According to the data for the first quarter of 2018, the number of livestock has increased in Georgia. The biggest increase was observed for the number of sheep and goats, which increased by 35.9%. Such a sharp rise might be explained by the increased demand from East Asian countries. As to the other livestock categories, the number of bovine animals increased by 9.3%, while number of pigs and poultry increased by 7.7% and 4.1%, respectively.
The higher number of livestock has translated into increased animal production for most animal products, except milk, which decreased by 1.4% in the first quarter of 2018, compared to the same period in 2017. As to remaining categories of animal production, the amount of meat and eggs produced increased by 9.5% and 10.2%, respectively, for the same period.
In April 2018, prices for sugar, jam, honey, chocolate and confectionary decreased by 1.4%, compared to March 2018. On an annual basis, prices in this category were lower by 3.7%. According to Geostat data, the biggest price drop was mostly for sugar (-21.5%). This sharp price decrease was balanced out by a hike in prices for chocolate bars (5.2%), honey (4.3%), chewing gum (2.4%), ice-cream (0.9%), and caramel (0.2%). Given that Georgia is a net importer of these commodities, prices for sugar, jam, honey, chocolate and confectionary are driven by international prices. According to the International Sugar Organization, sugar prices decreased by 26.8%, compared to April 2017.
As to international trade, in April 2018, Georgia’s agricultural exports (including food) amounted to 52 mln USD, which is around 30% of total Georgian export value. While comparing this indicator to April 2017, it is 4% higher. As to imports, in April 2018, Georgia’s agro import stood at 101 mln USD, which constitutes 16% of total Georgian imports. Year over year (compared to April 2017), agricultural imports increased by 22%. As to export destinations, Russia remained the biggest export market for Georgia in April. In April 2017, Georgia traded mostly with neighbors, while in April 2018, China and Kazakhstan appeared at the top of the list of trading partners. The top import countries for both April 2017 and 2018 were Russia, Ukraine and Turkey. Interestingly, in April 2018, Azerbaijan was replaced by Brazil.
Agri Review Recent Publications
JUNE 2021 | AGRI REVIEW
On 15 June 2021, the National Statistics Office of Georgia published its annual publication for the agricultural sector - Agriculture of Georgia 2020. According to the publication, agriculture, forestry, and fishing comprised 8.4% of GDP in 2020, higher than the 7.2% share in 2019, but in line with the general trend over the last five years (agricultural GDP comprising on average 7-8% of GDP). Agricultural GDP in nominal terms increased by 13% on an annual basis.… Read More
MARCH 2021 | AGRI REVIEW
On 29 December 2020, the parliament of Georgia approved the state budget for 2021, which includes allocations of around 18.3 billion GEL. From which the Ministry of Environmental Protection and Agriculture (MEPA) will receive 451.6 million (2.5% of the total budget allocation). MEPA will direct 10 mln. GEL towards the Environmental Protection and Agriculture Development Program (2.2% of MEPA’s total budget), with around 389.6 mln. (86.3% of MEPA’s total budget) to be allocated to agricultural… Read More
DECEMBER 2020 | AGRI REVIEW
The COVID-19 pandemic raised concerns about the food security of many countries, in particular import-dependent developing countries like Georgia. Trade restrictions imposed by Georgia’s trade partners tightened the supply of some cereals and vegetables, signalling the risk of an increase in food prices. While there is no formal evidence of food insecurity due to the pandemic, given that Georgia is a net importer of wheat the state subsidized wheat imports, and, according to Georgia’s Wheat… Read More
OCTOBER 2020 | AGRI REVIEW
The National Statistics Office of Georgia (GeoStat) recently published its economic review for Quarter II 2020. The publication highlights that agricultural production increased by 4.7% in the second quarter of the year compared to the same period in 2019. Furthermore, agriculture contributed to 10.2% of the country’s total GDP during the same period. In the second quarter of 2020, Foreign Direct Investments (FDI) in agriculture also increased and were almost six times higher than the… Read More
JUNE 2020 | AGRI REVIEW
On 15 June 2020, the National Statistics Office of Georgia published its annual publication for the agricultural sector - Agriculture of Georgia 2019. The publication shows that agriculture, forestry, and fishing comprised 7.2% of the nominal GDP in 2019, slightly lower than the 7.8% share in 2018, but in line with the general trend over the last five years (on average 7-8% of GDP). In nominal terms, the output of agriculture increased by 4% in 2019… Read More
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
