Agriculture Reference
In-Depth Information
The objective of this chapter is to review the basic factors that influence the avail-
ability and affordability of food at a global level. A central idea is that food avail-
ability and affordability result from complex interactions between the supply chain
for food (food production, processing, transporting, and selling) and the demand
for food (which is influenced by a variety of factors, including income, urbaniza-
tion, and policies). We introduce the concept of a dynamic food system, discuss
recent trends in food production, marketing, and consumption and indicate likely
future challenges. Case studies on the rapid growth in demand for livestock products,
the impacts of growing biofuels demand and the modernization of food retailing
in the developing countries illustrate the integration of production, marketing, and
consumption in specific settings. Because government policies are often employed
to improve food- and nutrition-related outcomes in both developed and developing
countries, we also review basic policy approaches as well as their likely impacts.
food system concePtuAl fRAmewoRk
Food systems are complex, comprising many actors and activities in multiple loca-
tions. In addition, food systems are dynamic, in constant evolution through the deci-
sions of consumers in their local supermarket, farmers (or governments representing
them) thousands of miles away, and (usually) multiple food processors, wholesalers,
and retailers in between. This complexity and dynamism make it challenging to
understand how food systems function and to intervene effectively when this is con-
sidered necessary to achieve desired outcomes (such as adequate food for all). The
purpose of this section is to introduce overall concepts involved with food supply and
demand in both developed and developing countries and to provide an organizing
framework for the rest of the chapter.
To address the complexity of food systems, an explicit systems perspective can be
useful. A
system
can be defined as “any set of interrelated elements” (Meadows and
Robinson, 1985). A system consists of two essential components:
elements
(visible
or measurable objects of flows) and
relationships
(connections postulated to exist
among the elements). For a food system, the essential elements include the different
actors, activities, operating environment, and information flows. The relationships
among these elements are complex but can be represented in a useful manner by
a diagram depicting the elements and the hypothesized relationships
1
among them
(Figure 23.1). In the diagrammatic representation of the system, text indicates ele-
ments, and the connecting arrows indicate postulated relationships. The arrows indi-
cate hypothesized causality, and the plus or minus signs indicate the likely direction
of influence. For example, the arrow beginning at “Household Income” and point-
ing to “At Home Food Consumption” with a plus sign indicates that an increase in
household income would result in (cause) an increase in at-home food consumption,
all other things being equal.
2
Although the diagram is visually complex, it is important to remember that the
real-world system is even more complex. The diagram illustrates a number of impor-
tant concepts. First, the multiple actors directly involved in the food system include
crop and livestock producers, food processors, food marketers, and consumers. Each
of these actors responds to a variety of factors, particularly prices (and income for
