The FINANCIAL — The exotic animal businesses launched during the last ten years by local and foreign investors in Georgia all failed.
Frogs, crocodiles and ostriches bred in Georgia did not find a niche on the local market or abroad.
In 2009 Georgia added new products to its export portfolio – frogs and crocodiles. Georgia intended to become a serious player in the frog and crocodile meat market. Everyone expected it would be Georgia’s next hot export after the export of wine, mineral water and nuts. After a successful and profitable two years however, the export of frogs and crocodiles stopped. The business failed.
Over 250 thousand frogs or 4 tons of amphibians was exported in 2009 by Kursali 47. The value was 14 thousand USD. France was the only consumer of Georgian frogs, but Georgia hoped to extend the market. It was said that Belgium was also a consumer country.
In 2010 Logo Georgia led the export of frogs. The company was registered by Turkish citizen Arip Tumer Ozsoi. These two companies aren’t registered in Georgia anymore. Neighbours on Agmashenebeli Street, where Logo Georgia was located, know nothing about the exotic investor.
In 2010 local media reported that France imported 60 kg of frogs’ legs from Georgia in the first six months of 2010.
In 2011 export has stopped. The reason is unknown. The Ministry of Agriculture avoids speaking on the subject: “We don’t know anything about frogs, crocodiles or ostriches. There is no information about it. I can only say that in 2009-2010 frogs were exported to France. That’s all,” explained the Ministry.
The same says the LEPL National Food Agency in Tbilisi. The National Food Agency in Adjara adds that it is unknown whether this business still exists or not. “It was said that frog farms were being built in Adjara, but I can tell you that it isn’t true. There are no frog farms in our region,” said Ilia Sherabidze, Adjara Regional Division.
Crocodiles – the next attempt of a revival of the Georgian economy. 12,000 EUR was put in to the foundation of a crocodile farm which was going to open in Tsaishi, in Zugdidi, The FINANCIAL was told by Zugdidi Municipality. Georgian-German industrial company Jakiri was going to export meat and leather to the European market. Profit would be guaranteed as the price of crocodile meat in Europe is 40 EUR, and leather – about 5,000 EUR.
It’s impossible to contact this company now either.
50 crocodiles were brought from Australia to Zugdidi. An experiment was made to breed crocodiles. From 4 eggs 4 crocodiles were incubated, but two of them soon died. It is said that thermal springs in the village Tsaishi contain sulphur, that prevents the development of crocodile growth.
A 3 year old crocodile provides 12-18 kg meat. In the international market the price per 1 kg is 60 EUR. As for the leather, one crocodile’s leather in the black market is 500 EUR, but licensed leather’s price begins from 1,000 EUR. To raise a crocodile needs 7-8 years after incubation. Some kinds of crocodile need 20-25 years to reach maturity. In addition to that several hectares of space for a hothouse with all its special equipments has its costs.
“In short, to begin this business now, you need 10 million USD and about 20 years before you see income and profit,” an exotic animals expert told The FINANCIAL.
Most of the world’s crocodile farms are in Africa, Australia, Thailand, the USA and Indonesia. This business is profitable everywhere where there is a tropical climate.
As well as crocodiles and frogs, there is some information about an ostrich farm in Georgia that also produced meat for Europe and for Armenia and Azerbaijan too. Paata Bulavrishvili, Attorney in Teleti, confirms the information: “About 3-4 years ago there really was an ostrich farm. But today there isn’t. The reason for the failure of this business could perhaps be that ostriches couldn’t adapt to the environmental conditions in the country. Maybe there were other problems too. The farm functioned for 5 years maximum,” said Bulavrishvili.
Bulavrishvili claims that he doesn’t know where the remaining ostriches were moved to.
The Teleti ostrich farm was the only one in the south Caucasus. The owner of this farm was Rezo Robakidze who planned to sell their meat to the European market for large profit. It produced 2-3 thousand chicks a year. It depended on the demand from clients. Georgian meat producer Nikora was one of the clients of this farm. Nikora sold the meat for 10 GEL a kilo.
“About 8-9 years ago it was possible to buy Teleti Farm ostrich meat at Nikora. It was an experiment and we sold ostrich meat by weight,” said Nona Dzneladze, the Director of Marketing at Nikora.”We sold ostrich eggs too, which are a delicacy. In spite of these products being very popular and in demand in many countries all over the world, there wasn’t sufficient demand for meat or eggs in Georgia for the reason that it isn’t a traditional product in Georgia and it had a high price. The meat was removed from sale and the eggs were painted by painters for Easter and then put on display,” Dzneladze added.
The cost of ostrich is different in Georgia and in Europe. Whereas in Georgia a chick costs 70 USD, in Europe its price is 150 USD. In Russia the price is up to 35 USD a kilo.
Today the case is ambiguous. Every answer from those individuals involved in the business is unclear. What exactly caused the failure of the exotic animals business in Georgia is still unknown.
In the early 1960s there was the first attempt in Georgia to export frogs’ legs to Europe. At this time the Soviet Union exported frogs’ legs to France and Italy. The market price for frog meat was 4-6 USD per kilo.
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