The Quiet Revolution In Staple Food Value Chains

Major changes have been occurring almost unnoticed in staple value chains in Asia. The Quiet Revolution in Staple Food Value Chains documents and explains the transformation of value chains moving rice and potatoes between the farm gate and the consumer in Bangladesh, the People’s Republic of China, and India. The changes noted are the rapid rise of supermarkets, modern cold storage facilities, large rice mills, and commercialized small farmers using input-intensive, mechanized technologies. These changes affect food security in ways that are highly relevant for policymakers across Asia—the rise of supermarkets provides cheaper staples, more direct relations in the chains combined with branding have increased traceability, and the rise of cold storage has brought higher incomes for potato farmers and all-season access for potato consumers. The book also joins two debates that have long been separate and parallel—food industry and agribusiness development and market competitiveness—with the food security and poverty alleviation agend

IFPRI’s flagship report reviews the major food policy issues, developments, and decisions of 2016, and highlights challenges and opportunities for 2017 at the global and regional levels. This year’s report looks at the impact of rapid urban growth on food security and nutrition, and considers how food systems can be reshaped to benefit both urban and rural populations.

A key challenge in systematically collecting data on intermediary agri-food value chain actors is that value chains take the form of a network, with actors linked by a series of transactions. Moreover, we have limited ex ante knowledge about the structure or scale of these networks, which complicates the construction of valid sampling frames and limits traditional random sampling approaches to collect data. To address these challenges, we adapt the respondent-driven sampling approach to collect data on intermediary agri-food value chain actors within their transaction-linked network and implement this approach in the arabica coffee and soybean value chains in Uganda and the rice and potato value chains in Bangladesh. We observe meaningful heterogeneity in the structure and scale of agri-food value chains across commodities and countries. Focusing on traders, we show that the respondent-driven sampling approach generates a larger sample of traders who differ in observable characteristics (i.e., value added, enterprise scale, and financial access) compared to a sub-sample of traders generated in a way that mimics traditional random sampling approaches used to study traders. We conclude by discussing how this respondent-driven sampling approach, applied within transaction-linked networks, can provide a useful data collection method for studying intermediary agri-food value chain actors.

This background paper to The State of Food Security and Nutrition in the World 2023 analyses a key element of agrifood systems transformation: the change of patterns in food supply and demand. Several studies have discussed this topic, but the current one takes an innovative perspective of analysis, considering these changes with a spatial perspective using the urban rural catchment areas (URCA) approach to analyse changes in food expenditure across the rural–urban continuum, using Living Standards Measurement Studies (LSMS) of 11 African countries. The analysis is preceded by a literature review of agrifood value chains transformation stages, drivers and current situation, focused in low- and middle-income countries (LMICs), and is followed by a macro review of food supply around the world and a “macro-meso” review of the supply of wheat and rice in two African countries. The conclusions shows that most food is purchased in all households across the rural–urban continuum, even in rural areas, breaking with the “myth” of rural subsistence farming in Africa. In addition, the results show a diffusion of the consumption of processed foods, including in a lesser extent highly processed foods, all across the rural–urban continuum, and not only in rural areas. From a food supply perspective, the low global availability of foods that are part of a healthy diet, as fruits, vegetables and legumes, nuts and seeds calls for increasing efforts for producing more nutritious foods in all countries of the world.

Asia and the Pacific is experiencing major demographic shifts and urbanizing rapidly. E-agriculture technologies (remote sensing, drones, sensors) are emerging, with potentially profound implications for the entire food system and management of the natural resource base. Structural transformation of the economy has also changed the nature of the food security problem. Earlier, many governments thought that producing more staple food was sufficient to improve food security. However, today’s economy, increasingly based on human capital and less on physical strength, requires that policies and programmes promote healthy diets for healthy people. This need for improved nutrition will require shifts in agricultural production and trade patterns. Solving the malnutrition problem in urban areas will also require different solutions than in rural areas, due to the difference in urban and rural food environments. In line with the structural transformation of the economy, farm households also increasingly rely on non-farm income to support their livelihoods and risk management strategies, which has implications for the uptake of new technologies. The demographic shifts, urbanization and structural changes in the economy, coupled with climate change, have made the food security and nutrition problem more complex than it was in the past. Solutions require input from different stakeholders, both public and private, as well as a range of government ministries, including Health, Finance, Education, Environment, Trade and Social Welfare in addition to Agriculture.

This year’s report should dispel any lingering doubts that the world is moving backwards in its efforts to end hunger, food insecurity and malnutrition in all its forms. We are now only eight years away from 2030, but the distance to reach many of the SDG 2 targets is growing wider each year. There are indeed efforts to make progress towards SDG 2, yet they are proving insufficient in the face of a more challenging and uncertain context. The intensification of the major drivers behind recent food insecurity and malnutrition trends (i.e. conflict, climate extremes and economic shocks) combined with the high cost of nutritious foods and growing inequalities will continue to challenge food security and nutrition. This will be the case until agrifood systems are transformed, become more resilient and are delivering lower cost nutritious foods and affordable healthy diets for all, sustainably and inclusively.

This paper reports on an ex-post assessment of IFPRI’s research on High-Value Agriculture (HVA) over 1994–2010. HVA is defined to include perishable agricultural commodities produced for the market that yield high returns to land, labor, or both. IFPRI’s research on HVA has been housed mainly in GRP27 (Participation in high value agricultural markets). Questions for the study included whether IFPRI had the right research strategy for this topic; was focused on the right issues; was a leader in the field; used the most relevant approaches and methods; and was successful in sensitizing/influ-encing the policies of governments, agribusiness, academia, civil society, and the international donor community. Finally, what has been the impact of the HVA policies that IFPRI influenced?

While agricultural value chains are rapidly evolving (Reardon, 2015; Reardon et al., 2021; Barrett et al., 2022), research attention has increasingly taken notice of the important role played by actors in the ag ricultural midstream. The agricultural midstream consists of activities that take place after production but before final sale to consumers, with existing literature highlighting transportation, trading/wholesaling, processing/packaging, and storage as key activities (Reardon, 2015; Ambler et al., 2022a). However, even as research on the agricultural midstream has been growing, little is known about the poten tial financial needs or capabilities of midstream actors (Ambler et al., 2022a; Bellemare et al., 2021; Reardon and Minten, 2021). If midstream actors face meaningful financial constraints in growing their businesses, it can hinder employment opportunities, increase consumer food prices, depress agricul tural producer prices, or constrain growth more broadly.