South Caucasus Gender Assessment Technical Assistance (P160432) Report Value Chain Selection Georgia

Abstract

Georgia’s rich agricultural tradition dates back many centuries. Agriculture has played a crucial role in the preservation of its unique history, mentality, and cultural heritage and has contributed significantly to its economic development. Georgia has favorable climatic and natural conditions for agricultural development because it boasts a variety of ecological and climatic zones favorable for the growth of numerous different crops. According to data for 2015, about 43 percent of the country is made up of agricultural land and agriculture contributed to 9.2 percent of Georgia’s gross domestic product (GDP). Meanwhile, 48 percent of the added value in primary production comes from cattle breeding, and 21 percent comes from the production of fruits, nuts, and agricultural crops used to make drinks and spices. About 39 percent of the added value created in food processing comes from household-based food processing. A large proportion of agricultural production is concentrated within small-scale farming households (0.6 ha agriculture land per household). In total, employment includes both hired and self-employed people, of which 47 percent comes to agriculture industry. Agriculture is the main source of employment for the rural population because there are few alternative employment opportunities in rural areas in Georgia. However, 90 percent of those working in agriculture are self-employed. The labor force participation rate is also higher in rural areas than urban areas (75 percent versus 60 percent). The labor force participation rate is significantly different for men and women (78 percent versus 59 percent). This disparity may be explained by the high number of women operating as housewives or unpaid family workers.