ეკონომიკური პროფილი (Aug 2022)
USE OF ANTI-CRISIS MANAGEMENT IN THE COUNTRY'S FOOD SUPPLY
Abstract
Due to the current geopolitical and economic threats (meaning the Russia-Ukraine war), the analysis of the issue of food supply to the population of Georgia is quite actual. The most important thing is to fully utilize the production potential of the existing agri-food products, use them efficiently and calculate the country's supply channels correctly. It is noteworthy that the diversification of pre-existing import and export markets is necessary and feasible, and also, anti-crisis management issues are definitely applicable when addressing the country's food supply issues. Defined and known to our country by the Statistics Service of Georgia, the main food products of strategic importance, which are necessary for the human body, are: wheat, corn, potatoes, vegetables, meat, milk and dairy products, eggs. Analysis of data on these high nutritional value products reveals that the state has a lot to do to meet the needs of the population in the face of existing challenges. According to the Food and Agriculture Organization of the United Nations (FAO), food security can be measured by self-supply index, which can measure the extent to which a country can meet its local requirements for a given product. The share of food in the consumer basket of Georgia is the highest 30.23%, that is why it is interesting how much the country can provide the population with food products with basic nutritional value. According to the data of 2020-2021, for example, the wheat self-supply ratio of our country did not exceed 15%. Russia is the main importer of wheat in Georgia. Negative impacts as a result of the Russia-Ukraine war, the created deficit, the sanctions imposed on Russia can create problems for the cargo imported from Russia, taking into account all mentioned facts, the need to find new trading partners is on the agenda, from which the possible shortfall will be filled. According to 2021 data, 94% of wheat and 79% of corn were imported from Russia. The same is true for vegetables, whose self-supply rate is 63%. It seems that we can meet the needs of the country with vegetables, but we have to fill 1/3 with imported products. Georgia mainly imports dairy products (milk powder), according to 2021 data, 37% of the total products were imported from Ukraine and Belarus. Ukraine is the third largest importer of eggs and poultry and the second largest importer of meat. When a country is at war, it is natural that the supply chain of products will not be reliable, it is also possible that prices will increase, that is why we need to look for alternative ways of supplying products and alternative suppliers. The impact of hostilities will also be visible on the export of products from our country. Grape products, including wine, have a high rate of local exports. About 60% of these products are exported to Russia, up to 10% to Ukraine and up to 8% to China, while vegetables are also exported to Russia (64%). When such a level of crisis is created in the country, it is necessary for the government to intervene, develop anti-crisis measures and solve the problems in a timely manner. The state should act in 3 main directions: 1. To promote the development of small and medium-sized businesses, to improve the environment, to promote their cooperation, etc., all of which are necessary to reduce the negative consequences of the crisis; 2. Attracting investment to the country, which softens the background of the crisis and allows the country to breathe; 3. Maximum export promotion, the government should be the link between the business and the outside world, which should create all the conditions for the growth of exports. Business has no less role in crisis situations, its main obligation is to bring the country out of crisis. The main tasks of the business are: 1. To become more efficient, to refine the business strategy, the management system and to bring it in line with the decisions. The most important thing for a business is the proper work of each of its links and the perception of what benefits it creates for the society. 2. Improving the quality of the produced product and service, taking into account the needs of the priority customer. In times of crisis, all companies must take care to improve quality, otherwise businesses will not be able to increase exports. 3. To expand foreign contacts, there should be used both private and public opportunities. Taking into consideration all mentioned above, we can conclude that: 1. First of all, it is necessary to use the resources available in the country to improve the country's food supply ratio. 2. Prioritize projects to improve the country's food supply ratio when implementing state business support programs. 3. Search and timely detection of ways to diversify both import and export markets. 4. In the process of managing the state and companies, take into account the issues of anti-crisis management and risk management when making decisions.
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