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Friday, 21 October 2016


Daily bread still supplied from Russia

2010-08-06 10:49


Georgian media outlets report Tbilisi's abandonment of the Russian grain and switching to American and European wheat purchase. This is allegedly attributed to dry weather and bad crops in Russia sending the prices up both in domestic and export grain markets. However, as GeorgiaTimes found out, Russian agrarians are ready to provide continuous export due to strategic grain reserves, so the prices will soon be stabilized. In fact, Georgia is not going to give up Russian bread without emergency.


Agricom Georgian company is holding negotiations with the Germans and French on grain purchasing. If the bargain fails, the company will have to turn to Americans. As Business-Georgia stated with reference to the company leadership, the import of Russian wheat (as well as Kazakh and Ukrainian) has become unprofitable because of the drastic price growth induced by bad crops in Russia.

No one was surprised at the news, just like at Georgians' other freaks. It is fashionable there to make friends with America and it would be nice to order a bit of American bread; the more so, as the baker has already arrived under the guise of Minister of Economy from Canada. But these are jokes.

Seriously speaking, it is unprofitable for Georgia to buy American wheat: just calculate the delivery expenses. However, if US needs a helping hand to press Russia in the international markets, Georgian government is "always ready" for such political adventures. The more so, as it has grown accustomed to reckoning upon the international assistance when it runs out of its own means.

Still, Agricom is a private enterprise and GeorgiaTimes decided to ask the company about the advantages of buying grain outside CIS. Here we came across an interesting detail: American and European grain is only considered by the company management as a contingency plan in case the Russian export is completely shut off. According to Agricom Director Katya Kublashvili, Georgian media provided damaged information on the company's plans.

- It looks like the journalists failed to make it out. What is the point? Georgia consumes 800 thousand tons of wheat annually, 80-90 percent of wheat coming from Russia. If Moscow shuts off the export, we will probably have to look for an alternative in France, Germany and America - anywhere we will find wheat meeting the Russian standards.

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