Declining Prices of Fruit in Georgia

In September, the prices of fruits dropped by 9.9% as compared to September 2017. Price decreases were observed on an annual basis for the following products: Plum (-35%), Kiwi (-32%), Apple (24%), Pear (-17%), Lemon (-16%) and Grapes (-14%).

According to ISET data, such low prices for fruits compared to 2017 are likely linked to higher yields and seasonality. Additionally, ISET describes 2017 to have been a low yielding season for Georgian agriculture. Drought in the summer caused unfavorable conditions for producing fruits. Moreover, an increased amount of Asian Stink Bugs massively damaged the crops. As a result, the following fruit production significantly decreased in 2017: Apple (-70%), Plum (-55%), Lemon (-53%), and Pears (-48%).

In 2018, more than 230,000 tons of grapes were recovered, an amount 72% higher than the previous year’s figure (134,000 tons).

In September 2018, the Food Price Index of the United Nations Food and Agriculture Organization (FAO), decreased by 7.4% compared to the same period of 2017. Prices fell for the following categories of food: Vegetable Oil (-21.5%), Sugar (-21%), Dairy Products (-14.6%) and Meat (-4.5%). It should be noted that in September 2018, FAO's Grain Price Index increased by 8% compared to September 2017 but decreased by 2.8% in August. The month-to-month reduction is mainly due to the increase of corn maize in the world because of the abundant harvest of maize in the United States.

By Anna Zhvania

Source: BM