APPLE PRODUCTION INVESTMENT OPPORTUNITIES IN GEORGIA AND GLOBAL CONTEXT

Abstract

The main objective of the presented paper is to identify investment opportunities in the apple value chain and also to evaluate the specific apple project using the state programs/projects. The methodological part provides a financial evaluation of a specific business project, taking into account state funding programs/projects. Furthermore, general investment opportunities of apples are analyzed in the paper. In addition, in order to study the investment potential, the investment climate of Georgia and Georgia’s international ratings are discussed. A brief description and analysis of various state support projects are also provided. Additionally, an overview of local apples and the world market is given. Due to the climate conditions and soil types of Georgia, the production of intensive apple varieties has a great potential in the country. Promoting the cultivation of intensive apple orchards through the use of various state supporting programs/projects and full compliance with apple production technologies, Georgia will have potential to increase the average apple yield per hectare. It is important for Georgia to use the existing free trade relations with other countries and to diversify the apple export market, which will further increase its competitiveness. Based on the financial evaluation, key performance indicators are positive and beneficial for the investors, which should give the motivation to the investors to invest in the apple value chain. In the field of agriculture, the continuation of the implementation of various state co-financing projects/programs and their development will give additional motivation to local and foreign investors, which will further increase the competitiveness of Georgian apple value chain.