After a couple of declines, food prices in the largest supermarkets in Georgia have increased. In the first two weeks of November, an upward trend was maintained: Retail FPI was 2% higher compared to the same period of October. Increase in FPI was driven by an increase in the price of fruits and vegetables. On an annual basis, we still record a significant overall 9.5% decline (November 2016 VS November 2015).
IN THE SPOTLIGHT
According to data from the first two weeks of November, the price increase leaders were cucumber (26%), carrot (25%), and eggplant (24%). Not all food items became more expensive. The largest, but still modest bi-weekly price drops were observed for buckwheat (7%), cabbage (6%) and wheat flour (4%).
CONSUMERS’ CHOICE
Despite the overall upward trend in food prices, it is notable that in the first part of November, the costs of an ordinary breakfast, including coffee/tea, bread, butter, and eggs, did not differ significantly from October. By observing food prices on a month over month basis, modest price increases were observed for: butter, from 3.48GEL to 3.53GEL (1.7%); bread, from 0.86GEL to 0.87GEL (by 1%); and eggs (by 0.6%), while coffee and tea did not gain in value at all. As for lunch and dinner, consumers can diversify their menus, as it will not be more expensive for them: prices of meat products such as chicken (fresh and frozen) and beef did not increase. In addition to this, some side dish products became even cheaper: buckwheat by 2% and rice by 3%. This means that Georgian consumers can still enjoy their cheap breakfasts, and save their appetites for lunch and dinner. Still, vegetables and fruits are important components of peoples’ daily food ration, as they contain essential vitamins and nutrients. As they are less cognizant of the benefits of a healthy diet than consumers in more developed countries, the seasonal fluctuations in the prices of vegetables and fruits might impair Georgian consumers’ choice to pursue healthy nutritional regimes.
Month over Month Change in food prices (October 2016 vs September 2016)
Food Price Index Recent Publications
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OCTOBER 2020 | AGRI REVIEW
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JUNE 2020 | AGRI REVIEW
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DECEMBER 2019 | AGRI REVIEW
On December 10, the parliament of Georgia approved the state budget for 2020. The budget includes allocations of around 14.4 billion GEL. Out of which, the Ministry of Environmental Protection and Agriculture (MEPA) will receive 353 mln. GEL (2.4% of the total budget allocation). MEPA will direct approximately 293 mln. GEL (2.0% of the total budget allocation) towards agricultural development and 60 mln. GEL (0.4%) will be spent on environmental protection. Compared to 2019, the… Read More
OCTOBER 2019 | AGRI REVIEW
On 30 August 2019, a public hearing to discuss Georgia’s Rural and Agricultural Development Strategy for 2021-2027 was conducted at the Ministry of Environmental Protection and Agriculture (MEPA). The new strategy document represents a roadmap for Georgia’s rural and agricultural development for the next decade. The strategy outlines three major goals to be achieved by 2027: 1. Increasing the competitiveness of agricultural and non-agricultural sectors; 2. Sustainable management of natural resources, preservation of ecosystems, and… Read More
