Source: The Ministry of Agriculture of Georgia

According to the AGRIndex, in May 2017, VEGETABLES (-8.11%) and DAIRY (-12.81%) product prices continued declining m/m trend, while MEAT (-0.37%) and FRUITS (-9.58%) became cheaper for the first time in the year. As a result, m/m AGRIndex equaled to -4.06% in the last month.

Highest increase: The GeoStat’s primary data shows that in 2016 compared to 2015, the domestic production of carrots and cabbage (including floral cabbage and broccoli) dropped, respectively, by 31% and 15%. Consequentially, these vegetables are in shortage on the market this year and, according to the AGRIndex, the m/m prices of carrots increased by 10% in May, while the prices of cabbage increased by more than half in the same month.

Source: The Ministry of Agriculture of Georgia

In April 2017, DAIRY product prices were 12.5% higher compared to same period last year (April 2016), according to AGRIndex. Despite that, milk prices have been decreasing for the last three months, and were 9.9% lower in April 2017 than the corresponding figure in January 2017. The price of cheese followed the same trend — it dropped (even more) by 23.6%. On the other hand, if we look at the same period, butter prices stayed almost unchanged, while matsoni prices were on rise starting in March 2017.

Source: The Ministry of Agriculture of Georgia

In April 2017, for the first time in the last nine-month period, agriculture products became cheaper, but the decrease in prices was marginal – m/m AGRIndex equaled -0.50%. However, on the sub-index level, FRUIT prices increased significantly at +18.63%, but decreases in VEGETABLES (-8.81%) and DAIRY (-7.12%) product prices offset the effect. The prices of MEAT products continued their latest trend and increased in m/m terms in April 2017, with a modest +2.64%.

Highest increase: Quince prices more than doubled in April 2017, but the main drivers of the increase in FRUIT prices were oranges and grapes – the harvest season for orange and grapes having past several months ago, while the demand for these fruits is high during the entire year.

For the first time in more than two years’ period, meat prices display steady increase — month-to-month changes in prices have been positive for the last four months. These changes bounced back slowly declining meat prices to their earlier values, and in January 2017 year-to-year changes also become positive. Furthermore, in March 2017 year-to-year increase in meat prices reached +7.11%, while the change compared-to-base period was +6.97%. Interesting, that month-to-month changes in meat prices used to be modest for recent years (within 1% margin), while in the February and March of 2017 similar changes exceeded 2%.

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