Georgia Agriculture Profile 2O12

Reference Date: 28-May-2011

Early forecasts point to an increase in cereal production in 2011

Sowing of the 2011 main spring maize crop is close to completion. The area planted is forecast to remain at last year’s level. Growing conditions for cereal crops are reported to be adequate due to good precipitation in recent months. The cultivated area for winter crops has decreased due to low precipitation and inadequate soil moisture during the sowing season in the autumn 2010. Precipitation has improved since end-January 2011 though localized heavy rainfall during the first days of February produced flash floods in northern parts of Georgia. The overall vegetation of winter crops throughout the country does not look abnormal. Total 2011 cereal production (winter and spring crops) is expected to increase by some 11 percent, mainly reflecting higher maize production.

Strong dependence on imports of cereals for domestic needs remains in 2010/11 marketing year (July/June)

In marketing year 2010/11 (July/June), the country’s cereal import requirements are estimated at 708 000 tonnes, around 67 percent of the cereal consumption needs. The bulk of these imports are in the form of wheat, production of which have been declining in recent years.

Food prices significantly increased

Bread and wheat flour prices reflect the overall trend of international wheat prices and increased import bills. According to official information from the Statistics Office of Georgia, the overall annual inflation rate in Georgia from April 2010 to April 2011 amounted to 13.5 percent. The highest contribution to this overall index comes from the price increases of food and non-alcoholic beverages which is 28.6 percent. The highest price increases were observed for wheat flour (almost 39 percent) and bread (31.5 percent) during the same period. The increase in food prices affects access to food by vulnerable groups of the population who spend a large part of their incomes on food.

Early forecasts point to an increase in cereal production in 2011

Sowing of the 2011 main spring maize crop is close to completion. The area planted is forecast to remain at last year’s level. Growing conditions for cereal crops are reported to be adequate due to good precipitation in recent months. The cultivated area for winter crops has decreased due to low precipitation and inadequate soil moisture during the sowing season in the autumn 2010. Precipitation has improved since end-January 2011 though localized heavy rainfall during the first days of February produced flash floods in northern parts of Georgia. The overall vegetation of winter crops throughout the country does not look abnormal. Total 2011 cereal production (winter and spring crops) is expected to increase by some 11 percent, mainly reflecting higher maize production.

Strong dependence on imports of cereals for domestic needs remains in 2010/11 marketing year (July/June)

In marketing year 2010/11 (July/June), the country’s cereal import requirements are estimated at 708 000 tonnes, around 67 percent of the cereal consumption needs. The bulk of these imports are in the form of wheat, production of which have been declining in recent years.

Food prices significantly increased

Bread and wheat flour prices reflect the overall trend of international wheat prices and increased import bills. According to official information from the Statistics Office of Georgia, the overall annual inflation rate in Georgia from April 2010 to April 2011 amounted to 13.5 percent. The highest contribution to this overall index comes from the price increases of food and non-alcoholic beverages which is 28.6 percent. The highest price increases were observed for wheat flour (almost 39 percent) and bread (31.5 percent) during the same period. The increase in food prices affects access to food by vulnerable groups of the population who spend a large part of their incomes on food.