Georgia companies need to work towards international food safety standards

Introducing food safety practices is a challenge for Georgian companies as they lack a basic knowledge of international food safety standards, according to a survey by the International Finance Corporation (IFC).

 

The IFC, a member of the World Bank Group, conducted the survey and highlighted the need to provide training and consultancy to streamline this process.

 

According to the survey more than 90% of Georgian food producers, importers and exporters need help in adopting international food safety standards, though this is now a requirement of Georgian law. The law on food safety and quality came into force in 2006 but the implementation of certain articles, which was due on January 2010, has been delayed for a further year.

 

The key articles that are not yet in force are the introduction of the Hazard Analysis Critical Control Points (HACCP) system and on the spot inspection and control of food production companies by the Food Safety and Quality Supervision Division, a state-run body under the Agriculture Ministry.

 

Currently, this body is allowed by law only to monitor the end products sold at the markets by testing them in labs. The government says that gradual enactment of this part of the law will start from 1 January 2011. It has thus provided companies more time to improve production processes and raise standards.

 

According to the Department of Statistics, only 25 companies, including the Goodwill Hypermarket, meat and dairy producer Nikora Ltd, dairy producer Sante and leading hotel, restaurant and café management company Mgroup, have implemented the new food safety systems. Currently, there are more than 2,000 food producing companies in Georgia.

 

Nearly 39% of respondents to the survey believe that better systems will enable them to produce safer and higher quality food and 19% think they will help them increase exports, mainly to EU countries.

 

Over the past few years the EU has been Georgia's second biggest commercial partner after the CIS, with a share of Georgia's foreign trade turnover of around 30%. In 2009 agricultural exports to the European Union (EU) countries were worth US$63.6 million.

 

Analysts agree that improving food safety is a great challenge in the quest to develop free trade agreements between Georgia and the EU and the US. Thomas Lubeck, IFC regional head for the Caucasus, said that agriculture and food processing are important contributors to Georgia's GDP and employment quota.

 

''IFC would like to help Georgia realise its full potential in this sector through advice and targeted investment,' he added.