Indexes
May 14, 2018 | Structural change in the georgian dairy sector?
14
May
2018
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) limit 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 the 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 to 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 the Khachapuri Index publications, the use of milk powder pushed cheese prices down in wintertime (compared to previous years).
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March 2024 | Beginning of seasonal drop in Khachapuri Index
01
April
2024
In March 2024, the average cost of cooking one standard portion of Imeretian khachapuri stood at 6.40GEL. This latest average price marks a -1.8% decrease compared to March 2023. Additionally, in month-to-month developments, the price of khachapuri decreased by -6.4% compared to the previous month (February 2024).
February 2024 | The Khachapuri Index increases by 3.3%
04
March
2024
In February 2024, the average cost of cooking one standard portion of Imeretian khachapuri stood at 6.83 GEL, marking a 3.3% increase compared to the previous month. However, in a year-to-year comparison, the price of khachapuri decreased by 1.5% compared to February 2023.
January 2024 | Khachapuri Index continues its upward trend
29
January
2024
In January 2024, the average monthly cost of preparing one standard portion of Imeretian khachapuri increased, ranging between 6.40 GEL (Batumi) and 7.11 GEL (Tbilisi), with an overall average cost of 6.62 GEL. This recent average indicates a 2% increase compared to the preceding month of December 2023. While examining year-to-year trends, the current price of khachapuri is 4.6% lower than in January 2023.
December 2023 | The Khachapuri Index over the decade
28
December
2023
In December 2023, the average cost of preparing one standard Imeretian khachapuri experienced a slight increase, reaching 6.48 GEL. This signifies a 0.2% rise compared to November 2023 and a noteworthy -7.3% decrease compared to December 2022.
November 2023 | Khachapuri Index increased by 5.5%
27
November
2023
In November 2023, the average cost of preparing a standard portion of Imeretian Khachapuri continued its upward climb, reaching 6.47 GEL. This represents a 5.5% increase from the previous month (October 2023) and a 6.9% decrease compared to the same period last year (November 2022).
