About

The Rural Economic Development Programme (RED) for the Southern Regions of Georgia is a joint Danish-Swiss project that aims to contribute to the economic growth of the agriculture sector and reduction of poverty in Samtskhe-Javakheti and Kvemo Kartli regions.  The 4year, CHF 10.1 million Rural Economic Development Programme focuses on three main initiatives in the Kvemo Kartli and Samtske-Javakheti regions:

  • Increased productivity and profitability of seed and ware potato producers;
  • Increased productivity and profitability of commercial dairies, milk and beef  producers; and
  • Access to finance in the potato and dairy/livestock value chains.

 

The interventions to achieve these objectives include the following: A) advice and guidance on production and marketing of seed and ware potatoes; B) advice and guidance on production of quality of raw milk and other dairy products and marketing; and C) stimulate direct private investment in the project targeted activities using a project created two financing mechanisms: secured lending facility and a co-investment fund.  These interventions will ultimately lead to improved incomes within the target regions, and thus living conditions for households dependent on these value chains.

The RED project will create and provide assistance to a professionally-produced agricultural TV show and radio series that will target farmers and other actors in the agriculture sector. The show will provide useful information to growers, producers and processors, and will feature participants’ experiences, success stories, innovative concepts in production and marketing, and other learning tools that may be replicated.

The project has targeted these value chains as drivers for economic development, with special attention to improving food safety and animal health.  In addition, the RED project will prioritize women’s involvement in activities to reveal and bolster the potential in supporting women’s entrepreneurship.

The impact of the RED program on smallholder farmers and agricultural enterprises involved in the target regions will be substantial. With the tailor-made TA and  increased private investment in the potato and dairy/livestock value chains in Kvemo Kartli and Samtske-Javakheti regions, the value chain actors including farmers will reach higher productivity and improved incomes, which in turn will lead to economic growth of the region.

The RED project will support and achieve the following:

  • Potato value chain: Trainings will be delivered to 1,500 entities involved in the potato value chain, including retailers, wholesalers, input/service providers, storage facilities, and seed growers/multipliers. Out of these, around 45 qualified candidates will receive financial support in form of either secured loan or co-investment. These will lead to a 55% increase in ware and seed potato productivity, and an 18%reduction in production costs.
  • Dairy/livestock value chain: TA will be provided to about 550 dairy farmers, service providers and processors. Out of these, approximately 150 qualified entities will receive financial support. Results will include a 15% increase in the quantity of milk produced, and increase in revenue by 10%.
  • Private investment: As a result of RED interventions, more than 11 million USD in private investments in dairy/livestock and potato value chains will be facilitated, including 6 million USD in loans issued under the secured lending facility and 5,450,000 USD stimulated by co-investment funds.