Minister of Environmental Protection and Agriculture Davit Songhulashvili and the CEO of Farmway, Upmanyu Misra.
Farm
Georgia places a 100 million dollars bet that its agricultural future is not only in fertile soils and orchards, but also on blockchain. The government recently signed a partnership agreement with Farmway Technologies American to modernize its agricultural sector while opening the sector to global investors thanks to tokenized assets.
For Georgia, it involves both transforming its agricultural economy and guaranteeing a place in the global market rapidly emerging from token workers in the real world. For Farmway, it is the test ground for its model, that investments fractionalized and compared by blockchain can attract international capital in climate agriculture.
“This partnership is more than an investment. This is a plan for the way tokenized agriculture can take up climatic challenges in the world, “said Farmway Managing Director Upmanyu Misra in an interview. “By channeling international capital in Georgian farms through transparent structures and compatible with blockchain, we prove that real orchards and real yields can offer a climate impact while strengthening communities and making sustainable agriculture progress.”
Georgia bet on almonds like California droughts
The choice of almonds is strategic. The global demand for almond products, oil powders with oils, continues to grow. However, California, which produces around 80% of world almonds in a market worth $ 9 billion a year, suffers from years of drought. Water restrictions on the famous culture have wreaked havoc, USDA data showing annual fluctuations in production figures of around 20%.
Georgia’s geography and resources also give it an advantage. At the crossroads of Europe and Asia, it can effectively send almonds to the EU and Middle East markets, free trade agreements offering tariff advantages. Unlike California at drought, relatively stable Kakheti rivers support irrigation, and the government bet that reliable water will underpin the productivity and confidence of investors.
As Minister Songhulashvili said, “investments are essential to stimulate modernization and technological innovation. Farmway’s dedication to revolutionizing our agricultural sector guarantees that sustainable development will not only create job opportunities for our farmers, but also to attract international capital and recognition. ”
Farmway blockchain game book
The company has already controlled projects in a range of different markets, testing similar models in the Aquaculture sector of Vietnam and the Sri Lanka cinnamon trade, learning of the first hand, how much the fragile agricultural systems can be. The challenges range from inconsistent yields due to climatic shock to farmers’ lack of access to reliable credit, opaque supply chains that limited investor confidence.
Farmway concluded that without new financial structures, agriculture would remain stuck, essential but undercapitalized. Farmway’s approach is to split duties on orchard yields and infrastructure, then digitize them in chips that can be sold worldwide, creating liquidity for a class of assets which has traditionally been inaccessible.
Beyond financial engineering, the company supervises them as instruments generating income supported by nature, designed to equalize investors’ yields directly to productive agricultural land rather than speculative tokens. As Misra says, “you cannot own a land in Georgia as a foreigner … but you can own the tree,” explains Misra. Almonds are only proof of concept: ambition is to make agriculture investable in several sectors.
Call for investors and liquidity issues
Investor argument is diversification and transparency. Agriculture has long been attractive as a coverage of inflation but difficult to access without direct land or agricultural property. The tokenization lowers this barrier, at least in theory. “We bring confidence in agriculture as a asset class,” explains Misra. “Investors can see in real time what is happening in the field.”
But agriculture is not software. The margins can swing spectacular depending on how a harvest is managed. Misra offers a frank example: “Tomatoes are easy to cultivate, but effective irrigation and use of technology can produce 40 kilograms per tree, while maintenance-style-Kitchen-style maintenance can only produce 2. You cannot simply say that avocados or cocoa will always have a 30%margin, it depends entirely on how you cultivate it.
This variability cuts in both directions. Farmway argues that its Georgian project is already beating expectations, that production follows almost 30% above projections, while costs operate at 7 to 10% below the model. According to his counting, the orchard is among the first five most effective in the country, two thirds of his area operating at zero carbon emissions. For investors, these data points give what is otherwise a very experimental market.
Investor yields will increase or drop with two main variables: global almond prices and the efficiency of orchards. In addition to yields, the company tests tokens linked to carbon credits, which could create an additional source of income if the verified markets develop.
For the first token buyers, the increase is an entry at a reduced price and preferential access to future projects. The downside is a double exposure to the physical risks of agriculture and the risk of blockchain adoption. Liquidity is another challenge because the secondary markets for agricultural tokens are still thin, which means that investors may need to have positions much longer than in public actions or even private funds.
Government’s ambitions
The Georgian government has granted partnership more than symbolic support. The framework includes accelerated approvals for agrifood projects, transparent land offers and a joint agricultural working group to supervise delivery. The government considers this both as a capital infusion and a modernization strategy. The Minister of Environmental Protection and Agriculture Davit, Songhulashvili, said: “He brings capital to scale and modern agronomy linked to real assets – jobs, exports and transfer of technology. The digital public services of Georgia, the clear rules and the strong horticulture base make it the ideal launch. ”
The state also intends to co-develop irrigation improvements, freshwater distribution and HACCP certified cold storage facilities along the Kakheti road. Songhulashvili said: “By transforming traditional agriculture into accessible and fractional investment opportunities, the Georgian government puts its climatic efforts on the global card to open the way for sustainable investment.”
Can tokenization move beyond almonds?
The first experiences in tokénized agriculture on a range of markets provide indicators of inspiration and prudence. In Brazil, coffee tokens have given roasters a way to prepare grains; In Vietnam, the aquaculture contracts have linked investors to shrimp and fish fish farms; In Malaysia, palm oil and Durian pilots promised greater traceability. However, in these cases, common challenges have surfaced: the limited adoption of farmers, the thin secondary markets that left the investors locked up and questions about transparency.
The lesson between these pilots is that tokenization alone does not solve the greatest obstacles of volatility, operational risk and distribution of agriculture. What Georgia and Farmway are trying is different: coupling tokenization with state support, ready -to -export cultures and verifiable climatic measures. In case of success, it could establish a precedent for the way in which the tokenization of real assets goes from speculative crypto in the investment of basic products. For investors who are wary of opaque agricultural businesses, the Blockchain promise is real -time responsibility and the Georgia agreement offers a new approach – scale, visibility and support from the government.
Sustainability and tokenization
Farmway emphasizes its agricultural practices on sustainability on the ground, precision and solar water irrigation systems for regenerative agriculture, which reduce entry costs and stimulates resilience. The company presents these orchards as regenerative farms bearing the yield, in the hope of showing that tokenization can align financial yields on positive climatic practices. Misra says that two thirds of its orchard already operates with zero carbon emissions, a tangible measure that investors can verify.
Tokenization does not make crops more sustainable in itself. What he can do is change that finances them and how. By modifying financial plumbing, by splitting agricultural results into transparent digital tokens, Farmway maintains that it can attract new capital flows that could otherwise never finance orchards in Georgia. If this capital is linked to projects aligned on the climate, such as water-efficient irrigation or carbon reduction practices, the financing model becomes a lever for sustainability, even if the blockchain itself is neutral.
Risks, awards and patience of agriculture
The agreement is high for both sides. For Georgia, the rise is modernization, jobs and global recognition. The drawback is overpromised in a volatile sector where drought, parasites or price oscillations can erase margins. For Farmway, Georgian orchards are a brand or breakup test. Success could put it to the forefront of the tokenization of active world active people, while failure would fuel the idea that blockchain experiences in agriculture are over-type.
Misra recognizes the long arch, saying that “investors need patience. Agriculture does not move in the neighborhoods, it moves in the seasons and the decades. ” For Songhulashvili, this is the sector as a whole, adding: “For Georgia, this partnership consists in proving that our farms can offer both prosperity and resilience on the world stage.”
For all the framing of the blockchain, the situation as a whole is that the food emerges as a class of full -fledged strategic assets. Unlike digital tokens, agriculture produces calories and products essential to life and, as Misra says, “you cannot eat AI. Food is the real ultimate asset. ”
