June 17, 2019 | Increased wheat production, worldwide
17 June 2019

The cost of cooking one standard Imeretian khachapuri in May 2019 averaged 3.24 GEL, which is approximately 2.4% higher compared to May 2018 (year-on-year), and 6.4% lower compared to the previous month (April 2019).

The highest increase was observed in flour prices, which have gone up by 7.4% compared to their levels last year (May 2018). The Khachapuri Index data can moreover reveal an increasing trend in flour prices, starting from last year. According to our estimates, however, in monthly terms, the price of (high grade) flour was 0.6% lower than compared to the previous month (April 2019). This tendency is also in line with world price trends.

An EU report on the situation on the cereals market estimates that world wheat production will reach a new record of 777.5 metric tones (+46m or +6.3% YoY). Most major exporters also expect to harvest larger crops than last year. High levels of rainfall benefited wheat crops throughout the Middle East, leading to higher production forecasts throughout the region. It is projected that world exports will increase by 4% to 184.6m t due to greater numbers of exportable supplies and stronger demand. It is also probable that increased wheat production will decrease the Georgian price of wheat. While the larger proportion of wheat is imported into Georgia, the price of wheat will follow international prices and continue to decrease further still.