Two weeks ago, wholesale potato prices in Georgia hit a new all-time high for this time of year, coming in at 1.70 GEL/kg ($0.60). Since then, prices have stabilized, but it seems that market participants expect further increases.
Supplies of Georgian potatoes during the season come in two big waves. The first wave begins with the harvest in the Kvemo Kartli region in June, after which the market is captured by a large production zone in October; the Samtskhe-Javakheti region. Due to unfavorable weather conditions this season, the yield in Samtskhe-Javakheti was very low. Due to limited local supply and lack of imports, prices have skyrocketed.
Georgia imported only 1,300 tons of potatoes in the first 9 months of 2022. This is the lowest volume for this period in at least the last 9 years. The second lowest volume for these months is 7 times higher than the 2022 imports. According to official data, there were no imports in July-September. Data for October has not yet been released, but we can assume that potato imports are still very low or non-existent.
Some stakeholders stress that Georgia’s key potato supplier, Turkey, is also having a poor harvest. All in all, market participants expect further price increases in the coming weeks. Demand is expected to remain strong and potato stocks are expected to decline. Cheap imports could help stabilize the situation, but so far, these are nowhere to be seen.
Source: east-fruit.com