Indexes
November 15, 2016 FPI | Breakfast in Tbilisi Is Still Cheap
15
November
2016
After a couple of declines, food prices in the largest supermarkets in Georgia have increased. In the first two weeks of November, an upward trend was maintained: Retail FPI was 2% higher compared to the same period of October. An increase in FPI was driven by an increase in the price of fruits and vegetables. On an annual basis, we still record a significant overall 9.5% decline (November 2016 VS November 2015).
IN THE SPOTLIGHT
According to data from the first two weeks of November, the price increase leaders were cucumber (26%), carrot (25%), and eggplant (24%). Not all food items became more expensive. The largest, but still modest bi-weekly price drops were observed for buckwheat (7%), cabbage (6%), and wheat flour (4%).
CONSUMERS’ CHOICE
Despite the overall upward trend in food prices, it is notable that in the first part of November, the costs of an ordinary breakfast, including coffee/tea, bread, butter, and eggs, did not differ significantly from October. By observing food prices on a month over month basis, modest price increases were observed for: butter, from 3.48GEL to 3.53GEL (1.7%); bread, from 0.86GEL to 0.87GEL (by 1%); and eggs (by 0.6%), while coffee and tea did not gain in value at all. As for lunch and dinner, consumers can diversify their menus, as it will not be more expensive for them: prices of meat products such as chicken (fresh and frozen) and beef did not increase. In addition to this, some side dish products became even cheaper: buckwheat by 2% and rice by 3%. This means that Georgian consumers can still enjoy their cheap breakfasts, and save their appetites for lunch and dinner. Still, vegetables and fruits are important components of peoples’ daily food ration, as they contain essential vitamins and nutrients. As they are less cognizant of the benefits of a healthy diet than consumers in more developed countries, the seasonal fluctuations in the prices of vegetables and fruits might impair Georgian consumers’ choice to pursue healthy nutritional regimes.
Month over Month Change in food prices (October 2016 vs September 2016)
Recent Publications
View All
December 2023 | Agri Review
29
December
2023
Citrus production in Georgia is currently experiencing a declining trend, despite the implementation of a tangerine state subsidy program. Under the program, farmers receive 30 instead of 15 tetri for 1 kg of non-standard (low-quality) tangerines.
September 2023 | Agri Review
29
September
2023
Rtveli 2023 commenced this August. Similar to previous years, the Government of Georgia (GoG) is subsidizing the grape harvest again to support farmers who have suffered from worsening climate conditions. Based on information from MEPA representatives, the subsidy's primary aim is to guarantee that even producers with lower-quality grapes can still sell their products.
June 2023 | Agri Review
30
June
2023
In June 2023, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2022. The publication estimates that agriculture, forestry, and fishing comprised 7.5% of the GDP (constant prices) in 2022, which is lower than the 8% share in 2021, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2023 | Agri Review
31
March
2023
The budget for the Ministry of Environment Protection and Agriculture (MEPA) amounted to 698.5 million GEL (an increase of 10.0 million GEL) in 2023.
December 2022 | Agri Review
26
December
2022
Hazelnuts are one of the most important crops for Georgia in terms of export: between 2010-2021, they accounted for around 4.4% of total exports (GeoStat, 2022). In 2013, the quantity of exported hazelnuts reached its maximum level (30 ths. tons), in the following years, it then decreased to 19 ths. tons alongside an increase in value, thus indicating higher prices per exported kg of Georgian hazelnut.
