NOVEMBER RETAIL FPI | Sweet Peach Preserves for Cold Winter

On the first half of November, ISET’s Retail Food Price Index increased by 9.2% y/y (compared to November 2016). On a monthly basis (compared to October 2017), retail food prices slightly increased, by 1.2%. The largest bi-weekly price changes were recorded for fruits and vegetables. The price of peaches (14.8%), cucumbers (11.9), and bananas (9.5%) increased most. The biggest price drop was for eggplant (-8%), buckwheat (-8%), and onions (-4.4%).

IN THE SPOTLIGHT: PEACHES

Peaches are among the products for which prices increased most in the middle of November: the average price of a peach moved from 2.48 GEL/kg in October to 2.85 GEL/kg in November. This is not surprising, as the prices for most fruits and vegetables tend to increase at this time of year due to seasonal shortages.

Over the last three years, peach prices have been exhibiting a downward trend, primarily caused by increased production. In 2016, the production of peaches and nectarines was 33.3 ths tons, which was 44% higher compared to the previous year (23.1 ths tons). Although production figures for 2017 are not yet available, the current year was considered to be quite good in terms of harvest in Kakheti, which might suggest that 2017’s low price is the result of increased supply. In contrast to Kakheti, this year was extremely bad for western Georgia, where the harvest was destroyed by the stink bug invasion. Given that stink bugs like peaches as much as they like hazelnuts, if they continue to invade the country and expand to Kakheti region, which is a major producer of peaches (80% of the peaches produced in Georgia come from that region), this year might be the last year for Georgian consumers to enjoy cheap, sweet peach preserves during the cold winter.