The Food Systems Approach: Sustainable Solutions for a Sufficient Supply of Healthy Food

3.4 In an inclusive way

Agri-food is the world's largest economic sector. More than 2 billion people work in the food system, with half of the world's working population active in agriculture. In emerging and developing countries in particular, agriculture continues to be an important livelihood (and therefore also a social safety net). However, the food system fails to provide most of these people with an adequate income: three-quarters of all farmers live in poverty. Poverty is the biggest threat to and the major cause of food insecurity. SDG 1 (End poverty) has set a target of ending extreme poverty (<US$ 1.25 per day) by 2030 and reducing the number of people living in poverty by half. According to the FAO, investing in agricultural and rural development is the key to eliminating hunger and poverty but this does have to generate economic growth that the poorest of the poor can also benefit from. This will not simply happen of its own accord: in order to promote inclusive growth, countries may want to develop economic and social policy and programmes that specifically target the poorest groups. 

There is a direct correlation between the living conditions of farmers and agricultural workers and the functioning of the food system. When farmers have sufficient resources to be able to access a varied diet, training, and basic healthcare, this results in a higher labor productivity. Moreover, a farmer with sufficient earnings can make the transition more easily to a more sustainable form of production. These opportunities are limited, however, if much of the market power in food chains is concentrated in the hands of a small number of traders and retailers who can set the conditions for price and quality (whether or not driven by the globalization process). Farmers risk being excluded from the value chain if they are not able to meet the conditions of the most influential players in that chain. At the same time, especially in many developing countries, there is a tension between consumers in urban areas (the urban poor), for whom affordable food is vital, and the interests of farmers (the rural poor), who want high (or higher) prices for their products in order to climb out of poverty. The question is how the food system can be organized in a way that satisfies both sets of interests.