Agriculture in the Black Sea Region

The “Elections Effect” on the Georgian Bread Prices

: 25.10.2012

Starting from October 15, Georgian consumers have to pay about 5-10 tetri more for one loaf of bread. Many large producers increased their prices; smaller bakeries (“tone”) followed suit by either raising the price or reducing the weight of the traditional Georgian bread. While unpleasant, this change in the price of bread is nothing but a forced reaction to a sharp increase (25%) in the price of wheat in the global commodity markets dating back to July 2012. The question, therefore, is not why bread and flour prices increased. Rather, it is why these politically sensitive prices increased only now, with a three-four month delay.

Argentina replaces Russia as cheap wheat supplier

: 22.10.2012

Supplies of competitive Russian wheat, a weight on world wheat values, appear to have run dry, results from a tender by Egypt, the world's top importer, showed.

But wheat prices remained in negative territory on major markets after the tender also showed that Argentina, another supplier of cut-price wheat, is getting in on the act.

Ukraine 'bans' wheat exports, lifting futures

: 22.10.2012

Wheat futures rebounded sharply from negative territory after Ukraine, according to traders, banned exports of the grain, after a rapid pace of exports threatened to deplete drought-hit supplies.

A clash between traders, which have been accelerating grain imports for fear of curbs, and a government keen to protect domestic supplies after a 30% slump in the domestic harvest came to a head on Friday with a ban which will take effect on November 15, merchants said.

The Puzzle of Agricultural Productivity in Georgia (and Armenia)

: 17.10.2012

While more than half of all jobs in Georgia are in the agricultural sector, agriculture’s share of value added to GDP was only 11 percent in 2007 (World Bank). And although Georgia was a major producer of food, wine, tea, and mineral water during Soviet times, most of the food products on the shelves today are imported from abroad (FAO).