AGRIndex – May Review

AGRIndex – May Review

In May 2018, the AGRIndex fell by -4.2% - the biggest decline since May 2016 (interestingly, the biggest m/m drop in prices in 2017 was also observed in May). DAIRY prices lost as much as 14.8% of their April values, while VEGETABLE prices decreased by 11.1%. On the other hand, MEAT (-0.7%) prices changed only slightly, and FRUIT (-0.1%) prices were practically unchanged.

In y/y terms, AGRIndex continued its latest trend and reached a 17-month low of +2.0% in May 2018.

Highest increase: In May 2018, compared to the prior month, orange and lemon prices increased, by 20% and 19%, respectively. Although the higher prices for citrus fruits are not unusual for the late spring (as citrus has already been short on the national market for some time), this price gain is still relatively high compared to those in recent years.

Highest drop: In May 2018, compared to April 2018, domestically produced tomato prices lost more than two-fifths of their April value due to the high harvesting season, and international trade patterns. In the last month, according to the Ministry of Finance of Georgia, the country’s net import of tomato exceeded 1.3 million USD, while the corresponding figure for the same month of 2017 was only 931 thousand USD.