State Program to Support Dairy Production Agricultural Co-operatives

State Program to Support Dairy Production Agricultural Co-operatives

Article 1. General Provisions

This State Program to Support Dairy Production Agricultural Cooperatives (hereinafter referred to as the Program) is one of the measu///res to facilitate development of cooperation in the agricultural sector and in particular, to support the development of dairy production in Georgia.
The Program aims to

a) Facilitate milk and dairy production in Georgia

b) Provide the dairy production industry with raw milk.

c) Stimulate the development of raw milk collection-processing productions equipped with modern technologies within the agricultural co-operatives.

d) Improve quality of local milk and dairy products and make them competitive

e) Improve the cattle breeds in the agricultural cooperatives.

f) Improve social-economic conditions of the rural population.

The program objectives are the following:

a) Provide capital investment and technical assistance to agricultural cooperatives for equipping them with the infrastructure of latest standards.

b) Support provision of field laboratory equipment to control raw milk.

c) Encourage production of safe, quality milk and dairy products that comply with international standards and Georgian legislation.

d) Improve breeds of low productive stock cattle and hand over necessary equipment for artificial insemination.

Article 2. Program Implementers and Distribution of Authority

The program is implemented by the Ministry of Agriculture.
The main implementer of the Program is LEPL Agricultural Cooperatives Development Agency (hereinafter Agency) under the Ministry of Agriculture of Georgia.
The following agencies participate in the Program:

a) The territorial organs of the Ministry of Agriculture, which, within their competence, provide informational campaign.

b) LEPL National Agency of Food Safety, under the Ministry of Agriculture of Georgia, which, within its competence, carries out the activities envisaged in sub-paragraphs “a” and “b” of the paragraph 3 of the article 6 of this Program.

c) LEPL Laboratory of the Ministry of Agriculture of Georgia, under the control of the Ministry of Agriculture, which, within its competence, provides implementation of the sub-paragraph “c” of the paragraph 3, of the article 6 herein.

Article 3. Definitions

a) Agricultural cooperative (hereinafter - the Cooperative) – a legal entity which is engaged in the agriculture and has been granted a status of the agricultural cooperative in compliance with Georgian Law on Agricultural Cooperatives.

b) Applicant – a cooperative submitting an application for program participation

c) Participant – the cooperative, the program participation of which was approved by the Agency (ACDA).

d) Contract – the contract concluded with the Participant which defines the obligations to be fulfilled by the Participant before and after capital investment and technical assistance.

e) Infrastructure – Machinery and equipment for collection of raw milk, cooling, cheese production and artificial insemination of cattle, enlisted in the Annexes attached to this Program.

f) Raw milk – the milk which has not been subject to thermal or any other kind of processing on above 400 degrees Celsius that would change the composition.

Article 4. Program components:

The Program covers the following components:

a) Capital investment

b) Technical assistance.

Article 5. Capital Investment

Within the framework of capital investment component:

a) The cooperatives registered in the mountainous regions, where the members are the agricultural cooperatives, will receive milk production equipment (see the Annex #1 and Annex #2), if the number of cows owned by this agricultural cooperative and/or by its member cooperatives and/or by the members of member cooperatives exceeds 50.

b) In other regions of Georgia, the agricultural cooperatives will receive:

Article 6. Technical Assistance

The Participant will receive technical assistance within the framework of the Program.
The Participant shall have no right to refuse technical assistance and shall be liable to fulfill instructions and recommendations received through training and/or consultation within the whole period of the Contract validity.
The Participant will receive the technical assistance in the form of training in these areas:

a) Technical and methodological issues related to functioning of the raw milk collection points

b) Identifying specific requirements related to raw milk collection and processing

c) Introduce necessary methodology on site with regard to laboratory examination of raw milk.

d) Training in artificial insemination and use of machinery.

Article 7. Eligibility Criteria for Program Participation

The right to participate in the program shall be given to the agricultural cooperatives which meet the following requirements:

a) Have received the status of the agricultural cooperative in compliance with the Georgian Law on Agricultural Cooperatives

b) At the moment of submitting the application, the applicant has not received any recommendation on eliminating the defects excluding the case when the applicant eliminated the defect after receiving such recommendation and can provide evidence on elimination of the deficiency.

c) The applicant agricultural cooperative and/or its member agricultural cooperatives and/or members of the member cooperatives own the number of cows referred to in the paragraph 5 of this Program.

d) Do not have any tax obligations

e) The applicant has in ownership the land plot registered in the LEPL National Agency of Public Registry under relevant cadaster code or the building where the applicant wants the f///resh milk collection-processing point to be installed. The building shall meet the requirements of the Georgian Law on the basis of the conclusion of the National Food Agency.

The list of documents to be submitted by the Applicant shall be defined by the Agency.

Article 8. Submitting electronic application for program participation

Application for program participation shall be submitted in the electronic form within the deadlines defined by the Agency which shall be no less than 15 days.
The application can be submitted via the official web-site of the Agency (http://www.acda.gov.ge)
The Applicant will be registered after submitting the application.
In case of any discrepancies in the data submitted by the applicant, the Agency will send a notification to the Applicant on elimination of such discrepancies within no later than 10 (ten) days. The notification will be sent to the official email of the applicant cooperative and will become effective immediately after sending.
In the event, the applicant fails to eliminate the defect within agreed timeframe, the application will not be reviewed.
The registration form of the applicant shall be defined by the Agency.

Article 9. Preconditions for obtaining technical assistance under the Program

In case of positive decision on the application, the contract will be concluded between the Participant and the Agency under which, before and after receiving the capital investment and technical assistance, the following obligations shall be fulfilled by the Participant (preconditions):

a) The participating cooperative, its member cooperatives and/or the members of the member agricultural cooperatives shall have in ownership the number of cows defined in the article 5 of this Program, which shall be identified by the LEPL National Food Agency.

b) The Participant has arranged or takes ///responsibility to arrange raw milk collection point with necessary building and facilities in no later than three months. The facilities, in accordance with the conclusion of the LEPL National Food Agency, shall meet the required criteria.

c) The Participant has met the obligations required before and after the capital investment and technical assistance within agreed timeframe.

In cases where the Program Participant has fulfilled all obligations required in the paragraph 1 of this article, the Participant will be notified about the final decision in 20 days after receiving the document evidence.
In the event, the Participant fails to provide all documents required by this article or some discrepancy was identified ///restricting the Agency to make positive decision about handing the infrastructure, the Agency will give the Participant additional time, not more than one month and will review the documents within 10 (ten) days after receiving the required documents.
If the Participant fails to meet the requirements of this article, the Agency shall be authorized to make capital investment under this Program in another agricultural cooperative in conformity with relevant terms and conditions.
The list of documents to be provided upon completion of each obligation shall be defined by the Agency.

Article 10. Obligations to be fulfilled by the Participant upon receipt of capital investment

Within five years after concluding the contract, the Program Participant shall be liable to:

a) Avoid alienation of the land plot where the building/facilities and the infrastructure engaged in this Program are located, unless such alienation to another agricultural cooperative is permitted by the Agency by advance written approval.

b) Ensure protection of basic safety rules.

c) Ensure maintenance of the minimum number of cows envisaged in the paragraph 1 of the article 5 of this Program.

d) Maintain the status of the agricultural cooperative.

e) Provide regular examination and veterinary control of cows within agreed terms.

f) Make daily recording of collected raw milk.

g) From January 1, 2017, ensure cooling of at least 30% of cattle stock only through artificial insemination, make records and submit relevant documentation to the Agency (indicating the date and species used).

h) Follow other obligations required by the Georgian legislation and the Contract.

In the event where the Program Participant intends to change the location of the raw milk collection point within 5(five) years of the contract period, the Participant shall send a written notification to the Agency. If approved by the Agency, arranging the milk collection point in another location, provided that all program requirements are met, will not be deemed as violation of the Program terms and conditions.

Article 11. Legal consequence of non-compliance with the capital investment contract obligations by the Participant

If the Program Participant fails to fulfill the obligations undertaken by the capital investment contract in full or partially and the fact is proved by the relevant conclusion of the Agency, the latter will give additional time, no more than 2 months, to the cooperative to fulfill obligations. The Program Participant shall be obliged to eliminate the defects revealed by the Agency.
If after expiry of the additional term, the Participant shows no ///result, the Contract will be terminated.
In cases where the Participant has received capital investment at the moment of termination of the Contract, the Participant shall be liable to refund 100% of the cost of the infrastructure received within the Program frames in 3 (three) months after termination of the Contract.

Article 12. Information Campaign

The information about the Program shall be disseminated through the informational campaign which covers delivering information via media, face-to-face meetings with public or any other mechanisms.
The main goal of meeting with the population and the potential members of milk production agricultural cooperatives is to raise their awareness about the main concept and principles of cooperation, the Program idea and participation procedu///res.

Article 11. Program Monitoring

The field or/and desk monitoring of performance of the Applicant and the Participant against the obligations and conditions of the Contract concluded with the Participant shall be provided by the Agency.
The field and desk monitoring shall apply to the Applicant as well as to the Participant at any stage of the Program implementation.
The Participant shall be subject to monitoring during five years.

Annex 1

Dairy Production Equipment

1	Name	Quantity
2	Cooling ///reservoir (500 liter)	1
3	Milk Pump	1
4	Generator (5 kw)	1
5	Water ///reservoir (1,5 tone)	1
6	Washing machine with hot water	1
7	Boiler (200 liter)	1
8	Funnel (stainless steel)	1
9	Electric scales	1
10	Lacto scan	1
11	PH meter	1
12	Digital thermometer	1
Artificial Insemination kit for Cattle
1	Vacuum flask 20 kg. (to keep nitrogen)	1
2	Vacuum flask 11. Kg.	1
3	Device to measure the cow is in heat	1
4	Artificial insemination toolkit	1
5	Rubber apron	1
6	Special uniform	1
7	Nitrogen measuring ruler	1
8	Tape to identify the live mass	1

Annex 2

Dairy Production Equipment

1	Name	Quantity
2	Cooling ///reservoir (500 liter)	1
3	Milk Pump	1
4	Generator (5 kw)	1
5	Water ///reservoir (1,5 tone)	1
6	Washing machine with hot water	1
7	Boiler (200 liter)	1
8	Funnel (stainless steel)	1
9	Electric scales	1
10	Lacto scan	1
11	PH meter	1
12	Digital thermometer	1
Artificial Insemination kit for Cattle
1	Vacuum flask 20 kg. (to keep nitrogen)	1
2	Vacuum flask 11. Kg.	1
3	Device to measure the cow is in heat	1
4	Artificial insemination toolkit	1
5	Rubber apron	1
6	Special uniform	1
7	Nitrogen measuring ruler	1
8	Tape to identify the live mass	1

Annex 3

Dairy Production Equipment

1	Cooling ///reservoir (1000 liter)	1
2	Cooling ///reservoir (500 liter)	1
3	Milk Pump	1
4	Generator (10 kw)	1
5	Water ///reservoir (1,5 tone)	1
6	Hot water washing device	1
7	Water boiler (200 liter)	1
8	Funnel (stainless steel)	1
9	Electric scales	1
10	Cheese boiling basin (500 liter)	1
11	Stainless steel working desk (2000X800X850 mm)	1
12	P///ressing wheelbarrow	1
13	Lacto scan	1
14	PH meter	1
15	Digital thermometer	1

Artificial insemination equipment

1	Vacuum flask 20 kg. (to keep nitrogen)	1
2	Vacuum flask 11. Kg.	1
3	Device to measure the cow is in heat	1
4	Artificial insemination toolkit	1
5	Rubber apron	1
6	Special uniform	1
7	Nitrogen measuring ruler	1
8	Tape to identify the live mass	1

Annex 4

Dairy Production Equipment

1	Cooling ///reservoir (1500 liter)
1	Cooling ///reservoir (1000 liter)	1
2	Cooling ///reservoir (500 liter)	1
3	Milk Pump	1
4	Generator (10 kw)	1
5	Water ///reservoir (1,5 tone)	1
6	Hot water washing device	1
7	Water boiler (200 liter)	1
8	Funnel (stainless steel)	1
9	Electric scales	1
10	Cheese boiling basin (500 liter)	1
11	Stainless steel working desk (2000X800X850 mm)	1
12	P///ressing wheelbarrow	1
13	Lacto scan	1
14	PH meter	1
15	Digital thermometer	1

Artificial insemination equipment

1	Vacuum flask 20 kg. (to keep nitrogen)	1
2	Vacuum flask 11. Kg.	1
3	Device to measure the cow is in heat	1
4	Artificial insemination toolkit	1
5	Rubber apron	1
6	Special uniform	1
7	Nitrogen measuring ruler	1
8	Tape to identify the live mass	1

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