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private sector in food systems
1. Youri Dijkxhoorn & Ruerd Ruben
Private sector role in food system tramsformation
2. Objectives
1. Assess the quality and relevance of scientific studies regarding
private sector engagement in food systems transformation.
2. Analyse different impact pathways for private sector linkages to food
system transformations.
3. Understand how private sector activities influence (societal) food
system performance.
4. Identify which factors favour or hinder private sector support to food
system transformation processes.
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3. Approach
1. Conceptualization
2. Literature review
3. Define search terms
4. Database search & screening
5. Literature assessment & case studies
6. Success or Failure factors
7. Towards a PS-FS interface typology
8. Opportunities for public policy
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Private Business
* degree of (in)formality
* supply chain linkages
* ownership
* firm size
Sector
* type of product
* country/region
* result area
Food system
* value chain inkages
* multiple levels
* multiple agents
* multiple outcomes
4. Private
sector
activities
Intermediat
e outcomes
Final
outcomes
Food supply
level
Production
Transport and
storage
Input
supply
Processing &
Fortification
Retail &
Gastronomy
Materials
Services
Availably Accessibility Affordability
Acceptability
(desirability)
Effects on Inclusive & Sustainable Diets & Health
Impact
Knowledge
Access to
inputs
Factor
Returns
Improved
skills
Market
access
Finance
Training
Input
intensificati
on
Marketable
surplus
Yield gap
reduction
Finance
Warehousing
Transport
Food loss
control
Product
Turnover
Connectivit
y to
markets
Packaging
Food
processing
Food
Fortification
Improve
safety &
shelf life
Reduce
losses
Nutritional
quality
Grades
Promotion
Sourcing
Consumer
attraction
Traceability &
Quality
Reliable
contracts
Safety
5. Identification
Screening
Eligible
Included
Records through
database Search
(n = 32.408)
Records published after 2010
(n = 20.508)
Records Developing countries
(n = 4.095)
Input supply N = 2
Production N = 27
Storage N = 3
Transport N = 3
Processing N = 18
Retail N = 22
Post-harvest N = 4
Records after screening abstracts
(n = 277)
Excluded for relevance
(n = 3.818)
Excluded for date
(n = 11.900)
Excluded for country
(n = 16.431)
Full text analysis
(n = 198)
Excluded for quality
(n = 79)
Final sample for synthesis
(n = 79)
6. BASIC CHARACTERISTICS
Relevance
Evidence base
Rigor of Methods
Strength of Evidence
FOOD SYSTEM CHARACTERISTICS
Type of linkages (up/down/midstream)
Multiple levels
Multiple agents
Multiple outcomes
Validity
High
Medium
Low
SUBJECT BUSINESS
Type of product Region Result area Sector Ownership Firm size
Cereals Sub-Sahara Africa Access Formal Private Small
Fruit & Veg (south)east Asia Availability Informal Public Medium
Animal-based Latin America Affordability Mixed PPP Large
Processed food Safety
Quality
7. Publication
General observations:
Role of business sector
frequently overlooked
Most studies look at
technical change (product
& process innovation)
Strong focus on financial
and firm outcomes
Limited attention for
tracing wider food system
outcomes
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Private sector food system publications by year
8. In-depth analysis
FOCUS/SELECTION
• Analyses beyond individual product and
factory level
• Attention to multiple food system levels
(including forward or backward linkages)
• Analyses that integrate technological
change and behavioural drivers
• Looking at internal aspects (business
models) & external (policy/market) factors
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GENERAL ISSUES:
• Trade-offs between different goals (profit,
risk, employment, welfare)
• Width: Bilateral contract or multi-stakeholder
arrangement
• Time horizon: Short-term vs long-term
commitment
• Landscape of forces: Trust/reliability vs
power asymmetry
• Scale differences: Linking SME’s to large-
scale enterprises (retail, trade)
• External agents: Third-party enforcement vs
public G&S (grading/ sorting?)
9. Typology & screening
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Food processing
Key study areas
• Fortification
• Upgrading
• Packaging
Coverage
• Wide variety of sectors, firms & countries
• Mostly downstream
• Both formal & informal markets
• >50% address food system change
• Mediocre methods & varied effects
Lessons
• Effect of labelling & information
• Price premium to foster innovation
• Legal & market constraints
• Higher income market segments
BASIC CHARACTERISTICS
Relevance
Evidence
Methods
Strength
SUBJECT
Product Processed foods F&V ABF Cereals/Staples Street
Region Global SSA SEA LATAM
Result
area
Quality Acceptance Availability Safety Loss
BUSINESS
Sector Formal Formal + Informal Informal
Ownership Pu/Pr Private
Firm Size Small Small & Medium Medium/Large n.a
SYSTEM CHARACTERISTICS
Linkages Downstream Upstream
Levels
Agents
Outcomes
RESULTS
Effect size
11. Towards a typology of private sector roles
1. Private sector as transformative agent, i.e., taking a lead role in the articulation of
food value chain stakeholders
Mainly input supply and production
Cases: Aflasafe, Harvest Plus
2. Private sector as knowledge broker by providing learning and facilitation
Mainly handling, storage (bulking) & transport
Cases: Agrofair (Nigeria), Friesland-Campina (Indonesia)
3. Private sector as partner in policy dialogue engaged in lobbying and advocacy.
Mainly processing and retail
Cases: certification, dietary guidelines(?)
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12. Public policies towards private sector
Price incentives : taxes & subsidies to account for external costs
Market transparency: creating insights in supply chain competition
Reputation: shaping customer trust and loyalty
Accreditation: recognition of transparent supply chain management
Legal Rules: imposing boundary conditions
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