June 21, 2007
Georgian President Attends Dairy Plant Opening Held by AgVANTAGE
Georgian President Mikheil Saakashvili officiated the opening of two modern cheese-processing plants established through ACDI/VOCA’s USAID-funded AgVANTAGE project.
To modernize the regional dairy sector and increase local incomes and job opportunities, AgVANTAGE teamed up with Cooperative Orlavka and Spasovka Ltd., two local processors in the Samtskhe-Javakheti region, and assisted in the acquisition of two cheese-processing plants. The plants are capable of processing up to 5 tons of raw milk per day, and together, they will produce 1,000 kg of cheese per day, resulting in annual sales of about $508,829. These plants will provide a stable source of income for more than 400 smallholder farmers in the region and directly employ 40 individuals.
Saakashvili said, “This is not only about cheese, but a combination of stability, roads and energy supply. I will take care that during my presidency the unique potential of the region’s agriculture is exploited to its full extent.”
Georgian Minister of Agriculture Petre Tsiskarishvili, Governor of the Samtskhe-Javakheti region Giorgi Kachidze and other top officials also attended the opening ceremony.
“By establishing these plants, we will make the first attempt to industrialize cheese production in Georgia. Buying cheese in Georgia today is like a lottery—you never know whether you will win or not. From now on people will have a chance to buy high-quality, locally produced industrially processed cheese,” said Nika Grdzelidze, deputy general director of $23 million AgVANTAGE project. ACDI/VOCA implements the project to strengthen the capacity of Georgia’s agricultural sector to modernize systems and to mitigate critical value chain constraints for enabling Georgian producers, processors and marketers to compete better in regional and global markets.
AgVANTAGE’s work with the cheese processors creates a precedent for industrial cheese production and empowers these companies to become top producers of safe, high-quality cheese products that are competitive with the large quantities of imported hard cheese from Russia, Ukraine and the European Union. ACDI/VOCA also seeks to enable these companies to command higher prices and diversify their product range.
“This modern cheese plant enables us to start producing European types of cheese. This does not mean that we are competing with local farmers who produce local varieties of cheese. On the contrary, it will allow us to greatly weaken the position of imported cheeses on the local market,” Director of Spasovka Ltd. Lekso Mikeladze said.
During the Soviet era, livestock, dairy and potato production were the agricultural backbone of the Samtskhe-Javakheti province, but these industries collapsed after the break-up of the Soviet Union. Today, most milk is produced by small farmers, who use approximately 70 percent to create cheese sold either locally or in Tbilisi or Armenia. However, the quality of the raw milk produced at these farms is extremely low due to poor sanitary, milking and storage practices. Raw milk does not undergo pasteurization or treatment—measures critical to the production of safe dairy products.
As part of a comprehensive assistance package designed to develop a complete dairy product production chain, AgVANTAGE is assisting with the rehabilitation of six dairy farms in six villages in the Akhalkalaki and Ninotsminda districts. These farms will be able to utilize modern dairy equipment, including manure transporters, milking machines and chilling tanks to allow farmers to supply the high-quality raw milk needed to produce quality dairy products.