AgriGeorgia: Hazelnut Production (as Part of Ferrero's International Chain)

AgriGeorgia: Hazelnut Production (as Part of Ferrero's International Chain)

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This case analyzes a major investment by an Italian food industry giant, Ferrero, in the expansion of its global hazelnut supply chain to Georgia. The study describes the nature of Ferrero’s AgriGeorgia hazelnut growing enterprise, its relations with the Georgian government and local communities while focusing on issues of value chain development, productivity and labor force quality. Of particular interest to us are the Public-Private Partnership between Ferrero’s AgriGeorgia and USAID as part of the latter’s Global Development Alliance (GDA) program. Economic Prosperity Initiative, a project of USAID, supported the implementation of this partnership and helped harness Ferrero’s technical expertise in bringing new technology, skills and improved organization (including farmer cooperation) to Georgia’s smallholder hazelnut growers.

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