AGRIndex – November Review

AGRIndex – November Review

The FINANCIAL -- Compared to the last month, in November 2017, FRUIT prices declined by 4.2%. Nevertheless, the m/m AGRIndex reached +2.5% — the highest value since February 2017. Big share of the gain in the AGRIndex was derived from increased VEGETABLE prices (+9.2%), while DAIRY (+5.5%) and MEAT (+0.7%) prices also “supported” the process.

As far as the y/y change in prices are concerned, basket of domestically produced agriculture products the AGRIndex tracks, was +12.3% more expensive in November 2017 than in November 2016.

Highest increase: In November 2017 the prices of domestically produced tomato and cucumber continued latest trend and gained more than third of their October 2017 values. These changes are similar to those of October-November 2016 and hint on seasonality effects, but, interestingly, the prices of popular salad ingredients have risen in year-to-year scale too. Due to the declined imports and more than doubled exports of Georgian tomato and cucumber in the first 10 months of 2017 compared to the same period of the last year, the supply of these vegetables decreased on national market and the prices went up.

Highest drop: The prices of all citrus fruits the AGRIndex tracks declined sharply in November 2017, but the drop in domestically produced tangerine prices were the biggest (exceeded 25%) as a result of the start of the active harvesting season.