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Constructing Markets for Agroecology — an Analysis of Diverse Options for Marketing Products from Agroecology FAO/INRA

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Constructing Markets for Agroecology — an Analysis of Diverse Options for Marketing Products from Agroecology FAO/INRA Constructing markets for agroecology for Constructing markets — An analysis of diverse options for marketing products from agroecology from products diverse options for marketing An analysis of CONSTRUCTING MARKETS FOR AGROECOLOGY An analysis of diverse options for marketing products from agroecology FAO/INRA Constructing markets for agroecology An analysis of diverse options for marketing products from agroecology Published by the Food and Agriculture Organization of the United Nations (FAO) and Institut National de la Recherche Agronomique (INRA) Rome, 2018 Recommended citation FAO/INRA. 2018. Constructing markets for agroecology – An analysis of diverse options for marketing products from agroecology, by Loconto, A., Jimenez, A. & Vandecandelaere, E. Rome, Italy. Cover photographs Background: ©J. Aguirre Top to bottom: ©FAO/R. Gangale; ©INRA/A. Loconto; ©INRA/Y. Chiffoleau; ©INRA/A. Loconto The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO), or of the Institut National de la Recherche Agronomique concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO, or INRA preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO, or INRA. ISBN 978-92-5-130339-9 (FAO) © FAO, 2018 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected] FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected] iii Contents Foreword v Preface vi Acknowledgements vii Executive summary viii Abstract xii Acronyms xiii CHAPTER 1 Introduction 1 1.1 Study background 2 1.2 Purpose and scope of the study 3 1.3 Study limitations 6 1.4 Target audience 6 1.5 Key definitions 6 CHAPTER 2 Markets for agroecology 9 2.1 Elements of institutional contexts 10 2.2 Common business models: community-focused action and participatory decision-making 12 2.2.1 Community embeddedness 15 2.2.2 Participatory decision-making 17 2.2.3 Inclusive initiatives 18 2.2.4 Efficient initiatives 21 2.3 Diversifying markets as a key strategy 22 2.3.1 Emerging markets for inputs 23 2.3.2 Strategic markets for agroecological products 24 2.4 Creating value 29 2.4.1 What is meant by agroecological food? 31 2.4.2 Valuing a diverse diet and increased food security 31 2.4.3 What are the qualities of agroecological product? 36 2.4.4 How is value communicated? 36 2.4.5 Is agroecological food priced fairly? 44 CHAPTER 3 Moving towards agroecological food systems 49 3.1 Nested market networks for agroecology 50 3.2 How do participants perceive the future of these initiatives? 52 3.3 How to change the scale of these initiatives? 54 CHAPTER 4 Conclusions 57 CHAPTER 5 Recommendations 61 References 63 Annexes 1 Methodology 69 2 Case studies 75 iv List of figures 2.1 Core values of business models 14 2.2 Frequency of participation 18 2.3 Inclusive initiatives 20 2.4 Challenges in accessing inputs 24 2.5 Distribution of exchanges between agroecological and other market channels 26 2.6 Where are products sold? 27 2.7 In your own words, how would you define agroecological food? 30 2.8 Top agroecological products 32 2.9 What qualities do you look for in agroecological products? 35 2.10 How do you communicate quality and prices? 39 2.11 How fair are agroecological food prices? 44 2.12 Do some market channels offer fairer prices than others? 45 2.13 Consumers’ perception of how much they pay and would pay for agroecological products 46 3.1 How close are consumers and producers? 50 3.2 Average perception of sustainability across 12 cases 52 3.3 Perceptions of sustainability of different nested market networks 53 List of tables 1.1 Overview of case studies 4 2.1 Institutional contexts in the 12 cases 11 2.2 Community sustainability 15 2.3 Participation in the initiative 17 2.4 What does efficiency mean for the initiatives? Insights from intermediaries 23 2.5 Input markets: market channels and benefits 24 2.6 Benefits of preferred market channels 28 2.7 Participating in the initiatives contributes to food security 33 2.8 Arguments for agroecological food and its qualities 37 2.9 Use of standards and labels 42 3.1 Nested market networks for agroecology 51 3.2 Scaling up or out, what does it take? 54 A.1 Purposive sampling criteria 70 A.2 Number of completed questionnaires 71 A.3 Descriptive statistics of interviewees 72 List of boxes 2.1 Participatory guarantee system as part of the institutional context – Tarija School Feeding Programme in the Plurinational State of Bolivia 13 2.2 An initiative embedded in the community – the Sateré-Mawé in Brazil 16 2.3 Participatory decision-making – Freshveggies PGS in Uganda 19 2.4 An initiative with a mission of inclusion – Shared Harvest Farm in China 21 2.5 An efficient initiative – Familia de la Tierra in Colombia 22 2.6 A well-developed input supply market – Songhaï Centre, Benin 25 2.7 A market where more than just food is exchanged – Maputo Earth Market, Mozambique 28 2.8 Merging traditional and agroecological values – Kom Kelluhayin Corporation (CKK), Chile 34 2.9 Establishing organic quality for agroecological production – Namibian Organic Association (NOA) 38 2.10 Direct contact as a way to communicate quality – Akmola Traditional Dairy Producers (ATDP), Kazakhstan 40 2.11 Using labels to identify proximity – Grabels market and Ici.C.Local, France 43 2.12 A fair pricing system – Canasta Comunitaria Utopía (CCU), Ecuador 47 v Foreword Our planet is facing important challenges in the context of climate change and population growth that question its capacity to feed people in the future. Sustainable development is crucial. The 2030 Agenda for Sustainable Development adopted by the United Nations provides a roadmap with sustainable devel- opment goals (SDGs), in particular SDG 12 on sustainable production and consumption patterns, which links with other goals such as the elimination of hunger and conservation of the environment through a food systems approach. At global and local levels, food systems need to be transformed or enhanced, so as to ensure the multidimensional goal of sustainability. In this perspective, one of the key recommenda- tions of the Second International Conference on Nutrition ICN2 (November 2014) towards sustainable food systems for healthy diets, is to strengthen local food production and processing, especially by supporting smallholders and family farmers. Following up ICN2, the International Symposium on Sustainable Food Systems for Healthy Diets and Improved Nutrition, jointly organized by FAO and WHO (December 2016), called for a change in paradigm from merely supplying food to providing high-quality diets to nourish people. It is therefore of paramount importance to understand and support transformations at local level that enhance sustainable food systems for healthy diets, specifically looking at mechanisms for increasing availability and access to food products for high-quality diets. In particular, much needs to be done in linking sustainable agricultural practices with fair and sustainable market-based exchanges. An important driver for enhancing sustainable food systems lies in agroecology. Following the Inter- national Symposium on Agroecology for Food Security and Nutrition organized by FAO in 2014 and subsequent regional symposia, there is now international recognition that agroecology has the potential to facilitate a transition towards more productive, sustainable and inclusive food systems worldwide by enabling countries to produce healthy and nutritious food while protecting the environment and ensur- ing social inclusion. Regarding the link between sustainable agricultural practices and market exchanges, small-scale and family farmers have demonstrated their significant ability to innovate and collectively find practical solutions to their local sustainability problems in relation to their agricultural and market practices, as highlighted in a recent FAO-INRA study (FAO, 2016a). Building on knowledge about innovative markets for smallholders and agroecology as key modalities towards more sustainable food systems, this study aims at understanding the construction of markets for products from agroecology, from the perspective of supporting the conditions of their emergence and their scaling up. The publication provides a unique approach to understanding how markets are constructed for agro- ecological products, while at the same time supporting small-scale actors in their existing initiatives for producing and marketing their products from agroecology, in order to contribute to more sustainable food systems. Anna Lartey Director, Nutrition and Food Systems Division Food and Agriculture Organization of the United Nations vi Preface The Policy Recommendations on Connecting Smallholders to Markets recently adopted by the Com- mittee on World Food Security (CFS) highlighted the importance of markets linked to local, national and regional food systems as the most remunerative for smallholders and beneficial for food security and rural economies.
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