News

Difficult situation in Georgia's grain-growing industry

Published Jul 5, 2023

Tridge summary

The head of the Grain Producers Association in Georgia warns that the country's grain growing industry is facing a difficult situation that could lead to farmers being unable to repay their loans, going bankrupt, and being forced to stop working. Only 10% of last year's wheat has been sold so far, with the majority unsold and a new crop already harvested. The purchase prices for local grain are problematic, with mills finding it too expensive and producers considering it too low, potentially leading to farmers refusing to sow a new crop and causing the country to rely even more on grain imports.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

According to Nikoloz Beniaidze, head of the Grain Producers Association, a very difficult situation has developed in Georgian grain growing, which creates a danger that farmers will not be able to repay their loans, become bankrupt en masse, and will be forced to stop working. “At the moment, only 10% of last year's wheat has been sold, 90% has not yet been sold, and a new crop is added to this, which has already been harvested by 20-30%. But there are problems with purchase prices - wheat is not sold even at cost. The prime minister's order, which was supposed to give an advantage to local producers, is either not being implemented at all, or is being partially implemented,” he said. According to him, mills do not buy local grain, as they consider it too expensive, but for producers, even this price - 40-45 tetri per kilogram - is too low, since costs are growing, and the cost of grain is at least 80 tetri, that is, nearly double the purchase price. According to Nikoloz ...
Source: Zol
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.