“In Georgia, the annual prices for wheat flour and wheat bread have increased since July 2021. Wheat flour price growth reached an all-time maximum of 36.5% year-on-year in July 2022, while wheat bread prices peaked in June 2022 and showed an increase of 36.3%,” – Research Centre PMCG published a report on the Wheat And Flour Sector In Georgia.
As the report says, in the first half of 2022, wheat imports to Georgia decreased by 55% compared to the first half of 2021 and amounted to 16.7 million USD, out of which 88.1% of the decrease in the imports is attributed to Russia. On the other hand, in the first six months of 2022, flour imports were 13 times higher compared to the corresponding period of 2021 and the revenues reached 29.4 million USD, out of which 98.1% was imported from Russia.
"During the years 2017-2021, the majority of the total annual supply of wheat in Georgia consisted of the imported wheat. In particular, on average, the share of imports in the total supply of wheat was 84%.
Considering Georgia's high dependence on imports from Russia and the low self-sufficiency of domestic wheat production, it is important to diversify the wheat market and ensure food security for Georgia, therefore, a dialogue between potential trade partners such as Kazakhstan and Turkey in the long term is necessary," - the report states.
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