Zura Uchumbegashvili, co-founder of Kumisi and head of the Poultry Development Association, says February’s 5% egg price reduction was not a political gesture, but a “reciprocal step” after observing the government’s “genuine willingness” to support the poultry sector. He spoke on BMGTV’s “Tsertili”, responding to speculation that producers lowered prices due to the government’s recent campaign against high food prices.
Egg producers, including “Kumisi,” had already warned about price increases back in November - before the government launched its anti-inflation campaign. Rising costs such as wages and distribution fines pushed producers to raise prices in January by 5.5%. Uchumbegashvili stresses that these cost factors remain unchanged, and the recent price drop came at the expense of producers’ margins.
He rejects claims that the simultaneous price cut by four major producers hints at coordination. According to him, the reduction was agreed informally during a meeting with the Prime Minister, attended only by those four companies. He also denies any fear of the ongoing investigation into food pricing, saying all company data is fully transparent and accessible to authorities.
Whether the lower price can be maintained depends on April’s findings from the newly formed “price commission.” Uchumbegashvili warns that if production costs continue to rise and no policy changes are made—such as adjusting VAT or regulating supermarket markups—producers will face two choices: stop production or increase prices again. He notes that Georgia’s poultry sector is highly risky, lacks adequate insurance, and currently operates far from the sustainable profit margins recommended internationally.
Uchumbegashvili adds that poultry businesses feel disrespected by the government’s tone, which often suggests that businesses are greedy. He calls for mutual respect between the government, the public, and entrepreneurs, emphasizing that without cooperation, no regulation or intervention will solve systemic problems. “We need to put an end to disrespect in this country,” he concludes.
