Georgia Blueberries Export Is Gaining Momentum

Published 2022년 6월 13일

The export of fresh blueberries has seen significant growth in the past five years, increasing more than ten times in terms of value to USD 5.56M in 2021. Russia imported the majority of Georgian blueberries, increasing exports by 29.28% YoY in 2021 to USD 5.08M. Constant investment into new production technologies and an increase of acreage under blueberries was the main driver of Georgia's export. The state helped develop the berry sector through a seedling subsidy and an irrigation system for individual farmers. The state also strongly supported the associations by providing grants for raising orchards, with the addition of incentives for storage capacities.

The blueberry exports from Georgia are constantly growing, thanks to farmers' investments in the production and expansion of planted areas. According to the producers, the plan is for almost 1,500 ha of blueberries to be in total output by 2025. The main markets for blueberry exports from Georgia in 2021 were Russia, the United Arab Emirates, Germany, and Ukraine. In 2022, producers from Georgia are planning a breakthrough in the UK market thanks to the implementation of standards such as GlobalGap, as well as investments in packaging and storage systems.

Several factors influenced the increase in blueberry exports from Georgia. First of all, geographical location and favorable climatic conditions for blueberry production. Georgia is located in the Caucasus region and descends to the Black Sea. The geographical position is suitable for trade with Russia, the EU, Asia, and the Middle East.

Source: Tridge

The Russian market dominated the export of blueberries from Georgia in previous years. Almost 92% of the total value of Georgian blueberry exports goes to Russia. The growth in the value of exports compared to 2020 was 29.28% YoY to USD 5.08M for MY 2021. For the last five years, exports have increased almost 13 times. Georgia thus overtook Serbia and took 5th place in the Russian import of blueberries behind Peru, Morocco, Belarus, and Chile. The figures would have been even better for 2021 if there were no additional requirements from Rosselkhoznadzor, the Federal Service for Veterinary and Phytosanitary Supervision, at the end of June regarding pesticide residues on fruits and vegetables and the required laboratory analyses. In 2022, at the beginning of March, Georgia was hit by substantial frost, which caused the most damage to the early varieties of high-bush blueberries. There are no official damage estimates, but a yield reduction of almost 40% can be expected in orchards that do not have antifrost protection. Antifrost systems are the key to the modernization of blueberry production in Georgia, such as anti-hail nets.

The Russia-Ukraine conflict is preventing Georgian exports to Ukraine. The alternative for traders is Great Britain, which, in addition to the Netherlands, is a significant importer of berries among developed countries. In Georgia, some companies that have invested in the production, refrigeration, packaging, and adopting standards such as ISO 22000 and GlobalGap already export blueberries to the UK.

Diversification of exports and investment in new technologies is a clear strategy for traders and farmers in Georgia. Due to the global crisis and the decline in consumer purchasing power, there may be a decline in demand for fresh blueberries from the EU and Russia.