English / ქართული / русский /
Joseph ArchvadzePaata Koghuashvili
GRAIN SELF-SUFFICIENCY STRATEGY AS A CORNERSTONE OF STATE SECURITY

Abstract 

In recent decades, the upward trend in world prices for grain crops has become more and more pronounced. Compared to 1980, the price of wheat increased by 2.6 times - from 113.5 US dollars to 299.3 US dollars, and this is by no means the limit. We can safely assume that the era of cheap products in the world, including cheap bread, is almost over.

Grains, as a strategic product, are not only the main guarantor of maintaining the economic independence of any country, but also a strong means of political influence on countries that import grains. It is safe to assume that the "food and political price" of cereals will increase even more in the future. According to the FAO, world wheat production in 2021 amounted to 778.6 million tons, however, the growth of its production over the past five years (+2.9%) lagged behind the population growth rate over the same period (+5.8%) by 2 times. Unfavorable weather conditions, as well as the Russian-Ukrainian war, which accounted for more than 25 percent of global grain exports, are negatively affecting grain trade, their reserve and price. World cereal stocks in relation to global consumption decreased from 31.9% in 2017 to 29.6% in 2022.

Against this background, there has recently been a certain revision of agrarian policy in some Western countries, which is manifested in the reduction of state assistance (subsidies) to farmers, and secondly, in the mitigation of measures aimed at protecting the domestic market from external competitors. This policy has already been reflected in the so-called. documents of the Uruguay and Doha Rounds of the World Trade Organization.

In today's world, food security has two criteria and both relate to grains. These are stable stocks of cereals and production of cereals per capita. The first creates the necessary guarantees and stability in emergency situations, while the second shows the degree and level of the country's dependence on grain imports (taking into account the physiological norm of consumption of bread products in the country).

After gaining independence, Georgia stopped supplying Georgia with grain from the so-called. of the General Conscience Fund, due to which factories for the production of mixed fodder products stopped in Georgia, poultry factories transferred to an industrial basis, specialized meat and dairy complexes, etc. As a result, the production of meat fell catastrophically (by 2 times), and in general, the production of livestock products, which significantly worsened the living standards of the population of Georgia. If in 1988 the production of wheat and meat and meat products in Georgia amounted to 700 thousand tons and 172 thousand tons, respectively, by 2022 these figures fell to 157.4 thousand tons and 74.7 thousand tons, respectively. If earlier local production of meat was 2.3 times ahead of its import, with a virtually unchanged volume of import, its local production fell to the level of its import, which affected the average per capita consumption of meat and meat products by the local population (by about 1/4), the structure of the diet worsened, and how the result is malnutrition-related health problems, demographics and social stability.

Georgia, as a producing country, has dramatically lost ground over the past decades. On a per capita basis, in 2022 per capita wheat production was 5.3 times less than in 1950 and 2.9 times less than in 1980.

Over the past two decades of the 21st century (2001-2022/), Georgia imported grains and flour for 3.3 billion US dollars, which is 2.3 times the value added of agriculture in 2022. At the same time, since the beginning of this century, grain imports have increased 3.1 times, including imports of wheat - 2.2 times, and flour - 4.0 times.

The dramatic nature of the situation is emphasized by the fact that the shortage of cereals and wheat is no exception in the food supply of the country. - Georgia "traditionally" was and remains an import-dependent country. Since the beginning of the century, Georgia has imported USD 25.2 billion worth of agricultural and food products, while exports of products of the corresponding category amounted to USD 14.2 billion, i.e., the deficit amounted to USD 11.1 billion.

The decision of the food security of the country is the most important factor in maintaining the political and economic independence of the country. Food security based on own production should become the main task of the Government, which can have a multiplier effect and save the rural population, which is in an intensive migration process, and, accordingly, agriculture.

Production growth can be stimulated in many ways. In particular, the exemption of grain crops from taxation, it is possible to introduce the practice of guaranteed purchase by the state for a fixed volume of specific types of products, the introduction of preferential loans, insurance systems, direct subsidies, etc. It is necessary to put on a firm footing the state program "Grain", which provides, along with other measures, organizational measures to increase the production of highly reproductive seeds, as well as the restoration and functioning of the station for the withdrawal of elite replaceable materials, as well as the rehabilitation and development of hydro-reclamation systems.

This will be a significant step forward in ensuring the country's food security, increasing grain self-sufficiency to 60-65 percent, instead of the current 21 percent.

At the same time, in order to ensure public and social stability, the authorities clearly face the need to form a strategic food fund - for the uninterrupted supply of individual institutions (preschool institutions, hospitals, etc.), as well as social groups (pensioners, people with disabilities, etc.).

Key words: grain self-sufficiency, agro-food products, food security, grain import dependence, production stimulation.