The Khachapuri Index kept declining in April, 2018, very much in line with the seasonal trend we observe every year. The average cost of cooking one standard Imeretian khachapuri currently stands at 3.28 GEL, which is 7.4% lower month-on-month (that is, compared to March 2018), and 1% lower year-on-year (that is, compared to April 2017). The main driver of the Index is Imeretian cheese, consequently, the monthly and yearly decrease is associated with the price of cheese, which declined by 13.5 %( m/m) and 0.9 %( y/y) in April 2018.
The price of cheese directly depends on the amount of milk produced and its price. Georgian milk prices exhibit high seasonal volatility, mainly related to structural inefficiencies in the country’s dairy production. Poorly planned calving periods (for most cows, in the winter months) limits the milk supply in winter, which in turn sharply increases milk prices during the winter months.
These fluctuations in milk prices are reflected in the Khachapuri Index. In general, the Index reaches its highest value in January and is lowest in July. However, we can observe that somewhat lower fluctuations in the Khachapuri Index were observed in 2017. Are the price differences in the Khachapuri Index for summer and winter getting closer?
More time is needed to observe if this change is actually happening in Georgian dairy sector. However, a first look at the graph, as well as some recent developments in the Georgian dairy sector, give some hope for the increased modernization of this sector. According to FAO, dairy farming in Georgia is becoming more productive and profitable. Technological and structural upgrading of the sector will lead less fluctuation in dairy prices.
Further, this pattern of slightly reduced price fluctuations might also be related to the fact that there was an increasing trend in the use of imported milk powder in Georgia in 2017. As discussed in one of Khachapuri Index publications, the use of milk powder pushed cheese prices down in winter time (compared to previous years).
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June, 2021 | Khachapuri Index Increases by 8.8%
In June 2021, the average price of cooking one Imeretian khachapuri stood at 4.28 GEL. Compared to the previous month (May 2021) the Khachapuri Index lost 1.1%. In annual terms (compared to June 2020), however, the index added 8.8%. The monthly (negative) change in the Index follows the traditional seasonal trend in fresh milk production, which peaks in June and July. In June 2021 price of cheese has decreased by 2.5% compared to the previous… Read More
May, 2021 | Food Prices Stay High
The average cost of cooking one standard Imeretian khachapuri currently stands at 4.33 GEL, which is 6.9% lower month-on-month (compared to April 2021), and 5.6% higher year-on-year (compared to May 2020). The main contributor to the price change is a seasonal decrease in the price of cheese, which fell by -13.1%, compared to the previous month (April 2021). The official estimate of annual price inflation, published by GeoStat, also shows that CPI increased by 7.7%… Read More
April, 2021 | Khachapuri Index Increases by 6%
The average cost of cooking one standard Imeretian khachapuri in April 2021 was 4.65 GEL. The Index gained 1% compared to the previous month (March 2021). Usually, at this time of year, seasonal declining trend is expected, which is largely driven by a springtime adjustment of the price of milk and milk products. However, the depreciation of the Georgian lari against the US dollar still has an upward pressure on the price of imported khachapuri… Read More
March, 2021 | Kh-Index Continues to Fall in March 2021
The Khachapuri Index kept declining in March 2021, with the average cost of cooking one standard Imeretian khachapuri reaching 4.61 GEL. This is 1.7% lower month-on-month (compared to February 2021), and 3.4% higher year-on-year (compared to March 2020). The Index lost ground in all Georgian cities and experienced the largest drop in Kutaisi (of 3.1%), which also appears to be the cheapest location. Due to the decline, the price of one standard Imeretian khachapuri in… Read More
February, 2021 | Will Wheat Price Increase Further?
In February 2021, the average cost of cooking one standard portion of Imeretian khachapuri stood at 4.69 GEL. This is 3.1% lower MoM (compared to January 2021) and 7.8% higher YoY (in comparison to February of 2020). On a monthly basis, at this time of the year, a downward trend in the index is not unusual, and simply relates to the decreasing price of cheese (due to an increased seasonal supply of fresh milk). Although… Read More
