Document Title Goes Here 1
The role of the private sector in improving food security
and nutrition
Derek YachSVP Global Health and Agriculture PolicyIFPRI September 7, 2011Washington DC
Derek Yach. IFPRI September 7, 2011 2
Outline• 300 years of steady improvements in nutrition supported by
private and public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 3
Derek Yach. IFPRI September 7, 2011 4
Key conclusions for policy makers
A. Balancing future demand and supply sustainably – to ensure that food supplies are affordable.
B. Ensuring that there is adequate stability in food supplies – and protecting the most vulnerable from the volatility that does occur.
C. Achieving global access to food and ending hunger. This recognizes that producing enough food in the world so that everyone can potentially be fed is not the same thing as ensuring food security for all.
D. Managing the contribution of the food system to the mitigation of climate change.
E. Maintaining biodiversity and ecosystem services while feeding the world.
Derek Yach. IFPRI September 7, 2011 5
Outline• 300 years of steady improvements in nutrition supported by private and
public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 6
0
10
20
30
40
50
60
70
80
90
100
Wor
ldUSA
China
Indi
a
Egypt
South
Afri
ca
Brazil
Mex
ico
Turke
yUK
pe
rce
nt
ma
rke
t s
ha
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SD:Non IFBA top 10
SD: IFBA top 10
PF: Non-IFBA Top 10
PF: IFBA top 10
IFBA and top ten packaged food and soft drink company sharesPackaged food
(Euromonitor, 2011)
baby food
bakery
canned/preserved food
chilled/processed food
confectionery
dairy
dried processed food
frozen processed food
ice cream
meal replacement
noodles
oils and fats,
pasta
ready meals
sauces
dressings and condiments
snack bars
soup
spreads
sweet and savoury snacks
Open access at: http://www.globalizationandhealth.com/content/7/1/26
Source: Euromonitor, 2011
Image source:http://indonesiaurbanstudies.blogspot.com/2008/10/do-street-vendors-deserve-urban-space.html
Derek Yach. IFPRI September 7, 2011 7
Outline• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group
of CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 8
Derek Yach. IFPRI September 7, 2011 9
Derek Yach. IFPRI September 7, 2011 10
Growing a Better FutureOxfam’s agenda
-The G20 and its members should agree specific measures to rein in and re-govern markets, -The EU and USA must dismantle support for biofuels- Establish local, national, and regional food reserves- Help ensure that agribusiness sectors or commodity chains, starting with food and beverage companies and traders, adopt responsible investment policies and practices in relation to land.
- Major donors should adopt policies that promote sustainable, resilient and inclusive agriculture and adaptation.- Advocating for major companies to invest in sustainable, resilient smallholder agriculture. This will include the design and development of a food justice index that will evaluate the progress of different private actors against this objective.- Advocating for donors and financing bodies, such as the International Finance Corporation, to promote private sector investment that builds resilient, sustainable and inclusive agriculture
-Campaign for a global deal on climate change that stops excessive greenhouse-gas emissions from devastating food production.
Derek Yach. IFPRI September 7, 2011 11
Joseph, Overseer of Pharaoh's GranariesSir Laurence Alma Tadema OM RA, 1836-1912
1874Oil on panel
13-3/4 x 18 inchesinches© Dahesh Museum of Art, 2002.38. New York City
Accessed from: http://www.victorianweb.org/painting/tadema/paintings/23.html
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Derek Yach. IFPRI September 7, 2011 13
PepsiCo is working to understand and address global nutrition challenges through science and partnerships
Bioavailability and Nutrition AccessQuaker PhilippinesAsha India
Addressing Acute Malnutrition in Gombe, Nigeria
Derek Yach. IFPRI September 7, 2011 14
$1,000,000$1,000,000PEPSICO FOUNDATION PEPSICO FOUNDATION
GRANTGRANT
EMPLOYEE EMPLOYEE ENGAGEMENTENGAGEMENT
SOCIAL MEDIA SOCIAL MEDIA OUTREACHOUTREACH
$500,000 International Rescue
Committee$250,000
Save the Children$250,000
World Food Programme
Double-matching employee grants
through September 30
PEPLine articles, plasma screen updates, global
Letter to Associates and regional communications
in AMEA, Europe.
In discussions to lead Disaster Relief working group under the Dubai Chamber of Commerce for Somalia and future
disasters
August 4 Letter to Associates
PepsiCo brands drive traffic to NGO websites through Facebook and
In discussionPEPline announcement
August 16
Partnership with the World Food Programme (WFP) and a local manufacturer in the non-commercial development of a chickpea-based, ready-to-use therapeutic food (RUTF) to address severe malnutrition.
Chickpea agriculture pilot to provide technical assistance in variety selection and agriculture irrigation practice.
PepsiCo response to the Horn of Africa faminePepsiCo response to the famine in the Horn of Africa
Short term actions
Long term actions
IMPROVING NUTRITION AND IMPROVING NUTRITION AND HEALTH THROUGH AGRICULTUREHEALTH THROUGH AGRICULTURE
QUAKER DONATIONSQUAKER DONATIONS
In discussions with potential fortification and
distribution partners
In discussionUnderway
Derek Yach. IFPRI September 7, 2011 15
Outline• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 16
Number of deaths (000s)Source: WHR 2002** = Nutrition Related
** sodium/weight
** fats/oils
**
** weight
** energy balance
**
**
**
**
Deaths in 2000 attributed to selected leading risk factors
Derek Yach. IFPRI September 7, 2011 17
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Derek Yach. IFPRI September 7, 2011 19
Executive Summary• A whole of society approach is
essential for effective action• The private sector can help
make NCDs measurable, reach populations at risk and support sustained change
• The private sector adds value as an employer
• The private sector adds value as a provider of innovative goods and services
• As called for by the WHO, the private sector is a valuable and active partner
Derek Yach. IFPRI September 7, 2011 2020
Corporate Progress: IFBA
Commitments:
1. Food reformulation
2. Consumer information
3. Responsible marketing
4. Promotion of healthy lifestyles
5. Public-private partnerships
IFBA, November 2009. https://www.ifballiance.org
Derek Yach. IFPRI September 7, 2011 21
Products Marketplace Community
Provide more food and beverage choices made with wholesome
ingredients that contribute to healthier eating and drinking.
Encourage people to make informed choices and live healthier.
Actively work with global and local partners to help address global nutrition challenges.
Increase the amount of whole grains, fruits, vegetables, nuts, seeds and low-fat dairy in our global product portfolio.
Display calorie count and key nutrients on our food and beverage packaging by 2012.
Invest in our business and research and development to expand our offerings of more affordable, nutritionally-relevant products for underserved and lower-income communities.
Reduce the average amount of sodium per serving in key global food brands by 25 percent by 2015.
Advertise to children less than 12 years of age only products that meet our global science-based nutrition standards by Jan 1 2011.
Expand PepsiCo Foundation and PepsiCo corporate contribution initiatives to promote healthier communities, including enhancing diet and physical activity programs.
Reduce the average amount of saturated fat per serving in key global food brands by 15 percent by 2020.
Eliminate the direct sale of full-sugar soft drinks in primary and secondary schools around the globe by Jan 1 2012.
Integrate our policies and actions on human health, agriculture and the environment to make sure that they support each other.
Reduce the average amount of added sugar per serving in key global beverage brands by 25 percent by 2020.
Increase the range of foods and beverages that offer solutions for managing calories, like portion sizes.
Eleven of 47 major goals and commitments
Derek Yach. IFPRI September 7, 2011 22
Percent Change in Total Volume of Beverage Shipments to All Schools, 2004 to 2009-2010, USA
ABA. Alliance School Beverage Guidelines Final Progress Report, 2010; www.ameribev.org
Change in Beverages in USA Schools
Derek Yach. IFPRI September 7, 2011 23
A commitment to support consumers manage calories
Derek Yach. IFPRI September 7, 2011 24
Expanding choices in calorie management
Derek Yach. IFPRI September 7, 2011 25
25
Commitments made about our productsNutrients to Encourage
Whole grains
Omega-3 fatty acids
Flax seed oils
Non-starch polysaccharides
Nutrients to Limit
Saturated Fat
Salt
Sugar
Food Groups to Increase
Derek Yach. IFPRI September 7, 2011 2626
SODIUM REDUCTION IN FOODS
UK (6%)
0
100
200
300 -33.3%
‘15’13
-3.4
’12
-6.7
’11
-0.9
’10
-25.3
’06
-0.0
0
100
200
300
Mexico (20%)
0
100
200
300-9.3%
-3.1-3.2-1.3-2.0
US (55%)
0
100
200
300 -17.7%
-1.5-7.3-5.2-4.9 -8.8
‘06 ‘10 ‘11 ‘12 ‘13 ‘15
Canada (6%)
0
100
200
300-2.9-6.6 -2.0
-12.0%
-0.9 -14.8
‘06 ‘10 ‘11 ‘12 ‘13 ‘15
Brazil (4%)
0
100
200
300
-7.2-20.3
-31.2%
-3.0-4.0 0.0
‘06 ‘10 ‘11 ‘12 ‘13 ‘15
Turkey (2%)
-20.5%
-8.6-2.1-3.5-7.9 -5.7
‘06 ‘10 ‘11 ‘12 ‘13 ‘15
Derek Yach. IFPRI September 7, 2011 2727
Growing our nutrition business…
… to create a better tomorrow for future generations.
Derek Yach. IFPRI September 7, 2011 28
Derek Yach. IFPRI September 7, 2011 29
Derek Yach. IFPRI September 7, 2011 30
Research priorities in nutrition and obesity in the context of NCD prevention and control
•Analyse the roles that the public and private sectors could play in improving nutrition in the community and identify potential positive contributions•Determine effective programmes and policies for inclusion in a portfolio of actions to improve dietary quality and food security and prevent weight gain and obesity. These programmes may be at the individual level (e.g. behaviour modification) or at the policy level (e.g. agriculture and trade).•Study the role of specific food products on the development and prevention of major NCDs (palm oil, coconut oil, dairy products, meat)
Research priorities in physical activity in the context of NCD prevention and control
Analysis of problems and development of solutions•Test whole-of-community, multicomponent approaches aimed at increasing physical activity and reducing sedentary behaviour (e.g. individual, social, environmental and policy actions across school, primary health care, worksite, local neighbourhood settings)
Application of solutions and evaluation of impact•Evaluate prospective cohort, quasi-experimental and opportunistic “natural experiments” involving changes in the urban and periurban environments.
Derek Yach. IFPRI September 7, 2011 31
Derek Yach. IFPRI September 7, 2011 32
Outline• 300 years of steady improvements in nutrition supported by private
and public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Derek Yach. IFPRI September 7, 2011 33
Vision: Build Sustainable Business in Africa that Meets Consumer Needs
SeedAdvantaged Procurement
Manufacture Distribution Retail Consumer
Improved varieties for sustainable growing, nutrition, texture, flavor;Nutritious orphan crops for GNG
FarmerProcessin
g
Technical expertise in growing, storage, logistics to prevent 50% post-harvest loss
Stabilize pricing and local supply; risk mitigation for PepsiCo and farmers
Strengthen local capacity, build and retain talent
Consumer insights for hi-mid-lo end nutrition needs
Development agencies investing in infrastructure
Go-To-Market expertiseRetail partners aggressively expanding
Value-added products for local and global consumers, e.g. fair-trade
This value chain approach resonates with World Economic Forum’s multi-company initiative “New Vision for Agriculture”.
Don’t tweak your supply chain – rethink it end-to-end – Hau Lee, HBR, Oct 2010
Industry has potential for disruptive innovation along the agricultural value chain
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To promote health:• Stop fruit/vegetable withdraws and
lower price• Reduce dairy export subsidies• Change wine support subsidies• Stop tobacco production support
EU US
Derek Yach. IFPRI September 7, 2011 38
Summary• 300 years of steady improvements in nutrition supported by private and
public efforts. Yet famines continue; hunger persists and the effects of over nutrition accelerates in developing countries.
• Private companies include those engaged in agriculture; food processing; packaging; retail and food service. All have roles to play.
• Industry actions:– to address food security and nutrition have been defined by a group of
CEOs in the lead up the French G20 meetings.
– to address nutrition aspects of chronic diseases are led by key food companies in the lead up the UN HLM on NCDs.
– to address commodity value chains offer opportunities for private-public actions to enhance farming, health and the environment
• Many gaps remain: engaging smaller companies; developing better metrics and incentives; linking to agriculture policy to better nutrition.
Thank you!
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