PMC Research Centre reports that considering Georgia’s high dependence on imports from Russia and low self-sufficiency in terms of domestic wheat production, it is crucial that the dialogue between potential trade partners, such as Kazakhstan and Turkey, be intensified in the long run to diversify the wheat market and ensure food security for Georgia.
According to the research, since 2017, the production of wheat has, on average, been increasing by 9.5%, showing a rapid jump of 32.7% in 2021, reaching 135 900 tons of produced wheat, which could partially be attributed to the increased number of wheat-producing companies and increased productivity. By regions, in 2021, compared to 2020, wheat production increased sharply in Kvemo Kartli (78%) and Shida Kartli (71%), followed by Kakheti (26%).
Since 2017, similar to the production level, the sown area has also shown an upward trend, with a considerable YoY increase in 2020 (8.7%) and 2021 (6.5%).
Meanwhile, despite the declining average yield per hectare since 2018, the average yield increased significantly by 22.7% in 2021 compared to 2020, hinting at the increased productivity on the part of wheat-producing companies.
However, it must also be noted that following a rapid increase in domestic production in 2021, the share of imports declined to 78%. In
particular, on average, the share of imports in total wheat supply was equal to 84.0%.
In 2021, following a rapid increase in domestic production, the self-sufficiency ratio increased from 15% to 22%, still indicating that the production of wheat in the country is a long way from being sufficient to meet domestic needs.
"Finally, considering Georgia’s high dependence on imports from Russia and low self-sufficiency in terms of domestic wheat production, it is crucial that the dialogue between potential trade partners, such as Kazakhstan and Turkey, be intensified in the long run to diversify the wheat market and ensure food security for Georgia", - the report reads.
