In Georgia, prices of food are rapidly increasing. Producers ascribe an increase in costs to Russia’s invasion of Ukraine, difficult logistics from Russia, and growing global prices for products and raw materials.
“The cost of our products has already risen by 13-14 percent,” stated Kakha Kruashvili, commercial director of Tkbili Kvekana, one of the largest confectionery firms.
“There was a logistical issue with the items that we received from Russia, which continues today. We’re discussing delivery through the Upper Lars checkpoint, which raised the delivery cost. As a result, the cost of our items has already risen by 13-14%”.
According to Kvekana, there are some ingredients that the company receives from Europe. However, there was also a concern with delivery because Turkey could not export products on time due to the congestion.
The producers have already increased the prices of poultry and eggs due to the sharply increased cost.
“The vital products for feeding chickens are corn, wheat, soybeans, and others, which have risen in price on world markets. For many other foods that can be imported, costs have increased by 60 percent, and much is impossible to import. There was an issue with the import of butter and syrups. Imports have become more pricey; everything has become more costly. Two main suppliers were shut; one is Russia and the second one is Ukraine. As far as I know, many small businesses have halted because of all this”, said the founder of the Chirina food production company, Revaz Vashakidze.
Moreover, he also said that the situation of industries is dire, which has already had an impact on prices, “but it also relies on which company can resist it.”
The Government of Georgia blames Russia’s invasion of Ukraine for the spike in prices and inflation. According to Prime Minister of Georgia, Irakli Garibashvili, inflation rates in several nations have surpassed forecasts.
“There haven’t been wars of this size in Europe since World War II. Naturally, this impacts everything: pricing, the economy, and inflation “, added Garibashvili.
