A decision tool for policymakers to foster higher-value perishable agricultural exports

Abstract

A well-functioning logistics environment is key to a country's opportunities for trade, growth and employment. This is particularly relevant for developing countries, where a weak logistics environment often hampers trade. While logistics services are typically provided by private actors, national governments play a key role in ensuring high logistics performance, e.g. via infrastructure investments and regulatory reform. Given limited monetary resources, identifying the most critical investments is a crucial task for developing nations.We develop a decision framework as to which trade logistics interventions to prioritize in a country wishing to facilitate higher-value exports of perishable agricultural goods. The framework includes product-specific supply chain requirements. It is based on primary and secondary data analysis and a literature review. We apply the framework to the Kyrgyz Republic and present a country-specific gap analysis, using results from semi-structured interviews and secondary data analysis. Our results include policy recommendations for measures to improve the supply chain for agricultural goods in the Kyrgyz Republic. The framework can be applied to similar countries, i.e. middle-income countries, either landlocked or located far away from large export markets, with existing agricultural production but a low share of higher value agricultural exports.

Keywords

• Logistics performance
• Logistics policy development
• Export promotion
• Trade facilitation
• Food chain management
• Landlocked countries