It is important for us to strike the maximum possible balance between the interests of business and the population. We want everyone to work together to protect the interests of the public and, to the greatest extent possible, try to reduce prices, stated the Prime Minister of Georgia at today’s meeting of the Cross-Government Coordination Commission on Food Prices, which was attended by representatives of distribution companies.

The Head of Government of Georgia noted that, according to preliminary research, the average markup in Georgia amounts to 86 percent, which is quite high. The aim of the commission is to determine, through discussions with relevant stakeholders, how the pricing chain functions and where there is room to reduce prices.

“Preliminary research shows that a fairly high markup is generated directly from Georgia"s border to the retail shelf, with an average markup of 86 percent, which in our view is quite high. We looked into this issue; I personally saw, for example, that in Germany the markup from wholesale to shelf ranges from 20 to 30 percent, which is a standard margin.

Under these conditions, 86 percent appears to be a very high figure. Of this 86 percent, one share falls on distribution-44 percent-and the share is relatively smaller in the case of chain supermarkets. Altogether, the 86 percent leads to prices in Georgia being much higher compared to European prices. In some cases, prices are 50 percent higher; in others, two to three times higher-meaning the difference is quite significant.

When business operates at its own discretion, naturally this has many positive aspects; however, the social factor also comes into play, which is no less important for us. It is important for us to balance these interests as much as possible, and together we want to take care of the interests of the population and try, as far as possible, to reduce prices”, - added Irakli Kobakhidze.

The Head of Government of Georgia emphasized that such meetings are important for the authorities in order to receive information directly from the sector on where they see problems and opportunities for reducing prices.

Along with the head of the Distributors’ Business Association, representatives of around 15 distribution companies attended the commission’s meeting. Starting next week, similar meetings will be held with food producers, as well as on the prices of pharmaceutical products and fuel.