Food security and the functioning of wheat markets in Eurasia: a comparative price transmission analysis for the countries of Central Asia and the South Caucasus

Abstract

We investigated wheat price relationships between the import-dependent countries in Central Asia and the South Caucasus and the Black Sea wheat exporters to assess wheat market efficiency. This is crucial for ensuring availability and access to wheat and for reducing food insecurity. Results from linear and threshold error correction models suggested a strong influence of trade costs on market integration in Central Asia, while those costs were of minor importance in the South Caucasus. In particular, wheat trade in Central Asia is characterized by higher transportation costs but unofficial payments also play a large role. In addition, wheat price volatility is substantially higher in the wheat importing countries of Central Asia compared to the South Caucasus. To foster market functioning, wheat trade should be facilitated by policies that reduce the costs of trade. These include investments in grain market infrastructure, eliminating unofficial payments, and resolving geopolitical conflicts. Additionally, large distances characterize wheat trade in this region, low scope for import diversification and repeated export restrictions by Black Sea exporters. Therefore, trade-enhancing policies should be complemented with policies that increase wheat self-sufficiency in order to improve food security.

Sustainability-Related Implications of Competitive Advantages in Agricultural Value Chains: Evidence from Central Asia—China Trade and Investment

“…Crop producers may benefit from the investment in grain market infrastructure, subsidized loans, and export insurance programs. These measures correlate with the recommendation of Svanidze et al [150] to complement trade and infrastructure-enhancing policies with the support of domestic producers in order to bring more stability to value chains in crop production. The establishment of tax incentives along with the allocation of preferential credits for agribusiness are recommended by Pirmatov et al [38] among the measures to support competitive advantages.…”

COVID-19, Agriculture, and Food Security in Indonesia

“…Self-production and imports are methods for filling domestic food needs. Reliance solely upon imported food presents a big problem in the future; as food prices increase globally, middle-and low-income countries will be increasingly unable to afford to buy food from other countries (Funk and Brown, 2009), leading to steep domestic food prices caused by heavily imported food (Svanidze et al, 2019). Although food security is in a race against population growth, Grote (2014) and Goyal (2012) showed that population pressure, poverty, land degradation, and unstable environments had pushed food security further out of reach.…”

“…Supply-chain problems affect the market system and food price (Tadesse et al, 2014). The market needs to be monitored to control food prices and keep food accessible for all people; in other words, to reach food security (Svanidze et al, 2019). Figure 5 shows fluctuations in the price of rice in Indonesia during the pandemic.…”

The Regional And Geographical Aspects Of Food Security: A Spatial Analysis In The Case Of Azerbaijan, Hungary, Austria, Singapore And Georgia

“…According to the study, in order to secure ghee food and to meet the needs of people in these countries, the market infrastructure should be developed, the unofficial payments should be eliminated, and the geopolitical conflicts should be resolved. Thus, the trade-enhancing policies should be linked to wheat sufficiency policies so that food security may improve (Svanidze et al, 2019). Another research examined the four major pillars that might affect food security: the availability of food, the access to it, its utilisation and the stability of food.…”