AGRIndex – March Review

AGRIndex – March Review

AGRIndex – March Review

The FINANCIAL -- Compared to the previous month, in March 2018, the AGRIndex increased marginally by 0.3%. The biggest price-gainers were FRUIT (+7.8%) and VEGETABLES (+5.2%), but the decline in DAIRY (-7.1%) prices largely offset the price gain. As far as the MEAT (+0.8%) prices are concerned, they increased just slightly.

Although the m/m change in the AGRIndex again became positive in the last month, the y/y change was down to only +3.1% in February 2018, the lowest figure since January 2017.

Highest increase: In March 2018, cabbage prices gained almost one third of their February prices, while broccoli prices were up more than 20%, which might be the result of a reduced supply of these vegetables on the national market. According to GeoStat, and the Ministry of Finance of Georgia, in March 2018, the country reduced its imports of cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas by almost 30,000 USD compared to the same month in 2017. Furthermore, the cultivation of potato, vegetables and melons declined in 2017 by 2700 hectares compared to 2016, and this might have reduced the supply of cabbage and broccoli in Georgia further (official statistics for agriculture production in 2017 are not yet available).

Highest drop: In March 2018, domestically produced milk prices continued their declining trend, and consequently Georgian cheese became cheaper too. It lost almost 9% of its February price in the last month.