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

Half of the world's working population works in the agricultural sector. At present the food system fails to provide most of them with an adequate income, and 75% of all farmers live in poverty. Poverty is the biggest threat for producers worldwide and the main cause of food insecurity. 

In particular, it is farmers producing on a small scale who tend to be caught up in a negative spiral known as the poverty trap. Because their livelihood depends on a small patch of land, they have difficulty making ends meet. To earn more, they need to increase productivity. To increase productivity, they have to make certain investments, and in order to make those investments, they need access to financial resources. But because their plot of land is so small, and they often have no official land rights, financial institutions do not view them as creditworthy and they may find it very difficult to obtain a loan. As a result, they are often unable to invest in productivity growth. 

Changes in the socio-economic context can help to break through the poverty trap, for example by facilitating market access for farmers. An example is a contract farming arrangement, in which a farmer guarantees supply to the buyer, who in return helps the farmer with inputs that he or she can use to increase productivity or improve product quality. The government can also do a great deal to expand economic opportunities for farmers. Investments in infrastructure, such as good roads, as well as digital and social networks (including farmer organizations), bear a strong relationship to food security because they increase the farmer's access to the market. Finally, access to financial services is essential for farmers wanting to escape the poverty trap. Micro-credit programmes contribute to higher and more stable incomes for farmers, which translates into better nutrition and health for their families. In these examples the agricultural production system is closely linked to socio-economic drivers (institutional structures such as contracts or farmer organizations). 

Figure 9 Food systems thinking around poverty and productivity