High prices for Russian wheat force importers to look for alternative suppliers

Georgia, for which Russia is the main supplier of culture, may change its priorities.

The price of wheat imported from Russia has increased by about $ 20 ($ 280-285) in the last 10 days alone.

On average, wheat consumption in Georgia is 650 thousand tons. At the same time, the republic itself produces only 15% of the required volumes.

In 2020, the production of a strategic product amounted to 101.2 thousand tons (+ 0.6% by 2019).

Wheat harvest is expected at the level of 150 thousand tons in 2021.

Russia was the main wheat supplier for Georgia:

In 2020, the import of culture in the republic amounted to 490.9 thousand tons, 488.3 thousand tons (99.5%) were imported from Russia.

For the first half of 2021, wheat imports decreased by 12.1% compared to the same period last year — 157.3 thousand tons.

83.3% of the total volume was imported from Russia.

In January — June 2020, the entire volume of imports fell on Russian wheat.

Due to the continuing growing price trend for culture in Russia, the republic is considering the possibility of increasing supplies from other countries.

There are several options:

Ukraine — the offered price for wheat, as a rule, is higher than the Russian one, so the last 10 years supplies to Georgia have been minimal.

Romania, Hungary, France are possible alternatives, although the price of culture in the EU countries has also overcome the psychological barrier of high prices.

Kazakhstan — unfavorable forecasts for both prices and harvest. But Kazakhstan sold a large amount of wheat and flour to Afghanistan, where at the moment there is a turbulent political situation.

Therefore, part of the supplies from Kazakhstan to Afghanistan may be transferred to other countries, including Georgia.

While the Georgian side is waiting for the further price trend.