Georgia expects price increase due to Russia’s planned restrictions on grain exports

Business Materials 14 January 2021 17:57 (UTC +04:00)
Georgia expects price increase due to Russia’s planned restrictions on grain exports

BAKU, Azerbaijan, Jan.14

By Tamilla Mammadova – Trend:

Representatives of the Georgian poultry industry are announcing price rise due to Russia’s planned restrictions on grain exports, Trend reports via Georgian media.

The head of the company "Invet" David Shalamberidze said that last year the price of shrubs (sunflower, soybeans) was 50-60 percent up. He considers that new restrictions imposed by Russia will lead to another price increase.

"Oil price was already increased and the growth amounted to 25-30 percent. Russia announces, that they want to introduce quotas on grain imports. Russia’s restrictions will result in a price increase in the Georgian livestock and poultry sector, including milk, eggs, and meat. We expect a price increase of 150 lari ($45.75) per ton of grain," said Shalamberidze.

According to him, the solution is the development of local production.

Zurab Uchumbegashvili, head of the Poultry Development Association also has negative expectations and notes that restrictions on grain imports from Russia will have a very bad effect on the industry. Uchubegashvili notes that price growth might be accompanied by supply delays from Russia. According to him, price growth will amount to at least 10 -12 percent.

"Russia has announced that quotas will be imposed on grain from February 15. The tax increase is also announced. The expected restrictions will logically affect Georgia, as our country is mainly dependent on Russian grain," he said.

According to the statistics, in the first 10 months of 2020, Georgia imported $97.5 million worth of wheat and meslin (448,400 tons).

Corn imports from Russia are also growing. In the first 10 months of last year alone, Georgia imported corn worth $22.8 million, including $19.3 million accounted for Russian corn.


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