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Food, Nature and Health Transitions Repeatable Country Models
Food, Nature and Health Transitions Repeatable Country Models
Food, Nature and Health Transitions Repeatable Country Models
Contents
Foreword 3
Executive summary 4
1 T
he leadership imperative: country-led transitions in food, 6
nature and health
1.1 F
ood systems are no longer fit for purpose – they need 7
transforming
2.1 E
arly movers transform traditional and informal 14
agriculture sectors
2.2 E
thiopia: strengthening country transformation capacity 15
2.3 U
nleashing the power of the “hidden middle”: India, Vietnam 18
and Ghana
3.1 F
ostering innovation to improve productivity, nutrition security 29
and sustainability
3.2 S
caling-up adoption of nature-positive, climate-smart 33
food production
3.3 T
owards healthier and more sustainable diets 38
Contributors 52
Endnotes 53
Disclaimer
This document is published by the
World Economic Forum as a contribution
to a project, insight area or interaction.
The findings, interpretations and
conclusions expressed herein are a result
of a collaborative process facilitated and
endorsed by the World Economic Forum
but whose results do not necessarily
represent the views of the World Economic
Forum, nor the entirety of its Members,
Partners or other stakeholders.
Foreword
Globally, the food and agribusiness industry systems demand that plans for transformation
represents 35% of all jobs and close to 10% of carefully consider the inter-relations and tensions
GDP.1, 2 Food and agriculture collectively account between different dimensions of these systems
for more than 30% of the world’s greenhouse gas and concurrently apply the transformation levers
emissions and over 80% of tropical deforestation most relevant for the food system at hand. These
and biodiversity loss.3, 4, 5 Transforming food levers include government policy and related tools,
systems is essential to meeting net-zero, nature- public-private partnerships, technology innovation,
positive goals by 2030, providing dignified financing, action by companies and enterprises,
Sean de Cleene livelihoods and contributing to improved nutrition and multi-stakeholder coalitions.
Head, Food Systems and health for the earth’s 8 billion people.
Initiative; Member of the Though they differ in detail, the country examples
Executive Committee, It is incontrovertible that we need to transform share common elements, which include the following:
World Economic Forum our food systems. Now is the time to focus on
the “how”. Since the first United Nations (UN) – The important role governments play in
Food Systems Summit in 2021, 117 countries establishing clear, long-range roadmaps and
have committed to transform their food systems in creating a strong environment that enables
in line with the UN’s Sustainable Development inclusive, sustainable growth
Goals.6 While this is important progress, so far, few – The dynamic interplay of public and private
countries have translated those commitments into financing, and how greater coordination of
specific, integrated roadmaps. The pace and scale such financing and other support can unlock
at which change is happening is simply not enough capital flows
to meet global goals by 2030. – The power of private enterprise to innovate and
build scalable business models that can anchor
Tania Strauss This report offers insights into the actions and
Head, Strategy and
more resilient food systems
investments that can accelerate a country’s
Global Projects, Food transition towards food systems that deliver a – Insights into how innovations can only take hold
Systems Initiative, when supported by strong ecosystems centred
stronger economy, better livelihoods for a more
World Economic Forum around farmer adoption.
inclusive set of people, greater nutritional security
and improved health, while causing a lower impact
This report owes much to the substantial research
on the climate and nature.
that already exists on food systems transformation.
These insights are drawn from successful It was created in collaboration with the World
transformations observed over a few decades in a Economic Forum’s Centre for Nature and Climate,
handful of diverse countries. They are not perfect whose mission is to galvanize multi-sectoral
illustrations of food systems transformation, of leadership to advance global insight and policy, to
course. Any real-world example is going to be support collective corporate action, and to leverage
messy. And to cover a broad scope of different innovation, finance and technology to accelerate
types of transformation across different countries in systems transformations to meet the needs of
Vikki Tam profit, people and planet. The report also draws on
a relatively brief report, some details and issues are
Partner and Head of Global
only touched on briefly or left unexplored. But these Bain & Company’s ongoing partnership with the
Social Impact Practice, Bain
& Company examples do offer profiles of progressive leadership Forum’s Food Action Alliance and Food Innovation
in developing and emerging countries that Hubs, as well as its client work in the private,
outperformed on most — if not all — dimensions. social and public sectors. We hope this report will
These transformations often started as primarily contribute to the collective dialogue on country-
agricultural productivity transformations aimed at led food systems transformation and motivate
improving food security and catalysing a broader key stakeholders to work in coordinated ways to
economic transformation. support farmers, consumers and the planet.
In developed markets, the picture is murkier, as The ideas in this report will be presented to
no single country has outperformed on multiple business and government leaders, beginning
key dimensions of food systems without areas of in 2023 at the World Economic Forum’s Annual
underperformance. Nevertheless, select areas of Meeting in Davos, Switzerland. These leaders
success in these markets highlight key learnings can accelerate food systems transformation
for others. by collaborating through platforms such as the
Food Action Alliance and CEO Alliance on Food,
The lessons highlighted can inform actions, Nature and Health, among others. Our ambition is
investments and collaboration, but peer countries that this community will bring these ideas to life,
should not necessarily try to follow the exact helping create demonstration models of effective
same pathway. With time running out, the scope public-private partnership that can accelerate food
and complexity of the challenges facing food systems transitions in specific countries.
High-performing food systems provide healthy and Chapter 3 looks at how countries are using
nutritious diets. They create dignified livelihoods for innovation to improve outcomes in productivity,
producers and benefit the economy. They mitigate sustainability and nutrition. For example, Algeria
and adapt to climate change, and safeguard nature has improved food security in the face of significant
and biodiversity. Today our food systems fall far constraints on water availability, while Vietnam has
short of these goals, leading to both hunger and sustainably intensified its rice production. Case
obesity, low resilience to external shocks, and studies from Canada and New Zealand illustrate
negative impacts on climate and nature. Food ways to scale-up adoption of nature-positive and
systems are highly interdependent and involve a climate-smart food production, particularly by
broad set of stakeholders. This report focuses on focusing on the case for an economic advantage
the urgent and complex transformations required at for producers. The chapter draws on pockets of
the most relevant unit of change: the country. success in a number of countries to suggest an
emerging model for shifting consumption towards
At a high level, the transformation pathways and healthier and more sustainable diets, by using
levers are well known: the global community must pricing interventions from public and private actors,
implement climate-smart and nature-positive food introducing clearer consumer communication
and agricultural practices, change how and what and engagement, and increasing access to and
we consume, innovate, focus public policy, take availability of healthy and sustainable foods.
new approaches to financing, and collaborate
across public and private sectors. These early mover country profiles show how
multiple actors coordinate and employ the varied
How these levers accelerate the pace and scale levers available to enable large-scale change. They
of change at a country level is less broadly also show the challenges. Success has not been
understood. To answer that question, the report universal across all food system dimensions and
defined a set of key food systems outcomes trade-offs were made in each transformation effort.
(for which authoritative data is available across However, taken together, the profiles demonstrate
most countries) and selected seven “early the potential for these levers, when applied
mover” countries whose performance has been concurrently and with urgency, to accelerate
comparatively strong and whose examples country-led food systems transformation.
and lessons are widely relevant. Their stories
of transformation identify common, repeatable Chapter 4 presents a roadmap for multi-stakeholder
elements, including the most critical actions and actions and investments. It includes five critical, urgent
investments for driving change and how they and concurrent stakeholder actions, and outlines
should be coordinated. Collectively, these success how governments, capital providers, companies,
stories can inform faster, more holistic, country-led entrepreneurs and NGOs can support them.
transitions to better food systems.
Food systems are complicated combinations of Transforming global food and land use systems will
interrelated and interdependent social, economic, require $300-350 billion of investment per year until
environmental and political systems. As defined 2030.22 This report aims to highlight where and how
by the Food and Agriculture Organization of the to prioritize those investments by answering three
United Nations (FAO), “food systems encompass key questions:
the entire range of actors and their interlinked
value-adding activities involved in the production, 1. Which common set of key outcomes should
aggregation, processing, distribution, consumption countries focus on to effectively set goals,
and disposal of food products”.7 Those products measure progress and prioritize action?
originate from agriculture, forestry and fisheries 2. How can levers — both actions and
and are a critical part of their broader economic, investments — work together to unlock faster
societal and natural environments. Globally, the progress towards target outcomes for different
food and agribusiness industry represents 35% of types of countries?
all jobs and close to 10% of GDP, with the world’s
farmers producing enough food to feed up to 10 3. How can multi-stakeholder partnerships
billion people.8, 9 Yet despite this apparent success, collaborate, innovate and scale-up to make
there is a strong consensus that food systems are maximum progress on their shared goals with
increasingly susceptible to shocks and less and the biggest returns on investment?
less fit for purpose. In exploring these questions, the report deploys
a deliberately data-driven approach, by:
Food and agriculture collectively account for more
Food and than 30% of greenhouse gas (GHG) emissions and – Compiling a two-decade data set on the
agriculture over 80% of deforestation and biodiversity loss performance of 150 countries against a set
collectively around the world.10, 11, 12 An estimated one-third of metrics that, taken together, provide for
account for more of all food is wasted, yet up to 2.3 billion people a relatively comprehensive range of food
than 30% of face moderate or severe food insecurity, a figure system outcomes
greenhouse gas exacerbated by recent crises.13, 14, 15 At the same
time, more than one billion people are obese and – Identifying early mover countries that have
(GHG) emissions demonstrated consistently strong – often
diet-related diseases are the leading risk factor for
and over 80% of death in most countries in the world.16, 17 Two-thirds exceptional – performance on the key outcomes
deforestation and of working adults living in poverty rely on agriculture most relevant to their country’s specific context
biodiversity loss for their livelihoods.18 – Analysing these national food system success
around the world. stories to identify the key levers that had
Despite their challenges, food systems, when
the greatest impacts on transformation and
transformed, can help solve some of the world’s
then to build three repeatable models based
toughest problems, from climate change to resilient
on a combination of those levers working in
livelihoods. Food systems encompass a wide
alignment (see Figures 6, 11 and 14)
range of food types across land and ocean, and
it is possible to evolve these systems to provide It is worth noting that many of the transformation
food and nutrition security to our growing global success stories profiled in this report have been
population, expected to be almost 10 billion by decades in the making. Most were not launched
2050.19 Advances such as regenerative farming as holistic food systems transformations, but were
have the potential to sequester within soils a instead focused on the specific dimensions viewed
significant share of global GHG emissions – as the most pressing challenges at the time. Several
between 9% and 23% according to a 2017 FAO began before the impacts of climate change were
estimate. Transformed food systems could help broadly recognized or keenly felt. This history does
build resilient communities and create opportunities not make them any less relevant as examples of
to improve lives and livelihoods, including for countries achieving large-scale change towards
women, youth and Indigenous peoples. 20 better food systems. But the greater urgency and
complexity of today’s food system challenges
With fewer than eight annual planting cycles require greater resourcefulness and ambition.
left to build more sustainable, inclusive and healthy Whereas countries may have once activated
food systems by 2030 – in line with the targets change levers consecutively – such as government
in the Paris Agreement and the UN’s Sustainable policy, public-private partnerships, financing,
Development Goals (SDGs) – a growing number innovation, corporate action and multi-stakeholder
of countries are heeding the leadership imperative coalitions – they must now deploy these strategies
to act now. Since the first UN Food Systems concurrently. And while the early mover examples
Summit in 2021, 117 countries have committed profiled by the report are country-specific, they
to transform their food systems to meet the should be viewed as an integrated set of insights
UN’s SDGs.21 and models that are relevant to any country.
Successful food systems can look different in of food system success centred on five key
different countries and even within countries – but dimensions (see Figure 1):
they all lead to positive economic, environmental,
nutrition and health outcomes. Establishing a 1. Economy and production
universal definition of successful food system
outcomes will help countries set the right targets, 2. Livelihoods, poverty and equity
prioritize their actions and measure progress
towards true food systems transformation. Although 3. Nature and biodiversity
there is no single, accepted definition today, there is
a significant effort underway to develop a common 4. Climate adaptation and mitigation
set of metrics to serve that purpose, known as the
Food Systems Countdown Initiative.23 Until that 5. Nutrition, diet and health
standard is published, this report offers a definition
Research and Agricultural Farm Processing Distribution, Food retail Eating Waste and
technology production inputs transport, trade /service disposal
Digital/data and technology innovation Policy and enabling environment Public and private financing
Livelihoods, poverty and equity – Percentage of rural population below the country’s living
income threshold*†
– Poverty headcount ratio at $5.50 per day,
2011 purchasing power parity* – Female employment in the food sector*†
– Ocean Health Index – food provision score* – Eutrophication from diet, per capita†
– Ocean Health Index – biodiversity score* – Share of other natural land types (e.g. wetlands, peatlands)†
Climate adaptation and mitigation – GHG emissions per unit of production, blue foods*†
– Farm gate GHG emissions per unit of production, crops*† – Pre- and post-production GHG emissions (for crops,
livestock and blue foods)*†
– Farm gate GHG emissions per unit of production,
livestock*† – Resilience to climate change (e.g. damage and loss
metric from FAO)*†
– GHG emissions from consumption, per capita*
Notes: * indicates data for a point in time, † indicates data measuring a change over time. Cost of nutrient adequacy is defined as the “minimum cost of using locally-
available foods to obtain enough of all essential nutrients needed for an active and healthy life” by Herforth et al.24 Healthy diets includes e.g. diet quality indicators,
such as the Healthy Diet Indicator or Global Dietary Recommendations Score from World Health Organization (WHO).
Types Characteristics
Informal and – Higher productivity due to use of inputs (seeds and fertilizer) with some medium-
Expanding and large-scale farms
– Modern supply chains emerging; supermarkets expanding but informal markets
still dominate
Emerging and – Increased number of medium- and large-scale commercial farms with many
Diversifying small-scale farms
– Processed foods are common in urban areas and can be found in many rural areas
Modernizing and – High productivity with mechanization and input-intensive practices; higher food
waste and spoilage
Formalizing
– National distribution chains allow for diverse food consumption of fresh and
processed foods
Industrialized and – Small number of large, input-intensive farms with high market consolidation and
long supply chains
Consolidated
– High supermarket density and luxury options
Source: Food Systems Dashboard, Global Alliance for Improved Nutrition (GAIN) and Johns Hopkins University, 2020.
Production/productivity Poverty Developing countries use With more efficient & sustainable As countries develop,
& value addition drive declines as water less efficiently; more production, livestock emissions challenges shift from
economic & nutrition economic developed countries’ intensity drops; similar trends not hunger to obesity – some
outcomes outcomes higher input intensity also observed for crops. As countries countries need to address
improve impacts nature develop, dietary shifts lead to greater both simultaneously
per capita emissions
Food Value Poverty Agricultural Eutrophica- Crop Livestock GHGs from Prevalence Adult
production addition headcount water-use tion per production production diet, per of under- obesity rate
per capita per capita efficiency capita emissions emissions capita nourishment
/ton /ton
Kg Net value of % population Value-added PO43-eq. g in Tons CO2e Tons CO2e Kg CO2e % of population % of 18+
agricultural ag. (output below poverty of ag. sector water and emitted from emitted from emitted from undernourished, population
production/ value – input line ($5.50), /vol. water soil/person, crops/tons animal food 2019 obese, 2019
population, costs)/ avg. 2014-19 used ($/ 2019 crop products/ consumed/
2018 population, cu.m), avg. produced, tons population,
avg. 2017-19 2019 produced, 2019
2013-18 2019
Higher is Higher is Lower is Higher is Lower is Lower is Lower is Lower is Lower is Lower is
better better better better better better better better better better
0 0 0% 0 0 0 0 0 0% 0%
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
I&E
E&D
M&F
I&C
R&T
R&T
R&T
R&T
R&T
R&T
R&T
R&T
R&T
R&T
Rural and Traditional Informal and Expanding Emerging and Diversifying Modernizing and Formalizing Industrialized and Consolidated
Sources: FAO, UN Industrial Development Organization (UNIDO), World Bank, World Wide Fund for Nature (WWF), Euromonitor.
Note: Markers represent the median among countries in each of the five food system types (on x-axis) for which data is available.26
These patterns illustrate how the challenges and By pursuing key transformation levers in tandem,
priorities of food systems transformation evolve these inter-relations can be leveraged and trade-
as countries develop and industrialize. The data offs minimized, accelerating progress towards more
also highlights that a country’s performance on sustainable, inclusive and healthy food systems.
one dimension affects its performance on others.
Food systems in countries classified as Rural agricultural development can come to benefit
and Traditional or Informal and Expanding (see multiple food system dimensions, an emphasis
Figures 3 and 4) are dominated by smallholder on scaling-up, as later country profiles will show,
farms, typically no larger than two hectares. They can come at the expense of climate and nature
are characterized by relatively low productivity outcomes. It is therefore important for countries
and, consequently, see higher levels of poverty to consider all outcomes early on in integrated
and food insecurity. The median productivity in transformation plans in order to avoid such
Rural and Traditional countries is 40% of what unintended negative consequences that can also
is observed in the most developed markets, include a rapid uptake in ultra-processed foods
with roughly 90% of the population living on and significant growth in unhealthy diets.
less than $5.50 a day. Therefore, their food
systems transformation is first and foremost Productivity improvement and expansion of value
an economic one and it must start with the addition can take place in parallel and are often
sustainable intensification of agriculture, done mutually reinforcing. The early mover profiles below
in a way that minimizes land-use change and spotlight the successes of selected countries in
environmental degradation. Increasing farm output catalysing food systems transformation starting
and productivity this way can lead to greater food with remarkable growth in production and
security at reduced emissions intensity. When productivity. These profiles are followed by three
paired with fair farm gate prices, it can not only country examples of value addition transformation,
improve farmer livelihoods but also serve as a all of which follow a similar repeatable model.
stepping-stone to broader rural transformation. Each profile includes a summary of the country’s
performance on key outcome metrics, with
What With greater commercialization and marketable comparisons against countries of the same food
surpluses, output markets develop and the system type (unless otherwise noted), based on
starts out as
economic value associated with activities beyond the Food Systems Dashboard. These summaries
agricultural the farm gate increases. Private enterprises generally show over-performance on many – but
development become an important force for the economic not all – outcome metrics, indicating areas of
can come to development and transformation of a country, trade-offs or lack of focus. It should also be noted
benefit multiple further improving farmer livelihoods and creating that these metrics will reflect the effectiveness of
food system jobs while providing more affordable nutrition for actions and investments in food systems but may
dimensions. the local population. While what starts out as not always be fully accounted for by them.
Twenty years ago, Ethiopia began a remarkable and wheat grew by 102%,29 bringing meaningful
transformation of its agricultural sector. Between declines in undernourishment and the percentage
2002 and 2018, food production per capita grew of people living in poverty.30, 31 This agricultural
63% compared to the median of 12% among transformation has been an important contributor to
its peer countries in the Rural and Traditional Ethiopia’s 7% annual GDP per capita growth during
category.27, 28 The yield of cereals such as teff, maize this period, well above the 3% of its peers.32
Ethiopia
1of 3 8% 10x
African countries to exceed CAADP annual growth in agricultural GDP ROI on Agricultural Transformation
recommendation of 10% government (vs. 3% in other African CAADP countries) Agency (ATA) initiatives
expenditure on agriculture
Notes: Food production per capita growth is from 2002-2018, using trailing 3-year average. Poverty rate decline is from 1999-2016, using trailing 3-year average;
poverty rate = $3.65/day with 2017 PPPs. Water usage efficiency uses average values ($ per m3) for agriculture from 2017-2019. Eutrophication is for 2019. Crop
and livestock emissions intensity measures tonnes of CO2 equivalent per tonne of production from 2002-2018. Undernourishment rate is for 2019. Government
expenditure is from 2005-2019. Annual growth in agriculture, forestry and fishing GDP is from 2005-2019. CAADP stands for the Comprehensive African
Agricultural Development Programme. Return on investment (ROI) on ATA initiatives is from 2013-2019.
Three critical levers disproportionately accounted – A strong enabling policy environment that
for Ethiopia’s success in catalysing its food evolved with food systems priorities
systems transformation:
– Investment in institutional innovation that built
– Sizeable and targeted public investment to its capacity to transform
enable sustainable intensification
4
sector focus and regulatory public and private and innovation
environment investment
Select set of commodities National strategies setting Continued public Growth of SMEs leading
prioritized at country level long-term sector priorities spending aimed at to increased local sourcing
based on: inclusive, sustainable and expansion of value
Upfront integrated food sector development; addition beyond
– Significant value systems planning and physical, digital and farm gate
repeatable volume/smallholder policy alignment* human infrastructure
farmer reach and
success factors impact Greater focus on
investments Scaled (farmer-allied)
enterprise models
in commodity – Relative competitive supporting enterprise Expanded commercial anchoring food systems:
development and growth, lending – often
sector advantage vs. other
especially financing for de-risked by public
countries – Vertically integrated
transformations agricultural SMEs actors – supporting models
– Large latent demand enterprise growth
in developing (domestic and export) Interventions focusing – Aggregator models
and emerging – Focus evolves over on increasing Catalytic development – Agritech (especially
competitiveness, and philanthropic digital input and
economies time from staples
to higher margin stimulating demand and funding; impact-oriented output aggregation
promoting output market growth capital platforms)
Greater focus on “hidden development
Note: *Recommended but
middle” (especially SMEs) Crowding-in of more
not yet commonly observed
and increasingly agritech return-oriented
in early mover profiles
investment capital
Early mover profile: India produced by its 80 million smallholder farmers with
herds of fewer than 10 animals.70 As the country
continues to urbanize, city dwellers are spending
In India, dairy is the single largest agricultural more on dairy and consuming more processed
commodity, accounting for 5% of GDP and an dairy products that carry higher margins.71 Between
important foundation of nutrition.67, 68 India is now the 2002 and 2021, the sector’s value addition doubled,
world’s largest milk producer69 and 70% of its milk is registering nearly $15 billion in 2020.72
India
Dairy Agritech
World’s #1
producer of dairy
Sector is 5%
of national GDP
15%
agritech startups
of world’s 10x funding growth
vs. 3x globally
Notes: Food production per capita growth is from 2002-2018, using trailing 3-year average. Value addition in $ millions (2015) is from 2002-2021. Water usage
efficiency uses average values ($ per m3) for agriculture from 2017-2019. Livestock emissions intensity measures tonnes of CO2-equivalent per tonne of production
from 2002-2018. Undernourishment rate is for 2019. 15% of world’s agritech startups is for 2019. Agritech funding growth is from 2018-2021.
The development of India’s dairy sector has been The enabling financing policy framework set by the
Dairy has more than four decades in the making. Between government has been another critical support. Dairy
benefitted from 1970 and 1996, the government systematically has benefitted from Priority Sector Lending put in
Priority Sector developed the dairy industry through a programme place by the government in 1985, which requires
Lending put in place called Operation Flood. It began by linking supply commercial banks to lend at least 18% of their
by the government to key markets, then focused on organizing adjusted net bank credit (ANBC) to agriculture
in 1985, which farmers, setting up and extending credit to and 40% overall to nine priority sectors.82, 83 Any
requires commercial farmer cooperatives, and growing the milkshed bank having a shortfall in lending to priority sectors
banks to lend at network.78 In the mid-1980s, the government pays the difference as a contribution to the Rural
began the next phase, focused on expanding Infrastructure Development Fund (RIDF) or other
least 18% of their
facilities, strengthening infrastructure and providing funds as decided by the Reserve Bank.84 Thirty
adjusted net bank
extension services.79 years later, the requirement that smallholder farmers
credit (ANBC) to
must account for 8% of ANBC was added.85
agriculture. With a combined investment of $3 billion from Additionally, the selective use of import restrictions
1970-1996 from both the Indian government and has protected domestic dairy prices and helped the
international institutions, Operation Flood helped to dairy sector prosper. 86
create $337 billion in value through incremental milk
production according to World Bank estimates.80 Government investment in rural electrification
This value does not include positive externalities has been essential to increasing the efficiency
beyond the value of the raw milk itself. For example, and profitability of India’s dairy value chain. It
this report estimates that a 1.6 percentage point has reduced post-harvest loss and enabled the
reduction in stunting from 1989 to 1997 can increased production of yogurt, ghee, cheese
be attributed to the increase in milk production and other value-added, higher-margin dairy
enabled by Operation Flood, which translates to products. Through a loan from the National
roughly $13 billion in incremental GDP during this Bank of Agriculture and Rural Development, the
time period.81 government has funded roughly $1.1 billion of
– Prioritization of the dairy sector and enabling conditions for explosive growth in
committed, multi-decade investments in agritech start-ups and inflow of private equity
related infrastructure, farmer capacity building and venture capital investments.
and market linkages underpinned a broader
country food systems transformation. – Scaled-up, farmer-allied enterprise models
– from vertically integrated dairy processors
– Priority Sector Lending provided the essential to digital input and output marketplaces –
policy framework to unlock commercial lending contributed to a broad range of food systems
and private investment to support the growth outcomes, including economic growth,
of private dairy enterprises. smallholder farmer livelihoods, food loss
reduction and access to nutritious foods.
– Government investments in digital
infrastructure and data commons created
Early mover profile: Vietnam Perhaps the most powerful illustration of the
repeatable sector transformation model in Vietnam
is from the seafood sector. With its long coastline,
India’s dairy and agritech sector transformation abundant coastal waterways and tropical climate,
shows how government infrastructure investments Vietnam enjoys a natural advantage in fishery
and policy initiatives can unlock private sector production.120 In the mid-2000s Vietnam prioritized
investments and enterprise growth to achieve seafood – in particular pangasius (a type of catfish,
broad-based food systems outcomes. While often sold as swai or basa) and shrimp. Domestic
Vietnam’s food systems successes follow a largely demand was strong – Vietnamese consume 27kg
similar repeatable model, the public and private of seafood per person each year, compared to
sectors have interacted in different and interesting 9kg in the US – 121, 122 but the country focused on
ways. In Vietnam, there has been a greater use of exports,123 with opportunities flowing from Vietnam’s
blended financing (interest subsidies, for example). membership of the World Trade Organization (WTO)
International financing from development banks in 2007 and high demand for seafood coming from
and investors has played a greater role, as have the European Union (EU), United States and Japan.
Vietnam public-private partnerships, exemplified by the Improving the quality and traceability of Vietnamese
grew seafood establishment of the Partnership for Sustainable products would prove essential for producers to
sectors through Agriculture in Vietnam (PSAV). PSAV set in motion meet stringent standards and gain market access,
a combination of partnerships between the public and private while improving quality for domestic consumers
sectors across multiple commodities – including as a bonus.124, 125 Through a combination of smart
smart government
fisheries, rice, and fruits and vegetables – with government policy, mutually reinforcing public and
policy, mutually
working groups promoting value-chain linkages and private investments, and the growth of vertically
reinforcing public scaling-up sustainable practices. There has been integrated enterprises, Vietnam grew aquaculture
and private early promise in the coffee sector too, where such production 11.6% per year and seafood processing
investments, and collaboration has resulted in growth in production, 9.7% per year from 2000 to 2020.126, 127 The
the growth of productivity and exports, while subsequent efforts country is now the world’s number one exporter
vertically integrated to address negative externalities have increased of pangasius, and today the seafood industry
enterprises. fertilizer efficiency and halved emissions intensity.119 accounts for 5% of Vietnam’s GDP.128, 129
Vietnam
Seafood Rice
Sector is 5%
of national GDP
World’s #1
exporter of pangasius
World’s #3
exporter of shrimp
Sector is 3%
of national GDP
World’s #3
exporter of rice
(a type of catfish)
Sources: FAO,130 World Bank,131 IHS Markit,132 Observatory of Economic Complexity (OEC),133 WWF.134
Notes: Increase in food production per capita is from 2002-2018 using trailing 3-year average. Value addition in $ millions (2015) is from 2002-2021. Water use
efficiency uses average values ($ per m3) in agriculture from 2017-2019. Eutrophication uses 2019 data. Crop emissions intensity is from 2002-2018 and measures
tonnes of CO2 equivalent per tonne of production. Undernourishment rate is from 2002-2019. Seafood contribution to GDP is in 2016. No. 1 exporter
of pangasius is in 2020. No. 3 exporter of shrimp is in 2020. Rice contribution to GDP is in 2021. No. 3 rice exporter is in 2020.
The government created a strong enabling In 2017, the Ho Chi Minh City government
environment to support the sustainable growth of committed to subsidize 80% of interest payments
the seafood sector. The 10-year national strategy for 12 months on bank loans for investment in
in 2005 laid out a clear roadmap to grow the aquaculture projects.142
sector by boosting aquaculture, exports, product
diversification and better processing technology.135 From 1999 to 2005, the World Bank invested
Fishery laws set out regulations for the sustainable $148 million in infrastructure systems to support
From 2016-2020, development of fisheries as well as provisions irrigation, flood protection and salinity prevention
the Vietnamese for marine conservation. Over the same period, in the Mekong Delta, the most productive
government certification regimes focused on improving the fisheries region.143 Then building on these
spent $11.3 quality and safety of seafood products, and efforts, the Vietnamese government spent $11.3
billion to upgrade domestic standards were harmonized with billion between 2016 and 2020 to upgrade
the Mekong international ones to facilitate adherence by the Mekong Delta’s transport, agriculture and
Delta’s transport, domestic producers and strengthen export fisheries infrastructure.144, 145 This primed foreign
agriculture competitiveness.136, 137, 138 investment and, by 2019, international investors
and fisheries had put more than $11 billion into over 700 food
infrastructure. Mutually reinforcing public and private financing processing projects.146 The International Bank for
have been critical. Concessionary lending Reconstruction and Development and the World
This primed foreign
programmes were put in place instructing local Bank’s recent agreement to lend more than $26
investment which, commercial banks to provide credit at below million for aquaculture infrastructure in the Mekong
by 2019, totalled market rates to domestic companies working Delta over the next three years is expected to crowd
more than $11 in high-tech agriculture.139 In 2012, the national in further government and private investment.147
billion into over 700 government allotted $210 million to support banks
food processing offering loans at preferential rates to pangasius Amidst this broad government support and
projects. farmers experiencing input price spikes.140, 141 expanded financing, a number of vertically
Ghana
36% 73% 7% 3% 5% 7%
increase in food increase in value lower value created increase in crop increase in obesity reduction in
production per addition (vs. 64% in agriculture emissions intensity rates (same as undernourishment
capita (vs. 18% median increase in per unit of water (vs. 23% median median increase in (vs. 4 percentage
median increase in African Informal and (than median of decrease in African African Informal and point median
African Informal and Expanding countries) African Informal and Informal and Expanding countries) decrease in African
Expanding countries) Expanding countries) Expanding countries) Informal and
Expanding countries)
Sources: FAO,176 World Bank,177 Ghana Open Data Initiative,178 IHS Markit,179 Global Impact Investing Network,180 Euromonitor.181
Notes: Growth in food production per capita is from 2002-2018, using trailing 3-year average. Value addition in $ millions (2015) is from 2002-2021. Water usage
efficiency is using average values ($ per m3) in agriculture from 2017-2019. Crop emissions intensity increase is from 2002-2018 and measures tonnes of CO2
equivalent per tonne of production. Obesity rate growth is from 2002-2019. Undernourishment rate decrease is from 2002-2019. Growth in food and agriculture
businesses is from 2015-2018. No. 1 West Africa ease of doing business ranking is from 2010-2019 looking at 16 countries using the World Bank’s Doing
Business report rankings. Impact investment data is from 2015.
– While continuing its investment in productivity food systems. Aggregator models can be
improvement, the government is increasingly particularly relevant in low-margin output
focused on growing SMEs in the hidden markets that serve domestic consumers.
middle of food value chains as key to driving
economic growth. – In Sub-Saharan Africa, enabling more of
these high-potential, farmer-allied enterprises
– International development grants and to scale-up will require closing the massive
concessionary financing played a catalytic agricultural SME financing gap. This, in
role in expanding SME credit access and turn, will require much greater public-private
supporting enterprise development; blended coordination and expanded use of blended
financing (e.g. interest subsidies and provision financing as de-risking mechanisms.
of business support services) unlocked greater
domestic lending. – Incentive models supporting more holistic
food systems transformation can complement
– Scaled-up, farmer-allied, vertically integrated sector growth to ensure more balanced
and aggregator models promise to increase outcomes.
local sourcing and anchor more resilient
Innovation – in agricultural practices and technologies country faces acute natural resource constraints,
(including inputs) – is how developing and emerging while the other faces the fact that production of a
countries can balance productivity and economic priority crop entails significant GHG emissions and
growth with improved outcomes in nutrition security, impact on nature. Both have successfully managed
environmental impact, climate resilience, inclusion this balancing act – but the more surprising of the
and livelihoods. In the two examples below, one two stories comes from north-west Africa.
Algeria
114% #1 51% #1
increase in food production per highest value created in decrease in crop emissions lowest undernourishment
capita (vs. 5% median increase agriculture per unit of water intensity (vs. 15% median in Africa
in Emerging and Diversifying (vs. other Emerging and decrease in Emerging and
countries and 9% median Diversifying countries in Africa) Diversifying countries and 10%
increase across Africa) median decrease across Africa)
Notes: Growth in food production per capita is from 2002-2018, using trailing 3-year average. No. 1 highest water use efficiency is from 2017-2019,
measured in $ per m3 for agriculture. Crop emissions intensity measures tonnes of CO2 equivalent per tonne of production from 2002-2018. Lowest
undernourishment in Africa is from 2019.
Since 2000, Yet against this unpromising sounding backdrop, 2000 to boost domestic agricultural production.
Algeria has more Algeria has scored some notable food system Most significant was the Agricultural and Rural
than doubled its successes, catalysed by government programmes Renewal Program launched in 2010, incentivizing
per capita food and enabled by farming innovations. The country farmers to switch to higher-yielding varieties of
has more than doubled its per capita food staple crops like wheat and increasing fertilizer
production, while
production since 2000.217, 218 Undernourishment subsidies to 50% of cost.223 Bonuses were given to
undernourishment
dropped from 8% of the population in 2001 to farmers who achieved large harvests of short-cycle
has dropped less than 3% in 2019 – the lowest in Africa.219 At crops such as tomatoes that satisfy local demand
from 8% of the the same time, Algeria has the highest water-use and require little water to achieve high yields. In
population to less efficiency in agriculture anywhere in Africa and some cases, the government has limited the import
than 3% – the has meaningfully reduced crop emissions intensity of products that can be produced locally such
lowest in Africa. relative to countries with similar food systems as tomato paste.224 Building on its existing land
in Africa.220, 221 allocation systems, the Ministry of Agriculture began
granting additional land to farmers who switched to
Between 2000 and 2020, 21% of Algeria’s GDP high-value food crops that are expensive to import,
came from oil.222 In order to reduce its dependence like bananas.225
on imports and create food security independent
of fluctuations in global oil prices, the government A crucial complement to this government support
took a series of actions starting with the National was the introduction of innovative irrigation systems.
Agricultural and Rural Development Program in In the El Oued desert region, for example, rotating
– With only 17% of land suitable for agriculture, margin crops and reducing the country’s
Algeria invested in innovative irrigation systems dependence on food imports.
to boost productivity, improve food security
and maximize water-use efficiency. – More broadly in the Maghreb, innovations
in – among other things – crop choice, seed
– Multi-year government programmes – from varieties, greenhouses and drone technology
farmer incentives and land grants to the are being actively pursued to improve
removal of barriers to foreign ownership productivity and food security, while minimizing
and equipment imports – have focused on emissions and resource use, and adapting to
boosting the production of staple and higher- the impacts of climate change.
Innovation in horticulture and other commodities in – Awareness: Farmers must know about
the Maghreb illustrates how countries and regions climate-smart and nature-positive practices and
can expand production while driving broader food technologies, and have the technical expertise
systems outcomes, by improving food security, and support to implement them.
adapting to climate change and managing
Vietnam has demands on limited natural resources. Such an – Advantage: Farmers must have confidence that
been able to secure approach has also enabled Vietnam to achieve adopting new practices and technologies will
significant adoption balanced outcomes while becoming a major provide an attractive rate of return.
producer and exporter of a priority commodity –
of climate-smart
rice. Importantly, Vietnam has been able to secure – Access: The right inputs, equipment and
and nature-positive
significant adoption of sustainable food production methods must be available to farmers when and
food production by by following a farmer-centric model that promotes where they need them.
following a farmer- the adoption of new practices.
centric model – Affordability: Upfront costs for farmers must be
that promotes The experience of Vietnam and other examples reasonable, with affordable financing available to
the adoption of in the section above points to a repeatable model support initial investments.
new practices. that encourages and enables farmers to adopt
A range of actions can support the adoption and scaling of climate-smart, nature-positive production
practices and technologies
Access – Companies invest in practice and technology innovation (e.g. equipment, inputs, digital
monitoring, reporting and verification tools etc.)
Ensure technologies (inputs,
tools, equipment and methods) – Governments subsidize innovation to fill gaps (e.g. high-risk pilots, non-excludable goods)
are available to farmers when or provide a positive signal to private investors
and where needed – “Last mile” access to solutions when and where farmers need them (given purchasing
habits, transport constraints, growing cycles)
Affordability – Preferential or subsidized credit access and insurance offerings to producers for
climate-smart investments
Reduce upfront costs for
farmers and increase accessibility – Risk-reduction arrangements for sustainably produced food
of affordable financing (e.g. long-term purchase agreements)
– Inputs for sustainable production are lower-cost or subsidized; necessary equipment
is available at relatively low prices or on contract/as-a-service
Rice farming In Vietnam, rice supplies 66% of dietary calories, – Awareness: Vietnam’s Ministry of Agriculture
is responsible for as well as generating livelihoods for 15% of the and Rural Development’s Plant Protection
48% of Vietnam’s population and 3% of GDP.235, 236, 237 But farming Department and NGOs supported local
agricultural rice traditionally requires vast amounts of water experiments and farmer field schools to
greenhouse gas and, in Vietnam, it is responsible for 48% of promote SRI’s techniques to farmers at no
agricultural GHG emissions and more than 75% cost.242, 243 Early adopting farmers shared
emissions and over
of methane emissions.238 their own evidence of SRI’s effectiveness (e.g.
75% of methane
abundant seedlings) to help break down bias
emissions. In addition to focusing its policies and direct against an unconventional approach.244
investment on improving rice productivity, the
government catalysed an innovation ecosystem – Advantage: With government support,
around sustainable rice farming through the System Cornell collaborated with leading Vietnamese
of Rice Intensification (SRI). SRI is a method first universities to build a strong base of scientific
developed in Madagascar in the early 1980s that evidence. They found that SRI boosts yield
embraces a variety of climate-smart approaches to by 20-50%, using as little as half as much
– Rice is a staple crop and major source – Collaboration between the government,
of livelihoods in Vietnam, but represents academic communities, international
nearly half of the country’s agricultural GHG development financing institutions and NGOs
emissions. provided the critical knowledge, funding,
inputs, infrastructure and other support to
– The System of Rice Intensification (SRI) — create the necessary ecosystem to drive
an innovative set of rice farming techniques widespread farmer adoption of SRI.
that improve yields, reduce water and input
use, and lower GHG emissions — is helping
Vietnam optimize its food system outcomes.
Climate and health outcomes are the primary set of best practices to adopt. One-third of global
challenges facing developed country food livestock emissions could be eliminated if producers
systems today. Greater action is urgently applied the practices of the 10% of producers in
Nearly 40% of needed. Nearly 40% of global on-farm emissions their area with the lowest emissions intensities.260
global on-farm occur in Modernizing and Formalizing (M&F) Opportunities to mitigate the environmental impact
emissions occur and Industrialized and Consolidated (I&C) food of crop production are also largely unrealized. In
in developed systems.258 Meanwhile, countries with these two 2019, Conservation Agriculture practices — a
economies, but types of food systems experience median adult subset of regenerative agriculture practices that
obesity rates of over 25% – higher than is found in emphasize minimal mechanical soil disturbance,
nature-positive
food systems of any other type.259 Addressing these permanent soil organic cover and species
and climate-smart challenges will require changes in food production diversification —261 were in use on just 12% of
practices have practices (addressed in this section) and concurrent cropland globally.262 These are not only missed
not been adopted shifts in diets (see section 3.3). opportunities to reduce the climate impact of
widely or quickly agriculture; if more widely adopted, regenerative
enough by farmers. Nature-positive and climate-smart practices have practices could sequester carbon from other
not been adopted widely or quickly enough by industrial activities as well.
farmers, nor is there even a universally accepted
60%
40%
20%
No-till
New Zealand: the role of production systems either. Greater effort must
therefore be focused on innovative climate-smart
economic incentives in improving practices that will directly address emissions
livestock farming efficiency and intensity, mitigate climate impact and bend the
reducing emissions intensity curve on total GHG emissions.
In the 1980s, following a fiscal crisis, the New Repeatable model to accelerate
Zealand government phased out agricultural
subsidies, tax concessions and price supports.280
adoption of climate-smart,
Excessive protection of the agricultural sector over nature-positive practices
many years had resulted in relatively high costs and
reduced innovation.281 To maintain profits in this Countries like Canada and New Zealand will need
new economic reality, livestock producers invested to reduce GHG emissions from agriculture on an
in “breeding and feeding” improvements to increase absolute basis to meet global climate targets set out
yields, which subsequently improved steadily for in the Paris Agreement, so while their progress over
three decades.282, 283, 284, 285 the last several decades is encouraging, the pace and
It will be critical scale of progress must accelerate. It will be critical to
to provide farmers New Zealand’s experience echoes Canada’s: provide farmers with an incremental economic reason,
with an incremental farmers adopt new practices when given a sufficient especially in the short term, to invest in climate-smart,
economic reason, economic reason to do so – but there is a second nature-positive practices and technologies.
especially in the lesson too. Kiwi farmers’ yield-focused investments
caused livestock emissions intensity to fall, as Two pathways – not mutually exclusive – seem
short term, to
production per animal grew faster than emissions most likely to accomplish this:
invest in climate-
per animal. However, although the emissions
smart, nature- intensity of livestock production has fallen faster – Balanced governmental programme of catalytic
positive practices in New Zealand than in any other Industrialized investment and emissions pricing
and technologies. and Consolidated country since 2000, it still did
not fall fast enough to reduce emissions on an – Actions by key corporations and aligned multi-
absolute basis.286, 287 If investment in yield alone stakeholder coalitions to increase the demand
was not enough to reduce New Zealand’s absolute for and, in turn, grow the supply of sustainably
emissions, it will not be enough to significantly produced food
reduce emissions in other advanced livestock
– Bending the curve on absolute GHG emissions actors, alongside innovative government
from food production will require farmers to programmes and investments, can accelerate
rapidly adopt climate-smart, nature-positive the transition by creating the right conditions
practices, like regenerative agriculture – at a for farmer adoption of new practices and
much larger scale than to date. the necessary ecosystems for adoption
to scale-up.
– Farmers will adopt these practices when the
4As of Adoption – awareness, advantage, – Companies that own the consumer
access and affordability – are in place. The relationship are best positioned to stimulate
perception and realization of economic demand for and pull through supply of
advantage is the most critical element. sustainably produced foods; they can play
a particularly important role in anchoring
– Aligned multi-stakeholder partnerships and the multi-stakeholder partnerships and
coalitions involving a wide range of corporate coalitions required.
The environmental and health challenges facing Des Enfants (EPODE or “Together Let’s Prevent
food systems in developed countries cannot Childhood Obesity”) reduced obesity rates by up
be resolved by changes in production alone. to 25% in some communities. Community-level
Consumers in higher-income countries typically integrated programmes modelled after EPODE
choose diets that are too high in foods with large emphasize local leadership and partnerships to
environmental footprints, such as red meat (see encourage healthier children’s lifestyles through, for
Figure 13). Greenhouse gas emissions from food example, influencing the availability of healthy food
consumption are higher per person in Industrialized choices, encouraging active travel and leisure, and
and Consolidated countries (see Figure 3) than promoting the use of open spaces.300 Governments
in any other food system type, even though food in India, Brazil, the EU and elsewhere limit trans-fats;
production is generally most efficient in these tax non-staple, pre-packaged foods with high levels
Changes in
countries. People in these countries also tend to of sugar, salt and other ingredients with health risks;
food and beverage consume more processed foods and beverages with and tax the advertising of unhealthy eating.301, 302
consumption ingredients like sugar that can lead to adverse health
patterns in effects when over-consumed. On neither challenge Still, to date, interventions have not sufficiently
developed have meaningful improvements been observed changed the trajectories of M&F and I&C countries.
countries are in developed country food systems. Changes in In each one of these countries since 2000, obesity
critically needed. consumption patterns are critically needed. rates for adults and children have increased;303, 304
and while red meat consumption has declined very
Governments have tried to shift diets through slightly on a per capita basis (-0.5% per annum),
a range of policy interventions, with pockets of total red meat consumption has not, rising 0.3%
success. France’s Ensemble Prévenons L’Obésité per annum.305
As incomes increase, people eat more food that has a high impact on the climate and on nature
Beef supply by country (kg/capita, 2019)
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100 110 120
People in higher income countries also eat more food that can have adverse health impacts
if over-consumed
Sugar and sweetener supply by country (kg/capita, 2019)
700
600
500
400
300
200
100
0
0 10 20 30 40 50 60 70 80 90 100 110 120
FIGURE 14 Repeatable model #3: Shifting food consumption patterns towards tipping points to close
the consumer say-do gap
– Companies market healthier and more – Companies clearly communicate – Corporates re-engineer food products
sustainable products to mass market healthy and sustainable attributes of using healthier, more sustainable
consumers at attractive prices their products ingredients, while maintaining taste
and quality
– Governments make less-healthy – Pre-competitive industry groups
and less-sustainable products more and governments set standards and – Companies and insurgent brands
expensive (e.g. emissions levies, taxes promote effective labelling (often backed by venture capital)
on sugar-sweetened beverages) introduce new, healthy and sustainable
– Consumer education programmes products
– Governments or corporates (e.g. (including in schools) raise awareness
health insurers) subsidize healthy and about healthy, sustainable food – Cross-sector partnerships kickstart
sustainable products demand for healthy and sustainable
indigenous commodities (especially in
developing markets)
Beef and sheep share of total meat consumption declined from over 55% to 20% in two decades
Meat consumption per capita in New Zealand (Retail weight, kg/capita)
CAGR*
100 2000-2019
80
60
3%
40
2%
20
-10%
-4%
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Beef Lamb Pork Poultry
Substitution of beef and lamb for pork and poultry coincided with changes in relative prices
Percentage change in average annual price ($/kg) and median annual income ($) in New Zealand, indexed to 2000=0
100 Lamb
Beef
75
50
Pork
25
Poultry
-25
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
100%
80
Share of respondents
60
40
20
0
Europe United States Asia-Pacific mature market Asia-Pacific fast growing
Yes Yes, if no compromise It depends (sometimes and for some products) Only if direct benefit for me
But a majority of consumers are not willing to pay more than a 25% premium
Q: What is the maximum extra price you would be willing to pay for a *category* Q: What is the maximum extra price you would be willing to pay for
that: a) has positive environmental impact, b) has positive social impact, c) is a sustainable *product* that: a) has positive environmental/social
healthier for you and your family? impact or b) is healthier for you and your family?
US Asia-Pacific
100%
>50% extra >50% extra >50% extra >50% extra
26-50% extra 26-50% extra
80 26-50% extra
26-50% extra
Share of respondents
11-25% extra
11-25% extra 11-25% extra
60
11-25% extra
40
1-10% extra
1-10% extra 1-10% extra
1-10% extra
20
Not willing to pay Not willing to pay Not willing to pay Not willing to pay
0
Positive environment Healthier Positive environment Healthier
/social impact /social impact
100%
100%
80
60
49% 50%
46%
40
20%
20
0
Milk Yoghurt Fresh bread & rolls Chocolate Coffee
- Mobilize broad-based,
cross-industry leadership to set
standards and shift how food is
produced and consumed
Sources: World Economic Forum, Bain & Company.
The early mover profiles, especially of developing will need to evolve to support a broader food
and emerging countries, reinforce the essential systems agenda. Physical infrastructure – including
role governments play in catalysing food systems roads, public markets, irrigation, electrification and
transformation through their direct investment, cold chain – remain critical in developing markets;
the enabling policy and regulatory environment but today, infrastructure investments must more
they create and the manner in which they attract explicitly consider environmental impact and
private sector capital. While these transformation climate-smart options, and they must expand
successes have led to improvements in a subset to include digital and data commons, such as
of outcomes – including production and economy, geospatial data, soil health mapping and integrated
livelihoods and food security – governments are farm-level data. There is human infrastructure too:
starting to embrace a more holistic vision for food agricultural extension agents, agronomists and
systems transformation, with greater emphasis on farmer organizations can all play important roles
diet diversity, inclusion, climate action and resilience. in skilling farmers and changing their behaviour.
The 117 pathways created by governments since Technical talent becomes more relevant as
the 2021 UN Food Systems Summit are a starting technology solutions become more important
point, but there is a long way to go.338 Not only enablers of transformation.
do most countries lack an integrated roadmap
that addresses all dimensions of food systems As countries evolve towards a holistic food
transformation, but many don’t have the capacity systems approach, governments and their
or capability to create one. investment partners will need to develop a more
integrated food systems policy and regulatory
The process starts with setting clear targets, both framework. They will need tools for a whole range
mid- and long-term, for all food system dimensions. of priorities – to accelerate the adoption of climate-
Roadmaps must be tailored to those outcomes and smart and yield-enhancing inputs, practices
the country’s specific starting point. They should and technologies; to support small and medium
include the level of public investments, including enterprise growth; to shift consumption patterns
their relative emphasis and sequencing, as well as towards healthier diets; to deter illegal land-use
policy interventions and use of related tools. This change; and to safeguard natural resources.
requires a significant degree of inter-ministerial These tools could include subsidies, taxation,
cooperation. Government ministries overseeing food incentives, preferential or subsidized credit
and agriculture, trade and industry, environment and access, standards setting and smarter government
land use protection, consumer health and safety, procurement (e.g. through school and institutional
and finance will need to collaborate on priorities feeding programmes).
and actively manage the inevitable trade-offs and
tensions – while always keeping in mind the true The effective development and delivery of such
cost (and value) of food for society as a whole. plans require strengthening the transformation
capacity of local governments. The breadth and
It is especially important to include long-term public complexity of food systems and the proliferation
sector commitments and investments underpinning of development programmes and cross-sector
these plans. In Africa, for example, this would partnerships make this especially important
mean meeting the CAADP recommendation in developing countries. It will likely require
of spending 10% of government budgets on development and philanthropic funding to help
agriculture and focusing on an integrated food catalyse more long-term, sustainable financing of
systems transformation across government this capacity expansion.
spending.339 However, the challenges faced by
developing market governments to address climate Importantly, governments should more proactively
change, along with the combined effects of the pursue public-private partnerships to inform and
pandemic, inflation and Russia’s war in Ukraine, accelerate their transformation agendas. In this
call for more coordinated efforts by international context, the Food Action Alliance – founded in
financing institutions to restructure sovereign debt 2019 by the International Fund for Agricultural
in a way that would complement and support food Development (IFAD), Rabobank and the World
systems transition.340 The landmark agreement Economic Forum with 40 member institutions – is
reached at COP27 on a new Loss and Damage an innovative, multi-stakeholder platform that aims
Fund for vulnerable countries is an important to facilitate such collaboration. Its work includes
step forward. These challenges also reinforce mobilizing partnerships and investments towards
the importance of governments attracting and national government priorities and programmes,
leveraging private investments. and endorsing a growing portfolio of investible
flagship food systems transformation initiatives
Public investments will continue to play a critical covering a range of countries across Africa, Asia
catalytic role, but the nature of these investments and Latin America.
Many of the early mover examples profiled in (especially if farmer-allied and operating in low-margin
this report showed the impact of coordinated domestic food crop markets); innovative businesses
public and private financing, and the use of risk- in sustainable agriculture targeting smallholder
sharing mechanisms such as credit guarantees farmers; and certain areas of climate finance, such
and interest subsidies to unlock greater as protecting natural resources and supporting
amounts of capital to support private enterprise smallholder farmers and SMEs in their transition to
development. These enterprises can help drive climate-smart practices. Today, agriculture represents
economic growth, improve livelihoods, provide only 15% of global blended finance transactions.342
more affordable nutrition, and lead innovation in According to a recent report by SAFIN and
sustainable practices and technologies. Public and Convergence, allocating 20% of existing agriculture
private actors should continue to explore greater official development assistance (ODA) funds towards
coordination and collaboration on this front to blended finance could – with a six-times leverage
address a broad set of food systems outcomes. factor – mobilize an additional $13 billion annually.
This would narrow the sector-specific Sustainable
Blended financing, defined as the use of catalytic Development Goal (SDG) investment gap in food
capital from public or philanthropic sources to systems transformation and potentially create a large-
increase private sector investment in sustainable scale demonstration and catalytic effect.343
development, can be an important tool in unlocking
greater domestic capital for areas of the food Blended finance can be especially relevant when
system that would otherwise be under-funded applied at the market and portfolio levels. In
because their risk-return balance is unlikely to developing and emerging markets, providing
make standalone commercial sense in the near adequate affordable debt is crucial for the many
or even medium term.341 Areas that need blended agri-SMEs that require working capital and capex
financing can include, among others: agri-SMEs loans structured with longer payback periods. In
Roadmap
4 Scale-up change faster through technology
for Action
and innovation ecosystems
Our ability to change behaviour, particularly farmer food loss, while minimizing and mitigating climate
behaviour, in eight years rather than 20 depends on impacts and pressure on natural resources.
much quicker adoption of innovation at scale. To do
so, we need to strengthen innovation ecosystems In developing markets, entrepreneurial innovation
that are farmer-focused and aligned with – often supported by impact capital – has resulted
government priorities, interventions and incentives. in advances including solar-powered micro-drip
irrigation; mobile chillers and storage; biodigesters;
There has been an explosion of innovations in the digital learning and advisory platforms for soil,
food and agriculture space in the last decade, with weather and pest management; and even tractors
many leveraging the latest technologies. These that convert crop residue to mulch while seeding
include platforms for digital farmer services and at the same time. New and more diverse crop
supply chain solutions that use artificial intelligence, choices and seed varieties could help farmers
machine learning, remote sensors, satellites and adapt to climate impacts and become more
blockchain; methane-inhibiting feed additives; resilient. Innovations can also involve relatively low-
green fertilizers; vertical farming; autonomous tech practices applied in new locations and even
vehicles, robotics and drones; bio-stimulants; and traditional practices and Indigenous knowledge
biological crop protection. Such innovations aim to applied in a modern way.
help farmers improve their productivity and reduce
Transforming food systems at speed and scale – Aligned on outcomes: Strong alignment
requires a new approach to public-private and multi- is needed between all partners on an
stakeholder collaboration. A key purpose of such integrated set of targeted food systems outcomes.
collaboration is to demonstrate what is possible
and the market applicability of new solutions. – Right partners at the table: These should
These demonstration models of collaboration can include relevant upstream, midstream and
then be scaled-up by harnessing the power of downstream players; social and public actors
multi-stakeholder leadership, government policy, who can facilitate connections and provide
financing, technology and pre-competitive platforms support to farmers and local SME suppliers,
– multipliers that can accelerate the replication of while safeguarding environmental interests;
models towards a tipping point that changes the and broader ecosystem players that can
norms of food systems interactions. provide innovative mechanisms to enable the
transition (e.g. insurance companies, ecosystem
In developing markets, where such collaboration services providers).
is especially critical due to systemic challenges,
successful value chain-based partnerships have – Relevant pilot projects: Pilots should be place-
long been established for origin-specific, export- based or context-specific, with clear, right-sized
oriented cash crops such as coffee and tea, along geographic and value-chain or food-basket
with local sourcing for high-margin consumer priorities.
packaged goods such as beer. Similar value
chain-based partnerships are now needed in lower- – Strong commitment and engagement:
margin food crops, in export commodities that have Especially from large companies that own the
significant negative environmental impacts, and in consumer relationship and can create demand
developed markets where consumption must shift by shaping the consumer proposition. Such
and food must be produced in low-carbon ways. companies can expand the economic margin
within supply chains and provide the volume
An emerging set of such partnerships commitments needed to incentivize all their
illuminate the critical attributes that make these suppliers — including aggregators, processors
collaborations work: and ultimately the farmers — to source and
grow food differently.
Acknowledgements
The World Economic Forum would like to Ajay Vir Jakhar
acknowledge the numerous team members from Bharat Krishak Samaj (Farmers’ Forum India)
our organization and those from Bain & Company
who contributed to the research, writing and ideas Mark Lundy
in this report, along with the partner organizations Research Director, Food Environment & Consumer
that supported our research or served as external Behavior and Deputy Lead, CGIAR SHiFT Initiative,
reviewers. In particular, the World Economic Forum Alliance of Bioversity International and CIAT
would like to acknowledge the commitment of the
following people in preparing this document: Andy Moose
Head of Retail, Consumer Goods and Lifestyle
Vanessa Adams Industries, World Economic Forum
Vice President, Strategic Partnerships and Chief
of Party, Partnership for Inclusive Agricultural Beverley Postma
Transformation in Africa, AGRA Executive Director, Grow Asia