GEORGIA* (14 November)

Agricultural production is recovering strongly as relatively high prices for produce and reasonable crop yields achieved by smallholder farms make this type of farming profitable, despite many constraints. The 1997 cereal and pulse harvest is estimated at a record 820 000 tons including 300 000 tons of wheat, significantly larger than last year. The area sown to wheat increased by 50 000 hectares and despite considerable crop losses due to late frosts, spring hail and excessive rains, yields increased. This was mainly due to better availability of seeds and fertilizers and incentives for farmers. Official reports indicate that maize was planted on 230 000 hectares. Better yields are also expected. Maize meal also forms an important part of the diet. The outlook for other foodcrops is also encouraging but the processing industry remains a major bottleneck to the expansion of output of fruit and vegetables.

Per caput consumption of basic foodstuffs is recovering. The abolition of state-subsidized bread rationing system in 1996 led to a sharp increase in both wheat production and imports by the private sector. In 1997/98 the domestic cereal utilization is forecast at 1.2 million tons, including 0.7 million tons for human consumption and the remainder for feed, seed and other uses. Domestic production of cereals (excluding pulses) is forecast at 0.8 million tons, leaving an import requirement of 0.4 million tons. The bulk of this is expected to be bought commercially. Food aid will continue to be required to meet the needs for relief distribution to the most vulnerable populations. So far, food aid allocations, including those carried forward from last year, amount to 0.12 million tons.

There are still about 300 000 people needing assistance, of which WFP supports 120 000 through relief food distributions and 50 000 who are enrolled in food-for-work activities. The remaining beneficiaries are covered by NGOs. Whilst pledges are being received, a balance requirement of 5 480 tons of cereals, 270 tons of edible oil and 721 tons sugar to cover the needs until 30 June 1998.