Guljahan Kurbanova

Economist, UN FAO Regional Office or Europe and Central Asia

Budapest, Hungary

Food Accessibility and AffordabilityFood Accessibility and AffordabilityFood Accessibility and AffordabilityFood Accessibility and Affordability

European Economic and Social CommitteeFood for citizens: From a common agricultural policy to a common

food policy, Vilnius, 21 June , 2013

OutlineOutlineOutlineOutline� Concept of Food Security and Nutrition

� Current Situation and Challenges

� Specific Issues Addressing European Prospects

� Conclusions for future actions

Food security exists when all people, at all times, have physical, social and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life. World

Summit, Rome, 1996

Concept of Food Security and Nutrition Concept of Food Security and Nutrition Concept of Food Security and Nutrition Concept of Food Security and Nutrition

(FSN)(FSN)(FSN)(FSN)

Food affordability, access and security are related issues. Without food security, individual access and affordability will be more limited.

� Food Acceptability� Geography and route net

� Price and Income

� Knowledge and Values

� Food chains

� Food Affordability� Information

� Income

� Prices

� Consumption Style

FSN

Trends and Challenges Trends and Challenges Trends and Challenges Trends and Challenges

� Growth in global food consumption is expected to slow 2.2 per cent a year (1970 to 2000) to 1.3 per cent a year (2000 to 2030) and to 0.6 per cent a year (2030 to 2050).

� Global food requirements continue to increase in coming years due to populations and incomes rise

� Changing pattern of food – focus on nutrition

� Slowing down agricultural productivity growth, the impacts of climate change, and scarce resources (water, fertilizer and land), shortage of investments .

Current Situation and Challenges Current Situation and Challenges Current Situation and Challenges Current Situation and Challenges Factors

� Slowdown of economic growth: EU (- 0.1); EU 15 (-02); Euro area (-04) NMSs (1.1%)

� Lack of access to food and adequate diet� Specific factors on FSN:

� Price volatility and market risks� Weak governance mechanisms and

increasing of inequality� Erratic weather patterns � Limited investments including in public

goods• Challenges of sustainable food and

agriculture systems and limits of natural resource management

• Lack of understanding and knowledge on food consumption including nutritive value

• Weak development of food based agriculture systems for better nutrition and gaps in gender and vulnerability

Facts*

� Still around 870 million people remain undernourished worldwide

� Undernourishment and obesity in the region (related to MDG 1, target 1.9)

� Share of food expenditures of poor and vulnerable

� Prevalence of food inadequacy� Food Prices Index and volatility � Macro- and micronutrient deficiency � Undernutrition, micronutrient

deficiency, overweight and obesity impose high economic and social on countries at all income

� Increasing vulnerability in EU:about ¼ of EU27 population at risk (2010) of poverty and reduced access to adequate food (Proposals to EU parliament, COM 2012)

* Source: SOFI 2012 and SOFA 2013, FAO

Undernourishment and obesity by Undernourishment and obesity by Undernourishment and obesity by Undernourishment and obesity by

regionsregionsregionsregions

Indicators on Malnutrition Prevalence Indicators on Malnutrition Prevalence Indicators on Malnutrition Prevalence Indicators on Malnutrition Prevalence

World and EuropeWorld and EuropeWorld and EuropeWorld and Europe EU: New Member StatesEU: New Member StatesEU: New Member StatesEU: New Member States

0 20 40 60 80

World

Europe

Eastern Europe

Northern Europe

Southern Europe

Western Europe

Obesity amongadults, %

Prevalence ofmicronutrientdeficiency: Iodine

Prevalence ofmicronutrientdeficiency:Vitamin APrevalence ofmicronutrientdeficiency:Anaemia

0 20 40 60 80 100

World

Bulgaria

Czeh Republic

Hungary

Poland

Romania

Slovakia

Domestic Food Price Volatility in the Domestic Food Price Volatility in the Domestic Food Price Volatility in the Domestic Food Price Volatility in the

Selected Regions and CountriesSelected Regions and CountriesSelected Regions and CountriesSelected Regions and Countries

0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 160,0 180,0

World

Developing Countries

Developed Countries

Bulgaria

Croatia

Czeh Republic

Estonia

Hungary

Iceland

Latvia

Lithuania

United Kingdom

2012

2011

2010

2009

2008

2007

Food prices and farmers income – role of agricultural productivity

Food Prices Trends in EU Food Prices Trends in EU Food Prices Trends in EU Food Prices Trends in EU � Agricultural production contributes to nutrition by making food more availableand affordable

� The enhancing agricultural productivity with food based approach investments provides income growth

� The economic and productivity growth in agriculture makes food more available and affordable, reduce poverty and lower real food prices.

-2

0

2

4

6

8

2007 2008 2009 2010 2011 2012 2013

Overall Index

Food and non-alcoholicbeverages

-5

0

5

10

15

20

2007 2008 2009 2010 2011 2012 2013

Overall Index

Food and non-alcoholicbeverages

-2

0

2

4

6

8

2007 2008 2009 2010 2011 2012 2013

Overall Index

Food and non-alcoholicbeverages

EE,

ES

EURO AREA

Share of Food Expenditures*Share of Food Expenditures*Share of Food Expenditures*Share of Food Expenditures*

� Acceptable share of food expenditures – 15 up to 30 percent

� In a number of countries it is above 30 percent including EU countries:� Bulgaria - 53

� Estonia - 46

� Hungary - 34

� Latvia - 51

� Lithuania - 59

� Romania - 72

Source: FAO, SOFI 2012

Specific Issues Addressing European Specific Issues Addressing European Specific Issues Addressing European Specific Issues Addressing European

ProspectsProspectsProspectsProspects� Increasing overweight and obesity

� The CAP in EU countries actually raises consumer prices of sugar and dairy products relative to prices of fruits and vegetables. It has a small positive impact on the overall healthiness of European diets - furthersteps needed

� The CAP, served largely as a tax on consumers in the European Union (EU), it may have depressed prices and encouraged overconsumption in countries that imported food from the EU

� Increasing of unemployment, in particular among young groups:how to stimulate through the CAP youth employment in agriculture and rural public goods possibly oversees as well ?!

� Fertilizer subsidies may also have some nutritional public good attributes, with benefits to a wider population beyond the immediate beneficiaries.

� The costs of input subsidies and their indirect effect on nutrition probably mean that other, more targeted, nutrition interventions would be more effective.

� Taxes on soft drinks and foods higher could reduce consumption and improve health outcomes

� Nutrition education including both general education and nutrition-specific education, are effective means of improving nutrition

Buyer Power Buyer Power Buyer Power Buyer Power –––– Large Retailers vs. SMEs Large Retailers vs. SMEs Large Retailers vs. SMEs Large Retailers vs. SMEs

� Modern supply chains led by large food processors

� Despite the growth of supermarkets, traditional food systems still (small stores in remote places) remain though faces difficulties

� Poor post-harvest storage and distribution infrastructure can lead to significant food losses and quality

� Roughly one-third of food produced globally for human consumption is lost or wasted (FAO); in Europe it is 280-310 kg/ capita; 1/3 lost by consumers

� Traditional value chains suffer from seasonal shortages and high transaction costs

� Interventions needed to improve the efficiency of traditional food value chains

� Local & community initiatives to be supported

� Where are small holders/ SMEs, how fairly do they link to the food chain, do they need a support?

Food Based Policy Food Based Policy Food Based Policy Food Based Policy for Better Food Security and Nutrition for Better Food Security and Nutrition for Better Food Security and Nutrition for Better Food Security and Nutrition

Social Protection: Food Safety Net Social Protection: Food Safety Net Social Protection: Food Safety Net Social Protection: Food Safety Net

ConclusionsConclusionsConclusionsConclusions• Sustainable food affordability and accessibility is a multi- dimensional problem:

• Accessibility:

• Network of stores and stocking policy also for SMEs, roads

• SME inclusive food chain based on gender equiality

• Food based interventions

• Affordability

• Food price – price of healthy food

• Food inadequacy between different population groups

• Information on food and nutrition

• Local food and community initiatives

• An increase of agricultural and food production is essential - challenges exist!

� The levels of food loss and waste is unacceptably high, and require due attention at all levels including behavior changes

� Increase of investment in agriculture with priorities addressed to increasing of productivity, R&D , innovation, and education, strengthening of rural infrastructure

� Development of partnership with the involvement of small producers and other stakeholders for policy dialogue and sustainable development

� The CAP based on food based approach (CFP)?!

� Coordination with the rest of the world

Thank you for attention! Thank you for attention! Thank you for attention! Thank you for attention!