AGRIndex – June Review

AGRIndex – June Review

The FINANCIAL -- According to the AGRIndex, there was virtually no change in MEAT and FRUIT prices in June 2017, as their m/m change did not exceed ±0.10%.

Despite this, the overall AGRIndex decreased by -3.04% in m/m terms, with all of the change derived from a drop in VEGETABLE prices (-19.25%). As for DAIRY prices (+0.57%), they followed the pattern of the last two years, and started to gain value in June after spring reductions.

Highest increase: Although in general fruit prices were stable, citrus prices increased quite a bit (+13.42%) in June 2017. The explanation for the change is trivial — according to GeoStat, in 2016, production of citrus fruits (65,500 tons) dropped to a five-year low, and as some citrus (tangerines especially) perish quickly, there is already a shortage of domestically produced oranges and tangerines on the Georgian market.

Highest drop: Almost all domestically produced vegetables became cheaper in June 2017 compared to the prior month, but the decrease in the price of eggplant was spectacular (-20.47%). In general, this vegetable loves warm and humid climates, and needs up to four months from planting to harvesting. Accordingly, the supply varies sharply between summer and winter, and with everything else being equal, its price does the same.

As far as year-to-year price changes are concerned, the price of the AGRIndex basket was 11.27% higher in June 2017 than in June 2016, which means that the food prices are on the rise!