Food transportation modern challenges and policy priorities in Georgia

Abstract

Paper evaluates the importance of transportation for economic growth and development of food markets. Delays in transportation of agro-food caused by covid-19 pandemic is analyzed and logistical problems are identified. Theoretic approach of transportation policy and rates are evaluated based on bibliographic research. It is substantiated, that effective transportation of food will play an important role in development of food markets. Therefore, by identifying challenges in transportation system and developing effective policy tools, structural adjustment of food markets according to the changes in demand will be possible. Challenges in food transportation sector has been identified by „urgency-impact quality“ matrix: weak policy support, legislative vacuum about standards of transportation and food markets, inconsistency of regulatory laws to the regulations of other countries, low level digitalization of transportation, policy for maintaining food prices in case of increased costs of transportation and other. Priorities of economic policy for stimulating transportation were identified by the ,,scheme of priorities“: need of policy support in food transportations, stimulating investments in the infrastructure of transportation, perfection of the regulatory base and harmonization with the regulations of other countries, use of pricing tools for transportation of food products, digitalization of a transportation system and a transportation corridor, providing the policy of finances in order to maintain an unified chain of transportation and food markets. In this article main directions of transportation and policy for internal regulations of grocery markets are identified: manufacturer-oriented policy, customer-oriented policy, policy for transportation management, financial policy for digitalization sector of transportation, development of food safety and quality standard, monitoring and other. A conclusion has been made in the article, that there is a positive correlation between food manufacturing and an indicator of its transportation, but, insufficient to impact an economic growth. Implementing a stimulating policy for transportation, will cause diversification of food markets, especially in European ones. Considering expanding food market and based on challenges, identified in the transportation sector policy, recommendations have been developed that are directed to policy priorities and development of food markets.