According to the report released by the EastFruit analysts, the share of onions into imported Georgia has increased to 75%, while the annual onion production in the country, from 2014 to 2021, i.e. within the last 8 years, has decreased by an average of 1.1 thousand tons. Based on the portal, the volume of the imports increased by about 0.7 thousand tons, while the exports rates were very low and did not grow.
During the last 4 years (2018-2021), onion production decreased by 34% compared to the total amount of the previous 4 years (2014-2017), while the imports increased by 53% compared to the similar periods. During this period, the production volume decreased by 19 thousand tons, while the imports increased by 43 thousand tons. The decline in domestic production also offset the increased demand.
There are two main onion-producing regions in Georgia - Kvemo Kartli accounts for about 35% of the total production, while Shida Kartli produces half of the Georgian onions. According to EastFruit, farmers in both regions point out that the 2021/2022 season was not fruitful, which is blamed on low prices caused by cheap imports.
The trade data show that the onions imported into Georgia this year are about 10% more expensive than in the same period last year. EastFruit cites the increased transport costs and rising inflation in Turkey, its main supplier, as the reason for this. The portal says more expensive imports will help Georgian farmers to some extent, but entrepreneurial costs are also increasing in Georgia. Analysts suggest that the success of Georgian farmers will largely depend on increased consumption.
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