Georgia, Ukraine and citrus exports

After the Russian embargo began in 2006, a large portion of citrus crops were exported to Ukraine. Georgia planned to export citrus to Ukraine again this year, following a good harvest season. However Ukraine recently introduced new tax codes that make it less profitable for Georgian farmers to export to Ukraine.

In 2010, to introduce 1 ton of citrus fruit to Ukraine cost $500 while today the tax has increased so that the cost per ton is $650. The production of citrus fruits in 2010 was 60,000 tons with 43,000 exported to Ukraine alone. This year Georgia's crops will yield approximately 90,000 tons but how and where they can be sold has not yet been resolved by the agricultural authorities.