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Changing consumer tastes, digital technologies, innovations and investment are driving the shift toward a healthier, more sustainable food system.  

And healthier, more sustainable food systems are key to addressing the world’s most pressing challenges – from ending hunger and poverty by 2030 to preserving the health of the planet.

But what does ‘greening the food system’ really mean? What are the options?

The upcoming UN Food Systems Summit in 2021, part of the Decade of Action on the SDGs, will take this topic head on – a topic passionately discussed at the FAO Investment Centre’s annual Investment Days in December.

Feeding a growing global population affordable, nutritious food in a sustainable way over the next few decades will be difficult without transforming our food system.

This means looking at how we produce food, what we eat and how we manage waste, according to FAO Investment Centre Director Mohamed Manssouri.

“Food is the single strongest lever to optimize human health and environmental sustainability,” he said.

Circular economy

Emma Chow, Lead of the Ellen MacArthur Foundation Food Initiative, echoed the transformative power of food.

“Food is part of nature, and because of that, food has the power to tackle some of the greatest challenges of our time,” she said.

Food as a linear industry – a system that takes, makes, then wastes – is ripe for disruption.

“Continuing with a linear business as usual, we can expect 5 million lives to be lost each year until 2050 due to health impacts of how food is produced and managed,” she said.

Redesigning a food system fit for the 21^st century and beyond involves transitioning to a circular economy – one that designs out waste and pollution, keeps products and materials in use, and regenerates natural systems.

Cities, where some 80 percent of all food will be consumed, could hold the key to unlocking this food transformation, Chow added.  

“Cities are largely driving the problems of today’s food system, but they have an opportunity to transform their role to fuel a thriving food system,” she said. “If they do so, we could see $2.7 trillion in annual health, environmental and economic benefits by 2050.”

Policy space

Julian Lampietti, Manager of the World Bank’s Global Engagement Unit, underscored the importance of policy-making to turbocharge our approach to changing the food system.

“The most interesting thing to me is that the world’s governments spend over half a trillion dollars every year on agricultural support, and there is an enormous opportunity for this to have a much more positive impact on people and the planet than it currently does,” he said.

“If we want to start influencing that government expenditure, we need the leverage to convince agricultural ministers by dramatically increasing our activities in the policy space,” he said. “And that starts by giving them a better understanding of the trade-offs.”

He said the Bank was keen to work with FAO to scale-up its traditional investment portfolio into a policy space that will have a much bigger influence on how food systems develop.  

Trends

Good data is key for transforming the food system. Joan Riera from Kantar World Panel, a leading global market intelligence company, pointed to a number of trends shaping the future of fresh food.

Kantar uses advanced technology and consumer panels to measure people’s shopping habits.

The trends in wealthier countries suggest “that the number of people over 60 will continue to increase, especially in Europe and the United States. People will be more alone and richer, but with less time for shopping and cooking,” he said.

They’ll also be “more connected through technology, with e-commerce taking a greater share of the market, eat healthier diets and buy more local, organic produce,” he added.

By comparison, sub-Saharan Africa and South Asia are home to younger populations who are shaping what and how people eat – consuming more diverse, convenient and processed foods and meals outside the home.  

Healthier footprint

Companies are feeling pressure from consumers and investors to improve their environmental footprint.

Carbon Trust is a global company helping to accelerate the move to a sustainable, low-carbon economy.

Tom Cumberlege, Associate Director of the Carbon Trust, explained that the company advises businesses, governments, development banks and other organizations on reducing carbon emissions, improving resource efficiency and transitioning to low-carbon technologies.

The company offers a range of services, including data collection, value chain analysis (e.g. carbon footprint), differentiation, product comparatives and lifecycle analysis.

“We help establish the baseline data across entire value chains to better inform decision-making and minimize risk,” he said.

Urban markets

Demand for local, seasonal and organic food continues to grow, opening up opportunities for farmers and fishers.  

Investment Days panellists discussed innovative models that link producers to consumers, and the importance of investing in urban wholesale food markets.

Maria Gonzalez Pastor is Head of Institutional Cooperation at MERCASA, a longstanding network of 23 wholesale markets in Spain.

MERCASA is upgrading its services to keep pace with evolving demand. It is working on a pilot programme to introduce online services and last mile delivery for its producers’ markets.

It has created its first organic market inside the wholesale market, and is attracting new players that offer healthier foods.

MERCASA is also making a push to become more sustainable, using renewable energy and LED technology, improving its waste management and reducing food waste to zero.

“If you want to improve the food value chain, wholesale markets need to be part of the formula,” she said.

The right mix

Greening the food system is not only about environmental sustainability and reducing the carbon footprint.

It’s about creating viable jobs and sustainable livelihoods, ensuring the availability of safe, nutritious, affordable food, improving efficiencies, reducing inequalities and strengthening climate resilience.

Getting the right mix of ingredients to address these different facets – more public and private investment, effective institutions, stronger partnerships, better data and policies, innovation, digital technology, social initiatives – is vital for this transformation.