Since 2002, West Gold Ltd. has been importing hatching eggs and day-old chicks from Armenia for sale in the Republic of Georgia. In 2008, Piunik’s local partners decided to branch out from West Gold to develop the Georgian poultry operations independent of the larger Armenian parent company. Six months after Piunik spun off from West Gold, GRDF provided the company with a debt investment to expand and locally produce hatching eggs, day-old chicks, and animal feed through increased working capital and the purchase of farm equipment and laying hens.
Transitioning to Local Production
By converting its primary business operations to local production over imports, Piunik has improved its ability to meet local Georgian demand, and largely replaced the import of its products. In this way, Piunik’s local production lines have positively impacted Georgia’s poultry and animal feed agribusiness supply chains by increasing the demand for supplies from local farmers while providing higher quality and lower cost products to Georgian consumers. The result has led to increased consumer demand for Georgian products.