Strawberry Cultivation

The plan triples the cultivated area in one step, from 1 to 3 hectares, and requires 30 additional seasonal workers. Buyer commitments are documented as letters of intent. The 2026 projection assumes 10% irrecoverable losses — 32,400 kg of the 324,000 kg gross harvest — from disease, harvest damage and post-harvest handling, and the result is sensitive to the Grade A price: operating profit ranges from €558,000 at €6.5/kg to €1,152,114 at €9.0/kg. Part of the collateral is the future harvest itself, which is why it carries a 50% discount.

Mitigants are built into the model: year-round geothermal production, sale of the full current output without surplus, a processing channel for Grade B and any surplus, and geothermal heating that costs less than half of the gas equivalent.

The project has already received seed capital and in-kind contributions from the founder; the financial structure going forward relies on phased external financing aligned with the expansion plan.

2024 was an incomplete operational year due to the phased launch of the first hectare; 2025 is the full year with 1 hectare in operation; 2026 is the base scenario at €7.5/kg for Grade A.

2026 harvest basis

The projected Phase 1 gross harvest for 2026 is 324,000 kg for 3 ha: losses of 10% (32,400 kg), Grade B for processing of 16.7% (54,108 kg) at €4.50/kg, and marketable Grade A of 73.3% (237,492 kg).

Operational profit in every scenario is revenue less €1,228,800 of annual operating costs. Each hectare generates an estimated €674,892 in annual revenue, with net profits exceeding €265,292 under previous assumptions.

Geothermal economics

The geothermal heating licence costs €4,000 a month for the entire agro hub — €48,000 a year. Equivalent gas heating would cost ~€8,500 per hectare per month (based on gas prices in the Gori region in 2023–2024), or €102,000 a year for 3 ha over four months. The system operates year-round: in winter for primary heating, and in summer for humidity control, by heating and opening the greenhouse roofs to release excess moisture. Annual savings versus gas heating are ~€54,000. Average profitability per hectare stays high, driven by premium positioning, consistent production and the cost efficiency of geothermal energy.

Market size and consumption

• Annual strawberry consumption in Georgia: ~12,000–15,000 metric tons (MT), of which domestic production ~8,000–10,000 MT (May–October) and imports ~2,000–3,000 MT (November–April), mainly from Turkey, Iran and Egypt.
• Per capita consumption: ~3.5 kg a year, above the global average of 2.7 kg.
• Regional market (Armenia and Azerbaijan): combined annual demand of ~20,000–25,000 MT; local production is insufficient, leading to year-round imports, especially in winter, at prices 15–20% higher than in Georgia due to logistics and tariffs.
• Retail market value in Georgia: ~€25–30 million a year — supermarkets and hypermarkets (Carrefour, Agrohub, Foodmart) 60% of sales, local markets and small vendors 30%, food processing (juices, jams, bakeries) 10%.

Supply gaps and import dependency

Georgia imports ~30% of its winter strawberries, and winter strawberries sell for 40–50% more than seasonal supply. Imported berries often have a shorter shelf life due to long transit times, and consumers prefer fresher, locally grown berries — an opening for year-round production.

Growth drivers

• Supermarkets and foodservice providers seek stable, high-quality local suppliers to replace imports; geothermal greenhouses can capture 10–15% of Georgia’s winter market (~1,500 MT) within 2–3 years.
• Export potential: Armenia and Azerbaijan have a combined import demand of ~5,000 MT a year; the Middle East (UAE, Saudi Arabia) is a high-value market for premium berries at €8–12/kg.
• The VAT exemption on strawberry production improves profitability, and EU-compatible agricultural standards open export opportunities to Europe.

Competitive landscape

Local producers are mostly small-scale seasonal farms with low yields (15–20 MT/ha versus OSS HOLDING’s 100+ MT/ha) and no geothermal or controlled-environment agriculture technology. Importers are dominated by Turkish and Iranian suppliers, who face logistics costs and quality concerns; local production offers fresher, higher-margin berries.

The total addressable market (Georgia plus exports) is ~€30–40 million a year, and the key advantage is year-round premium supply in a market that relies on seasonal production and imports.

Existing property, €

Acquired property and future harvest, €

Valuation and coverage, €

The loan supports the expansion of the Agro-Farm project from 1 hectare to 3 hectares by Q4 2025. The total is €1,058,000, drawn in four tranches.

Usable yield sold as Grade B is priced at €4.5/kg, and the remaining marketable yield at the scenario-specific Grade A prices. All other assumptions, costs and the tranche structure remain unchanged from the original document unless stated otherwise.

Agro-Farm, operated by OSS HOLDING, is an agribusiness growing premium-quality Sensation strawberries year-round using geothermal greenhouse technology. The model enables consistent harvests, reduces heating costs and allows efficient production aligned with modern agricultural standards.

The company operates a fully functional 1-hectare greenhouse and plans to lease another 2-hectare greenhouse. It operates at full sales capacity, distributing 100% of its agricultural output without inventory surplus, and has executed long-term letters of intent with all its principal buyers. These agreements set a framework for tripling sales volumes while keeping existing commercial terms: they secure off-take for the expanded capacity, preserve current pricing mechanisms, formalise mutual growth commitments and provide market stability through multi-year terms.

Georgia offers a 0% corporate income tax rate on retained earnings, which lets companies reinvest their full pre-tax profits into growth and operations, and the VAT exemption on strawberry production further improves the margin structure.

In February 2024 Giorgi Kvaratskhelia received an offer to lease a previously inactive greenhouse complex dedicated to strawberry farming. He signed an investment agreement with OSS HOLDING — an established company with a large client base and a strong presence in food product sales across the Georgian and Caucasus markets — to restart and operate the facility.

After negotiations throughout 2024 he agreed a full acquisition of the company with the previous owner, and in November 2024 completed the purchase of 100% of the shares, securing full ownership and operational control of OSS HOLDING.

OSS HOLDING’s operations span the supply chain from cultivation to distribution: controlled-environment strawberry cultivation, geothermal heating for year-round energy-efficient production, and post-harvest processing with sustainable packaging. Greenhouse production does not require a specific agricultural licence under Georgian law; the site complies with environmental and sanitary regulations and is registered under cadastral No. 43.20.41.300.

Operating characteristics

Thanks to geothermal heating the farm produces continuously throughout the year, unlike traditional seasonal berry farms — an advantage for revenue consistency and long-term client relationships.

• Climate-controlled greenhouses ensure 12-month production
• Fully drip-irrigated substrate cultivation
• Locally sourced peat and organic fertilisers
• Imported Sensation seedlings with high yield and market value
• Seedlings replaced every 4 months (3 times a year); harvest begins 60 days after planting and continues for about 60 days
• Each hectare supports approx. 180,000 plants a year

Labour

Production and planning are managed by an experienced agronomist and technical team. The workforce is lean: an agronomist / production manager, a greenhouse operations supervisor and a sales and logistics coordinator, plus 15 seasonal workers per hectare; the 2-hectare expansion requires an additional 30 seasonal workers. Standard Operating Procedures are planned for all critical functions, and geothermal systems and automated irrigation keep staffing needs low.

The main product is premium-grade Sensation strawberries, known for sweetness, durability in transport and market appeal. The harvest is split by grade:

• Grade A — high-end retailers, domestic supermarkets and foodservice: 237,492 kg (≈ 73.3% of the gross harvest)
• Grade B — about 54,108 kg (≈ 16.7% of the gross harvest), directed to processing at €4.50/kg

Strawberries are a high-liquidity product thanks to year-round demand and short shelf life, which ensures a quick sales turnaround. Backup plans include selling surplus to processing plants and juice manufacturers at reduced margins if needed.