US Special Representative concerned by Georgia's dependence on Russian wheat
Georgia’s dependence on Russian wheat
In an interview with Voice of America, US Special Representative for Global Food Security Dr. Kerry Fowler says that Georgia has a double burden – on one hand it depends on Russian wheat imports, and on the other, during this period it is having to replace wheat with more expensive imported flour.
“Georgia itself produces about 100,000 tons of wheat per year, but imports five times more, and this amount comes almost entirely from Russia. In this situation, Georgia, like other countries in the world dependent on Russian wheat, wants to get rid of it and be less dependent on it,” says Fowler.
According to Fowler, in Georgia’s case it will be necessary to slightly increase domestic production of wheat. Russia currently has restrictions on wheat exports to other countries, including Georgia, and has already forced several countries to import flour instead of higher-priced wheat, Fowler says, “especially now that prices are higher than usual.”
“So Georgia, like many other countries, is faced with the fact that it has to bear a double burden: first, it depends on an unreliable Russia, and second, it has to replace wheat with even more expensive imported flour,” Fowler stated.
Kerry Fowler stressed that over the past thirty years, the United States has provided about $6 billion in assistance to Georgia, part of which was in agricultural programs:
“Agricultural programs are ongoing programs for four-five years and about $23 million has been allocated to them. Also, $5 million was allocated to a program aimed at reducing the impact of harmful insects. We are monitoring these programs to evaluate their effectiveness and improve how we help Georgia.”
Georgia is 100% dependent on fuel imports and 85-90% on wheat imports. According to the National Statistical Office, compared to the same period last year, the price of bread increased by 27%.
The rise in the price of bread is connected to a rise in the price of fuel, above all owing to the Russian-Ukrainian war. These two countries account for 30% of wheat exports. Currently, 22 million tons of wheat are blocked in Ukrainian ports, which corresponds to the annual consumption of 100 million people. After reaching an agreement on the import of wheat by Ukraine, the first Ukrainian ship with grain arrived in Turkey only at the beginning of August.
Georgia’s dependence on Russian wheat