South Caucasus Gateways Agro-Food Value Chain

Transcript:South Caucasus Gateways Agro-Food Value Chain:
South Caucasus Gateways Agro-Food Value Chain Assessment Initial Findings Steve Allen, ADB Consultant CAREC Agriculture Development and Food Security Workshop, 11-12 August 2022 South Caucasus Gateways Agro-Food Value Chain Assessment Introduction ADB’s South Caucasus Gateways Technical Assistance Project supports regional transport, agro-food, and export competitiveness assessments The Regional Agro-Food Value-Chain Assessment aims to promote food security, increase exports, and determine options for transformational agro-logistics infrastructure investments The Assessment will assess and inter-regional trade flows and make recommendations on improving commercial food supply chains The team is assessing the capabilities and behaviour of agri-food value chains in Georgia, Azerbaijan and Armenia through discussions and in-depth interviews with private and public stakeholders Strategic Overview and Opportunities Advancing the development of efficient trade flows between and through Georgia and Azerbaijan via the East – West Corridor to the EU and the PRC. The middle corridor concept and Georgia as a transit HUB and re-export economy. Increased market access leading to expansion of agricultural exports (subject to standards harmonisation) and diversification of geographical markets away from dependency on Russia. The ‘pull through’ effect of increased exports and supply chain activity leading to increased production, improved quality standards, and improved incomes (of farmers for example) and effective (and increased) land allocation/consolidation and use for agri-production. South Caucasus Gateways Agro-Food Value Chain Assessment Expected Benefits Improved Food security from improved farm incomes, diversified production (to higher value crops), and more land available to increase production Improved agri/food and logistics infrastructure to support efficient function of value and chill chains with storage to stabilise pricing fluctuations and enable unified trading platform Improved border control infrastructure investment and efficiencies and therefore faster transit for the regional strength of perishable product e.g. apricots, tomatoes Improved government revenue i.e. for ‘transit’ and HUB countries such as Georgia South Caucasus Gateways Agro-Food Value Chain Assessment New Political Environment Affecting Agro Supply Chains The 44-day war of 2020 led to a move away from Azerbaijan agri-produce for key Russian markets to agri products from Iran – also known as ‘apricot wars’ The Russian invasion of Ukraine has led to an increased dependency on the Russian market for agri products and the shift of trade flows and agri logistics movement to the North – South Corridor trading and logistics systems and Iranian agri produce (and wider). unsustainable pressure on the logistics and transport of perishable produce through the only export route to the