Georgia significantly trails neighboring countries in agricultural productivity, particularly in vegetable yields, according to a new report by Galt & Taggart. The study shows that vegetable output in Georgia averages 11 tons per hectare, compared to 31 tons in Azerbaijan and 35 tons in Armenia, highlighting a substantial performance gap.
Similar trends are seen across other crops. Fruit yields in Georgia stand at 4.8 tons per hectare, far below the EU average of 11.7 tons, while grain yields reach 2.8 tons, compared to over 5 tons in Ukraine and the EU. The report identifies small farm sizes as a key structural challenge limiting efficiency and productivity.
According to the analysis, Georgia’s agricultural sector is dominated by small household farms, with businesses accounting for only 13% of primary production. Around 73% of farms are smaller than one hectare, and only 2% exceed five hectares, constraining economies of scale and investment potential.
Low levels of corporatization, limited access to knowledge, and technological gaps are cited as major factors behind the country’s weak productivity. Addressing these issues, the report suggests, will be critical for improving output and competitiveness in the sector.
