The Georgian Competition and Consumer Agency (GCCA) has conducted a monitoring of the nut market and found that the overall market export share of the five major exporting undertakings ranged from 37% to 47% between 2020 and 2023. Nuts were exported from Georgia in the largest amount to Italy (32%), followed by Germany (20%), Armenia (7%), and Russia (4%).
Georgia exported 16,675 tons nuts for 289.8 million GEL in 2020, 23,465 tons for 365.7 million GEL in 2021, 21,848 tons for 277.1 million GEL in 2022, and 16,169 tons for 219.2 million GEL in 2023. The number of exporting undertakings fluctuated between 65 and 80 during this time.
According to GCCA, the market is law concentrated. During the study period, the total market share of the top 5 companies did not exceed 47%. This means that there is no single dominant player in the market. Additionally, the necessary conditions for group dominance in terms of market shares are not present. Considering the number of companies in the market, the market share of the major companies, and the concentration index, it can be concluded that the market is competitive.
According to report, Georgia exports two types of nuts: shelled and unshelled. Between 2020 and 2023, the majority of nut exports from the country consisted of shelled nuts. The share of the five largest exporting companies in the total export of shelled nuts was low, ranging from 31% to 39%.
In the case of shelled nuts, the market is highly concentrated with a dominant undertaking. However, upon further study, it was found that this market structure is due to several objective circumstances. Therefore, this level of concentration does not have a negative impact on the competitive environment.
Based on the information gained by the GCCA, on the basis of extensive analysis and multifaceted assessment, and within the framework of monitoring, there are no concerns of competition legislation violations in the nut market. Therefore, according to the GCCA's decision, there is no need for further observation.
The Georgian Competition and Consumer Agency (GCCA) initiated the investigation in 2022, based on the appeal of local farmers.
