Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

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Minister Otar Shamugia visits ''Kvareli Baga'' Cattle Farm

The Minister of Environmental Protection and Agriculture, Mr. Otar Shamugia, together with the state representative of the Kakheti region, Mr. Giorgi Aladashvili, recently inspected the "Kvareli Baga" company and toured a cattle farming enterprise in Kvareli municipality. 

Founded 10 years ago, Kvareli Baga is a state-of-the-art cattle farm modeled entirely on Israeli standards. It houses 3,200 Holstein cows, producing approximately 45,000 liters of milk daily. The farm, spanning 450 hectares, also features a modern mixed-feed facility and milk processing plant. With a total investment of USD 30 million, the facility complies with the latest industry standards and provides jobs for about 150 people. Key clients include prominent milk processors such as "Milk Laboratory," "Sante," "Soplis Nobati," and "Agrohab."

"Establishing more farms like ''Kvareli Baga'' is essential for us, enabling us to enhance local milk production and annually improve the country's self-sufficiency rate in dairy products," stated Minister Shamugia. "In 2024, we launched a new program offering unprecedented support to farmers by covering loan interest rates for establishing modern farms for seven years. At this stage, we have allocated USD 25 million in confirmed funding, which we expect to attract significant interest. Additionally, we continue to support small-scale farmers. Last year alone, we financed over 400 small farmers to help them improve, reconstruct, or build cattle shelters, acquire essential equipment, and expand primary milk production. These initiatives are expected to yield positive results in dairy and meat output in the coming years," noted Mr.  Shamugia.

According to Kvareli Baga's founder, Mr. Lasha Papashvili, establishing large-scale, modern farms is challenging without state support; therefore, subsidies are a globally recognized practice in agriculture.
''Kvareli Baga'' benefits from several government-supported programs through the Rural Development Agency. Since 2013, it has utilized the Preferential Agro Credit Project for livestock farming, milk processing, horticultural development, and the purchase of agricultural machinery. The company also participates in co-financing programs such as "Plant the Future," "State Program for Co-financing Agricultural Mechanization," and "Co-financing Program for Harvesting Agricultural Machinery."

Moreover, the Rural Development Agency supports small-scale milk producers as part of the dairy sector modernization initiative. In 2023-2024 alone, over 400 beneficiaries received assistance, with co-financing amounting to GEL 17 million. This year, a new support mechanism for the cattle breeding sector was launched, allowing private enterprises to access high-yielding breeds and modernize their operations. To date, GEL 25 million in loans have been extended under this initiative.

The Deputy Minister, Mr. Tengiz Nasaridze, the Director of the Rural Development Agency, Mr. Davit Tsitlidze, and the Deputy Chair of the Business Association, Mrs. Marianna Morgoshia, accompanied the Minister.