Since 2018, FAO Georgia has been implementing a 6.7 Mio USD matching grant program targeting smallholder farmers, SMEs and cooperatives while respecting two bottom lines: inclusiveness and a sustainable food value chain approach. The program involves a matching grant and a matching contribution to be paid by the beneficiary. This format could easily be used to channel remittances.
To help us manage the hundreds of applications received in the most transparent and efficient manner, our grant team is relying on an online grant management platform which serves as the main interface between the applicant, FAO, the donor, and any other ad hoc stakeholder.
The strong knowledge developed by the team coupled with this digital approach has proven efficient and shows a great potential for replicability for similar programs globally.
More information about the ENPARD III program in Georgia:
In the last two years, FAO and the EU awarded a total amount of circa USD 5.1 million as a matching grant to the agricultural producers in Georgia. The grant support co-funds various capital investments in Georgia’s agriculture sector to increase competitiveness, create extra jobs, and ensure stability in food supplies.
A matching grant is one-time investment support for agricultural producers who pledge to make a financial contribution, too.
With the fourth cycle of grants launched in 2020 Georgian farmers, rural households, cooperatives, and small and medium producers operating in 22 municipalities could make capital investments – purchase new tractors and machinery, optimize processing and storage with new automated solutions, and buy equipment for large-scale dairy, vegetable, and fruit productions, among many other improvements. The grants program is multidimensional. In addition to the direct investment, EU and FAO also provide the beneficiaries with innovative knowledge in production technology. Through the practical and theoretical trainings, farmers learn how to increase the quality and volume of crops, reduce expenses, and minimize the negative impact on the environment.
“The EU and FAO grants programme in Georgia is a unique initiative in the region which helps Georgian farmers and agricultural producers to increase their competitiveness and raise incomes,” says Raimund Jehle, FAO representative in Georgia. “Co-funded capital investments - effective and climate-smart agricultural equipment - are aimed to ease producers’ access to innovation and make farms and agricultural enterprises more sustainable and resilient in the times of the pandemic.”
One of the selected farmers is Malkhaz Mirinashvili, from Kvareli municipality, who, together with his family, has been farming for decades. The family processes a nine-hectare land plot growing tomato, cucumber, cabbage, and maize, while also taking care of a vineyard. With the support from FAO and the EU, the farmer was able to purchase a brand-new tractor, plough, and cultivator.
“Our village is quite large, and we don’t have enough agricultural machinery for rent available,” Malkhaz Mirinashvili stated. “Sometimes, the wait list for the equipment is so long, that we miss the harvest time, and our produce goes bad. With this new equipment, not only we can save time and money, but we also started to look for a new plot of land, about 10 hectares in size, to double our production. Without these new machines, we wouldn’t be able to do it.”
“Winemaking has been our family tradition for centuries,” Manana Bolkvadze, a winemaker from Keda municipality in Mountainous Adjara says. Manana and her family cultivate a two-hectare vineyard, growing Tsolikauri and Chkhaveri grapevine varieties. Thanks to the EU and FAO, Manana was able to purchase new wine tanks and finish the construction of her wine cellar.
“I wasn’t able to sell as much wine during the pandemic, as usual, I had a hard time storing the wine and lost part of the product,” she said. “With these new tanks this issue was resolved, and the quality of my wine greatly improved.”
EU and FAO grants are awarded to small-, medium-, and large-scale producers with matching grant amounts ranging from USD 1 000 up to 150 000, co-funding up to 60 percent of the investment costs.
“We were overwhelmed by the interest of the farmers and other agricultural actors when we started the programme,” says Matthieu Rouviere, the Grants Programme Manager “but with the close cooperation with the Ministry and the EUD, and thanks to a specific tailor-made online platform, we are managing and we can easily replicate,” says Rouviere.
A fifth cycle of the Grants Programme is going to be launched in 2022.
The EU is supporting agriculture and rural development in Georgia through the ENPARD programme. Implemented in 2013 with a total budget of EUR 234.5 million, the main goal of ENPARD is to provide economic opportunities in rural areas and reduce poverty in Georgia.
Matthieu Rouviere