Indexes
October 30, 2015 FPI | The Difference Between Retail And Wholesale Prices
30
October
2015
October Retail FPI was pretty stable showing a negligible 0.1% decrease in the 4th week of October compared to the middle of the month. (See the diagram with Retail FPI dynamics on the right).
Apples lost in price 31%, coffee whose price is usually very stable, became cheaper by 21% (due to discount offered by one of the supermarkets) and rice price decreased by 13% (again due to discounts offered by one of the supermarkets). However not all the foods became cheaper. Cucumbers gained in value 78%, followed by onions, whose price increased by 23%. Tomatoes and greens showed a 21% and 20% price increase respectively. Thus the biggest changes in prices not surprisingly happened for vegetables and fruits which are seasonal foods.
Do wholesale prices follow the same trends?
Supermarket prices are retail prices and one can expect differences between prices offered at farmer markets - so-called “bazaar” and supermarkets. The diagrams show the differences in wholesale and retail prices of the products with the biggest rise (cucumbers) and fall in retail price (apples).
Wholesale prices increase for cucumbers and decrease for apples similarly to retail prices. The difference between retail and wholesale prices is quite small for cucumbers and much larger for apples suggesting different strategies and profit margins applied to various products by supermarkets.
Recent Publications
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September 2024 | Agri Review
04
October
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The National Statistics Office of Georgia (GeoStat) has published its second quarterly bulletin for 2024. The publication highlights that the real GDP in agriculture, forestry, and fishing increased by 0.7% compared to the first quarter of 2023. Furthermore, agriculture contributed to 5.3% of the country’s total GDP during the first quarter of 2024.
June 2024 | Agri Review
28
June
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In June 2024, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2023. The publication estimates that agriculture, forestry, and fishing comprised 6.9% of the GDP in 2023, which is slightly lower than in previous years, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2024 | Agri Review
01
April
2024
In June 2023, responding to appeals from the Georgian Flour Producers Association, the Georgian government imposed a temporary import duty on wheat flour imported from Russia. This advocacy by the Association began after Russia implemented a “floating tariff” on wheat in 2021, making wheat imports more expensive compared to wheat flour.
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.
