Food prices are rising in Georgia, government blames Russian-Ukrainian war

Food prices on the rise in Georgia

Food prices in Georgia are growing rapidly. Producers attribute the rise in prices to Russia’s invasion of Ukraine, complex logistics from Russia, and rising prices for products and raw materials on the world market.

“The price of our products has already increased by 13-14%,” said Kakha Kruashvili, commercial director of Tkbili Kvekana, one of the largest confectionery companies.

“There was a logistical problem with the products that we received from Russia, which persists to this day. We are talking about delivery through the Upper Lars checkpoint, which increased the cost of delivery. As a result, the price of our products has already increased by 13-14%”.

According to him, there are some ingredients that the company receives from Europe, but there was also a problem with delivery, because Turkey, due to congestion, could not pass the goods on time.

Due to the sharply increased cost, producers have already raised prices for both eggs and poultry.

“The main products for feeding chickens are wheat, corn, soybeans and others, which have risen in price on world markets. For a lot of other foods that can be imported, prices have risen by 60%, and much is simply impossible to import. There was a problem with the import of syrups and butter. Imports have become more expensive, everything has become more expensive. Two main suppliers were closed – Russia and Ukraine. As far as I know, many small businesses have stopped because of all this”, said Revaz Vashakidze, founder of the Chirina food production enterprise.

According to him, the situation in the industry is catastrophic, which, of course, has already affected prices, “but it also depends on which company can withstand it”.

• Fuel prices hit record high in Georgia
• Op-ed: Who is speculating on the fear of war in Georgia and why?
• Сost of living in Georgia reaches $72 per person

The Georgian government blames the rise in prices and inflation on Russia’s invasion of Ukraine. Georgian Prime Minister Irakli Garibashvili said that inflation rates in many countries exceeded the forecast.

“For example, the United States has recorded a record level for the past 40 years, and in Germany, inflation is at the peak of the past 29 years”.

According to him, the same applies to the eurozone as a whole.

“Since the Second World War, there have not been wars of this magnitude in Europe. Naturally, this affects everything: prices, the economy, inflation”, Garibashvili said.

The Prime Minister also compared the current rate of inflation with the period of the UNM in 2006:

“I do not want to make another comparison with the previous government, but since opponents speak so irresponsibly and try to mislead citizens, I would like to remind them that during their period in May 2011, inflation was 14.3%, in March of the same year – 13.9%, in April – 13.5%, even earlier, in 2006, inflation was 14.5%”.