Business
Posted:
3 years ago
Georgia May Replace Russian Wheat by Kazakh or European Wheat
Over the past 10 days, the price of Russian exports wheat has increased by approximately $20. Today, the price of Russian wheat per ton constitutes $280-$285.
As noted by the Georgian Flour Producers Association Levan Silagava, details will be specified after September 15, when wheat harvesting starts in Kazakhstan.
In Kazakhstan, wheat is harvested in mid September. Siberia and Kazakhstan start harvesting simultaneously and details will be specified in this period. Though, we know that neither prices nor harvest is favorable in this direction. At the same time, there is one circumstance that may benefit our country: Namely, Kazakhstan supplies wheat in huge volumes to Afghanistan, where today the political situation has worsened and therefore, the wheat allocated for Afghanistan may be distributed to other countries, including to Georgia. This factor will be clarified by September 15 and we will know whether Kazakh wheat cheapens and we able to diversify Georgia’s wheat market in 2021.
As for Ukrainian wheat, the prices are always higher compared to Russian wheat. Therefore, over the past 10 years, we have imported Ukrainian wheat very rarely. Alternatives may be found in Romania, Hungary, France, but this year even EU courtiers have recorded an extreme rise in wheat prices. Now we remain in waiting regime”, Silagava told Business Partner.
Notably, in January-July 2021, Georgia imported 198,188 tons of wheat worth $46,387 million, including 171,832 tons were imported from Russia, 24,355 tons - from the USA and 2,000 tons from Kazakhstan.