The role of the private sector in Improving Food Security and Nutrition

The role of the private sector in improving food security and nutritionDerek YachSVP Global Health and Agriculture PolicyIFPRI September 7, 2011Washington DC Document Title Goes Here 1

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

Derek Yach. IFPRI September 7, 2011 3

Key conclusions for policy makersA. 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

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 confectionerypercent 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 ia y a o ld a t SA K il yp e az ric ic n d U or soup rk hi ex In Eg U Br Af W Tu C M h ut spreads So Source: Euromonitor, 2011 sweet and savoury snacks Derek Yach. IFPRI September 7, 2011 6

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 beveragecompanies and traders, adopt responsible investment policies and practices in relation to land.- Major donors should adopt policies that promote sustainable, resilient and inclusive agricultureand adaptation.- Advocating for major companies to invest in sustainable, resilient smallholder agriculture. This willinclude the design and development of a food justice index that will evaluate the progress ofdifferent private actors against this objective.- Advocating for donors and financing bodies, such as the International Finance Corporation, topromote private sector investment that builds resilient, sustainable and inclusive agriculture-Campaign for a global deal on climate change that stops excessive greenhouse-gas emissionsfrom devastating food production. Derek Yach. IFPRI September 7, 2011 10

Joseph, Overseer of Pharaohs Granaries Sir Laurence Alma Tadema OM RA, 1836-1912 1874 Oil on panel 13-3/4 x 18 inchesinches © Dahesh Museum of Art, 2002.38. New York CityAccessed from: http://www.victorianweb.org/painting/tadema/paintings/23.html Derek Yach. IFPRI September 7, 2011 11

PepsiCo is working to understand and address global nutrition challenges through science and partnershipsBioavailability and Nutrition Access Addressing Acute Malnutrition in Asha India Quaker Philippines Gombe, Nigeria Derek Yach. IFPRI September 7, 2011 13

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 AssociatesPEPLine 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 andregional 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 AGRICULTUREPartnership 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.

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

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

Corporate Progress: IFBACommitments:1. Food reformulation2. Consumer information3. Responsible marketing4. Promotion of healthy lifestyles5. Public-private partnerships IFBA, November 2009. https://www.ifballiance.org Derek Yach. IFPRI September 7, 2011 20 20

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

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

A commitment to support consumers manage calories Derek Yach. IFPRI September 7, 2011 23

Expanding choices in calorie management Derek Yach. IFPRI September 7, 2011 24

Commitments made about our productsFood Groups Nutrients Nutrientsto 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

SODIUM REDUCTION IN FOODS UK (6%) Turkey (2%) Brazil (4%) 300 -20.5% -31.2% 300 -33.3% 300 -2.1 -8.6 -20.3 -7.2 -4.0 200 -25.3 -0.9 -6.7 -3.4 -0.0 200 -7.9 -3.5 -5.7 200 -3.0 0.0 100 100 100 0 0 0 „06 „10 „11 „12 „13 „15 ’06 ’10 ’11 ’12 ’13 „15 „06 „10 „11 „12 „13 „15 US (55%) Canada (6%) Mexico (20%) -17.7% -9.3%300 -12.0% 300 300 -4.9 -5.2 -2.0 -1.3 -3.2 -3.1200 -7.3 -1.5 -8.8 -6.6 -2.9 -2.0 -0.9 -14.8 200 200100 100 100 0 0 0 „06 „10 „11 „12 „13 „15 „06 „10 „11 „12 „13 „15 Derek Yach. IFPRI September 7, 2011 26 26

Growing our nutrition business… … to create a better tomorrow for future generations. Derek Yach. IFPRI September 7, 2011 27 27

Research priorities in nutrition and obesity in the context of NCD prevention and control•Analyse the roles that the public and private sectors couldplay in improving nutrition in the community and identifypotential positive contributions•Determine effective programmes and policies for inclusion ina portfolio of actions to improve dietary quality and foodsecurity and prevent weight gain and obesity. Theseprogrammes may be at the individual level (e.g. behaviourmodification) or at the policy level (e.g. agriculture and trade).•Study the role of specific food products on the developmentand prevention of major NCDs (palm oil, coconut oil, dairyproducts, meat) Research priorities in physical activity in the context of NCD prevention and controlAnalysis of problems and development of solutions•Test whole-of-community, multicomponent approachesaimed at increasing physical activity and reducing sedentarybehaviour (e.g. individual, social, environmental and policyactions across school, primary health care, worksite, localneighbourhood settings)Application of solutions and evaluation of impact•Evaluate prospective cohort, quasi-experimental andopportunistic “natural experiments” involving changes in theurban and periurban environments. Derek Yach. IFPRI September 7, 2011 30

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

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 erImproved Stabilize Consumer Development Value-addedvarieties for pricing and insights for hi- agencies products forsustainable local supply; mid-lo end investing in local and globalgrowing, nu risk mitigation nutrition infrastructure consumers, e.g.trition, textu for PepsiCo needs fair-tradere, flavor; and farmers Go-To-MarketNutritiousorphan Strengthen expertisecrops for Technical expertise in local Retail partnersGNG 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

EU USTo 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

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

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The role of the private sector in Improving Food Security and Nutrition

by International Food Policy Research Institute (IFPRI) on Sep 09, 2011

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The role of the private sector in Improving Food Security and Nutrition Presentation Transcript