There was 2.1% decrease in agricultural production in 2017 compared to the previous year. Production in the plant-growing sector declined by 0.4%, while animal production experienced a decrease of 3.8%. Lower production resulted in lower self-sufficiency ratios for most agricultural products, ISET reports.
Revenue from the sale of agricultural products in 2017 has also decreased compared to the period 2014-2017, both in percentage and absolute terms. Reduced production is the most likely reason for this result.
While revenue from selling agricultural products decreased in 2017, the level of commercialization in the sector has increased. This trend is particularly persistent in animal production, where its share in enterprises increased from 21% to 27%. In plant growing the share of enterprises in 2017 has increased as well, but there are no increasing trends observed in general, since the share keeps changing its direction from year to year.
As to prices, in the category of food and non-alcoholic beverages, prices decreased by 0.7% on a monthly basis (that is compared to April 2018) and increased by 1.8% on annual basis (that is compared to May 2017).
In May 2018, prices in the group of oil and fats increased by 4.6%, compared to May 2017. The main drivers were butter and spread prices, which went up by 12%. Such increase in prices might be caused by changes in technical regulations for the dairy sector.
As to the international trade with EU and CIS countries, in 2016, Georgia’s agricultural exports in EU countries increased by 5% compared to the previous year, while during 2017, a 38% decrease was observed compared to 2016. This change is mainly caused by a significant decrease in hazelnut exports. Georgia’s agricultural exports to CIS countries are increasing in the last couple of years. Unlike exports, there are no significant changes in imports from either EU or CIS countries.