Transcript No Slide Title

Centre for Food Policy
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Food Systems: Food Policy and
Governance perspectives
GECAFS Food Systems workshop
21-22 October 2004
Medical Research Council, London
David Barling
Centre for Food Policy
School of Allied Health Sciences
City University
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Some key themes
• The food system is increasingly complex
• Witnessed a food revolution in last
century
• Changing patterns of governance
• Major policy challenges
• Focus esp. on near consumption end
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20th century food revolution
•
•
•
•
•
new products, processes & intensification
new distribution & logistics
Transformation of ‘nature’: rise of genetics
impact on health, environment and culture
pressure on control systems, rise of supply
chain management
• Primacy of marketing, brands, price
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Key change factors are…
• Market globalisation: penetration of new
food markets
• Technological change in work and leisure
• Urbanization and rising incomes
• Cuts in real food price
• Shopping opportunities - from small
stores to supermarkets
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Key change factors (cont.)…
• Concentration, i.e. emergence of national,
regional and global giants
• Integrated management control systems
• Global sourcing (now + rhetoric of localism)
• Marketing: systematic moulding of and
response to consumer consciousness
• Pursuit of brand value
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… this has shifted power
• from State to Corporation: emergence of
dual regulatory structures (State/Corp’n)
• from Farm to Retail + Trade:
• from National to Regional/global: e.g. rise
of WTO + Codex/ EFSA
• from Citizenship to Consumerism
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Current State policy focus is on
safety…when it ought to be on the
(social) features of food policy…
• Health: nutrition & degenerative disease
• Environment: causes of pollution,
lifestyle, energy use, resource depletion
(e.g. water and biodiversity)
• Consumerism: price and cost
internalisation
• Culture: people skills
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Challenges
Look at 2 key challenges to the food system
with focus on the consumption end:
1. Market power and corporate
concentration
2. Nutrition and health
Could add 3. externalities & 4. waste
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Challenge 1: Market Power
and corporate concentration
Look at concentration along the food chain
especially near consumption end
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European Grocery Turnover
Largest
2nd Largest
3rd Largest
Next 7 Largest
700
600
billions
500
387.8
400
300
200
100
260.9
72.7
189.4
31.9
48.9
66.9
48.5
58.7
78
93.7
131.1
0
2000
•
•
2005
2010
Source: IGD Research, 2001
Published in: European Grocery Retailing… now and in the future…, Press Release, February 26th 2001,
IGD
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IGD European Retail Index (ERI)
Retailer
Carrefour
Metro
Auchan
Aldi
Lidl & Schwartz
Ahold
Tesco
Rewe
ITM
Casino
Tengelmann
Wal-Mart
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Rank
(ERI)
1
2
3
4
5
6
7
8
9
10
11
12
Rank
European Total
(Turnover) Grocery Market Share
1
7.2%
2
1.9%
5
2.9%
7
2.9%
14
1.7%
10
2.4%
6
3.3%
4
2.3%
3
2.9%
15
1.7%
12
1.3%
13
1.9%
Total
32.4%
European Status
Leading pan-European
Retailers
Major European Retailers
(not yet pan-European)
Source: IGD Research; Market shares - IGD Research & estimates/M&M Eurodata; published in: European
Grocery Retailing… now and in the future…, February, 2001, IGD
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World's Top 20 Grocery Retailers,
by Turnover (2000)
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Source: IGD (2002), Global Retailing
Letchmore Health: Institute of Grocery Retailing, pg 113
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World's Top 20 Grocery Retailers,
by Foreign Sales (2000)
90
83
80
70
% Foreign Sales
60
49
48
50
42
40
36
39
37
33
30
24
20
19
17
19
16
13
11
10
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3
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Source: IGD (2002), Global Retailing; Letchmore Health: Institute of Grocery Retailing, pg 113
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source: J Grievink Cap Gemini / OECD 2003
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Top 10 global food processors, 2001, $bn
Nestlé
41.8
Kraft
In 2001 General Mills
bought Pillsbury from
Diageo
35.1
Unilever
30.5
ConAgra
19.0
General Mills
12.8
PepsiCo
12.2
Sara Lee
10.6
Danone
9.9
Heinz
9.0
Kellogg
7.0
Source - Company Annual Reports, 2000
0
10
20
$Bn
30
40
50
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Growth of McDonalds' Total System-wide Restaurants and
Total System-wide Sales, 1991-2001
$45,000
35,000
$40,000
30,000
million US$
$35,000
25,000
$30,000
$25,000
20,000
$20,000
15,000
$15,000
Total Systemwide restaurants
Total Systemwide sales
10,000
$10,000
5,000
$5,000
$-
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
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Yum! International Sales in International
Restaurants, 2001 (KFC, Pizza Hut,Taco Bell)
source: company w ebsite 2002
Greater China
11%
Americas
21%
Asia Pacific
43%
Europe - South
Africa
25%
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World’s top 7 agrochemical companies 2001
source: Agrow 2002
Rank
1
2
3
4
5
6
7
Co.
Syngenta
Aventis
Monsanto
BASF
Dow
Bayer
DuPont
AgChem Sales $m
5,385
3,842
3,755
3,105
2,612
2,418
1,917
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Challenge 2: Nutrition and
Health
• Nutrition Transition: dietary change 
health impact
• Health policy: degenerative diseases deserve
higher priority than safety
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Major dietary changes: the
nutrition transition
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Rise of meat, sugar, refined foods
Drop in fibre, & often in fruit & veg
Change in tastes
Change in production and food systems
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Death, by broad cause group 2000
Total deaths: 55,694,000
Communicable
diseases, maternal
and perinatal
conditions and
nutritional
deficiencies
(31.9%)
Noncommunicable
conditions (59.0%)
Injuries (9.1%)
22 2001
Source: WHO, World Health Report
Global burden of disease 1990 - 2020
by disease group in developing countries
2020 (baseline scenario)
1990
27%
22%
43%
49%
9%
21%
15%
Communicable diseases,
maternal and perinatal
conditions and
nutritional deficiencies
14%
Noncommunicable conditions
Neuropsychiatric disorders
Injuries
Source: WHO, Evidence, Information and Policy,
232000
Deaths, by broad cause group and
WHO Region, 2000
%
75
50
25
AFR
EMR
SEAR
Noncommunicable
conditions
WPR
Injuries
AMR
EUR
Communicable diseases, maternal and
perinatal conditions and nutritional
deficiencies
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Double burden of disease in
middle/low income countries
200,000
150,000
100,000
50,000
0
2000
India
2020
2000
2020
SSA
Communicable, maternal/perinatal cond.,nutr. deficiencies
Noncommunicable Conditions
Source: WHO/EIP Global Burden of Disease
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Diet and risk of NCD
• Up to 80 % of cases of CHD and up to 90 % of
type 2 diabetes could be avoided through
changing lifestyle factors.
• About one third of cancers could be prevented
by eating healthily, maintaining normal
weight and being physically active throughout
the life span.
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What institutional
response?…emergence of multilevel governance
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Global
Regional
National
Sub-national
Local
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Governance: Public & Private
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Dual system : Public and Private
Private sector leads in some cases
Public leads in others: reacts to crises?
Hybrid – e.g. post Curry Commission on
Future of Food and Farming – new
supply chain management (role of the
Food Chain Centre & Farm Assured
Standards)
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Food policy lacks integration
Polices are divided across:
• Health
• Food safety
• Agriculture
• Trade
• Competition
• etc
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More integrated approaches
exist
• WHO European Region (51 member states):
First Action Plan for Food & Nutrition Action
Plan 2000-20005
• WHO Global Strategy on Diet, Physical
Activity and Health (2004)
• Lacking policy authority - left to member
state action
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Nutrition
Sustainable
Food Supply
Food Safety
Conclusions
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Complex changes result in policy challenges
and huge costs
Selective presentation to focus on near
consumption perspectives
Global environmental changes further
complicate these challenges (&costs)
Ask are OUR food systems’ typologies robust
enough to address these changes?
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