Businessman Lasha Papashvili says rising operating costs in Georgia’s business environment remain a challenge, particularly due to higher labor, fuel, and energy prices. However, he notes that the situation has not yet reached a critical level for his operations.
Papashvili told BMG that despite increases in utility costs, his company has largely protected itself by switching to renewable energy. “We have moved 75–80% to solar energy. We need about 2 megawatts and our facility is fully covered by solar power,” he said, adding that electricity price hikes have had little impact on his production costs.
He highlighted diesel prices as a key concern, especially during the plowing and sowing season, when consumption peaks. According to him, a 20–30% increase in fuel costs is significant and requires stronger state involvement. “The state must support farmers in every possible way so they do not exit the sector,” he said.
Papashvili also pointed out that agricultural subsidies are standard practice in developed countries, where support levels are significantly higher than in Georgia. He added that while logistics costs have not seen major disruptions, supply from Asian markets continues without significant issues.
