The Minister of Environmental Protection and Agriculture, Otar Shamugia, and the state representative of the Kakheti region, Mr. Giorgi Aladashvili, inspected the company "Kvareli Baga" in Kvareli municipality.
The company "Kvareli Baga" was established 10 years ago and is fully modeled on the Israeli farm model. The farm embraces 3,200 Holstein cows and produces 45,000 liters of milk daily. A new combined/mixed feed facility and a milk processing plant are located on a 450-ha plot of land. Moreover, the farm received a USD 30 million investment and has complied with modern standards. About 150 people work on the farm, where primary customers are the largest processors: "Milk Laboratory", "Sante", "Soplis Nobati", and "Agrohab".
" It is crucial to encourage the establishment of more farms since this will allow us to produce more milk and increase the country's self-sufficiency rate annually. In 2024, we launched a new program providing farmers with unprecedented support and financing the loan interest rate for the costs of establishing a modern farm for seven years. At this stage, we have confirmed funding and started investing about USD 25 million. Furthermore, we expect that our efforts will attract significant interest. At the same time, we help small-scale farms. Over the past year, we have financed over 400 small farmers for primary milk production, allowing them to build or repair stalls and purchase necessary equipment. All mentioned above will yield positive outcomes in the upcoming years regarding producing dairy products and meat output", said Minister Shamugia.
According to the Founder of the Company, Mr. Lasha Papashvili, it is difficult to set up a large-scale, modern farm without state support; accordingly, the practice of subsidizing has been adopted globally.
The company "Kvareli Baga" is a beneficiary of the Rural Development Agency. From 2013 until date, the company benefited from the preferential agro-credit project aimed at developing cattle breeding, milk processing, and horticulture, including purchasing agricultural equipment;
The company also benefits from co-financing programs: "Plant the Future", "State Program of Co-financing Agricultural Mechanization", and "Co-financing Program for Harvesting Agricultural Machinery".
It is worth mentioning that the Rural Development Agency supports small milk producers as part of the dairy industry modernization program.
In 2023-2024, more than 400 beneficiaries benefited from the program, with the co-financing amounting to GEL 17 million.
Subsequently, a new support mechanism for the cattle breeding sector was launched this year. The private sector can purchase high-yielding varieties and re-equip and modernize farms. GEL 25 million in loans were provided as part of the initiative, launched in the spring of this year.
