspectors to ensure that they are producing and
processing organic products in a manner you and your family can trust," Bowen told Live Science.
It is possible for foods to be both natural and organic, though natural food products are not
necessarily organic and organic food products are not necessarily natural. "While studies have
shown that consumers misinterpret the true meaning of both of these terms, the
misunderstanding seems to be greatest for the term 'natural,' as consumers often believe that food
labeled 'natural' shares many of the characteristics of 'organic' food, which is often not the case,"
said Messer.
Organic foods are produced, manufactured and handled in ways that meet the USDA
organic standards.[ CITATION Bra18 \l 1033 ] Natural foods are generally processed in a way that
does not alter the product. “Unlike 'natural,' only 'organic' offers government-backed assurance
that products are grown and processed without the use of toxic chemicals, antibiotics and
synthetic growth hormones," said Bowen. "Unfortunately, 'natural' does not mean 'organic' and
comes with no guarantees."
Holbrook provided the list of few things that consumers should consider when it comes to organic
foods:
1. Organically grown foods are not always healthy foods. For example, sugar should
be limited in one's diet, and overall calories need to be appropriate for one's gender, height and
weight, age and activity level. Organic snacks, such as cookies, candy, chips, cereal bars and juice,
are not items that should be consumed regularly or thought of as healthy food items.
2. Meat and poultry from organically raised animals meet the definition, but with so
many other terms assigned to meat, it can be very confusing. For example, red meat and poultry
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labeled organic does not mean the animal was pasture-raised, also known as grass-fed; fed grass
and forage, the evolutionarily traditional diet for cattle. Rather, an organic animal may have been
raised on a diet of organic grain, a conventional type of diet for cattle. A grass-fed diet has the
advantage of producing meat that has a healthier fat profile than the meat of a conventionally fed
animal. While you can find grass-fed and organic, consumers often mistake organic to also mean
that the animal was fed outside on an open pasture.
3. Many consumers drawn to organic food may also care greatly about supporting
local farmers. Organic foods are often grown thousands of miles away from where they are
ultimately purchased. This affects environmental health as a result of resources used for transport
and can deplete nutrients as food travels great distances under changing temperature, light and
humidity. So, some people may prefer locally grown food (even if it doesn't contain the organic
seal) over organic food grown in other countries. Tip: Ask local farmers if they use sustainable
farming methods; many do and just do not apply for the USDA organic seal due to the costs
involved. According to the USDA, producers who market less than $5,000 worth of organic
products each year are not required to apply for organic certification, but still must comply with
the organic production and handling requirements.
Organic foods are those without chemical products and that are genetically modified.
Though biological products and organic products are synonyms. It is just the matter of language.
Ecological, organic, is in Spanish and biological in French according to the Organization of
Consumers and Users.[ CITATION Bio18 \l 1033 ] The bio food cares for the environment but also
respects the natural genetic process of the species, the reproductive cycles and biodiversity. It’s
easier to find organic products than it is bio products. This is because production of bio products is
more expensive, which affects the demand and the end price. Healthy foods give you nutrients to
maintain your health, feel good and have energy, such as proteins, carbohydrates, fat, water,
vitamins and minerals. Healthy food works in an intricate, complex way with not only our bodies,
but also with our culture, ceremony, traditions, family, and societal structures. It is a daily partner
in everyday life, taking care of us as we take care of it. Healthy food means fresh, unprocessed,
local foods that you have to wash to eat. It means foods that have less than 10 ingredients and no
ingredients you can’t pronounce. It means a connection to the source of your food, having access
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to beneficial, culturally-specific foods and having a safe place to enjoy them with your family and
loved ones.
The differences between organic and bio occur on the subjective level of the consumer.
[ CITATION Bio18 \l 1033 ]Bio products are perceived as more natural and nutritive as well as
beneficial for health. Organic products are those of more respectful nature and environmental.
Most powerful reasons for consuming bio foods are sustainability and the avoidance of chemical
and artificial components in our food. Bio respects the environment more effectively and not
because it is healthier and better quality.
The idea of producing the first Georgian biowine came soon, but for three years
GiviNikolashvili was expecting to receive the European standards of biocertificate.[ CITATION
nik10 \l 1033 ] The winemaker refused to use chemical fertilizers, herbicides and pesticides and
allowed the vine to naturally develop. Now his biogas - Saperavi, except for the local market, is
also sold abroad. And there are far more far-reaching plans about the development of organic
farming.
Recently, I received an order from Finland and sent 300 bottles of wine. Five months I
studied my wines in laboratory and finally found that they were really bioproducts. In Finland, it
is very hard to see all products that are in the market, they are checked with strict criteria. I do
not know what the price of this wine will be in Finland, I bought a bottle of 3,5 euros. Shipping
costs will be reimbursed. Of course, I prefer to pay 4 euros in a bottle, but it is still a good price.
The main thing now is to start a precedent. In Finland recently held wine exhibition - tasting and
sending me 21 bottles of wine. Among them were six bottles of my wine and the rest were other
manufacturers. Some wines were very much liked, some of them less than one. Do not go to the
booth and evaluate my wine so much: We have no complaints.
Georgian wine is already known in the world markets and the more "Georgian biogenic", [
CITATION nik10 \l 1033 ]which is what it is, the opening of the Finnish market, it will be driven to
other countries to become familiar with biogas manufacturers.
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Shiraqi, whom in December of 2017, received a bio certificate for raw milk production is
one of them. In fact, this is the first case in Caucasus when the farm has received a bio certificate
for the production of animal products. The founder of Shiraqi, NikolozBenenidze, who had
recently interviewed, said that he was interested in bio product after attending national and
international seminars and visited biomes personally abroad. In his opinion, Georgia should focus
on producing healthy and ecologically clean products. [ CITATION shi18 \l 1033 ]
Nikolas farm in Dedoplistskaro w1here 100 workers are employed (additional 100-150
workers in active season). The company purchased 200 Dutch varieties of cows in Estonia. One
beef price is 2,500 euros. This allowed them to produce 4 tons of raw milk per day. He needed 4
years to get bio certificate.
Everything starts with animal feed. Cows should be fed only by organic foods. Shirax has
its own plot of land, which brings organic grains (wheat, maize, and oats) and keeps it in the barn
made of cattle. Since the process of grain production should follow the biological production
standards, the farm does not use any mineral fertilizers, chemical pesticides and herbicides. No
hybrid seeds are allowed to be used. Therefore, Shitax uses only biological fertilizers, sterile, and
compost made on the farm.
Overall, the daily feeding of the cow on the modern farm of improved varieties is 25-30
GEL in case of bio farm and on the traditional farm only 12-15 GEL. The use of medical
preparations in biological animal products is limited. In accordance with these rules, preference is
given to alternate treatment; for example, homeopathy or phototherapy.
An emphasis is made on preventive measures, such as protecting reproductive conditions, adding
probiotics in acidic water of foods, preserving recommended vaccination schedule. Alternative
methods of treatment are not effective. However, you cannot use milk for two weeks after the use
of antibiotics. The waiting period in traditional production is only a week.
The exacted price of 1 liter of raw milk is 4.5-5 GEL, which is 1.4 times higher than inorganic
milk price, bio milk made from 1 kilograms. The price of cheese is 28 GEL, which is 2.4 times
higher than inorganic cheese price. The main market for Shiraki is in Tbilisi. They are already
selling their traditional dairy products in Carrefour, Fresco, Nikora, and other supermarkets. The
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company intends to supply milk with natural + (the letter received a Bio certificate in January
2018 which will sell this product on its own).
Environment conditions
Agrarian biodiversity includes not only species and varieties, but agro-ecosystems, rural
landscapes, microorganisms and fungi used in food production and traditional knowledge. Georgia
is particularly rich in this regard.[ CITATION She15 \l 1033 ] Thus, the local varieties of cultural
herbs and domestic animals are an important part of the world cultural heritage, but they have
great economic and scientific value, together with their cultural: High quality traditional products
are based on local genetic resources, which is so important not only for agriculture but for
tourism development;
Local varieties are well adapted to local environmental conditions and are resistant to bad
weather and pest and diseases, which are of great importance in terms of selective development
and long-term provision of food security in the country.
Association "Elkana" has been working on the Conservation of Agrarian

Biomerophorenny since 1996.[ CITATION elk11 \l 1033 ] "Elkana" experts were involved in the
development of the second "National Strategy and Action Plan of Biodiversity" in the first and the
first years of 2011-2015. In 2004-2009 "Elkana" financed GEF / UNDP project "Restoration,
Conservation and Sustainable Use of Georgian Agribusiness Diversity"; it aimed at restoring their
seed and planting material, spreading among farmers and promoting marketing chains, branding
and marketing.
The potential impact of agricultural activities is the household ability to produce, purchase
and have more, better and cheaper food. [ CITATION She15 \l 1033 ]Agriculture towards health and
nutrition can help increase rural income, letting people improve their diets. Agriculture for the
rural poor has reduced poverty, which is a key contribution to poor health and undernutrition.
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Increase of agriculture has been essential to feed the world’s growing population. Though it has its
own risks for people’s health, like water and food borne diseases. Despite the major progress,
there are still serious concerns about the nutrition and health situation in the developing world. It
is estimated that 805 million people go hungry and others suffer from hidden hunger. On the
other side 2.1 billion people in the world are obese and overweight (37 percent men and 38
percent women). These numbers are rising, mostly in the developing world, which bring in a rise
to non-communicable diseases.
We can take more advantages of agriculture’s potential to improve nutrient and health.
The first step is to have an improved knowledge on agriculture-nutrition health nexus. Not only
Georgia but other countries need to promote smarter growth by learning more about the health
and impacts of nutrition. Georgia would have to invest in research, evaluation and education
systems capable of integrating information from all of these.
Trade; bio certificate “Caucasuserti”
All countries of the world are involved in an international trade. Under the international
division of labor,the country always needs resources, consumer goods and services to the
imported and the main source of import cost is the income received from export.
Georgia is an ideal exporter to markets in Russian and Europe by offering high quality raw
materials and good location for food processing. 80 percent of Georgia’s packaged food products
are imported which has a significant negative impact on its trade balance. Georgia is to become an
exporter of agricultural goods to the broader regions.[ CITATION Bio15 \l 1033 ]
The volume of realization of Georgian bio products in Europe increased by 75% in 2016
and reached 405 tons, while the annual sales of organic products in the EU countries increased by
12,6% and in 2015, it was 27.1 billion euros.[ CITATION Bio15 \l 1079 ]
Products on the EU market require intensive, advance preparatory works from those
companies that plan their own export of products. We will consider this process
1. First of all, we should review product world market to determine general market
condition.
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2. Selecting the target country of the European Union

3. Finding partners in the target country.
4. Negotiations with potential partners.
Accordingly, the Georgian company should carefully analyze this Information, verify the
price and delivery period, If the product is supplied with CIF conditions.They need to interact
the most reliable and effective transportation route. It's too much it is important, since the timely
delivery of the product is Georgian companies prefer the Chinese, New Zealand, Iran and South
American producers, which require more time to put the product into the EU.When all the
conditions and details of the delivery of goods are agreed, the Georgian company has to sign an
agreement in which it is appropriate all agreed agreement is reflected. Special attention should be
paid payment terms are paid. There are many different ways and payments the method, but at the
first stage of starting the business, it is better to use it payment letter of payment. This is a little
expensive bank product, but it’s protects both sides from commercial risks.
However, before that enterprise is obliged to undergo bio certificate, which in turn is a
guarantee that the enterprise has defended bio standards at all stages of production. Bio-
certification is carried out by LLC "Caucasusasert". The biosafety issued by them has legal force
both in Georgia and in all EU countries and in Switzerland. We will provide Biosystem on the
following four types of agriculture:
1. Primary vegetable products (production of agricultural crops and collection of wildly
growing plants)
2. Live animals and primary products of breeding (including beekeeping)
3. Agricultural products recycled agricultural products (including biogas)
4. Planting Material and Seeds
Caucasasert promotes the development of bio agriculture in Georgia, the transfer of local
bioproduction into the EU countries and the protection of the rights of bioproduction users.
According to the information provided by "Caucasus", Georgia has exported about 405
tons of organic products from 2016 to Georgia. In addition, it should be noted that the main
market of Georgian bio products is Germany.
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Based on the information provided by “Caucasus” the bio certificate in Georgia has 12
companies and the remaining 36 certification processes. In order for the products to be identified
as “bio”, the producer has to meet each one of the bio standards.
By the end of the current year, after the adoption of the equivalent EU law on e-
commerce, with the high probability, the collection and procedures for the sale of documents in
Europe will become simpler and cheaper. According to the Deep and Comprehensive Free Trade
Area Agreement (DCFTA), 9600 products in Georgia will be exempt from taxes exported to the
EU, allowing Georgian products to gain competitive advantage.
Tax Regimes
There are currently four Free Industrial Zones (FIZs) that operate in Georgia in the
following cities: Poti, Kutaisi, and Tbilisi.[ CITATION FAV \l 1033 ] Those businesses registered in
Free Industrial Zones benefit from certain tax exemptions. If the company produces goods for
export in FIZ, it is exempt from all taxes except personal income tax, which is 20 percent that is
paid from employees’ salaries. (GovermentIncenties,Free Industrial Zones, 2018)
Though if the company imports products from FIZ to other territory of Georgia, in
addition the personal income tax has to pay VAT and 4 percent of revenue from the national
sales.[ CITATION FRE \l 1033 ] All of the Free Industrial Zones are operated by private companies
and investor should rent a space from FIZ operator; Poti FIZ is operated by Rakia Georgia FIZ
LLC, Kutaisi FIZ #1 is operated by Georgian International Holding (LLC Fresh Georgia), Kutaisi
FIZ #2 is operated by Hualing Group and Tbilisi FIZ is operated by Tbilisi Free zone JSC which is
a subsidiary of BitFury Group. According to the Georgian tax code, if the company produces
goods intended for export market, it can apply for a license about Internal Processing Regime to
the Ministry of Finance. This is able to grant the company a right to import raw materials without
paying import or custom tax and VAT on the materials. After the processing of goods, in the end
product is exported and the bank warranty is released. Though if some of the end products are
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sold in Georgia the company will have to pay import and VAT of raw material which were to
make those goods.
Amazon Export
The Amazon export hub is a new company based in Georgia that teaches people interested
in e-commerce business selling amazon.com's largest electronic market. The Amazon FBA has a
special program for non-American countries that sell electronic products to American and
European markets.
The scheme is fairly simple, after the registration of a salesman monthly license fee of 40
dollars. After that Amazon sends an address to the warehouse where the products should be
delivered. After completing the warehouse, Amazon will supply orders to the customer, and the
seller from Georgia will get the difference between the prices (the cost of the final price +
shipment from Georgia + warehouse fee). The Amazon export hub founder Levan Molashvili says
that the Amazon FBA program is a great opportunity for Georgian citizens because in this case
people have access to both the US and the European market: "On the one hand, sales can be sold
in the US and Canada's vast market. For Europe to Germany www.amazon.de, from which to
cover the whole Europe era. The use of German Amazon in Europe is better. Today we can work
towards Germany, but some additional documentation is required to be financed (650 euros). The
European market is much simpler than the US. The obstacles to entry in Europe are more, but the
competition is much less. There are many products in Georgia that can become popular and sold,
"says Molashvili.[ CITATION Zur18 \l 1033 ]
Organic Study in Stanford
According to a study, conducted by scientists at Stanford, the market for organics in the
United States was worth $3.7 billion in 1997. [ CITATION Hel12 \l 1033 ]By 2010, it had ballooned
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to $26.7 billion. But the study questions whether paying a premium for certified organic food
grown and processed without synthetic pesticides, fertilizers, antibiotics, added hormones or
genetically engineered ingredients is really worth it. “Consumers purchase organic foods for many
reasons,” wrote the scientists. “Despite the widespread perception that organically produced foods
are more nutritious than conventional alternatives, we did not find robust evidence to support
this perception.”
The study, published this month in the Annals of Internal Medicine, analyzed 17 human
studies and 223 studies on nutrient density and contamination levels and concluded that, so far,
published literature “lacks strong evidence” that organic foods are significantly more nutritious,
but choosing to consume those foods may reduce exposure to pesticides and antibiotic-resistant
bacteria.
The review found that, overall, organic produce is 30 percent less likely to contain
detectable pesticides, compared to conventional produce, but the vast majority of all produce
tested fell below government safety tolerances. The study did look at one study which found that
children who switched to an organic diet for five days had lower levels of pesticides in their
urine, but whether the levels have a direct impact on human health is “unclear.” When it came to
bacterial contamination and produce, the reviewers found that there was not a statistically
significant difference in the rate of E. coli contamination 7 percent for organic, 6 percent for
conventional but the review noted that only five of the studies they reviewed directly compared
this type of contamination. When the authors removed one study that looked only at lettuce, the
meta-analysis showed that organic produce had a 5 percent greater risk for contamination.
Both organic and conventional animal products, on the other hand, have repeatedly been
shown to be widely contaminated with harmful pathogens. The reviewers found that the
differences in contamination between organic and conventional products were statistically
insignificant. For chicken, 67 percent of organic samples and 64 percent of conventional samples
were contaminated with Campylobacter, while 35 percent of organic and 34 percent conventional
samples were found to be contaminated with Salmonella. Pork was commonly contaminated with
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E.coli 65 percent of organic and 49 percent of conventional samples and the reviewed did not find
any studies that compared organic and conventional beef.
The one major difference the study found was that conventional animal products were
more likely to be contaminated with pathogens that were resistant to three or more antibiotics —
for chicken and pork conventional samples were 33 percent more at risk. The differences were
strongest when looking at resistance to ampicillin — organic and chicken had a 35 percent lower
risk for resistance — but when looking at the remaining antibiotics, conventional products were
more at risk. However, the review found differences were statistically insignificant. The reviewers
also noted that few of the studies they looked at analyzed the same antibiotics on the same animal
product. “This increased prevalence of antibiotic resistance may be related to the routine use of
antibiotics in conventional animal husbandry,” wrote the authors. “However, the extent to which
antibiotic use for livestock contributes to antibiotic-resistant pathogens in humans continues to be
debated because inappropriate use of antibiotics is the major cause of antibiotic-resistant
infections in humans.”
The internet has been abuzz with reaction to the study. On Tuesday, more than 500 news
stories with headlines like “Study Questions Advantages of Organic Meat and Produce” (New
York Times), “Organics not a healthier food choice, study finds” (Chicago Sun-Times), “Why
Organic Foods May Not Be Healthier For You” (NPR) — seemed to contradict one of the main
reason a growing number of consumers choose to buy organic.
According to the medical news today organic foods are not nutritionally superior to
conventional foods, neither are they safer regarding bacterial contamination, researchers from
Stanford University School of Medicine reported in Annals of Internal Medicine. The scientists
emphasized that they did not find any significant evidence pointing to nutritional benefits linked
to the consumption of organic foods. They did, however, find "weak evidence" of higher phenol
levels in organic produce.
While eating organic vegetables and fruits does mean that the consumer has
approximately 30% less exposure to pesticide residues, conventional foods are well below
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threshold limits set by regulatory authorities anyway, the authors explained. Crystal Smith-
Spangler, MD, MS, Dena Bravata, MD, MS, and team carried out a review of 17 human studies
and 223 other studies of nutrient and contaminant levels in fresh foods, including pork, beef,
chicken, eggs, milk, grains, vegetables and fruit. Their aim was to compare the safety, nutritional
and health characteristics of conventional and organic foods.
Dr. Bravata, after carrying out a literature search, found that most of the studies were
"confusing".[ CITATION Chr12 \l 1033 ] Some of the ones that appeared in trade publications were
not very thorough. There seemed to be no study with a comprehensive synthesis of evidence
which clearly showed the benefits versus the harms of conventional and organic foods.
Studies on organic foods have produced varying results. One in February 2012 found that
organic rice may have high levels of arsenic. Researchers were surprised to find no nutritional
benefits linked to organic food. The research team found no compelling evidence in any of the
studies that they reviewed which demonstrated that organic foods are considerably more
nutritious than other foods.
Sales of organic food were worth over $26 billion in 2010. Dr. Smith-Spangler said, "some
believe that organic food is always healthier and more nutritious.[ CITATION Chr12 \l 1033 ] My
colleagues and I were a little surprised that we didn't find that." There was some weak evidence
showing that organic foods have much higher levels of phenols, which are said to be strong
antioxidants, than conventional foods. There was also some evidence that omega-3 fatty acid
levels in organic milk are higher. However, as deficiency in these compounds is fairly rare
anyway; the authors believe these findings have "little clinical significance".
The scientists found that organic foods had higher levels of nitrogen than other foods.
They believe this is likely to be because of different uses of fertilizers. Another factor might be
that organic foods are harvested at different stages of ripeness. They added that a higher nitrogen
content "is unlikely to provide any health benefits". In 1997, sales of organic foods were worth
$3.6 billion in the USA; this rose to more than $26 billion in 2010.
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The scientist opinions are divided on the organic and healthy foods industry. While there
are respected studies which find organic foods to contain more nutrients, a great many others
have found insufficient evidence to recommend organic over non-organic. A systematic review
over 45 years concluded in 2012 that published literature lacks strong evidence that organic foods
are significantly more nutritious than conventional foods.
Many studies including the 2014 Newcastle University research are funded by organic
farming charities. On this basis alone, they are criticized for not being wholly independent.
Additionally, the inclusion of so many studies could mean poor quality work has skewed the
results. The greatest criticism, however, is the suggestion of potential health benefits. The 2012
research reviewed 233 studies and found little evidence concluding any "published literature lacks
strong evidence that organic foods are significantly more nutritious than conventional foods."
[ CITATION Rhi \l 1033 ]This was also the conclusion of the UK Food Standards Agency, though
their research considered just 11 studies. Incidentally, the UK Food Standards Agency publicly
support “consumer choice and is neither pro nor anti organic food.”
There are some interesting, respected studies that support organic foods including
observational research suggesting a lower risk of allergies and eczema in children and infants.
Another study albeit on chickens and therefore not generalizable to humans found that those fed
an organic diet showed reduced weight gain, and had stronger immune systems. Yet, an
observational study comparing the nutrient intakes of nearly 4,000 adults consuming either
organic or conventional vegetables found conflicting results. Although a slightly higher intake of
certain nutrients was seen in the organic group, this was most likely due to higher overall
vegetable consumption. A study of 623,080 women in 2014 found no difference in cancer risk
between those who never ate organic food and those who ate it regularly.
Agricultural research is renowned for varying in results. The nutrient content of food
depends on so many factors including soil quality, weather conditions and when the crops are
harvested, which differs throughout the world. The composition of dairy products and meat can
also be affected by differences in genetics and what diet animals are fed. Even the natural
variations in the production and handling of foods make comparisons difficult. Therefore, the
results of all these studies must be interpreted with caution.
21
Ch.1 Organic and Healthy Food Industry
1.1 Advantages and Disadvantages of Organic and Healthy Foods
For anyone that is familiar with organic, knows that it is expensive. Organic food also
doesn’t last as long. The lack of preservatives in organic foods means that it will spoil quicker,
meaning going shopping more often and having more wasted food. It can also be hard to find a
good variety of organic foods.[ CITATION Adv18 \l 1033 ] The farmer’s markets are becoming more
widespread in a particular area.
Eating healthy can help all of us live a bit longer. There is a great possibility that people
will be able to live longer when they eat healthier. Eating healthier helps our bodies be in a great
state. People who eat healthy are less likely to be overweight. There are potential dangers with
being overweight. People who eat healthy tend to feel better in their biggest part. When eating
health, you will receive genuine energy and feel better throughout the day.
It takes time to eat healthy and to prepare the meals. Mostly if you need to count calories or carbs.
Other disadvantages are you need to read food labels and healthy food is more expensive. There
can also be a boredom due to fewer food choices, and you will tend to miss comfort foods.
It is very important on how our food is grown and it is able to have a major impact not just on our
environment but on our mental and emotional health. That is because organic foods consume
beneficial nutrients, such as antioxidants than non-organic foods. For example, people who have
allergies such as with foods, chemicals or preservatives usually are able to find their symptoms
lessen or completely have no allergic reaction when eating organic.
1.2 Advantages and Disadvantages of domestic and foreign organic and healthy grown foods
22
There are three advantages to locally grown food. Financially the money stays within the
local economy. [ CITATION Law18 \l 1033 ]Farmers are able to get their money directly, instead of
it going to things like marketing and distribution. In case of transportation some produce need to
be picked while it is not ripe so it does not go bad then later on be gassed to ripen after the
transport. When local food is harvested when it is ripe, it is fresher and full of flavor. There are
small local farmers who use organic methods but not all are able to afford it and become certified
organic.
Locally grown food are expensive. Finding local produce at the grocery stores are rare. Local
grown foods tend not to use industrial agricultural methods and is more labor intense. Local food
also tend to spoil faster. As well as the selection is scattered, you will not be able to find what you
might be looking for.
1.3 How organic and healthy food consumption effects our health and economy
A growing literature is aiming at characterizing individual lifestyles, motivations and

dietary patterns in regard to organic food consumption, which is generally defined from responses
obtained from food frequency questionnaires.[ CITATION Axe17 \l 1033 ] Still, current research on
the role of organic food consumption in human health is scarce, as compared to other nutritional
epidemiology topics.
In observational studies, a specific challenge is the fact that consumers who regularly buy organic
food tend to choose more vegetables, fruit, wholegrain products and less meat, and tend to have
overall healthier dietary patterns. [ CITATION Axe17 \l 1033 ]Each of these dietary characteristics is
associated with a decreased risk for mortality.
Organic farming is often sold as good for the environment. This is true for a single farm
field as organic farming uses less energy, emits less greenhouse gasses, nitrous oxide and ammonia
and causes less nitrogen leeching than a conventional field. However, the productivity of organic
agriculture tends to be significantly lower than that of conventional farming,
A liter of organic milk is said to require 80% more land than conventional milk to
produce, has 20% greater global warming potential, releases 60% more nutrients to water sources,
23
and contributes 70% more to acid rain. Interestingly, organically reared cows emit twice as much
methane as conventionally reared cattle – and methane is 20 times more powerful a greenhouse
gas than CO2. In fact, meat and poultry are the largest agricultural contributors to greenhouse gas
emissions. The only instances where organic yields are higher than conventional farms relate to
hay crops not food crops. To produce the amount of food America does today organically would
require increasing its farmland by the size of almost two United Kingdoms at cost of $200 billion
annually from lower productivity.
What some of us don’t know is that organic fast food is still fast food. A healthy, balanced
diet made up of non-organic foods is far superior than any unhealthy organic diet. The most
important factor in your decision making around buying food should always be the foods
themselves, not whether they're organic. Just because a product is labelled “organic” does not
mean that it is healthy. Many of these products are still processed foods high in calories, sugar,
salt and added fats. For example, the likes of organic crisps, fizzy drinks and ice cream are all
widely available, yet none produce any health benefits.
Some organic product labels will state that the ingredients are “natural”, for example,
using raw cane sugar instead of plain sugar. However, sugar is still sugar and with the majority of
us consuming too much sugar already, it is unwise to think it’s healthy to consume lots of organic
sugar. When you choose organic junk food, you may just be opting for a slightly higher-quality
version of regular junk food - organic junk food is still junk food. Although, organic regulations
typically ban the use of artificial food additives in these foods so buying organic is a good way to
avoid a lot of the chemicals that are often added to conventional foods.
One of the questions asked; are organic foods worth the higher price? there is not enough
strong evidence available to prove that eating organic provides health benefits over eating regular
foods. It is however widely accepted that an organic revolution on any great scale would cost tens
of billions of pounds and increase environmental damage. So, whether to buy organic is a choice
you should make based on your personal preferences and values. I choose to eat some organic
food but certainly not everything, knowing it is not essential for good health.
24
We would all rather eat food grown without synthetic pesticides and it is reassuring that
the UK is subject to EU rules and legislation considered one of the strictest regulatory frameworks
for pesticides in the world. Interestingly, every year, the Environmental Working Group (EWG),
an American non-profit environmental research organization shares a list called the Dirty Dozen
fruit and vegetables with the highest levels of pesticide residue.
1.4 Prioritizing Agricultural Development in Georgia
We should give first concern to and prioritize agricultural development in Georgia

because purely of statistical reason. Forty-eight percent of the labor force in Georgia is working in
this area, which makes agriculture the first sector of employment in Georgia.[ CITATION Man12 \l
1033 ] Effective changes in agriculture, improvements in this sector represent a direct change for
a very large part of the population. The desired resemblance with the European countries and
their models, should not make us forget that our society is still very different structurally, for
example less than four percent of the total workforce in Switzerland are farmers, and by scale the
average size of a French farm is 55 hectares, against 1.22 hectares in Georgia. It is currently being
observed around the world, the impoverishment of rural areas due to degradation of the
agricultural sector, automatically leads to a rural exodus. The same phenomenon has been taking
place in Georgia since recently, where we can see a shift of population from rural areas to cities
and their suburbs, especially to Tbilisi.Despite the increased activity in urban areas, it is very
difficult for newcomers to find work in town, where unemployment, housing problems and other
obstacles already exist and are compounded by the influx of rural populations.
Another reason we should give first concern to and prioritize agricultural development in
Georgia is food security. Georgia currently imports 3.5 times more food than it exports: this
balance is very unfavourable from an economic standpoint, and most importantly, it indicates
food dependence on outside sources.[ CITATION Man12 \l 1033 ] For example, the Russian embargo
in 2006 and the conflict in 2008 substantially increased the prices on a number of products. The
question is to decide if we want to increase domestic production to reduce imports and be more
self-sufficient, or to export more and thus even out the relative import-export, which always leads
25
to dependence on outside products. In terms of food security and sustainable development, the
first solution is most beneficial for the country and its farmers.
What does an efficient and sustainable agriculture mean? There are two major agricultural
models; conventional and biological. The conventional model, the most famous, influential and
standard model, is employed by international organizations such as WTO, World Bank or IFM.
Conventional model has two aspects; technical and economical. From a technical standpoint the
agricultural model is the one based on the “Green Revolution” widely spread in most parts of the
world from the 1970s’, after numerous scientific studies during the 1960s, aimed at increased
agricultural production to meet the future global demands for food, due to a very high population
growth. It is based on the use of seeds called HYV (high-yielding varieties), which require the use
of pesticides, fertilizers and a controlled irrigation. It was noted that the dependence of
developing countries on the agro -industrial corporations of the developed countries, which
provide agricultural machinery and chemical products, almost all of which are made from oil: in
fact, the industrial and petrochemical multinational corporations found a huge market to be
exploited in agriculture.Many farmers from developing countries were forced to borrow great
amounts of money, in order to be able to acquire these products and materials every year.
Ultimately unable to pay off the debts, they were led to sell their land, to banks or landlords, and
become agricultural workers on these lands, or move out to the suburbs of the cities, where
unemployment and misery were awaiting them.It is interesting to see that in the EU and the USA
very high subsidies are given to farmers on the purchases of different farming products: without
these subsidies, farmers would not be able to make any profits. Therefore, this agricultural model
is considered to be limited economically, especially for small independent farmers, as investments
in seeds, pesticides, fertilizers, are difficult to absorb through the sale of crops produced.
Concerning yields, sometimes, they can even be very negative, because in general, the new
hybrid seeds are not tested in areas where they are imported. Directly sold to and cultivated by
farmers, expecting the promised miraculous yields, they can sometimes be totally unsuited for the
region, its climate, insects, worms or other features of the place, and crops can be fully destroyed.
At this point, it is too late for those farmers who purchased the seeds and pesticides on credit, as
they become unable to pay off. This is not the general case, of course, but it does take place and
should be considered.
26
In addition to these social impacts, ecological impacts and biological effects are numerous.
The massive use of chemical fertilizers and pesticides, along with a massive irrigation,
contaminates the soil and eliminates all microbiological organisms over the years: this causes
depletion of the land, which becomes much more compact, and therefore much more vulnerable
to floods. These agricultural practices are also combined with intensive monoculture, which
breaks the ecological balance. Soil erosion is especially bad when employing these methods and
requires a much longer and specific rehabilitation.Finally we must recognize the considerable loss
of biodiversity related to the use of similar seeds by farmers all around the world, while thousands
of varieties exist even within the same country. Traditional varieties may be subject to patenting,
depending on the jurisdictions, the country policies and multinational corporations, which may
result in a cultivation ban. While for many hybrid varieties sold by corporations, it is prohibited
by contracts to use the seeds from the crops for the next year, forcing farmers to buy seeds again
every year.
The economic model that accompanied the Green Revolution, and which the WTO, the
WB or the IMF are trying to impose, aims at the agricultural policies of all states of the neo-liberal
and globalized economic model. [ CITATION Agr12 \l 1033 ]This results in a complete liberalization
of agricultural markets, lack of protectionism on imported agro products, and the removal of state
aid to farmers (single aid of environmental protection may be granted). The 2009 report of the
World Bank, prepared during the worldwide economic crisis, recalls on agricultural development,
which was not included among the priorities for development, and states that it is essential to
fight against the political support for agriculture and calls to go "still further" on liberalization of
agricultural markets. It is noted that this model is mainly supported at the WTO by the Cairns
group (15 countries, who are heavy agricultural exporters into the world), the giant agribusinesses
and retailers companies, interested in the reduction of agricultural prices.
This globalized market model without rules applied to agriculture also implies the
international competition it engenders, that is, if the small farmers are not subsidized by their
own state, they face competition from the entire world, this is especially true against the big
farmers familiar with the markets, practicing monoculture in order to export, using the wole
products range from petrochemicals, and sometimes even being subsidized by their own
governments, the CAP.[ CITATION Man12 \l 1033 ]this neo-liberalism applied to agriculture
generates volatility and reversals of agricultural prices, increased by speculation on futures
27
markets, which represent a major threat to global food security, and especially for small farmers,
as demonstrated by the studies of the think tank MOMAGRI (Movement for a World
Organization of Agriculture). One thing is essential: despite a global agricultural production
largely sufficient to meet the global needs, hunger affects nearly 1 billion people worldwide,
including more than half are farmers, showing that the economic model implemented does not
allow for an equitable sharing of food as needed.the "conventional" agricultural model is based on
the dependence of agriculture on the industrial and petrochemical sector, and on oil, a fossil
resource. It favours production and export rather than food self-sufficiency of farmers, more than
half of the people suffering from hunger on the earth are farmers, and food needs of the local
population. By introducing a competition without limits on global food, it causes problems for
small farmers, and leads to a society where the small peasantry gradually disappears in favour of
large farms, to a rural exodus and a concentration of population in urban areas. The effects are
harmful for agricultural lands, biodiversity, and the health of farmers and consumer.It fails in its
primary mission which is to meet global food needs.
The second model is the biological model (organic farming model). [ CITATION Man12 \l
1033 ]For a long time it was considered as a "step backward" when compared to the modern
characteristics of the Green Revolution, which was based on the technological, petrochemical and
biological industry. Many prejudices are still in place when it comes to organic farming and one
in particular, conveyed by the supporters of agribusiness: organic farming would yield too low
and would not be able to achieve global food security. This thesis was proven to be totally false by
multiple models, which are the bases of the FAO report of 2007, drafted after a two days
conference on organic agriculture and food security where it is written: "These models suggest
that organic agriculture has the potential to meet global food demand, just as conventional
agriculture today, but with a minor impact on the environment ". It is being considered to
enlighten organic farming, using methods and means of efficient production, whether traditional
or modern, but always in an organic and sustainable manner. Organic farming is not synonymous
with denial of change, progress and exchange of the know-how.
On the technical plan, it is important to clarify that there is no single model of organic
farming, but many across the different regions of the world, leaning on the expertise and local
resources existing: however, many gatherings, conferences, and established connections between
farming organizations are made to exchange and disseminate the practices and knowledge of the
28
different areas to improve the efficiency of organic farming around the world. Organic farming is
based on certain fundamental ideas: a production without the use of chemical fertilizers, synthetic
pesticides, or genetically modified seeds (GMOs). It emphasizes the culture and breeding of
traditional local varieties and therefore biodiversity. The inputs used are natural, and often
available in the surrounding nature: "The main feature of organic agriculture is its reliance on
capital goods available locally and does not use fossil fuels" (FAO report, 2007). The organic
agriculture requires significantly fewer imports and thus less transportation of goods
(environmental benefits). It requires much less investment, borrowing money and frees the
farmer form the dependence on agribusinesses and Western multinational companies.
The environmental impacts are significantly lower with organic farming, using no
chemical inputs, and not destroying the microorganisms present in soils, guarantors of healthy
land. Organic farming also respects the ecological cycles of the land, leaving land fallow that can
be enhanced and fertilized by the cows graze etc., based on multi-cropping rather than
monoculture. Organic farming requires less irrigation compared to the conventional model
especially compared with the latest GM varieties, and therefore saves the use of water, a scarce
resource in the future. Based on the culture of local and traditional varieties, it also guarantees
certain biodiversity. The biological system is finally summed up in this sentence issued by the
Codex Alimentarius Commission: "Organic agriculture is a system of global production, which
excludes the use of fertilizers and synthetic pesticides and genetically modified, minimizes
pollution of air, soil and water, and optimizes the health and productivity of interdependent
communities of plants, animals and human beings."
From the economic and societal point, the organic farming is not represented by such
organizations as The World Bank or WTO. However, according to different organizations,
cooperatives or independent farmers practicing it, organic farming shows a radically different
business model than that of conventional agriculture. The term illustrating the economic model
associated with organic farming is that of food sovereignty, developed by the international
movement Via Campesina in 1996.Food sovereignty promotes first of all the self-sufficiency of
food producers, giving priority to food crops. Second, it aims to supply local, regional and national
ones. This is a type of local agriculture. It does not exclude international trade, but does not
prioritize it and puts limits on it: State permission to practice protectionism on excessively cheap
imports, authorization of public support for farmers provided that the products are not intended
29
for export, ensuring agricultural prices stability, fight against agricultural price volatility, by
mastering international agreements. Food sovereignty is therefore designed to protect small
farmers and local agriculture. Organic farming is sometimes used to export, and does not always
give priority to the local market. But these steps would rather be taken willingly by some farmers
in order to get benefits by meeting the demand of a western segment of the population concerned
about consuming products from organic farmers, not to come in controversy with the
conventional model of organic farmers, which manifests itself both technically and economically.
It is also very difficult to go against the tide of the neo-liberal model in a country ruled by this
type of economy, particularly in developed countries: this is why organic farmers sometimes
practice exporting, just to survive and return to make their business profitable again.There are
certain types of organizations, cooperatives or concepts based on solidarity, helping to set up an
organic farming unit, or helping to improve its efficiency and simplify the work of farmers.
Georgia has about 50% of its working population in the agriculture sector. The average
farm size is approximately 1 ha, and changes in farm sizes are small: there are only very few large
farms. [ CITATION Man12 \l 1033 ]Therefore, Georgia is comprised mostly of small farmers,
composing almost half of its workforce. We have discussed the fact that organic farming requires
a labour force and serves as a supplier of jobs in agriculture; it means the conservation of small
peasantry and the interests of small farmers. In contrast, conventional agriculture, wherever it has
been applied, has led to the development of large farms at the expense of small farmers and rural
exodus precipitated by placing distressed small farmers. Georgia has no interest in seeing its small
farms disappear instead of large industrial farms, pushing thousands of farmers to the cities, to
face unemployment, insecurity and poverty. Therefore the interest of the state is to help the small
farmers make their agricultural holding as effective as possible, with the application of the
biological model. As for the implementation of neoliberal policies advocated by the WTO and the
WB in agriculture, which implies the absence of protectionism and taxes on cheap imported
agricultural products, and the absences of subsidies for farmers in Georgia, the system is also
unfavourable for small farmers and Georgian agriculture stakeholders in general, since they must
face the volatility of agricultural prices and unfair competition from foreign producers, pushing
them to reduce their selling price. The neoliberal economic model of conventional agriculture is a
threat to small farmers in Georgia, and does not coincide with the interests of the country. The
comparison can be continued from an environmental standpoint. The Green Revolution-type
30
technical model was applied during the Soviet era in Georgia, where monoculture, massive use of
chemical fertilizers and pesticides have led to a catastrophic situation in terms of environment,
since erosion now affects about 38% of farmland, and other lands are also affected by salinity and
acidity. The practice of conventional agriculture in Georgia has shown its negative effects on the
environment, which now appear economically and socially, since the degradation of agricultural
land is obviously bad for production. Moreover, according to scientists, climate change may
exacerbate this future land degradation. It is therefore clearly in the interest of Georgia to
promote, support and subsidize the development of agriculture based on the biological model,
environmental groups, the security and food sovereignty. If Georgia wants to export, it is better
for it to focus on organic products and traditional crops. In the field of traditional agriculture, it
will face formidable competitors, with more experience and resources.
Georgia became independent after nearly 70 years of Soviet agricultural policy, planning
and a collectivized system. The transition to a liberal model came with hardship, particularly
during the troubled period of the early 1990s, and nowadays the country still faces the problems
inherited from Soviet agriculture and precipitated by the transition from one model to another.
Privatization of farmland is performed in the aftermath of independence, from 1992. The state
distributes in emergency between 1 and 1.5 hectares for families living in the countryside, to
avoid famine. This explains why Georgian agriculture is mainly made up of small family farms,
about 691,000 in total.A total change of the agricultural model took place after the collapse of the
USSR. The Soviet agriculture was planned, collectivized, exporting, and massively used chemical
inputs. After the fall of the USSR, agriculture has reverted to a family farms model, firstly to meet
the food needs of rural households threatened by famine (extremely rough times in terms of
economy in the 1990s). Family farm in general do not use pesticides and chemical fertilizers,
especially in high mountainous regions, or in very small amounts, because farmers cannot afford
these products: therefore, nowadays, Georgian agriculture is basically family farming, and more or
less organic. However, the lack of certification for many products, and the use non-traditional
seeds make it difficult to describe the current Georgian agriculture as organic.This situation is far
from satisfactory and does not meet the expectations and objectives corresponding to the
biological model of agricultural development, the kind which we advocate for Georgia. Indeed,
75% of farms produce only to meet their food needs. Poverty in rural areas, the low share of
agriculture in GDP, 8% in 2010, compared to 48% of the population active in agriculture, and the
31
fact that 70% of the food consumed in Georgia is imported from foreign countries, explain the
failure of the current agricultural model in Georgia. Moreover, the rural exodus is already
underway, particularly among the younger generations. Let us study the factors behind the
failures of this organic farming in Georgia.
The erosion of nearly 40% of the agricultural land which remains as a result of industrial
agriculture practiced in the USSR. Without reactions and actions, this situation can only be
exacerbated by future climate change. It requires a careful and appropriate rehabilitation, which
can take up to 30 years, of these lands. Know how is essential for rehabilitation, and demands a
thorough knowledge of soil biology, which is usually not part of a farmer’s skillset, who
sometimes can continue to exploit these lands, making it less and less 12 profitable and more and
more bruised. Therefore, it is imperative that the state takes action regarding this problem, by
appointing experts in soil biology to examine the soil conditions in Georgia and suggest possible
solutions to farmers. If the experts in Georgia fail to do so, it is possible to train people in places
like LARMS (Laboratory of Analysis in Soil Microbiology) in France, or invite foreign experts.
Land fragmentation, resulting from the initial land privatization carried out in the early 1990s is
also a major constraint to agricultural production in Georgia. Difficulties due to fragmentation are
reinforced by a highly mountaneous landscape of certain regions of the country and add up to the
lack of resources and infrastructure of the peasants. In this case, the solution would be to
encourage farmers to establish cooperatives, unions, to join forces to work together to decide on
the choice of products to be grown, to invest jointly in equipment, and organize themselves for
marketing purposes. It is very difficult for a farmer working alone to deal effectively both with
agricultural labor, to stay informed of market demands and prices, marketing and sale of products:
it becomes more difficult to find the time to read or learn about new agricultural techniques. The
formation of cooperatives may allow the union of farmers to form a more effective organization
based on the division of tasks and specialization of members according to their areas of expertise.
However, currently, the tax system is not favorable of cooperatives, and it even takes away
certain tax privileges and other benefits in these cases. It is advisable to encourage the foundation
of the cooperatives, which can both meet the technical problems posed by land fragmentation,
and both allow farmers to organize themselves better to cope with all processes.
The Lack of knowledge of effective organic farming techniques by the farmers, who for
decades took the habit of applying monoculture and the conventional model during the Soviet
32
era, is also a shortfall for Georgian agriculture. The loss of old techniques and lack of knowledge
of the new know-how in the field of organic farming, is combined with the loss of traditional and
local varieties of seeds. The farmers do not have the traditional seeds previously adapted to the
different regions, climates, and used in organic farming. The Soviet agriculture based on
monoculture, sometimes used varieties introduced from outside the country, and generalized the
use of seeds made to support the chemical input. This led to a decrease in the diversity of the
cultivated varieties in Georgia, which were previously carefully selected for their adaptation
according to climate and region, the legacy of accumulated experience transmitted from
generation to generation through centuries of local agriculture. These traditional varieties,
endangered, were kept in Soviet research institutes. But the collapse of the USSR led to their
neglection and even disappearance of some of them. Therefore Georgian farmers appllying
organic farming mostly use the old Soviet seeds designed for industrial farming.
ELKANA: Biological Farming Association. Since it’s founding in 1994, it took charge of
finding and multiplying the seeds of traditional varieties (wine, fruit, vegetables, wheat and other
cereals) that had been kept in the Soviet scientific institutions. [ CITATION elk11 \l 1033 ]ELKANA
experiments and studies their culture, their potential by region, and today provides these varieties
to nearly 450 farmers, who grow them organically and get very good yields and high quality
products. Open to any citizen of Georgia interested in the development of organic agriculture in
the country, and the protection of the environment, ELKANA tries to spread its available
knowledge and organic know-how to help the farmers increase their production. In this regard,
ELKANA says: "Most of the Georgian peasants need support for appropriate management of their
farm, they get to harvest the highest quality on the small area of land is theirs, and that in
applying improved agricultural tools, and being able to fight against drought, floods, locusts,
siskins, and thousands more enemies than an educated person may avoid more or less ". For the
state, follow the instructions to ELKANA can only be beneficial for its farmers and the
environment, since this NGO favores an organic and sustainable approach 13 theoretically and
practically: "We aim to improve of socio-economic conditions of the population of Georgia and
environmental protection by encouraging the development of sustainable organic agriculture and
increasing the autonomy of the rural population " ELKANA also conducts studies and publishes
annual reports on the situation of agriculture in Georgia and is trying to educate the public with
nearly 20 years of work, study and field experience. This NGO is definitely a player to consider
33
and listen closely to. We also have to present the organization AFRD (Association for Farmers
Rights Defense), founded in 1999, which deals with representing the interests of small farmers of
Georgia, and promoting the development of organic agriculture. Their work is diverse and
involves: organization of training courses and educational seminars for the diffusion of knowledge
and know-how on organic farming, conservation of biodiversity, climate change etc., assistance to
farmers for effective agricultural business activity, legal help and information about market
demands; influence and lobbying on policy makers such as Parliament or the Ministry of
Agriculture. As for influencing policy makers, the AFRD has campaigned for nearly 10 years for
the establishment of a tax law facilitating the set up of cooperatives and a union for farmers to be
more efficient in production as in marketing. The Georgian government should provide maximum
support to these efforts and work together with ELKANA and AFRD. It is imperative to
encourage the creation of farmers’ cooperatives, and to develop several study centres in each
region for dissemination of traditional Georgian varieties, training in agricultural techniques to
farmers, not only for preservation of traditional food and biodiversity, but especially for very
satisfactory (both qualitatively and quantitatively) yields for small local farmers.
It should be noted that small farmers lack unity and have no support from organizations as
well as their representatives and government authorities. Therefore they haven’t got enough
influence on the decision makers. There even is a certain passive approach among many small
farmers, the lack of initiative, a legacy of the prevailing mentality in the Soviet era. Many farmers
do not exploit their land fully, do not try to organize themselves in order improve their situation,
it is believed that changes can only come from central government.
In the draft of the document "Strategy for development of agriculture of Georgia 2012-
2020", the importance of the development of organic farming is not mentioned, and little
attention is paid to problems of small farmers, who represent 98% of Georgian farming.[ CITATION
Man12 \l 1033 ] The current government, according to its acts, is moving more towards the
conventional model, both technically and economically. Economically, the liberalization of the
country also took place at the level of agriculture, since free trade was introduced and imported
agricultural goods were allowd. The changes placed strong 14 competition on small Georgian
farmers on the local markets, and forced them to lower their prices to compete with the imports
from countries with major industrial and agricultural production such as Turkey, whose product
quality is generally quite poor. According to the government strategy, agricultural development
34
in Georgia is planned through the development of large-scale industrial agriculture, based on

private investment including FDI through the privatization of land, thus increasing the risk of
land grabbing in the country. The initial 5-year plan for agricultural development, for the 2006-
2010 period was incorporated and gave priority to: improving infrastructure in rural areas,
promotion of Georgian products especially wine and finding new markets for export, as well as
privatization of agricultural land belonging to the state. The third priority cited has been the main
activity of the state since the Rose Revolution, with the Act of Privatization of Agricultural Lands
Belonging to the State. Between 2006 and 2010, the State gave special awards to local farmers who
wanted and could afford to expand their land. Since 2011, prices are identical for all investors. It
should be noted that the privatization of land was ruled within the framework of the 5 years
European Neighbourhood Policy EU-Georgia. This law is in favour of conventional agriculture,
especially with the objective of attracting private investors, who would be able to buy huge pieces
of lands, sine they can afford the price. The purchase of land appears much more difficult for a
Georgian peasant in terms of financial resources. The first priority for small Georgian farmers is to
improve the efficiency of their production on the land they currently own. It should also be noted
that in 2010, in a campaign supposed to support food security, the state distributed hybrid maize
seed of the company Pioneer to the farmers, with the condition that they would pay for these
seeds after harvest. The results were very mixed, especially in the southwest of the country,
because the cultivation of this variety had never been experienced in Georgia, where the climate
and soil are very diverse across regions, and moreover farmers were poorly informed about the
culture conditions of the hybrid maize, which greatly differ from those of local varieties.
However we must acknowledge, the efforts and investment of the government into the
construction of infrastructure in rural Georgia, including road construction, and progress on
access to water and electricity in villages, even if the work is not finished in this field. Some
regional centres have also been created in order to inform farmers about the demands of markets,
and to provide new equipment, machinery and products. If the creation of the centre is actually a
positive step, it is very unfortunate that these centres are not used to experiment with traditional
Georgian varieties and disseminate them, to spread the knowledge and know-how concerning
organic farming: on the contrary, these regional centres are used to highlight and provide foreign
or hybrid varieties manufactured by large companies for industrial agriculture.
35
No action, tax law, encouraging the creation of unions, agricultural cooperatives has been
introduced against land fragmentation. About 37% of farmland is unused, pushes the government
to increase property tax or encourage farmers to grow their entire plot, or rent/sell it partially. It
is not certain that this is the best solution to encourage farmers to benefit from all of their land:
on the contrary, it can lead to greater hardship and be another reason for rural exodus. A better
understanding of market demands, more expertise and financial resources would be better
incentives to exploit the land. Moreover, perhaps there is a correlation between the non-
operation of agricultural land and land erosion, because these two phenomena have similar rates
approximately 40%. In 2007, the first local organic certification body, Caucascert, was founded,
and has been internationally accredited since 2008.
Organic fruit growing in Georgia Major crops grown are corn and winter wheat.
[ CITATION Kak10 \l 1033 ] Fruits include apples, wine grapes, peaches, nectarines, pears, oranges,
tangerines, mandarins, and berries. Main agricultural exports are wine and processed tea. Georgia
has hundreds of grape varieties and has been producing high-quality wines for centuries. The
benefits of organic farming for producing eco fruit in Georgia are widespread and important to
multiple sectors of society. Organic and eco fruits can help protect what’s most valuable to people
their health. Organic foods can play an important role in keeping people healthy. In addition to
the health benefits, the organic industry is important in many other ways. For investors, the
organic agricultural sector is one of the few sectors with consistent growth over the last decade.
During the current economic downturn, the growth of the organic industry has outpaced the food
industry as a whole. Organic products are increasingly important to consumers who are
committed to reducing their carbon footprints and their impacts on the environment. More and
more people are making their purchasing decisions based, at least partially, on environmental
considerations. For families, organic products are important in protecting and enhancing the
health of their children. Young bodies in particular are more susceptible to the impacts of
pesticides, fungicides and other synthetic chemicals used in non-organically grown fruits and
vegetables. As the leading national non-profit organization, firstly entering in Membership of
IFOAM in 2000 the Association for Farmers Rights Defense, AFRD is building the guidelines and
toolkits for the success of organic farmers. Organic farmers or Agricultural Cooperatives bring
economic benefits to their communities by providing increased employment opportunities, as
well as health benefits to farmers and their families, consumers of organic foods, and the
36
environment. Challenges for Organic Fruit Growers in Georgia Organic Farming for Health &
Prosperity Increasing the role of organic farming presents a three-fold challenge: increasing
public awareness of the value of organic farming, implementing policy changes that ensure
organic farming meets the rapidly growing consumer demand, and conducting research to arrive
at necessary technological advances. The demand for organic foods is growing. Georgia is rich by
agro biodiverse Fruits varieties (Apples, Grapes, Citruses, Tea and etc.) and has many facilities but
the product packaging and storage of modern technology nor fruit processing canning factories
have not yet been introduced. As a result, there is a large number of unused local fruit, while the
market of imported fruit creates demand for the fruit. Mature, well-made compost is fundamental
to organic farming. It is a stable, slow-release fertilizer that builds up soil life and will not "burn"
plants. Synthetic amendments and manure can provide soluble nutrients for plant growth but do
not build the soil's long-term biological reserves as well as compost does. The main goals of AFRD
Member organic farmer in Georgia is to build long-term soil fertility for feeding the soil with a
variety of natural amendments. [ CITATION Kak10 \l 1033 ]Composting also gives organic farmers a
way to recycle manures and plant residues that otherwise might present some environmental
problems. In manyinstances, a good composting program also allows farmers to save money by
eliminating or trimming the need for farm fertilizers and other expensive inputs. The
development of pressurised irrigation equipment such as drip irrigation has promoted the need for
water-soluble fertilizers, as clean and purified as possible in order to diminish the possibility of
emitters clogging. It is not really clear when foliar feeding started, but after the development of
water-soluble and liquid fertilizers farmers have begun to use these fertilizers with sprayers, the
same as it is used with applications of pesticides. At the beginning, this technique of spraying
nutrients was used for correcting deficiencies of minor elements. However, fast curing has shown
that plants can absorb some elements through their tissue. As a result, foliar feeding has gone
through further development. These days foliar feeding is considered among the major techniques
used for plant nutrition, supplementing the ground application. To maintain and increase long
term fertility of soils must be used mulch, no-till method, biocontrol and bio organic fertilizers
within a closed system with regard to organic matter and nutrient elements for Fruits. To
minimize all forms of pollution that may result from agricultural practices how maintain the
genetic diversity of the agricultural systems and its surroundings, including the protection of
37
plant and wildlife habitat to consider the wider social and ecological impact of the farming system
for producing more sustainable eco fruits in Georgia.
1.5 Herbia
Herbia is a Global G.A.P. certified culinary herbs and vegetable that contain no chemical
fertilizers or insecticides. [ CITATION her10 \l 1033 ]In 2006 Herbia opened a consolidation center
in the village of Tkachiri, where local farmers supply their produce. In 2008, a three hectare
greenhouse for culinary herbs production was established. Herbia became the first Global G.A.P.
certified company in Georgia in 2009. Global G.A.P is internationally recognized set of farm
standards dedicated to Good Argicultural Practices. Producers demonstrate their quality and
commitment to the Global G.A.P. standards through the certification. The certificate is a
reassurance for the consumers and retails that the food reaches accepted levels of safety and
quality and has been produced sustainably as well as respecting the health, safety, and welfare of
the workers, environment and the welfare of the animals. In 2010, fresh herbs were exported in
Germany and in 2013 Herbia became the first company in Georgia introduce packaged herbs on
local market. The company with the support of USAID, constructed a modern refrigerated
warehouse with 2 packaging lines in Tskaltubo and rebranded its business in 2014. USAID
(United States Agency for International Development) transforms families, communities and
countries so they can prosper and thrive. It is the world’s premier international development
agency and catalytic actor driving development results. Herbia produces basil, celery, coriander,
dill, mint, parsley, rucola, watercress, green onions, tomato, cucumber, lettuce mix, pepper,
radishes, salad mix, and potatoes.
1.6 Winery-Khareba
The company “Winery Khareba” is about ancient traditions, it is more towards

preservation of unique wine culture and produces wine by using ancient methods with the
modern technologies. [ CITATION art18 \l 1033 ]
38
The company owns 1,000 hectares of land where the Georgian and European vine is
cultivated and high quality wine is produced. Wine is produced in the eastern and western part of
Georgia. Kakheti region being in the eastern Georgia and Imereti, Racha, and Lechkhumi regions
being in the western Georgia. Winery Khareba has European varieties such as Cabernet,
Chardonnay, Sauvignon blanc, Muscat, Pinot Noir, and Merlot. It also supports cultivation of
varieties like Saperavi, Ojaleshi, Otskhanuri Sapere, Aladasturi, Usakhelouri, Aleksandrouli,
Mujuretuli, Tsitska, Tsolikouri, Krakhuna, Mtsvane, Rkatsiteli, Khikhvi, Qisi, Pumpula, Kapistoni,
Kharistvala and Tamaris Vazi.
Winery Khareba produces wines from western Georgian grapes: Tsitska, Krakhuna,
Tsolikouri, OtskhanuriSapere, Aladasturi, Usakhelauri,and eastern Georgian grapes: Rkatsiteli,
Mtsvane, Khikhvi, Qisi, Saferavi, Mukuzani, Kindzmarauli and Akhasheni. They cover up to 7
origins and produce up to 50 different wines. The origins the Winery Khareba manufactures their
products are in Poti, Batumi, Terjola, Tbilisi, Kazbegi, Kvareli and Mtskheta. They also have their
stores in those origins. The company exports to United Kingdo, France, Belgium, Netherlands,
Denmark, Germany, Switzerland, Italy, Czech Republic, Poland, Russia, Hungary, Lithuania,
Latvia, Estonia, Belarus, Ukraine, Azerbaijan, Turkey, Kazakstan, Japan, and China. Winery
Khareba products are European type wine, qvevri wine, aged wine, brandy, sparkling wines,
chacha, and grape seed oil.
Ch.2 Research Methodology

39
In the research there would be used: mix methods, field and desk. According to the desk
research there will be content and contemporary analysis of international and local laws about
organic food industry, market structure and origin of ingredients.
To check hypothesis there will be used questionnaires and surveys, to understand the main driven
force influencing on consumers’ willingness to purchase. Respondents will be asked about favorite
restaurant, best price for purchasing, average of money they are spending, about service and
location.
Quantitative
Quantitative research is aimed through the use of interview and questionnaires. This type
of research methodology is mostly done within a cross-sectional design pattern. Quantitative
research is designed to clarify the main purpose of the quantification of data. The results from a
research sample to a whole population of interest and also the measurement of various views and
opinions in a given sample can and will be defined by quantitative research.
Qualitative
Qualitative research provides a detailed, rich and usable information that leads to go into
depth understanding of a context. Some of the patterns such as changes over time or possible
causal links between variables will be discussed through the qualitative data. In addition,
qualitative
Research generates non-numerical data and numbers. It is unstructured techniques which it
determines by the opinions, beliefs feelings of the respondents.
2.1 Research objective

Our main objective is to determine whether or not foreign market
2.2 Research Methods

We will be using the primary and secondary data. The primary data will be conducted by
using interviews. Personal interviews will be held with the mangers of the supermarkets in
40
Tbilisi, Georgia. This will help us determine whether or not the foreign market is more profitable
than domestic market for Georgia. The secondary data will be collected from articles, researches,
reports, statistical data and other relevant sources for study.
2.3 Research Design
To understand the foreign and domestic organic and non-organic products, we will have
questions for the managers in the supermarkets. As well as ask which of the products bring in the
most profit and why. The distribution of these questions will happen via personally. It will also
help us see ourselves how the consumers are consuming everyday products. We will also make
sure the identities of the managers are hidden and as well as their confidentiality. Managers seem
to have a better understanding of what is more demanding in their stores as well as what
consumers prefer.We will also be questioning the consumer to understand their side of organic
and healthy foods and just how involved are they in the industry.
2.4 Research problem
The surveys will be conducted on voluntary basis, it is possible to choose consumers who
will and want to answer the question qualitatively instead of giving any answer to quickly finish
the survey. It is a possibility that this approach could lead to low response rate and possible
response bias. It is also possible not to be able to get all the responses from the producers as well as
not to have all of our questions answered.
3. Research Findings
Consumers
41
Gender
Female Male
45%
55%
Age
18-25 26-35 36-45 46-55 56-65 65+
5% 2%
9%
40%
23%
21%
42
Nationality/Country
America Georgia Germany Iran Iraq
Italy Russia Saudi Arabia UAE
8% 4%
3%
6%
2% 28%
27%
3%
19%
Organic/ Healthy Products

Domestic Foreign
45%
55%
43
Domestic-56
Healthier More organic and natural
Cheaper Helps local businesses (farmers)
2%
38%
52%
9%
Foreign-44
Quality No reason given
32%
68%
44
Consumption of organic /non-organic

Organic/Healthy Non-organic/Non-healthy
37%
63%
Organic/Healthy - 43
Trying to be healthy
100%
45
Non-Organic/Non-Healthy - 72
Tastier Student Schedule Cheaper
29%
33%
11%
26%
Lower prices for Organic Foods

Yes No
16%
84%
46
Yes - 97
Too expensive for students People will consume more/eat healthier
Make it affordable
26%
40%
34%
No - 18
Will intefere with quantity of production To attract consumers
6%
94%
47
Importance of Organic Food

Very Somewhat Not important
6%
37%
57%
Meaning of eating healthy

Low calories/carbs Eating fresh Organic
Natural Low fat Other
10% 13%
18%
43%
16%
48
Eating healthier (6 month period)

More As much as possible Neutral Less Not at all
10%
15%
34%
42%
Healthy food (eating out)

Almost always Sometimes Rarely Never
3%
29%
30%
38%
We have surveyed 115 consumers throughout the supermarkets, universities and on social
media. Their answers were not quite surprising none the less it was still interesting to find out
their respected perspective on the organic and healthy products topic. We had more of females
than males. Our consumers mostly consisted in the age range of 18-25 years old with an overall of
40 percent out of 100. We surveyed consumers from America, Georgia, Germany, Iran, Iraq, Italy,
Russia, Saudi Arabia and UAE; Georgians and Arabs being the highest number of consumers.
49
After gathering up the numbers we have determined that most consumers prefer domestic
products because they think that the domestic organic and healthy products are healthier, more
organic and natural, cheaper, and helps local businesses or local farmers. While the rest prefer
foreign organic and healthy products because it is better quality and others simply gave no reason.
Most of the consumers who are 63 percent of them responded that they eat non-organic and non-
healthy products because the product is tastier. Other reasons are some of them don’t have time to
make organic foods so they prefer to get their food on the go or make something fast. Consumers
also choose non-organic and non-healthy foods because it is cheaper and considering some are
students, they cannot afford the luxury of eating organic products. 37 percent that does eat
organic/healthy foods are trying to be healthier or either maintain their health. When we asked
the consumers if the prices should be decreased 84 percent chose yes, the rest answered no.
Consumers believe the organic and healthy products are too expensive for students and should be
made affordable so people will consume more and eat healthier. 16 percent of the overall
consumers disagreed and thought that lower the price on organic and healthy products will
interfere with the quantity and quality of production. One consumer also thought that having a
higher price would attract consumers. We asked our consumers how important organic food was
to them; 57 percent responded saying the organic foods were somewhat important. Only 6
percent chose that organic foods were not important in their lives while organic foods holds a
high importance in 37 percent of consumers’ lives. The next determine question was asked to
when a consumer hears eating healthy what does that really mean to them. They were given six
options to choose from; low calories or carbs, eating fresh, organic, natural, low fat and other. 43
percent of consumers said eating healthy means eating fresh. While 18 percent said it is eating
natural and 16 percent responded eating healthy means eating organic. Only 10 percent said it
means eating low fat. When conducting this survey it was discovered 42 percent of consumers
have been eating the same in the 6 month period, only 9 percent has been eating healthier than
before. Thirty-four percent of consumers have tried to eat healthier as much as possible and 15
percent have not eaten healthy foods at all. The last question of the survey was if the consumers
eat healthy foods when dining out. Three percent chose almost always, while 38 percent rarely
try to eat healthy when going out. 30 percent of the consumers try to eat healthy sometimes
while out and 29 percent never eat healthy when dining out.
50
Survey answered by Supermarket producers
Organic/Healthy Products
Yes No
100%
Rate
1 2 3 4 5
20%
80%
51
Need for Organic/Healthy Products

Yes No
40%
60%
Reasons for Choosing Organic/Healthy

Eat/get healthier Maintain health Folloeing healthy eating trend
20%
20% 60%
52
Infl uence of Price

Yes No
40%
60%
Affordable: Domestic/Foreign
Domestic Foreign
100%
For this survey, five organic and healthy food product’s supermarket managers were
surveyed. The markets were Carrefour, Goodwill, Agro hub, Europroduct, and Bio Valley. All five
surveys carry organic and healthy products in the markets. Agro hub carries German imported
organic products but has local organic fruits and vegetables. Agro hub was asked to rate their
organic and healthy products; they gave it a 5 out of 5. When shopping in Agro hub, the price for
consumers is not a concern nor a factor. They eat main reason for choosing organic and healthy
53
products is to be healthy. Prices are influencing people organic lifestyles but In Agro hub people
do not look at prices, so the demand is high. The prices should decrease thought, it will not
happen yet because the production in Georgia is low. When Georgia will have its own production
of organic and healthy products the price could then be decreased. Agro hub believes the
domestic products are more affordable though there are more options in the foreign products.
Europroduct carries 30 percent of organic food mostly jams and grains, these organic products are
imported from France Europroduct rates their market 4 out of 5. In the market the demand is low
because the prices are high; if the prices were lower the demand would be higher. Main reason
why organic and healthy products are influencing people’s lifestyle is because of the healthy
eating trends posted on social media by famous and influential people around the world, so others
are following their footsteps and starting to eat healthier. In their opinion, domestic organic and
healthy products are more affordable. Carrefour and Goodwill both carry organic and healthy
products that are also imported from France. In Carrefour the only certified fruit is a banana
imported from Ecuador. They both rate their organic products 4 out of 5. In Carrefour the
demand for organic and healthy products is low while in Goodwill there is demand but some
consumers are not able to afford it. Both markets responded the main reason for choosing organic
and healthy products is because consumers want to be healthy, fit and maintain their health. The
prices do influence healthy lifestyle, in Carrefour the prices tend to be high so for that reason the
demand is low. In Goodwill the prices are high but the demand is at a normal rate for organic and
healthy products for now. If the prices were to decrease the demand would be higher. Both
markets believe that domestic organic and healthy products are affordable compared to foreign.
The fifth store Bio Valley carries about 75-80 percent of organic and healthy products, all of
which are local. Organic food has become a need for consumers, they want to eat cleaner and
healthier products and they consume it to stay healthy. The prices are not influencing the organic
lifestyle, the demand for their products are high and the prices are normal. Like the rest of the
supermarkets Bio Valley believes the domestic organic and healthy products is more affordable
then foreign.
We also conducted a survey for a wine store called 8,000 Mosavali. The store carries
organic wines but there are some wines that are not considered organic because they are not
certified due to the fact that some regulations are not met. They export their wines to Russia and
54
other countries. There is a high demand for the organic wines. It is becoming popular and it was
responded that they are a biased people. What seems to be popular the store tends to have higher
demand for it. The store has a pretty series of consumers, mostly those who can afford organic
wines and have a willingness to pay. On the internet the demand is high mostly to those that
know about organic wine. Those that are not well familiar know that it is “bio” and that it is good
and good for the health. Foreigners demand organic wines but rarely. We took some wines and
compared the organic wine prices to the non-organic wine prices. Khikhvi organic wine costs
83.00 gel while the average non-organic costs 40-45 gel. Organic Qisi costs 74.70 gel and average
price for non-organic is 35.00 gel. Price of organic SaperaviArtevani is 49.00 gel and non-organic
of SaperaviTamada is 56.65 gel and SaperaviChigogidze is 63.00 gel. Other non-organic wines
count as natural because they are not “bio” certified. Their prices are: Jgia is 33.20 gel, Mukuzani
is 20.45 gel, Kvareli is 41.50 gel, and Mtsvane costs 40.70 gel.
Survey Answered by Producers
Elkana
We surveyed NukriMemarnishvili about Elkana. MrMemarnishvilistated that organic and
healthy products were profitable based on its prices and it has consumers. It is mostly profitable
when exported. Elkana cannot determine whether the export or the import is more, though
Georgian producers prefer to export because it can be sold in other countries for the double price.
Mr. Memarnishvili stated that if the wine is organic, most likely it will be exported. Georgian
population is not well familiar with the organic and healthy products. Eating organic and healthy
is not well developed trend in our country yet.Elkana has their products in Bio Valley, their own
store, and in Goodwill. If the government will support the farmers then the production of the
organic and healthy products will increase. Our organic and healthy products are mostly imported
from Germany and France. Elkana works with different farmers, for example; Zaza Darsavelidze
in village of Tamarisi. He is a member of Elkana since 2010. He is engaged in winemaking and
winegrowing in his vineyard. He is the only farmer in Marneuli who participates in kvevri
winemaking and organic winegrowing. Elkana’s number 1 producers are Georgians. Organic and
healthy foods are successful though not at the level it should be. We, Elkana, the government and
the people need to spread the word about the organic and healthy products in order for to be
55
more known. We cannot exactly say that the demand for organic and healthy products are high
because there is more demand for the natural products than the organic and healthy products.
Survey Answered by Wine Producers

We talked to Giorgi Berikalashvili about the Vino Underground. Mr. Berikalashvili stated that in
Vino Underground organic wines are not sold, natural wines are. Before, Georgia had more export
in organic wines, though ever since Georgia became a tourist country the demand grew; thus
resulting into export equaling import. Georgia’s population is not well informed about organic
wines and the differentiation between organic and natural wines. The population should be well
informed about the difference between organic and natural. Homemade wines are naturally made
while organic has no pesticides nor chemicals and meets every standard and regulations.
Our second wine producer is ZuraLuarsabishvili .Mr.Luarsabishvili stated that the
production of organic wines began in 2012. They have competitors in the organic wine
department. Georgia exports its organic wines to European countries though their most exports
are made to Germany and Austria. In 2004-2005 the producers became a member of Elkana.
Elkana helped him give a recommendation to produce the “bio” wine because they needed a
certificate from the Caucasuserti that costed 700 euros then. The farmers are not able to decipher
the difference between natural from organic. In Georgia bio wines are not well known, in order
for the producers to seek more revenue, they export. In 2017 they started producing organic
juices made from grapes, pomegranate, and apples. Recognition to these juices will be given this
year. Government is currently helping those producers who cannot afford to pay for the “bio”
certificate, it was decided that the government will cover percentage of the payment.
4. Conclusion
In conclusion, based on our hypothesis Georgian producers prefer to export their organic and
healthy products because they generate more revenue. Almost any wine that is labeled as “bio”
gets exported. We want the population of Georgia to become aware of the organic and healthy
products. Government is currently trying to help producers/farmers with getting the “bio”
56
certificate. In Georgia the organic and healthy products are high based on Georgian workers’
salary. It costs $800 to get the “bio” certificate, to sell the organic and healthy products locally
producers do not see any value from it. Exporting and selling them in foreign countries would
give Georgian ability to pay the certificate payment as well as produce more products. Export will
help foreigners get to know Georgia as well as its culture and make more interested in the
country.
5. Recommendation
Georgia is known for being a tourist country, it is important for the country to be developed.
Georgian need to be more introduced to organic and healthy wines, vegetables, fruits, etc. After
the introduction of the organic and healthy products, the consumer can then choose either
organic and healthy products or non-organic and non-healthy products.
Georgia should try advertising organic and healthy products and should spread awareness of
organic and healthy products. After the population is aware of these products, Georgians will be
able to offer or recommend foreigners products which are organic and healthy.
Government should lend a helping hand to farmers. Some farmers are not educated in the
standards and regulations, others are not able to afford the “bio” certificate.
Government should try giving free courses to farmers to educate them in the organic and healthy
product standards and regulations. This will help grow our production and consumption, as well
as grow our GDP. The “bio” certificate price should be lowered or divided into 3-4 payments.
Organic prices should become normal and affordable, still being above other product prices, based
on Georgian workers’ salary. In most supermarkets, variety of local organic and healthy
vegetables and fruits are low. There is not much choices of foreign organic and healthy vegetables
and fruits as well. Government or the producers should open a market where only the local
organic and healthy products are sold. In the market they should have consultants who will pass
out the new products to consumers for them to try it or to inform them about the new products.
The cleaner and colorful the store inside and outside looks the more consumers will be attracted
to it.
57
Estimated Structure of Work

1. Introduction
i. Purpose of the project
ii. Relevance of research
58
2. Chapter 1. Student Satisfaction Measurements

3. Chapter 2. Research Methodology
2.1 Research Objectives
2.2 Research Methods
2.3 Research Design
2.4 Research problems
4. Research Findings
5. Conclusions
6. Recommendations
7. References
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d_Structure
Lawrence Robinson, J. S. (2018, September ). domestic and foreign Ad&disadvantages . Retrieved

from helpguide: https://www.helpguide.org/articles/healthy-eating/organic-foods.htm
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development-of-agriculture-in-georgia-based-on-the-organic-and-sustainable-model-
1.pdf
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http://eugeorgia.info/ka/article/758/amazoncom-it-saqartvelodan-produqtebi-evropul-da-
amerikul-bazrebze-gaiyideba/
Muñoz, C. R. (2017, september 2). Dvantages and disad of eaiting healthy food . Retrieved from
scribd: https://ru.scribd.com/document/357857814/Advantages-and-Disadvantages-of-
Eating-Healthy-Foods
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http://www.biowine.ge/geo/index.html
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Study. Retrieved from Medicalnewstoday:
https://www.medicalnewstoday.com/articles/249848.php
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Atlantic books, Caloforni: 3 rd edition.
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63
Survey/Questionnaire for Supermarket managers
[Supermarket Name]
Does your supermarket carry healthy foods? If yes, which?
Please rate your supermarket organic foods and healthy foods?
1 2 3 4 5
Disappointing Exceptional
Has organic and healthy food become a basic need for the consumers?
In your opinion, what is the main reason for choosing to eat organic and healthy?
Are the organic food and healthy food prices influencing people’s lifestyle of healthy eating?
In your opinion, which is more affordable for you; domestic or foreign organic and healthy
products? Why?
Survey/Questionnaire for consumers

64
Gender:
o Female
o Male
Age:
o 18-25
o 26-35
o 36-45
o 46-55
o 56-65
o 65+
Nationality:
________________________
As a consumer, which organic and healthy products do you prefer; domestic or foreign? Why?
_______________________________________________________________________________
Do you eat more of organic and healthy foods or non-organic and non-healthy foods? Why?
________________________________________________________________________________
In your opinion, should the prices of organic and healthy foods be decreased? Why or why not?
________________________________________________________________________________
How important is organic and healthy food in your opinion?

o Very
o Somewhat
o Not important
What does eating healthy mean to you?

o Low calories/carbs
65
o Eating fresh
o Organic
o Natural
o Low fat
o Other ___________
In the 6 months period, have you been eating healthier?

o More
o As much as possible
o Neutral
o Less
o Not at all
Do you eat healthy when you are eating out?

o Almost always
o Sometimes
o Rarely
o Never
Survey/ Questionnaire for producers

Producer/Company:
66
__________________________________________________
How profitable is the organic and healthy products?

__________________________________________________________________________
Does Georgia export or import more?

__________________________________________________________________________
Is Georgia population familiar with organic and healthy products?

__________________________________________________________________________
Where do you import your organic and healthy products from?

___________________________________________________________________________
Do you work with any of Georgian farmers/ producers, if yes, which?

___________________________________________________________________________
Who are your number one producers; Georgians or foreigners?

____________________________________________________________________________
How successful do you think is organic and healthy foods industry in Georgia?
____________________________________________________________________________
As a producer, how demanding is organic and healthy products in Georgia?

_____________________________________________________________________________
Which stores/supermarkets do you mostly distribute your organic and healthy products to?
_____________________________________________________________________________
Survey for Wine Producers

67
1. How profitable is the organic and healthy wines?

____________________________________________________________________________
2. Do the organic wines have consumers?
__________________________________________________________________________
3. Do you export more or import?
__________________________________________________________________________
4. Where the wine is mostly sold, in foreign countries or locally?
__________________________________________________________________________

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Assessment of the Organic and Healthy Foods Industry in Georgia

Assessment of the Organic and Healthy Foods Industry in Georgia

Project/Thesis submitted to the University of Georgia

Project Supervisor:Mr. Revaz Chichinadze

Survey/ Questionnaire for producers/ company ____________________________________ 66

Kretter explains to apply successfully in the market, it is necessary to recognize

What is the hypothesis of the work?

Purpose of the Project

Organic Vs. Natural vs. Bio/Eco

Association "Elkana" has been working on the Conservation of Agrarian

Trade; bio certificate “Caucasuserti”

2. Selecting the target country of the European Union

Organic Study in Stanford

Ch.1 Organic and Healthy Food Industry

1.1 Advantages and Disadvantages of Organic and Healthy Foods

A growing literature is aiming at characterizing individual lifestyles, motivations and

1.4 Prioritizing Agricultural Development in Georgia

We should give first concern to and prioritize agricultural development in Georgia

in Georgia is planned through the development of large-scale industrial agriculture, based on

The company “Winery Khareba” is about ancient traditions, it is more towards

Ch.2 Research Methodology

2.1 Research objective

2.2 Research Methods

2.3 Research Design

2.4 Research problem

Organic/ Healthy Products

Consumption of organic /non-organic

Lower prices for Organic Foods

Importance of Organic Food

Meaning of eating healthy

Eating healthier (6 month period)

Healthy food (eating out)

Survey answered by Supermarket producers

Need for Organic/Healthy Products

Reasons for Choosing Organic/Healthy

Infl uence of Price

Survey Answered by Producers

Survey Answered by Wine Producers

Estimated Structure of Work

2. Chapter 1. Student Satisfaction Measurements

2.4 Research problems

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Bittman, M. (December 30,2008). "Food Matters".

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elkana. (2011). Retrieved from elkana: http://www.elkana.org.ge/

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nikolashvili. (2010). biowine,elkana. Retrieved from biowine:

Sandbland, D. (2006-2008). disadvantages of eating healthy. Retrieved from diet: