The Georgian potato market transitions from selling potatoes from last year’s crop to selling potatoes from this year’s harvest in May.

Prices for potatoes can occasionally increase if the previous harvest, which primarily occurs in the Samtskhe-Javakheti region between September and October, is insufficient until the new harvest arrives on the market in full force.

“Interestingly, harvest in the mentioned region was bad in 2022, but the prices have remained stable,” the EastFruit analysts recently announced.

On the Georgian wholesale market, the average price for potatoes from the previous year has been set at roughly USD0.67/kg and is not increasing. According to the above-mentioned experts, there are two key causes: already-high pricing and a significant increase in potato imports.

“Due to the poor harvest in the Samtskhe-Javakheti region in 2022, potato prices have gone up in October. The average price has been stable but at a record-high level since then. Raising prices even higher is very likely to be problematic – Georgian consumers are already paying a very high price, are they ready to pay even more? – for the most part, probably not,” the analysts added.

The Georgian importers have taken advantage of the opportunity presented by the price disparity pretty effectively. The country imported slightly more than 27,000 tons of potatoes from October 2022 to the end of April 2023, which is the second-highest number at least since 2015. For the nine seasons prior, the average import volume for October to April was substantially lower at 12,000 tons. Potato prices in Georgia have remained high yet consistent as a result of heavy imports. In particular, during the transitional phase, potatoes would have become significantly more expensive without imports.

“There are several big reasons for potato prices to reduce in Georgia. Firstly, the potatoes from the new Georgian harvest have started to enter the market. This will of course put negative pressure on the prices: more potatoes, lower the prices. Potatoes are still cheaper in the region than in Georgia, so the countries in the neighborhood still have the opportunity to export to Georgia. Which also reduces the possibility of price increases,” the experts explained.

Currently, Russia and Belarus are the top suppliers of potatoes to Georgia, but Turkey could make a comeback. Turkey, which was previously the largest importer, has restricted exports to combat inflation, but this may alter with the arrival of the new season. The early crop in Turkey is reportedly fairly rich (TurkiyeGazetesi), thus there may be incentives to export, potentially to Georgia. If the price differential persists, why not? AgroPrice.net reports that the current average wholesale price in Istanbul, Turkey is USD0.34/kg.