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The Sustainable Food Value Chain Framework
This document outlines a framework for sustainable food value chains. It defines a sustainable food value chain as one that is profitable, provides broad social benefits, and has a neutral or positive environmental impact. It presents an analytical framework that considers the economic, social, and environmental impacts of food value chains. It also describes 10 guiding principles for developing sustainable food value chains, including that they should be economically sustainable, socially inclusive, environmentally green, and driven by a clear vision and strategy.
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The Sustainable Food Value Chain Framework
- 1. www.fao.org/ag/ags The Sustainable Food ValueChain Framework David Neven Marketing economist, FAO
- 2. Sustainable Food ValueChains (SFVC) • Defining the concept • Value-added defined • Sustainability defined • Analytical framework • Development paradigm • 10 Guiding principles • New knowledge management tools www.fao.org/3/a-i3953e.pdf
- 3. Defining the concept Whatis a sustainable food value chain? A food value chain consists of all the stakeholders that participate in the coordinated production and value adding activities that are needed to make food products. A sustainable food value chain: • is profitable throughout (economic sustainability); • has broad-based benefits for society (social sustainability) and • shows a positive or neutral impact on the natural environment (environmental sustainability)
- 4. The concept ofvalue-added… Non-labour cost Value added to society Market price Consumer willingness to pay Salaries/ income Net profits Taxes Consumer surplus Value added to VC stakeholders Negativeexternalities Positiveexternalities
- 5. The concept of sustainability … ECONOMIC IMPACTS Profits Jobs/incomes Tax revenues Foodsupply SOCIAL IMPACTS Added value distribution Cultural traditions Nutrition and health Workers rights and safety Animal welfare Institutions ENVIRONMENTAL IMPACTS Carbon footprint Water footprint Soil conservation Animal & plant health Food loss and waste Biodiversity Toxicity Inclusive growth Green growth Eco- social progress SFVCD
- 6. International markets National markets Environmental Natural elements Sustainability Societal Socio-cultural elements Organizational elements Institutional elements Infrastructural elements Service provision Input provision Finance Distribution Processing Aggregation Production Economic Governance Corevalue chain Extended value chain National enabling environment Global enabling environment SFVC Analytical framework
- 7. SFVC development paradigm Reducehunger Reduce poverty Social supportConsumer benefit Taxes Enabling environment Improved food supply More decent jobs Salary incomeReturn on assets Wealth accrual Investment loop Multiplier loop Progress loop VC growth engines Some become “entrepreneurs” Most find jobs All benefit Extreme poor and disaster victims Emergency support Catalytic support Catalytic support Five pathways to value creation
- 8. 10 principles inSFVC development 1. Economically sustainable (profitable) 4. Dynamic systems based 5. Governance-centered 6. End-market driven 2. Socially sustainable (inclusive) 3 .Environmentally sustainable (green) 7. Vision/strategy driven 8. Upgrading Focused 9. Scalable 10. Multilateral Sustainability Principles Implementation Principles Analytical Principles