Coopérative Agricole des Producteurs de Plants de Pommes de Terre du Haut Velay, located in Craponne, France, is involved in seed reproduction and is equipped with state-of-the-art potato machinery it uses in the farms of its 10 members. The cooperative of Craponne is a small one-level cooperative (no employed director) whose example can be useful for Georgia.

Cooperative of Use of Agricultural Machinery CUMA of Craponne, located in Craponne, France is a cooperative for the use of agricultural equipment, where farmers pool resources (machines, labour, sheds, workshops, etc.) necessary for their agricultural activity. It allows them to reduce mechanization costs, access new technologies and optimize their work. The French experience of CUMAs which is used by 40% of French farmers is rather unique and could be considered for replication in Georgia.

Cooperative Connexyon, located in Fontaines, France, (https://connexyon.fr/) is a simplified joint-stock company owned by two cooperatives of insemination, CECNA and ELVA NOVIA, working in two different and complementary territories, which have recently decided to join forces.

Cooperative Cave des Vignerons de Buxy (www.vigneronsdebuxy.fr), located in Buxy, France, is owned by its 230 farmers-members. It buys grapes from them and produces a large array of high-quality wines. Since 1931, it has accumulated an impressive level of technical and institutional knowledge. It is now developing more and more activities in the field of green smart agriculture. It would therefore be an ideal potential partner for Georgian wine cooperatives.

Cooperative UMOTEST/COOPEX, located in Roulans, France, (www.coopex.com/coopex-montbeliarde.html) is a union of 10 farmers cooperatives that have pooled their resources to support the development of the Montbeliarde genetics. It is designed by breeders, for breeders. The COOPEX is among the most active players in France in terms of the export of genetics. It has a genuine interest in promoting not only its breed Montbeliarde but also the know-how of its management.

ELEVEO/INOVEO Association Wallonne de l’Elevage is located in Ciney, Belgium, (www.awenet.be/awe/). While the organization of AWE is quite specific to the legal framework of Belgium and not easily replicable elsewhere, the AWE group can provide its highly valuable experience to Georgia in the field of smart agriculture and integration of various institutional components of the promotion of better genetics in one single entity.

COPA and COGECA, based in Brussels, Belgium, are the united voice of farmers and agri-cooperatives in the EU (www.copa-cogeca.eu). They aim to ensure that EU agriculture is sustainable, innovative, and competitive while guaranteeing food security for 500 million people throughout Europe. Georgia has already a foot in COPA-COGECA with the presence of the Georgian Farmers Association among its members. But much more can be done through a dual process of bottom-up cooperation like the one which FinExCoop would like to pilot regarding the training of young Georgians in French cooperatives.

EU Commission, DG Agri, based in Brussels, Belgium, is a Commission Direction that is responsible for EU policy on agriculture and rural development and deals with all aspects of the Common Agricultural Policy (CAP). “The future CAP aims at strengthening farmers’ position in value chains by strengthening cooperation among farmers, enhancing synergies within value chains, supporting the development of market-driven production models, fostering research and innovation, increasing market transparency, and ensuring effective mechanisms against Unfair Trading Practices (UTPs)¹”. By renewing the promotion of cooperatives in its development agenda, Georgia proves that it fully adheres to European values.

¹https://eu-cap-network.ec.europa.eu/sites/default/files/2023-03/cap-specific-objectives-brief-3-farmer-position-in-value-chains_en_0.pdf

The Georgian Delegation of the FinExCoop Georgia study visit has provided feedback on the mission. For all of them, the study visit was extremely useful to better fine-tune their knowledge of cooperatives and develop a common vision of what could be done in the future to help reduce the gap between Georgia and Western Europe in terms of cooperative development. They found the meetings to be quite informative and relevant, and they appreciated the opportunity to discuss their ideas and questions with the presenters.

After the execution of the study visit, FinExCoop Georgia Study Visit on Cooperatives Evaluation Survey has been also implied to understand the satisfaction level of the participants, as well as to get their ideas and feedback about the technical and logistical organisation of the study visit. The survey was developed in the Google form and shared with the participants via an online link. In the multiple-choice selection part of the survey, participants rated the technical and logistical organisation of the study tour, quality of meetings, presenters, support and guidance during the study tour. In the open-ended questions part of the survey, they highlighted their experience of the study visit. Survey results have demonstrated that study visits by far exceeded their expectations and the knowledge gathered from the visits to cooperatives were their best experiences. Moreover, their statements signalized that they were highly satisfied with the study visit in general; in terms of its professionality and efficiency.

In a nutshell, the three main highlighted features of all the cooperatives visited were that they are Robust, they are Agile, and they are Responsible:

• Their Robustness is first linked to a solid institutional background whose implementation is regularly checked by APEX organizations like the Haut Conseil de la Coopération Agricole (HCCA) of France. The second factor of robustness is financial. The aim of cooperatives is to maximize the income of their members-users but not theirs. However, all the visited cooperatives have also managed to convince their members to allocate as much as possible of their surplus to the creation of rock-solid financial resources as their funds (indivisible reserves). The financial robustness of cooperatives largely explains why they can be active for long periods. Contrary to listed joint-stock companies, they are not subjected to the vagaries of financial markets and portfolio investors whose investment horizon is usually short-term. And contrary to family capitalism, they are not negatively impacted by problems linked to the generational transmission of businesses.
• Even though they are strongly regulated, all visited cooperatives have proven to be very Agile to find the best ways to serve the interests of their members. While fully respecting the key 7 cooperative principles of the ICA. Very few of them make use of the provisions of the law allowing for more flexibility in their management. The inclusion of non-cooperative associates remains marginal and often linked to employees of the cooperatives. The limit of 20% in the transactions with non-members is very important as if the cooperative makes more than 20% it will become subject to corporate income tax on all its activity. And even though the law gives the possibility to provide more votes depending on the volume of activities or on the quality of commitments of members, the rule remains one man-one vote in the visited cooperatives.
• The international cooperative movement is based on 7 principles, which define its identity. The last principle is “Concern for Community”. As it is indeed a part of the DNA of cooperatives, and as the EU has redefined most of its budget towards green and socially-inclusive strategies, we see a large field of cooperation between advanced Western European agricultural cooperatives and their less advanced Eastern European counterparts in the field of smart green agriculture and green Responsibility. The positive actions of farmers at one end of the world can impact those of farmers in totally different areas. Against this background, the green EU path can be an optimal way to replicate the responsible cooperative model seen in France and Belgium elsewhere in our Common Europe where we expect Georgia to be a full member soon.

This common vision built during this first study visit will be enriched by the results of the follow-up study tour to a new EU country, which shares with Georgia a former Soviet past: Lithuania. Meanwhile, the group will develop its strategic vision for future cooperative development, which will be presented in November 2023 in the FinExCoop’s Georgia final workshop with local stakeholders and an international conference with international and local ones.

FinExCoop Georgia organised a hybrid working seminar that was held on June 28, 2023, in the city hall of Embrun in the southern French region of Provence Alpes Cote d’Azur (PACA). 66 stakeholders and experts were gathered offline and online to discuss the potential for cooperation between PACA and Georgia in the field of green agriculture and rural development. The participants were as the following:

• The Mayor of Embrun, Chantal Eymeoud who is the Second Vice-President of the PACA region, in charge of the Plan Montagne and European Affairs and President of the Community of Communes of Embrunais
• The Ambassador of Georgia in France, Gocha Javakhishvili
• The AFD, represented by Tanguy Vincent, Project Director of Agriculture
• The Chamber of Agriculture of Hautes-Alpes
• The regional press
• Professional experts from PACA mobilized by FinExCoop
• Host companies from PACA that have received Georgian trainees in FinExCoop’s learning-by-working program
• Five trainees from Georgia who worked in Hautes-Alpes
• The Franco-Georgian University which was involved in the learning-by-working program of FinExCoop
• BRLi, a leading company from South France involved in water management and advanced irrigation systems and active in Georgia
• FASEP Small Ruminants
• French private investors in Georgia.

The international workshop participants discussed the possibility of launching a twinning project between the Iori watershed in Georgia and the Durance watershed in the PACA region. The Iori watershed will soon benefit from large-scale financial and technical support for rehabilitation from AFD, EIB and ADB. It is a major irrigated region in Georgia, while the Durance watershed is a major irrigated region in France. Both watersheds share many common factors and challenges in the field of agriculture and rural development. A twinning project between these two watersheds would allow the two regions to share their expertise and experience in green agriculture.

All the workshop participants put forward that there is a great deal of potential for cooperation between the PACA region and Georgia in the field of green agriculture for which FinExCoop has already created a solid operational base. A twinning project between the Iori and Durance watersheds would help both regions to promote sustainable agriculture and rural development and protect the environment.

The working seminar identified several specific areas where cooperation between the PACA region and Georgia could be particularly fruitful. These areas include:

• The management of natural areas: The PACA region and Georgia have a wealth of natural resources, including forests, pastures, and mountains. By working together, the two regions could share more sustainable methods of managing these resources.
• Biodiversity management: The PACA region and Georgia are both home to a diverse range of plant and animal species. By working together, the two regions could share effective ways to protect these species. PACA is already involved in a partnership with another biodiversity hub, Costa Rica, in this field.
• Water resources management: The PACA region and Georgia are both facing challenges in managing their water resources. By working together, the two regions could share sustainable ways to best use water.
• Pasture management: The PACA region and Georgia have both a large component of transhumance for sheep and could share their technical and institutional management
• High-value agricultural production: The PACA region and Georgia are both leading agricultural producers of high-value agricultural products. PACA has a large number of protected geographic indications. By working together, the two regions could share sustainable and efficient methods of agricultural production and marketing with an intensive Green approach.

The participants concluded that there is a bright future for cooperation between the PACA region and Georgia in the field of green agriculture. A twinning project between the Iori and Durance watersheds supported by AFD’s specific program FICOL would be a valuable step.

The event was also featured in the regional press, the French Newspaper of Le Dauphiné libéré.

The strategic goal of FinExCoop Georgia is to support the emergence of a stronger base of medium size family farmers able to play a leadership role in the development of their territories through inter alia better access to advanced technologies and practices adapted to Georgia all along value-chains (Ex).

FinExCoop believes that Georgia can benefit from the technological smart and green agriculture revolution that is happening in global agriculture and has promoted these technologies in its experimental work with its pilot farmers. FinExCoop will organize in September a Smart Agriculture technology conference aiming at promoting this strategic transfer of technologies in such a way that they will be economically sustainable and socially inclusive. This conference is being prepared by a working group which gathers local and international providers of innovative solutions. FinExCoop has already organized four working group sessions where local and international technology providers have shared knowledge and innovative technologies that have been implemented and transferred to farmers in Georgia.