The FINANCIAL -- In September 2017 DAIRY prices increased by 9.9% compared to August 2017 and this was the biggest month-to-month increase in the last 12 months, while compared to September 2016 the price increase was 9.3%.
More than 10% increase in cheese prices, which was itself driven by almost 15% gain in milk prices, pushed the m/m DAIRY prices up significantly in September 2017. The main determinants of such changes were the end of active lactation season (declined supply of domestically produced milk), and yet high number of tourists (high demand on dairy products) in the country. According to the Georgian National Tourism Administration, in September 2017 approximately 381 thousand international tourists visited Georgia and this amount exceeds the corresponding figure of September 2016 by almost quarter.
On the other hand, prolonged winter and extremely hot summer reduced milk production in Georgia in 2017 and kept y/y changes in DAIRY prices positive for each month of the current year so far. Milk production statistics for the third quarter of 2017 is not available yet, but the GeoStat’s data for the first two quarters of 2017 supports the idea — in the first half of 2017 in Georgia was produced 13 million litres less milk than in the corresponding period of 2016.