According to Fedir Rybalko, international consultant of the Food and Agriculture Organization of the United Nations (FAO), Georgian supermarkets are not yet using many promising opportunities to improve the efficiency of their business. He explained his position in detail with examples during his speech at the first innovation conference for fruit and vegetable market participants “HortiTech: trends and opportunities for Georgia”, which took place on April 25, 2023 in Tbilisi, Georgia.
One such opportunity for retail chains is the transition to a pooling system of reusable plastic boxes. “On banana logistics alone, supermarkets can save about $2.2 million annually by switching to reusable plastic containers! At the same time in addition to saving money, they would solve many other problems at once and remove the banana box from the market. While banana boxes are not reusable, presently they are used as the main multiple-use packaging solution for fruits and vegetables in Georgia,” – says Fedir Rybalko.
You can read about pooling concept and its history in this longread from EastFruit. The experience of Ukraine in the development of pooling is described in detail here, and the experience of Turkey in pooling – in this analytical article.
“Pooling would also allow supermarket chains in Georgia reduce labor costs, reduce space requirements for storage of packaging, which means lower real estate costs or expansion of its retail space. Also, supermarkets, thanks to the pooling, can reduce the costs of waste disposal, can increase the freshness and quality of vegetables, fruits and other fresh products, reduce perishability of fruits and vegetables and food losses, increase the level of traceability of products and save tens of millions of dollars in logistics. Moreover, this would help retail chains access “green credits” much easier, which is extremely important from the financial point of view,” – explains FAO retail expert.
Read also: “Kekhura factor” or why apple prices are not increasing in Georgia
Lower costs would also mean that supermarket chains could lower prices for fresh produce, which is an important factor for consumers in Georgia.
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