The production of grain crops in Georgia has been on the rise in recent years, driven by increasing local demand for flour products. However, despite this growth, the annual harvest remains insufficient, leading enterprises to regularly import grain crops.
"Geograin LLC was established in 2015. Initially, we relied entirely on locally sourced and imported raw materials for producing flour and animal feed. While we would prefer to depend solely on local harvests, factors like price, quantity, and quality have made this challenging," says Giorgi Darbaidze, Head of Production at Geograin LLC.
High-quality flour is essential for the industry's growth and for making exportation feasible. This quality, in turn, depends on the use of high-quality, modern grain varieties.
To meet the growing demand, Geograin decided to cultivate its own wheat and corn. This strategy enables the company to ensure the quality of its raw materials and stabilize production costs.
"Two years ago, we planted grain crops on 800 hectares. With these crops, we produce various types of flour and pet food. We also purchase grain from local sources, though increasing demand is prompting us to consider expanding our farm," Darbaidze explains.
Modern production standards and technological advancements play a critical role in flour production. While adopting new technologies requires significant investment, it ultimately reduces operating costs and enhances competitiveness.
"Our goal is to be ready for export opportunities and to advance our production technologies. Competing with larger manufacturers seems unattainable without these improvements," Darbaidze adds.
Securing a business loan is a key step in pursuing technological upgrades. Terabank offers tailored services and banking products for agricultural enterprises.
"Given our substantial electricity consumption, we aimed to minimize these costs. Investing in modern technologies, such as installing solar panels at our factory, is the most effective way to achieve this. Solar energy will help reduce production costs and maintain our competitive edge," Darbaidze notes.
Why did you choose to work with Terabank?
"Switching to solar energy required a significant investment. We decided to partner with Terabank due to their favorable loan terms and tailored service. Terabank has been attentive to our needs and provided banking products suited to our business. Additionally, they assisted us in joining the 'Make in Georgia' program and securing an interest subsidy for the solar panel project," Darbaidze says.
At Terabank, we are dedicated to supporting small and medium-sized agricultural businesses. By offering individualized services and focusing on their needs, we build lasting partnerships. We take pride in being the banking partner for over 2,000 small and medium enterprises in the agricultural sector.
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