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Impact tokenization and innovative financial models for responsible agrifood supply chains










Vahouny, E.; Feintech, S.; Pulsfort, J.; Circo, I.; Schmidhuber, J. and Tripoli, M. 2021. Impact tokenization and innovative financial models for responsible agrifood supply chains. Rome, FAO.





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    The publication looks at innovations happening at all stages of the food value chain: from production to manufacturing and retailing. This also includes the extended value chain, for example input supply, financial services and agribusiness support services. Yields are improving and primary production is becoming more resilient as a result of digital technologies such as precision agriculture, agricultural drones, and digital farming services and marketplaces; and novel business models such as plant factories, crowdsourcing for farmers. Data and robotics help lift productivity and food safety in the manufacturing process. Online grocery commerce and food delivery services are revolutionizing the way consumers purchase food. Distributed ledger technology, such as blockchain, allows making payments and tracing back food products along the chain in order to increase transparency and trust. New business models are springing up to shorten the chain by removing or shifting stages and to make it fairer and greener, stimulated by enabling technologies and changing customer behaviours. Innovations such as these are discussed and illustrated by almost 200 practical examples from 21 countries in the Asia-Pacific region, across various types of firms and commodities. By observing emerging trends and providing concrete examples, the book discusses the nature of these innovations, how they are affecting food systems and value chains, positively or negatively, and how to deal with trade-offs. It concludes with a reflection on the impacts of these innovations, the policy solutions identified, and lessons learned to future-proof the region’s food systems, particularly in the wake of the COVID-19 pandemic.
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    Significant levels of food loss and waste (FLW) occur in the food supply chain from production to consumption. Globally, up to 14 percent of food produced for human consumption is lost from harvest up to but excluding retail, while 17 percent is wasted at the retail and consumer stages. FLW have negative impacts on food security and nutrition, occurring within a context where some 828 million people in the world are undernourished and 3.1 billion cannot afford a healthy diet. FLW contribute significantly to greenhouse gas (GHG) emissions, to environmental pollution, degradation of natural ecosystems and biodiversity loss, and represent a waste of the resources used in food production, such as energy, water and land. Reducing FLW helps address the challenge of promoting economic prosperity and sustainably feeding a world population projected to reach almost 10 billion in 2050, without accentuating pressure on the environment and the natural resources underpinning the agri-food system. Science and context-specific innovations are critical to catalyse, support and accelerate the transformation of agri-food systems to improve their efficiency, sustainability, inclusiveness and resilience, thereby leading to FLW reduction and contributing to the achievement of the 2030 Agenda for Sustainable Development. Innovations in this context include innovations in the policy, regulatory and institutional framework, as well as innovations in technologies, social and market relationships, finance products and business models that contribute to reducing FLW in a sustainable way (economically, socially and environmentally). On the other hand, science generates new insights and the basis for these innovations, while also serving to identify targets and actions for pathways towards reaching those targets. We need to capitalize on scientific and technological advancements to transform agri-food systems to be more efficient, resilient, sustainable and inclusive, leaving no one behind. Organized within the framework of FAO Science & Innovation Forum 2022, this event will gather perspectives and experiences from stakeholders from different parts of the world regarding applying science and leveraging innovation to sustainably reduce food loss and waste (FLW). The event will also discuss possible response options and make concrete recommendations to achieve lower levels of FLW at scale within a sustainable agri-food systems context.
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    During this webinar, organized by the SFS-MED Platform and held on 13 October 2022, stakeholders from across the Mediterranean shared practical experiences of university-business cooperation, successful cases of innovation adoption and transfer, innovative pathways of capacity development, as well as provocative thoughts from investors and farmers. Panelists and speakers discussed about the needs and challenges that agrifood SMEs and farmers are experiencing in linking with innovation, and investigated possible pathways for transformation, leveraging the added value of multi-stakeholder approaches to promote the uptake of innovation. Moreover, the webinar allowed strengthening collaboration among the different partners and stakeholders shaping the agrifood ecosystem, that are essential to enable SMEs and farmers with solutions, tools and best practices. The discussion was instrumental in demonstrating that linking agrifood SMEs to innovation is key for a sustainable future of the Mediterranean food systems, where SMEs and small-scale producers are empowered as economic actors and agents of change for a blue, green and circular food system transition. There is a need for an interactive innovation ecosystem based on a multi-stakeholder collaboration process that is open and inclusive, where new technologies and organizational processes are co-designed by all food systems actors. To this effect, science diplomacy is a powerful tool to ensure that scientific knowledge is effectively shared and adequately translated to be used by non-scientific stakeholders, leveraging co-creation and win-win solutions through alliances that engage all shores of the Mediterranean on a level-playing field. Moreover, innovative capacity building and training programmes are instrumental in developing the human capital necessary to address skills mismatch between graduates and employment demand from the agri-business sector, enhancing the innovation chain through new professional profiles. Finally, sustainable finance and new financial mechanisms can be unlocked to enhance SME access to affordable innovation and technology. Business incubators and accelerators promote a change of mindset that can lead SMEs to embrace innovation by adopting new business models, matchmaking innovators and co-founders, and inspiring ideas.

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