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Home Opinion Analysis

Dairy prices keep falling

ISET by ISET
April 1, 2019
in Analysis
Reading Time: 1 min read
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Khachapuri Index for Foreign Earners
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The FINANCIAL — In March 2019, the average cost of cooking one standard Imeretian khachapuri declined slightly to 3.51 GEL, which is 0.8% lower MoM (compared to February 2019), and 1.1% lower YoY (compared to March 2018).

Generally, at this time of the year (beginning as early as February), we observe a seasonal reduction in the price of khachapuri, driven by the recurrent decline in the price of milk. According to the Khachapuri Index data, the price of milk and the amount of milk produced declined compared to last month. While the price of cheese, 7.70 GEL per kg in March 2019, is 1.9% less than in February. The price of milk and butter also declined compared to last month, by 0.8% and 1.3%, respectively.

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We anticipate that in upcoming months, the price of milk will follow the common seasonal trend and continue to decline. The Easter effect, more specifically Great Lent (which began on 11 March), might have assisted the downward trend in price, as the demand for cheese and other milk products is lower during the period of Lent.

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