Eelco Baan “Food Security and Nutrition in an Urbanizing World” June 06, 2017 Brussels, Belgium The International Food Policy Research Institute (IFPRI), SNV Netherlands Development Organization, and Welthungerhilfe are jointly organizing a one-day event in Brussels on the eve of the European Development Days to explore the challenges and opportunities of urbanization from a variety of perspectives.

1. Investing in Rural Urban Linkages
Examples from Kenya, Cambodia and Nepal
Eelco Baan
Global Coordinator
Sustainable Markets
Brussels, 6 June 2017

2. 50 years
More than 30 countries
3 sectors:

3. The Challenge of Urbanisation
• By 2020, 1.4 billion people will live in slums (800 million today)
• By 2050, approximately 66% of the worlds population will live in
urban areas (57% today)
• 800 million people chronically hungry, 2 billion suffer from
micro nutrient deficiency, obesity rates are increasing
worldwide  triple burden of malnutrition

4. Esther’s story
Kibera, Nairobi, KENYA
Key concerns: Access to water, energy, education
Water
Fuel
School
costs
Housing
Name: Esther
Age: 37
Family Status: Married with 5 children
Employment: Informal market seller
Education: Primary
Income: 150-200 KES/day (~€40-50/month)
A day in her life…
04:00 Make porridge and tea for breakfast
05:00 Arrive at market; children get themselves ready for school
12:00 Children receive school lunch (porridge)
16:00 Children walk themselves home
21:00 Esther returns home, cooks dinner (cornbread with kale)

5. Food Security Outlook
Availability:
A variety of foods are available in the market, food also often brought back from visiting relatives in rural
areas. Small shared garden also produces some food.
Access:
Market prices are volatile and foods most often bought in small quantities, more expensive than if bought
in bulk. Thieves often steal from garden. Food needs compete with other expenses (especially water).
Cartels control water supply and commodity supply in markets.
Utilisation:
Food sometimes contaminated and there is little regard for food safety or nutritional quality. Priority is to
fill the stomach. Water must be boiled before drinking. Cooking over open fire harms health, and food not
safely stored.
Stability:
More food secure than in rural areas and relative political stability provides some long-term peace of
mind. Climate, market shocks, and unpredictable, informal work remain a concern.
Esther’s story

6. Case Studies
Kenya HortIMPACT
Cambodia CHAIN (Cambodia Horticulture
Advancing Income and Nutrition)
Nepal HVAP (High Value Agriculture Project
for Hill and Mountain Areas)

7. Kenya
HortIMPACT

8. Problem
• Economic growth, social and
environmental benefits in the Kenya fruit
and vegetable market are limited by:
o Poor food safety (especially Fresh Fruit
and Vegetables)
o High food (post-harvest) losses
o Exclusion of small-and-medium farmers
from value chains
• Policies, regulations and enforcement of
regulations
• Concern over the safety of fruits and
vegetables among domestic consumers is
high and increasing → limiting dietary
diversity and market growth

9. Strengthen rural food production and rural-
urban linkages to increase availability, quality,
and diversity of foods in markets
• Joint value propositions and business
cases as an entry point, co-investment of
companies
• Technical support, facilitation of market
based solutions
• Support to the enabling environment to
improve food safety and reduce PHL,
including advocacy by CSOs
• Address consumer behavior and demand
and advocacy by consumer organizations
Solution

10. Some Initial Results
• 7 business cases, reaching 25,000 farmers
(increased income, improved food safety
and reduced PHL)
• 600 avocado farmers GAP certified
• 2 business cases with Carrefour and local
restaurant chain
• 400 spray service providers provide
spraying services to 8,000 farmers
• 4 IPM providers (Koppert, Real IPM, Kenya
Biological, Dudutec) provide services on
advocacy and strengthening capacities
(e.g. Pesticide Control Boards)
• Roll out of National Traceability System
supported

11. Kenya
HortIMPACT
Cambodia
CHAIN

12. Problem
• Agriculture in Cambodia → 28.7% of GDP
and largest employer of rural labor force
(56%)
• Approximately 70% of fresh fruits and
vegetables consumed in Cambodia are
imported from Thailand and Vietnam
• 80% of Cambodia’s low-income groups
(2.5 million people) live in rural areas and
more than 40% suffer from food insecurity
• Consumption of unsafe food - urban poor
are particularly vulnerable
• Bottleneck in responding to urban market
requirements in terms of volumes (steady
supply) and quality (nutritious and safe
food)

13. Solution
• Substitute foreign inputs with home grown
fruits and vegetables
• Develop local supply chains of safe food
products (push)
• Engage with agribusinesses willing to
invest in such local value chains (pull)
• Private and public co-investment to limit
risks and reduce transaction costs (match)
• Support the emergence of credible labels
for local safe food products
• Urban growing food & nutrition security
challenges represent business
opportunities for rural communities

14. Some Initial Results
• Improved supply, quality, and diversity of
home-grown Cambodian horticulture
products in urban food systems
• 8 agribusinesses, 5 vegetable agribusiness
clusters, 15 provincial traders, 80 groups,
2,000 farmers
• Advocacy and policy promotion of
Cambodia GAP implementation, Safe Food
and IPM practices
• 9 Public Private Partnerships co-investing
in diverse and nutritious supply of food
and new technologies

15. Kenya
HortIMPACT
Cambodia
CHAIN
Nepal
HVAP

16. Problem
• Nepal imports fruits worth 6 billion Rs (56
million USD) every year
• High transaction costs (transportation
hurdles, connectivity)
• Perceived risk in investing in rural areas
like Mid Western Hills and Mountains
• Inclusion of low income women,
Dalits/Janajatis, landless in business
• Women = 62% of the agricultural
workforce, but only 8% of the female labor
force receive equal pay for their work

17. Solution
• Increase income and employment for low-
income smallholder famers
• Linking remote farmers in Nepal‘s Mid-
West region to urban markets in Nepal
and India
• Co-investment with the private sector, and
incorporation of inclusive business models
• Cluster Based and Market demand led
Production: Crop Calendar
• Facilitating upgrading vision and
interventions in multi-actor setting
• Supporting embedded services from
agribusiness to producers to increase
accessibility and investment readiness

18. Results
• 443 Group Cooperatives and 14,000+ HHs
involved in commercial production
• Fair trading relationships established
between Producers and Agribusiness
• 62% Female and 32% Dalits/Janjatis,
additional annual Income per HHs of
22,800 Ns
• Collective Marketing Initiated and
Transaction volume increased
• Increased commercial investments and
linkages between producers and urban
food systems
• Chronic malnutrition reduced from 47.1%
to 45.3%

19. Rural Urban Linkages
Win-Win inclusive business linkages between
rural smallholder farmers, and markets in
urban centers
Rural Urban
Smallholder farmer
incomes
Supply/availability of
nutritious foods
Food security of rural
households
Diversity of foods
available

20. Key Roles - Partners
Partner Key Roles
Private Sector Invest and develop innovative
business models
Public Sector Set the rules of the game, the
enabling environment
Research and Knowledge Investigate, develop and
disseminate knowledge,
availability and use of
evidence
Civil Society Organisations Safeguard inclusion and
sustainability, advocacy for
inclusive policies, pro poor
service delivery and
investment by public and
private sector

21. @SNVUSA
#crknut16
Private Sector and Urban FNS

22. @SNVUSA
#crknut16
Roadmap towards Scaling
Urban FNS
Innovations
PPP & Business Case
Development
Sector
Development
Accelerating
Investment

23. Triggering and Behavioural Change
3
Plant protein
1
Carbohydrates
2
Animal protein
5
Fruits
4
Vegetables

24. Nutrition investments are good investments
“The greatest contributor to
economic growth is not physical
infrastructure but brainpower: ‘grey
matter infrastructure’. Stunted
children today leads to stunted
economies tomorrow.”
(Akin Adesina, President of the
African Development Bank)
40%
decrease in
stunting by
2025
Could add
$83
billion
to national
incomes
Source: GLOPAN, 2016

25. Urban Food and Nutrition Security Model

26. Lessons Learned
• Potential rural – urban linkages
• Partnerships are key
• Leveraging investment from private sector
• Business case at the core
• Build in scale from the start
• Consumer demand & behavioural change
• Return on Investment in Nutrition
• Model and best practices
• Enabling Environment