Grain Import Dependency and Food Security in the South Caucasus

Abstract

Although food security has improved during the transition period, the issue is still prevalent in the countries of the South Caucasus, which are heavily depending on wheat, the most important staple crop in the region, imported from Russia, and to a limited degree from Kazakhstan and Ukraine. Due to their favorable location next to the largest wheat exporting region, trade costs play a relatively small role and wheat markets in Armenia, Azerbaijan and Georgia are relatively well integrated with the Black Sea export market. Nevertheless, Armenia has the least diversified wheat imports among the South Caucasian countries due to its closed border with Azerbaijan. Despite the well-integrated markets, wheat imports and thus food security remain challenged by repeated restriction of wheat exports by the governments of Russia, Kazakhstan and Ukraine, most recently implemented as crisis policy during the COVID-19 pandemic.