MARKETS OF GEORGIAN AGRO-FOOD PRODUCTS AND EXPORT STIMULATING ECONOMIC POLICY

Abstract

The article substantiates the importance of the development of food markets in the solution of food security problem. It is argued that the tendency of demand for food has an increasing trend and the development of food markets still remains one of the most important challenges of contemporary world. The study analyzes the markets of Georgian agro- food products and studies the modern challenges in these markets. Comparative analysis of Georgian and Spanish food markets is conducted. The article estimates the positive and negative trends of export of Georgian agro-food products as well as the possibilities of diversification of products in the food markets. According to “The Impact-Immediacy” matrix the hindering factors of Georgian agro products export are identified. Using the «Priority Scheme» the priorities of economic policy stimulating the export of agro-food products are revealed. In terms of geographical orientation of the export the possibilities of diversification of food markets are discussed, especially in European markets. The conclusion is made that, in general, European food market is characterized by the growing tendency. However, in these markets there is no similar tendency for Georgian agro-food products. According to the study of the share of Georgian products and export growth rates in different countries the positive correlation between these variables is determined. But this circumstance is not considered to be sufficient for the positive impact on the economic growth. The conclusion is made that using effective mechanisms of export stimulation allows the diversification of export of Georgian agro products on the traditional but growing food markets on the one hand and on the other hand the expansion of geographical area of export markets.