AGRIndex – December Review

AGRIndex – December Review

AGRIndex – December Review

The FINANCIAL -- In December 2017, the AGRIndex sub-indices shifted in the same directions as in November 2017, but the amplitudes of these shifts was reduced.

The exception was the price of VEGETABLES, which increased by 12.8% (the highest m/m change since January 2017). On the other hand, FRUIT prices lost just 0.2% of their November value, while MEAT prices gained only 0.2%, and DAIRY prices increased by 3.7% in month-to-month terms.

As far as the y/y change in prices are concerned, the basket of domestically produced agricultural products tracked by the AGRIndex was +11.4% more expensive in December 2017 than in December 2016.

Highest increase: In December 2017, domestically produced eggplant gained approximately 2/3 of its November prices. This change was in line with the last years’ dynamics — eggplant prices increase sharply in December, when the supply is low, but Georgian demand for a famous dish, “eggplant with walnut,” is high because of New Year’s Eve feasts.

Highest drop: In December 2017, Georgian citrus fruits lost on average a tenth of their November 2017 values, as these fruits were in active harvesting season, are perishable, and storage facilities in the Georgian countryside are not well-developed, “encouraging” farmers to sell a big part of their harvest once the fruits are picked. The biggest decline was observed in orange prices (-18%).