ISET Economist Blog

A blog about economics in the South Caucasus.

Georgian Consumers Outsmarting Supermarket Managers?

Seasons change, and so do Georgian food prices. In the second week of June, Georgia’s major food retail networks (Carrefour, Goodwill, Fresco and SPAR) lowered their prices by an average of 3.9% y/y and 1.8% m/m. Compared to the end of May, prices moved the most for the following food items: eggplant (-21%), pasta (-10.3%) and coffee (-5.7%); wheat flour (+11%), buckwheat (+10.5%) and garlic (+6.8%). THE LAW OF ONE PRICE … WHAT LAW? Why should exactly the same product sell at dramatically different prices in different shops? It shouldn’t. At least that’s...
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Simon Appleby
It is good that you mention the issue of loss leaders. In Europe, America and Australia, farmers and processors are regularly outr... Read More
Wednesday, 22 June 2016 11:11 AM
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We May Not Be Hungry, but We Are Starving...

It is a well known fact that nearly a half of Georgian population is involved in agriculture, while Georgia imports around 60% of all the food it consumes. High food import share and food security  are important issues for Georgia, widely discussed among the policy makers and in the media. One issue that remains largely in the shadows of public attention is Georgia’s struggle with nutritional deficiencies and unhealthy, undiversified diets.  Surveys show that bread is one of the main sources of calories in Georgian diets, accounting for as much...
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Salome Gelashvili
Dear Florian, Thank you for your comment. 1. The issue of obesity is indeed very interesting and according to WHO: Nationally repr... Read More
Wednesday, 25 May 2016 12:12 PM
Florian Biermann
(1) I am surprised that Georgians are eating that much starchy food. I always thought that countries where people eat a lot of bre... Read More
Wednesday, 04 May 2016 10:10 AM
Guest — Yasya
Florian, you are right, food supplements can be very important for poor countries. We discussed this issue in an earlier blog, in ... Read More
Wednesday, 04 May 2016 11:11 AM
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Mandatory Flour Fortification in Georgia: a Boon or a Burden for the Poor?

We are what we eat – in the near future Georgians are likely to be reminded of this universal truth.   Soon the Georgian Parliament will be discussing a small but important change, which will affect something as significant and vital as bread, along with pasta, khachapuri and anything made with wheat flour. The Georgian legislators will be considering a law, according to which flour fortification will become mandatory in Georgia. Mandatory food fortification is a contentious issue. The proponents of the law argue that this change is a great way to d...
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Guest — PatiMamardashvili
I agree with the author that flour fortification might correct some nutritional deficiencies which seem to be quite prevalent amon... Read More
Saturday, 30 January 2016 7:07 PM
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