The role of the private sector in Improving Food Security and Nutrition
1. The role of the private sector
in improving food security
and nutrition
Derek Yach
SVP Global Health and Agriculture Policy
IFPRI September 7, 2011
Washington DC
Document Title Goes Here 1
2. Outline
• 300 years of steady improvements in nutrition supported by
private and public efforts. Yet famines continue; hunger persists
and the effects of over nutrition accelerates in developing
countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to play.
• Industry actions:
– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public
actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better
metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 2
4. Key conclusions for policy makers
A. Balancing future demand and supply sustainably – to ensure that food supplies are affordable.
B. Ensuring that there is adequate stability in food supplies – and protecting the most vulnerable from the volatility
that does occur.
C. Achieving global access to food and ending hunger. This recognizes that producing enough food in the world so
that everyone can potentially be fed is not the same thing as ensuring food security for all.
D. Managing the contribution of the food system to the mitigation of climate change.
E. Maintaining biodiversity and ecosystem services while feeding the world.
Derek Yach. IFPRI September 7, 2011 4
5. Outline
• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the
effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to
play.
• Industry actions:
– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public
actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better
metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 5
6. Open access at: http://www.globalizationandhealth.com/content/7/1/26
Image source:http://indonesiaurbanstudies.blogspot.com/2008/10/do-street-vendors-deserve-urban-space.html
100
IFBA and top ten packaged food and soft drink company shares
Packaged food
90 (Euromonitor, 2011)
baby food
80
bakery
canned/preserved food
70
chilled/processed food
confectionery
percent market share
60
SD:Non IFBA top 10 dairy
SD: IFBA top 10 dried processed food
50
PF: Non-IFBA Top 10
PF: IFBA top 10
frozen processed food
40 ice cream
meal replacement
30 noodles
oils and fats,
20 pasta
ready meals
10 sauces
dressings and condiments
0
snack bars
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spreads
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Source: Euromonitor, 2011
sweet and savoury snacks
Derek Yach. IFPRI September 7, 2011 6
7. Outline
• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the
effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to play.
• Industry actions:
– to address food security and nutrition have been defined by a group
of CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public
actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better
metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 7
10. Growing a Better Future
Oxfam’s agenda
-The G20 and its members should agree specific measures to rein in and re-govern markets,
-The EU and USA must dismantle support for biofuels
- Establish local, national, and regional food reserves
- Help ensure that agribusiness sectors or commodity chains, starting with food and beverage
companies and traders, adopt responsible investment policies and practices in relation to land.
- Major donors should adopt policies that promote sustainable, resilient and inclusive agriculture
and adaptation.
- Advocating for major companies to invest in sustainable, resilient smallholder agriculture. This will
include the design and development of a food justice index that will evaluate the progress of
different private actors against this objective.
- Advocating for donors and financing bodies, such as the International Finance Corporation, to
promote private sector investment that builds resilient, sustainable and inclusive agriculture
-Campaign for a global deal on climate change that stops excessive greenhouse-gas emissions
from devastating food production.
Derek Yach. IFPRI September 7, 2011 10
13. PepsiCo is working to understand and address global
nutrition challenges through science and partnerships
Bioavailability and Nutrition Access Addressing Acute Malnutrition in
Asha India Quaker Philippines Gombe, Nigeria
Derek Yach. IFPRI September 7, 2011 13
14. PepsiCo response to the famine in the Horn Africa famine
PepsiCo response to the Horn of of Africa
Short term actions
$1,000,000
EMPLOYEE SOCIAL MEDIA
PEPSICO FOUNDATION QUAKER DONATIONS
ENGAGEMENT OUTREACH
GRANT
August 4 Letter to PEPline announcement
August 16 Underway InIn discussion
discussion
Associates
PEPLine articles, plasma $500,000 PepsiCo brands drive
screen updates, global International Rescue In discussions with
traffic to NGO websites
Letter to Associates and Committee potential fortification and
through Facebook and
regional communications $250,000 distribution partners
Twitter
in AMEA, Europe. Save the Children
$250,000
In discussions to lead World Food
Disaster Relief working Programme
group under the Dubai
Chamber of Commerce Double-matching
for Somalia and future employee grants
disasters through September 30
Long term actions
IMPROVING NUTRITION AND
HEALTH THROUGH AGRICULTURE
Partnership with the World Food Programme (WFP) and a local manufacturer in the non-commercial development of
a chickpea-based, ready-to-use therapeutic food (RUTF) to address severe malnutrition.
Chickpea agriculture pilot to provide technical assistance in variety selection and Yach. IFPRI September 7, 2011 14
Derek agriculture irrigation practice.
15. Outline
• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the
effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to play.
• Industry actions:
– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public
actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better
metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 15
16. Deaths in 2000 attributed to selected leading risk factors
** sodium/weight
** fats/oils
**
**
** weight
** energy balance
**
**
**
Number of deaths (000s)
** = Nutrition Related Source: WHR 2002
Derek Yach. IFPRI September 7, 2011 16
19. Executive Summary
• A whole of society approach is
essential for effective action
• The private sector can help
make NCDs
measurable, reach populations
at risk and support sustained
change
• The private sector adds value
as an employer
• The private sector adds value
as a provider of innovative
goods and services
• As called for by the WHO, the
private sector is a valuable and
active partner
Derek Yach. IFPRI September 7, 2011 19
20. Corporate Progress: IFBA
Commitments:
1. Food reformulation
2. Consumer information
3. Responsible marketing
4. Promotion of healthy lifestyles
5. Public-private partnerships
IFBA, November 2009. https://www.ifballiance.org
Derek Yach. IFPRI September 7, 2011 20
20
21. Eleven of 47 major goals and commitments
Products Marketplace Community
Provide more food and beverage
choices made with wholesome Encourage people to make informed Actively work with global and local partners
ingredients that contribute to healthier choices and live healthier. to help address global nutrition challenges.
eating and drinking.
Invest in our business and research and
Increase the amount of whole grains,
Display calorie count and key nutrients development to expand our offerings of
fruits, vegetables, nuts, seeds and low-
on our food and beverage packaging by more affordable, nutritionally-relevant
fat dairy in our global product
2012. products for underserved and lower-
portfolio.
income communities.
Expand PepsiCo Foundation and PepsiCo
Advertise to children less than 12 years
Reduce the average amount of sodium corporate contribution initiatives to
of age only products that meet our
per serving in key global food brands promote healthier communities, including
global science-based nutrition
by 25 percent by 2015. enhancing diet and physical activity
standards by Jan 1 2011.
programs.
Integrate our policies and actions on
Reduce the average amount of Eliminate the direct sale of full-sugar
human health, agriculture and the
saturated fat per serving in key global soft drinks in primary and secondary
environment to make sure that they
food brands by 15 percent by 2020. schools around the globe by Jan 1 2012.
support each other.
Reduce the average amount of added
Increase the range of foods and
sugar per serving in key global
beverages that offer solutions for
beverage brands by 25 percent by
managing calories, like portion sizes.
2020.
Derek Yach. IFPRI September 7, 2011 21
22. Change in Beverages in USA Schools
Percent Change in Total Volume of Beverage Shipments to
All Schools, 2004 to 2009-2010, USA
ABA. Alliance School Beverage Guidelines Final Progress Report, 2010; www.ameribev.org
Derek Yach. IFPRI September 7, 2011 22
23. A commitment to support consumers manage calories
Derek Yach. IFPRI September 7, 2011 23
25. Commitments made about our products
Food Groups Nutrients Nutrients
to Increase to Encourage to Limit
Omega-3 Sugar
fatty acids
Non-starch
polysaccharides Salt
Flax seed oils
Whole grains
Saturated Fat
Derek Yach. IFPRI September 7, 2011 25
30. Research priorities in nutrition and obesity in the context
of NCD prevention and control
•Analyse the roles that the public and private sectors could
play in improving nutrition in the community and identify
potential positive contributions
•Determine effective programmes and policies for inclusion in
a portfolio of actions to improve dietary quality and food
security and prevent weight gain and obesity. These
programmes may be at the individual level (e.g. behaviour
modification) or at the policy level (e.g. agriculture and trade).
•Study the role of specific food products on the development
and prevention of major NCDs (palm oil, coconut oil, dairy
products, meat)
Research priorities in physical activity in the context of
NCD prevention and control
Analysis of problems and development of solutions
•Test whole-of-community, multicomponent approaches
aimed at increasing physical activity and reducing sedentary
behaviour (e.g. individual, social, environmental and policy
actions across school, primary health care, worksite, local
neighbourhood settings)
Application of solutions and evaluation of impact
•Evaluate prospective cohort, quasi-experimental and
opportunistic “natural experiments” involving changes in the
urban and periurban environments.
Derek Yach. IFPRI September 7, 2011 30
32. Outline
• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the
effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to play.
• Industry actions:
– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-
public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better
metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 32
33. Vision: Build Sustainable Business in Africa that Meets
Consumer Needs
Don’t tweak your supply chain – rethink it end-to-end – Hau Lee, HBR, Oct 2010
Industry has potential for disruptive innovation along the agricultural value chain
Farm Advantaged Process Distributio Consum
Seed Manufacture Retail
er Procurement ing n er
Improved
Stabilize Consumer Development Value-added
varieties for
pricing and insights for hi- agencies products for
sustainable
local supply; mid-lo end investing in local and global
growing, nu
risk mitigation nutrition infrastructure consumers, e.g.
trition, textu
for PepsiCo needs fair-trade
re, flavor;
and farmers Go-To-Market
Nutritious
orphan Strengthen expertise
crops for Technical expertise in local Retail partners
GNG growing, storage, capacity, buil aggressively
logistics to prevent d and retain expanding
50% post-harvest loss talent
This value chain approach resonates with World Economic Forum’s multi-company initiative
“New Vision for Agriculture”.
Derek Yach. IFPRI September 7, 2011 33
37. EU US
To promote health:
• Stop fruit/vegetable withdraws and
lower price
• Reduce dairy export subsidies
• Change wine support subsidies
• Stop tobacco production support
Derek Yach. IFPRI September 7, 2011 37
38. Summary
• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the
effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food
processing; packaging; retail and food service. All have roles to play.
• Industry actions:
– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food
companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public
actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing
better metrics and incentives; linking to agriculture policy to
better nutrition.
Derek Yach. IFPRI September 7, 2011 38