Indexes
October 2021 | Agri Review
04
October
2021
The National Statistics Office of Georgia (GeoStat) recently published its economic review for Quarter II 2021. The publication highlights that agricultural production decreased by -2.3% in the second quarter of the year compared to the same period of 2020. Furthermore, agriculture contributed to 7.8% of the country’s total GDP during this period.
Trends in Foreign Direct Investments (FDI) do not look promising either. In the second quarter of 2021, FDI in agriculture decreased significantly by 73% compared to the same indicator in 2020. Moreover, FDI in agriculture was relatively low compared to the other sectors of the Georgian economy and accounted for 0.6% of total FDI.
2021 has been tough for grape growers. On August 26, hail and strong winds damaged 4,600 hectares of grapes in the Telavi and Gurjaani municipalities of the Kakheti region. Under “Rtveli 2021”, damaged Rkatsiteli grapes were accepted for 0.8 GEL in the Vintage Coordination Headquarters and damaged Saperavi grapes - for 1 GEL. According to the Ministry of Environmental Protection and Agriculture of Georgia, there will be one-time compensation of 3000 GEL to those farmers whose harvest was completely destroyed to recover their vineyards. Similarly to previous years, the Government of Georgia (GoG) is subsidizing the 2021 grape harvest again this year to help farmers and wine producers sell their products. From a total of 0.9 GEL per kg of Rkatsiteli or Kakhuri Mtsvane grapes, 0.35 GEL will be subsidized.
By 1 October, around 203.7 ths. tons of grapes were sold with a corresponding income for farmers of 237.8 mln. GEL. However, since Rtveli is not yet over, the final statistics on grape sales and their total income is not yet available.
As to prices, between June-August 2021, prices for food and non-alcoholic beverages, measured by the Food Price Index (FPI), also exhibited an upward trend. In August 2021, food prices increased by 1.4%, compared to July 2021; while the corresponding month-over-month price changes in June and July were 0.2% and 3.2%, respectively.
Recent Publications
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June 2024 | Agri Review
28
June
2024
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.
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).
