• NAME OF RESEARCH

    Global Food Price Shocks Transmission to Local Markets and Welfare Implications for Georgian Households

  • NAME OF AUTHOR

    Konrad Adenauer Foundation & PMCG

  • CATEGORY

    Agriculture

  • YEAR

    2015-12-01

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According to the Global Hunger Index1 (GHI) measured by the International Food Policy Research Institute, Georgia lags behind most of the countries in the region in terms of food security.  Global hunger index once more demonstrates the need for well-tailored food security policy in Georgia.

The main goal of this paper is to call attention of the relevant stakeholders, and particularly, policy makers about the vulnerability of different socio-economic groups towards hunger in Georgia.

This study is focused on the food price on global markets and the influence of global price shocks on domestic consumers. Along with the deeper integration of world markets, global trade in food products has been on a steady growth path over the last several decades. In 2002, global trade in food products stood at USD 176 billion2, ten years after, in 2012, trade in food products was almost tripled and reached USD 516 billion. Big chunk of the growth was on the account of developing countries, which increased imports of food products from USD 41 billion, in 2002, to over USD 150 billion, in 2012. Increasing reliance on imported foodstuff on one hand helps to diversify menu in developing countries, however, on the other hand food markets in developing countries become more exposed to global food price shocks.