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Premium Green Tea to Debut in Georgia, Export Markets

Due to Georgia’s subtropical climate, local tea has a special taste and characteristics. During the Soviet period, tea was one of the major crops grown in the Imereti region and large quantities were exported to the Soviet Union. However, the quality of Georgian tea drastically deteriorated under the Soviet-era command economy which dictated high production as the top priority, without regard for proper picking and processing. Following the collapse of the Soviet economy, Georgian tea could not compete on the international market and more than 50,000 hectares of tea plantations were left to fallow.

Georgia's first premium green tea processing mini-factory was opened in Ternali village in the Imereti region
Georgia’s first premium green tea processing mini-factory was opened in Ternali village in the Imereti region
Photo Credit: AgVANTAGE

Ternali Tea Ltd., has been in the tea production industry for over 10 years, mainly producing low-quality, less expensive tea for export to lower-end markets in Mongolia and Russia. This experience convinced the company’s director, Alu Gamakharia, that the production of a higher-quality, higher-value product, such as premium green tea, was the key to the company’s future.

“Today, the Georgian market is full of imported tea, while the plantations in the country remain neglected and overgrown. By shifting to quality tea production, we aim to meet the demand of not only the domestic market, but also to enter higher-end export markets,” stated Gamakharia.

To make this transition, the USAID-funded AgVANTAGE project facilitated the acquisition of modern equipment required for sorting, spinning and drying tea leaves, leading to the establishment of Georgia’s first premium green tea processing mini-factory by Ternali Tea, Ltd. The factory is able to produce over 10 tons per year of high-quality, competitive green tea, which is currently shipped in bulk. The price of this bulk product is US$7 per kilogram in the domestic market and US$15 in export markets—10 times more than the unit price of lower quality tea. The company’s operation will provide eight full time and 34 seasonal job opportunities for the residents of the local Tskaltubo district.

“The future of the tea industry in Georgia lies in the establishment of similar mini-factories. It should be underscored that the AgVANTAGE project was the first one to see this opportunity and facilitate establishment of the facility you see today. We always welcome such initiatives,” stated Zurab Kajaia, interim governor of the Imereti region, at the opening of the new mini-factory.

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Tue, 03 Jul 2007 16:00:43 -0500
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