Increases in food prices and their volatility are global challenges, particularly affecting import-dependent developing countries where spending on food is relatively high. While major concerns regarding price dynamics and volatility are typically driven by the physical availability and financial accessibility of food.
The project, Cost-Benefit Analysis of Climate Change Adaptation and Mitigation Options in Selected Sectors in Georgia, supports the World Bank’s Country Climate and Development Report (CCDR) by providing an in-depth analysis of the agriculture and tourism sectors.
For the countries in the South Caucasus, health hidden costs amount to 87%, 88%, and 92% of the total quantified hidden costs of agri-food systems. In terms of the share in GDP, they subsequently comprise 18%, 16%, and 22%, respectively.
International wheat prices have emerged as a significant policy concern in recent years, notably during the Covid-19 pandemic and Russia's war in Ukraine, as Russia has been known for periodically halting its grain exports to impact global prices. Georgia heavily depends on wheat imports from Russia, with over 95% of its wheat historically sourced from there.
This research report is available only in Georgian language.