Transit and Agro-Industry

2026-07-31

Agro-industrial complex (AIC) is a set of interconnected sectors that ensure the production, processing, storage, transportation and sale of agricultural products.

It mainly includes 4 sectors:

1. Production of agricultural inputs

○ Agricultural machinery

○ Fertilizers

○ Plant protection products

○ Seed materials

○ Veterinary drugs

○ Irrigation systems

2. Agriculture

○ Plant growing

○ Animal husbandry

3. Processing of agricultural products

○ Food industry

○ Wine production

○ Milk and meat processing

○ Production of flour, oil, canned goods, sugar and other products

4. Infrastructure and services

○ Storage of products (warehouses, refrigerators)

○ Transportation

○ Trade and sales

○ Banking and insurance services

○ Agricultural education, science and consulting services

Thus, the agro-industrial complex does not only include agriculture - it unites the entire chain, from the creation of production facilities to the delivery of the final product to the consumer.

Once Georgia has a well-functioning transit and financial infrastructure (stock and commodity exchanges), farmers will have increased access to the production facilities necessary for agriculture and processing agricultural products. In addition, the same transit and logistics infrastructure will also simplify export opportunities for farmers.

In order to achieve a highly urbanized, industrial and logistically integrated economy in Georgia, using transit and financial infrastructure, priority should be given to the production of agricultural and agricultural product processing facilities - machinery and equipment.

Ukraine, the owner of the largest areas of arable land and called the breadbasket of Europe, is an export market for production facilities in the future. So are Belarus and Moldova.

Georgia will create high added value in the transit corridor when, in addition to transporting finished products between Europe and Asia, it will also receive semi-finished products for processing and also provide manufacturers from other countries with the necessary production facilities for production and processing.

Zurab Maghradze, DBA