AGRIndex – August Review

AGRIndex – August Review

The FINANCIAL -- According to the AGRIndex, VEGETABLE (-1.0%) prices continued their m/m declining trend in August 2017, while FRUIT (+2.3%) prices increased for the first time since last April.

On the other hand, MEAT (+0.5%) prices stayed practically unchanged. DAIRY (+8.5%) prices were significantly up due to the end of the active lactation season in Georgia.

In general, in August 2017, the overall AGRIndex increased by a moderate +1.7% in m/m terms, while in y/y terms it rose significantly — agricultural products’ prices were 10% higher in August 2017 than in August 2016. 

Highest increase: Compared to July 2017, the price of greens increased by approximately 30% in August, but the larger gain in peach and nectarine prices increased the overall AGRIndex. The prices of these top export-oriented fruits increased by almost 25% in month-to-month terms due to the end of harvesting season. Exports of peaches and nectarines increased by 47% in the first eight months of 2017, compared to the same period in 2016, and reached four million USD this year. 

Highest drop: Although the FRUIT prices sub-index increased in August 2017, the sharpest drop in prices was observed in the same sub-index. Grape prices halved in August compared to July 2017, as the Rtveli season is starting and the supply of domestically produced grapes is increasing fast on the national market.