From January to September of the current year, Georgia's export of tangerines reached $5.4 million, a notable increase from the $1.1 million recorded in the same period last year. A significant portion, $4.85 million or 86%, of these exports were directed towards the Russian market. Concurrently, Georgia imported tangerines worth $2.93 million, with 96% originating from Turkey.
Despite the increase in tangerine exports, Georgia faces a challenge due to a lack of cold storage facilities. This shortage is expected to cause a price surge, tripling the current cost of tangerines from 57 cents per kilogram by the season's end. The high cost of constructing refrigeration facilities has been cited as a major barrier to development in this sector, with banks requiring substantial collateral for loans aimed at building such infrastructure.
The reliance on the Russian market for tangerine exports has been a topic of discussion, albeit not openly acknowledged by officials. The European and American markets have shown little interest in Georgian citrus fruits, contrasting with the demand observed in Russia. This situation mirrors the challenges faced by Georgian honey producers in penetrating European markets due to stringent regulations.
Additionally, Georgia has seen growth in the export of lingonberries and blueberries, with revenues increasing from $20.5 million in the previous year to $27.8 million in the current period. Despite European promises of market access for blueberries, the majority of these exports have also found a market in Russia, where they fetch higher prices than in Europe.
The Georgian government has been approached by bakers seeking intervention to stabilize flour prices to prevent a rise in bread costs. However, the potential solution of negotiating with Russia has been met with reluctance, reflecting the geopolitical sensitivities involved.
The article suggests a need for Georgia to re-evaluate its trade strategy, particularly in light of its heavy reliance on the Russian market for agricultural exports. The discussion points towards a broader consideration of Georgia's economic and geopolitical positioning, urging a pragmatic approach to trade relations.
Source: EADaily