Abstract
The paper evaluates the level of competition on the vegetable market. Based on the analysis of the production development trends and resource potential, dynamics and ratio of export and import of agricultural products, including vegetables are presented; dynamics of self-sufficiency ratio of these products is studied; challenges of food security and competitive advantages of Georgian vegetables are identified.The article concludes that the country has a significant potential for exporting vegetables both to the countries of Europe and Middle East. The paper discusses the factors that hinder export of vegetables; in addition, the ways for reducing dependency on seasonality, opportunities for the development of modern greenhouses and mechanisms for supplying goods to customers all year round are suggested.On the basis of analyzing the level of competition on the vegetable market, vegetable business is considered as monopolistic. In addition, it is calculated that, currently, local vegetables products account for only 75% of the market.The paper evaluates the outcomes of high market power caused by monopoly in vegetable business; the impact of market power on pricing mechanism and the welfare of population is determined. In accordance with the problems identified, conclusions are made and recommendations for solving these problems are suggested.
Highlights
Agriculture in Georgia has traditionally played a crucial role in provision of food to the population and improvement of welfare
One of the hindering factors of competition is the low level of education on the field of horticulture, the lack of information on modern technologies and markets
Studies have shown that farmers need regular consultations on agrarian and commercial issues throughout Georgia, including through the online services (Economic Policy Research Center, 2016)
Summary
Agriculture in Georgia has traditionally played a crucial role in provision of food to the population and improvement of welfare. Food production has decreased in the last decade, the level of satisfaction of the population with local food products is low, poverty rates are high in rural areas, income is small, the food shortages are mainly complemented by imported products (Kharaishvili, 2016). According to the data of 2017, import of agro-food products is 4 times higher than the export volume (Georgian National Statistic Office, 2018)
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