Georgian Dairy Industry: Between Tradition and Modernization — Interview with Kakhaber Koniashvili, CEO of Dairy Georgia

How do you assess the current state of the dairy industry in Georgia? What stage of development is it at now?

— The situation is challenging but with a clear dynamic. After the collapse of the Soviet Union, agriculture, including the dairy sector, was practically destroyed. There were internal conflicts and economic difficulties, resulting in the need to rebuild the industry almost fr om scratch.

It is essential to understand that dairy production in Georgia is not just a business; it is part of the culture. Cheese and fermented milk products have always been central to gastronomy. If a Georgian does not have cheese in the fridge, it is already a problem.

Today, the industry is in a phase of recovery and growth. There are enough cows, but productivity is low. Breeding was practically nonexistent in the past, and large farms were destroyed. We are currently actively working on increasing productivity, developing genetics, and assisting farmers.

How involved is the government in the development of the industry?

— The government indeed supports the sector. There are subsidy programs, grants, assistance in attracting foreign specialists, and support in purchasing equipment. For example, the government can cover the interest rate on loans for several years.

However, it must be understood that dairy production involves long-term investments. It is not like trade, wh ere capital can be quickly turned around. Here, the payback period can reach 15–20 years. So, while there is support, it is still insufficient for rapid progress.

Does Georgia import dairy products?

— Yes, significantly. We import about 25–27% of dairy products, including raw materials and finished products such as milk powder. Supplies come from various countries — the European Union, Belarus, Russia, and others.

The main reason is the shortage of domestic milk. Although there is enormous potential, with about 450,000 milking cows, if their productivity were higher, we could not only fully meet domestic demand but also enter export markets.

What key issues are currently hindering development?

— One serious problem is the uncontrolled cheese market. There are many small producers in the country operating outside regulation. They do not pay taxes or undergo inspections, making their products cheaper.

As a result, there is unfair competition: legal producers who follow all regulations cannot compete on price, deterring investors.

However, we are working on this with the government, and I believe we can improve the situation in the coming years.

What role does your association play in the development of the industry?

— The Dairy Georgia Association, established in 2006, currently brings together about 150 participants, covering nearly the entire commercial dairy sector in the country. We cover the entire chain, from farmers to processors.

Our task is to develop the industry. We train farmers and specialists, collaborate with colleges, implement modern standards, and participate in legislative development.

We are also a member of the European Dairy Association, giving us access to international experience and best practices.

An essential focus is workforce training. We have even created a separate entity for professional education because the shortage of specialists is a massive problem. Young people are reluctant to work in agriculture, a challenge not only for Georgia but for many countries.

How do you assess the industry's prospects for the coming years?

— I believe that within five years, we can significantly reduce the milk deficit. New farms will emerge, production will increase, and we will gradually replace imports.

Currently, the price of milk in Georgia is high — almost twice as high as in Europe. While this attracts investors, it also holds back development due to structural problems.

However, the potential is there, and it is substantial.

You are also developing gastronomic and tourism initiatives. Tell us about it.

— Yes, we have a project called "Cheese Road." We have united about 35 small cheese makers across the country. It is not only about the product but also the experience.

These farms are in beautiful regions — in the mountains and rural areas. Visitors can taste the cheese, experience the culture, and enjoy the local cuisine, adding value for both producers and regions.

In this context, what role can the Dairy Rally Georgia play?

— This is a great initiative. This format combines business and experience. Participants can see real farms, processing, and interact with producers.

The route will pass through Kakheti, southern regions, Tbilisi, then the western part of the country, and end in Batumi. It is not only about the industry but also about culture, nature, and gastronomy.

Moreover, it is an excellent opportunity for networking, experience exchange, and further collaboration.

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Association Dairy Georgia — the leading industry organization of Georgia's dairy sector, founded in 2006. The association unites about 150 participants — from farmers to processors — covering most of the commercial dairy production in the country.

Since 2018, Dairy Georgia has been a member of the European Dairy Association (EDA), providing access to international expertise and best industry practices.

The association is involved in developing the dairy sector, promoting modern standards, training specialists, and actively participating in shaping industry policy and implementing projects in collaboration with the government and international partners.

Registration for DairyRally Georgia 2026 is open: