Agricultural production has decreased by 0.8% in the second quarter of 2018 compared to the same period in 2017. In spite of the decline in agricultural production, FDI in agriculture has increased. While FDI in agriculture is relatively low compared to the other sectors of the Georgian economy, it should be noted that agricultural FDI in the second quarter of 2018 reaches its maximum for the last three years.
Increased FDI is not the only good news for the sector, another one is related to “Rtveli”, which has started on August 20, and is not subsidized by the Government for the first time during the last ten years. This change in the policy is expected to lead to better quality wine and more competitive grape growers and wine producers.
As to the prices, in the category of food and non-alcoholic beverages, prices increased by 1.5% and 3.2% on a monthly and annual basis respectively. In August 2018, prices in the group of milk and milk products increased on a monthly basis as well as on an annual basis which is caused by decreased production of milk.
As to international trade, during August 2018, Georgia’s agricultural exports (including food) amounted to 51 mln USD, which is around 25% of total Georgian export value. While comparing this indicator to August 2017, it is 7% lower. As to imports, in August 2018, Georgia’s agro imports stood at 90 mln USD, which constitutes 15% of total Georgian imports. Year over year (compared to March 2017), agricultural imports increased by 3%.