The journey of Kalanda Pig Farming Complex began in 2009, when a Georgian businessman based in Kazakhstan, Shalva Jakhutashvili, together with his partners, decided to invest in the construction and development of a pig farming complex.

 

The first step was an in-depth market analysis, followed by the strategic search for leading international suppliers of technology and genetics. Shortly thereafter, negotiations commenced with government authorities to acquire land near Tbilisi under a formal investment commitment. These efforts culminated in a landmark agreement: with the support of the Government of Georgia, and in partnership with the Partnership Fund and the Bank of Georgia, Kalanda secured 588 hectares of land in Koda Village, Tetritskaro Municipality.

 

In parallel, a comprehensive evaluation of global technology providers led to a key decision: collaboration with Big Dutchman, a prestigious German company ranked among the world’s top five in livestock farming technology, equipment, and management solutions.

 

As plans for the pig farming complex took shape, Geo-Agro was established which acquired farmland and agricultural machinery through state-supported initiatives. Geo-Agro was tasked with producing animal feed on its own farmland using in-house machinery, ensuring a consistent and high-quality supply for the pig farming complex.

 

 

Project Implementation

Construction of the Kalanda pig farming complex began in May 2012. A comprehensive project plan was developed and officially approved. In parallel, a partnership agreement was signed with the German company Big Dutchman, launching an initiative for the supply of state-of-the-art equipment and high-quality construction materials.

 

At the time, Georgia had no comparable pig farming operation. To ensure the highest standards from the very beginning, we partnered with the renowned German company Big Dutchman. In addition to supplying advanced farming technology, Big Dutchman played an active role in managing the entire operation. Their team maintained full oversight of production, while experienced local managers and supervisors ensured seamless, on-site coordination throughout every stage. A major milestone came on December 25, 2012, when the farm welcomed 800 premium-bred pigs from the United Kingdom. These included top-quality Landrace and Yorkshire breeding stock, as well as high-performance F1 hybrids and synthetic terminal sires. By then, our state-of-the-art quarantine facility was fully operational, where strict control was maintained over biosecurity and staff hygiene protocols. The imported livestock was placed directly in this controlled zone.

 

The farm proudly produced its own high-quality feed, crafted directly on-site using a carefully selected blend of ingredients: barley, wheat, corn, soybean meal, sunflower meal, sunflower oil, and premium premix. A significant portion of these raw materials was cultivated by GeoAgro on its own land. Our feed production facility was a powerhouse in itself, with a capacity of 5 tons per hour, a raw material storage base of 360 tons, and finished feed storage for up to 80 tons.

 

Every stage of meat preparation and sales was strictly followed by the highest standards of hygiene and food safety. In consultation with German specialists, it was strategically decided not to establish a slaughterhouse on the pig farming premises. Instead, Kalandia leased a nearby facility dedicated exclusively to serving our farm’s needs. Animal transport was managed with exceptional care: specialized trucks underwent thorough washing and disinfection before re-entering the farm. Meat was sold in half-carcass form, as high-quality chilled pork, with an average of 400 animals processed each week. Kalandia officially launched pork sales in mid-November 2013. Distribution to major supermarket chains was handled directly by the farm, ensuring reliability and freshness. For smaller retailers, trusted distributors collected the product from a leased refrigerated storage facility in Tbilisi, maintaining consistent cold-chain integrity from farm to shelf.

 

Two months after pork sales began, in early January 2014, clinical signs of an unidentified illness were detected on the farm. Notably, no cases of pig mortality were reported in the surrounding population. Following thorough investigation, the disease was diagnosed as Classical Swine Fever.

 

Within two weeks of the diagnosis, a full depopulation of the farm was carried out. Under the supervision of the tax authorities and the National Food Agency, more than 11,200 animals were culled in accordance with strict biosecurity and regulatory procedures.

 

At the time, there was no relevant insurance practice in place in Georgia, so the full burden of compensating for the losses fell on the partners.

 

Crisis Management

Despite significant losses, between 2014 and 2018, the farm focused on rehabilitation and elevating biosecurity standards to even higher levels. In the summer of 2018, negotiations began with the Partnership Fund, and the investment committee approved a rehabilitation project that included a financial contribution of $1.9 million from the fund. To cover the remaining budget, Kalandia committed to raising an additional $1.9 million in funding.

 

It is worth noting that Kalandia successfully negotiated and concluded an agreement with an insurance company to cover livestock mortality. The insurance policy was set at $2 million USD, addressing both business interruption risks for Kalandia and mortality risks for the animals. The National Food Agency also played a key role in this process, assisting in the development of the technical regulations for rehabilitation and the farm’s repopulation plan.

 

At the same time, there were financial obligations with Bank of Georgia. As a result, both parties agreed that the farm would be temporarily transferred to the bank, with the suspension of interest accrual on the outstanding obligations. Additionally, Bank of Georgia expressed its willingness to provide a loan of $3.5 million USD to support the farm’s rehabilitation.

 

Meanwhile, Kalandia’s team was in negotiations with a new investor, to whom the bank’s real estate department sold the farm as part of this process. Under a confidentiality agreement, technological and financial information was shared with the investor. Following this, a legal dispute lasted for several years, which was partially resolved in Kalandia’s favor, specifically through the settlement of assets held by the defendant in illegal ownership.

 

It is noteworthy that despite the project's bankruptcy, the farm faced a significant challenge — a bank loan of approximately $10 million USD and $7 million USD invested by the partners. Taking full responsibility for the rehabilitation’s risks, potential losses, and future profits, Shalva Jakhutashvili personally shouldered the entire burden. While his efforts did not yield the expected outcome, the Georgian team demonstrated unwavering commitment, fulfilling all financial and partnership obligations to both investors and the bank.