Potatoes in Georgia showed the highest prices in the history of monitoring Eastfruit for January. As of the fourth week of 2022, the average price in the wholesale markets of Georgia was $0,39/kg.
After a slowdown towards the end of 2021, in January 2022 Georgian potato exports increased again - high demand from Russia returned.
In total, in January 2022, Georgia exported an unusually high volume of 3000 tons of potatoes. 60% went to Russia, 30% to Azerbaijan, and the rest was bought by Ukraine and Moldova. Judging by export prices, Russian importers were buying better quality potatoes. The average export price for Russia was $0.41/kg (FOB). Prices for other countries were much lower, $0.10-0.12/kg (FOB) - these were probably inferior quality, smaller caliber potatoes and not intended for sale in supermarkets.
Now Georgian farmers report that export activity has slowed down again. This is not surprising, since prices in the Georgian market have slightly exceeded the Russian level. According to price monitoring EastFruit, in the first week of February potatoes in Russia are sold at $0.38/kg, while in Georgia the average price is $0.40/kg.
Last week it was reported that many Georgian farmers are refraining from selling large quantities at the local market. They expect potato prices to rise even more. After record exports, it seems logical that low inventories will lead to higher prices. But Georgian farmers may underestimate the impact of imports. If prices in the Georgian market increase significantly compared to other countries, imports will quickly increase and bring prices down to the previous level.