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Improving Diets in an Era of Food Market Transformation: Challenges and Opportunities for Engagement Between the Public and Private Sectors

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Improving Diets in an Era of Food Market Transformation: Challenges and Opportunities for Engagement Between the Public and Private Sectors Improving diets in an era of food market transformation: Challenges and opportunities for engagement between the public and private sectors This brief seeks to stimulate governments and other stakeholders to help build strategies to incentivize the private sector to influence food systems in ways that will improve the food environment, and enable better dietary choices. POLICY BRIEF No. 11 | April 2018 ABOUT THE GLOBAL PANEL ON AGRICULTURE AND FOOD SYSTEMS FOR NUTRITION The Global Panel is an independent group of influential experts with a commitment to tackling global challenges in food and nutrition security. It works to ensure that agriculture and food systems support access to nutritious foods at every stage of life. Global Panel members: John Kufuor John Beddington Akinwumi Adesina Tom Arnold José Graziano Agnes Kalibata (Co-Chair) Former (Co-Chair) Former President, African Former Director da Silva President, Alliance for President of Ghana United Kingdom Development Bank General, Institute Director General, a Green Revolution Government Chief (AfDB) of International and Food and Agriculture in Africa (AGRA) Scientific Adviser European Affairs Organization of the (IIEA) United Nations (FAO) Rachel Kyte Maurício Rhoda Peace Srinath Reddy Emmy Simmons Sandy Thomas Special Representative Antônio Lopes Tumusiime President, Public Senior Adviser, Director, Global Panel of the UN Secretary President, Brazilian Former Commissioner Health Foundation Non-resident, to the on Agriculture and General for Agricultural Research for Rural Economy of India Center for Strategic Food Systems for Sustainable Energy; Corporation and Agriculture, and International Nutrition CEO of Sustainable (Embrapa) African Union Studies Global Food Energy for All (SE4All) Security Project © 2018 by the Global Panel on Agriculture and Food Systems RECOMMENDED CITATION: Global Panel. 2018. for Nutrition. Improving diets in an era of food market transformation: Challenges and opportunities for engagement between the This report may be freely reproduced, in whole or in part, public and private sectors. Policy Brief No. 11. London, UK: provided the original source is acknowledged. This publication Global Panel on Agriculture and Food Systems for Nutrition. is a product of the Global Panel on Agriculture and Food Systems for Nutrition, supported by the Panel Secretariat, and was peer Cover photo: istockphoto.com reviewed. The findings, interpretations and conclusions expressed in this work do not necessarily reflect the views of the organisations or governments that the Global Panel members represent. W glopan.org @Glo_PAN 2 Global Panel on Agriculture and Food Systems for Nutrition Executive Summary Diets are changing rapidly around the world. Leaders in almost all low- and middle-income countries (LMICs) today face a complex policy challenge – how to resolve persisting undernutrition and ENCOURAGING INVESTMENTS vitamin and mineral deficiencies while simultaneously preventing IN FOOD SECTOR SMEs the global escalation of overweight and obesity. Urgent action is How can SMEs access loans to invest in food products essential because healthy diets are key to addressing the growing which enhance dietary diversity and quality? health crisis. In fact, poor quality diets now threaten the successful achievement of the Sustainability Development Goals (SDGs). PROMOTING CONSUMER Some LMIC governments are stepping up their efforts to improve DEMAND FOR HEALTHY DIETS diets for all. For example, by focusing on improving consumer How can consumer demand for high-quality knowledge and shaping demand through price and trade policies. diets and nutritious food products be created But, there are very few successful examples where governments and promoted so that companies have confidence have harnessed the market power of private sector actors to to invest and take risks in delivering more achieve positive gains in nutrition. This is a huge missed nutritious foods? opportunity which must be rectified. Policymakers need to be realistic about their own limits PUBLIC INCENTIVES FOR in shaping consumer behaviour. Similarly, they need to be APPROPRIATE ACTION IN THE pragmatic in seeking to persuade industry partners to play PRIVATE SECTOR a more active role in improving diets. The food industry How should governments incentivize already does much to meet the nutritional needs of a rapidly private companies to improve the quality growing global population. However, its activities are typically of food products? focused on delivering individual food products, rather than on enhancing diets and larger food systems per se. There is profit in responding to current consumer demand for convenient, MANAGING RISKS – A ROLE tasty, ultra-processed food products which do not contribute FOR INSURANCE to a high-quality diet. Therefore, a policy focus is needed to How can risks associated with developing, encourage and enable firms to shift the balance of their activities producing and selling more nutritious foods in favour of products as well as fresh produce which are more be minimized? nutritious, affordable and accessible to all. The key is to establish a common understanding of the critical BUILDING TRUST role of diet quality in nutrition. Circumstances should then inform How can governments ensure that engagement two broad classes of action: incentives – so that companies have with for-profit companies to promote universal confidence in taking decisions and risks associated with sourcing access to healthy diets is underpinned by core and supplying nutritious foods and products; and enabling principles of transparency and accountability? measures – so that the business environment works to encourage rather than inhibit innovative approaches. INFRASTRUCTURE Regulation is a powerful tool at the disposal of policymakers How can infrastructure planning be better for influencing food and beverage companies, although geared toward reducing food losses and promoting policymakers need to be wary of potential negative side-effects. year-round access to enhanced diets? There are also opportunities and benefits for both public and private interests to move forward in partnership. Appropriate partnerships would enable firms to inform and help shape the design and implementation of policy actions. For this to take place, open dialogue is essential to building trust. In this brief, the Global Panel sets out six key questions which need to be addressed and resolved as part of any new partnership approach. They are intended to be used as a basis to promote dialogue aimed at achieving more ambitious and effective links between the public and the private sectors. Improving diets in an era of food market transformation 3 4 Global Panel on Agriculture and Food Systems for Nutrition 1. Introduction Diets are changing rapidly around the world. While some interests in highly competitive marketplaces to ensure food of these changes, such as improved supply and diversity safety, affordability, accurate information about nutritional of foods in low-income settings, have contributed to on-going quality and year-round availability of nutritious foods.i global reductions in undernutrition, changes in terms of rising Effective public policies aimed at influencing consumer availability and falling relative costs of ultra-processed foods demand through public health campaigns and consumer have simultaneously led to unhealthy dietary choices that education also have a critical role to play and are covered are associated with overweight and obesity. Leaders in almost in Sections 4 and 5 below. The Global Panel's Consumer all low- and middle-income countries (LMICs) today face Behaviour brief also discusses this topic in details.5 a complex policy challenge – how to resolve persisting undernutrition and vitamin and mineral deficiencies while This brief seeks to stimulate governments and other simultaneously preventing the global escalation of overweight stakeholders to help build national and city-based strategies and obesity, which together signal a surging health crisis. to engage and incentivize private sector actors to influence food systems in ways that will improve the food environment, While governments in some LMICs are beginning to pay and enable better dietary choices. Urgent action is needed attention to these serious challenges, focusing on improving at the interface of engagement between public and private consumer knowledge and shaping demand through price and stakeholders across the food system if the impending crisis trade policies, there are still few successful examples where of diet-related diseases is to be avoided and global nutrition governments have harnessed the market power of private goals are to be met in the coming decade. The private sector sector actors to achieve positive gains in nutrition. Diverse plays a dominant role in shaping diets and provisioning private sector actors (e.g. smallholder farmers, agribusiness, consumer choice through its activities in food transformation food and beverage manufacturers, food retailers, food service and food retail, and the brief therefore focuses on these two providers and industry and trade associations) shape global parts of the food system. It highlights emerging efforts which and local food systems in ways that have considerable link public and private sector actions and highlights issues potential to influence the availability, price, nutritional quality, that stakeholders must consider if they are to improve the desirability and demand for more
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