Shipping policy of agri-food products and the formation of food markets in Georgia

¹ Ivane Javakhishvilli Tbilisi State University, Faculty of Economics and Bussiness, 1 Chavchavadze avenue, 0179 Tbilisi, Georgia
² Batumi Shota Rustaveli State University, Department of Business Administration, Management and Marketing, Ninoshvili/Rustaveli str. 35/32, Batumi, Georgia

^* Corresponding author: eter.kharaishvili@tsu.ge

Abstract

The article evaluates an importance of shipment in economic growth and the development of food markets. Delays caused in shipment of agri-food products due to the COVID-19 pandemic are analyzed, problems in logistics are identified. It is argued that by identifying challenges in the shipment system and developing effective policy mechanisms, it is possible to create food markets that meet the changing requirements. The qualty of impact-emergency matrix identifies challenges in food shipment policy: weak political support, legislative vacuum on shipping and food market standards, non-compliance of regulatory rules with regulations of other countries, low level of digitalization of shipments, policies to maintain food prices in case of increase in shipment costs, etc. The article concludes that the correlation between food production and its shipment rates is positive, however, insufficient to impact economic growth. Pursuing a transport-stimulating policy will lead to the diversification of the food markets, especially in European markets. Considering the development of the food market and the challenges identified in the field of shipment policy, recommendations have been developed towards policy priorities and directions of the development of food markets.