From September, which marks the start of the apple season in Georgia, to the end of February, Georgia has exported 6 300 tonnes of apples – 17% more than in the same period but a year before. Export prices were practically unchanged from the previous season, so the revenues from exports in USD have also increased by 17%. EastFruit analysts note that exchange rate fluctuations and high inflation belittle this success.
The current season’s export volume in September-February is the second highest in at least the last 8 years. The volume is only below the exports from 2020’s harvest, which was an extraordinary period as the pandemic and unfavorable weather forced Russian Federation to buy huge volumes of many agricultural products. The current buyer is also Russia, but it is not buying as much as in the 2020-2021 season. Nevertheless, export volumes this season are quite good.
As mentioned above, export prices have not changed over the year. For the discussed period, a kilogram was exported at $0.65 on average both in the current and in the previous season. Given the strengthening of the Georgian currency against the US Dollar, export prices have reduced in Georgian Laris (GEL). In our timeframe, GEL has gotten on average 12% stronger over the year, so the 2022-2023 season’s export price in GEL is 12% lower than in the previous season.
On top of the reduction in revenues in GEL due to the exchange rate fluctuations, inflation, or the general price level of goods and services in Georgia, also caused significant damage. As we mentioned above, a single kilogram of exported apples has generated 12% less Georgian Laris compared to the year before. If the price of goods and services in Georgia remained the same, revenue from selling a kilogram of apples could buy 12% fewer goods and services. But the general price level in Georgia has increased by about 10%, and as a result, the amount of goods and services one can buy for an exported kilogram of apples in Georgia has reduced by 20%.
The total export value of apples in September-February amounted to $4 million, up from $3.4 million in the same period of the previous season. In Lari, the total export value this season is 11 million GEL, 3% higher than a year before. But in terms of the number of goods and services that could be bought, this revenue still falls 6% short compared to revenue generated in the previous season.
Source: EastFruit
