Costanza conti andy hall caroline hambloch Key messages SHOULD GLDC INVEST in Breeding novel FUNCTIONAL FOOD TRAITS IN MANDATE CROPS Value of global market for functional foods 275 billion by 2025 ID: 918196
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Slide1
Exploring opportunities for GLDC crops as functional foods
Costanza
conti
,
andy
hall,
caroline
hambloch
Slide2Key messages
SHOULD GLDC INVEST in Breeding novel FUNCTIONAL FOOD TRAITS IN MANDATE CROPS?Value of global market for functional foods $275 billion by 2025GLDC crop have existing functional properties (micro nutrients).Novel nutritional traits relevant to SDG agenda. However pathways to nutritional, health and income benefits to poor people are multiple, complex and require major investment and multi-scale collaboration, including policy. Improved nutrition can not always be reconciled with improved farm incomes.
Pathway 1. Crops already produced and consumed by the poor
:
no-regrets strategy
, but tensions and trade offs between nutrition and income outcomes need to be understood and managed.
Pathway 2. Create new domestic market opportunity:
Possible, but major concerns on scaling niche products for broad impact
, tension between benefits for high vs low income groups. Best left to local development agencies working at a community scale.
Pathway 3 Miracle crops for international markets:
No standout successes
. Standards and regulation needed to promote procurement from small holders. Exposes small holders of risks of international markets and competition from farmers in the global north.
Conclusion: focus on no-regrets strategy based on existing production and consumption patterns of the poor. Align with wider nutritional and health initiatives,
let others
do the heavy lifting. Avoid the allure of novel traits and miracle crops
Slide31. introduction
Global South in midst of nutrition transition: increased consumption of foods high in fats, sugar and salt due to demographic changes, urbanization, economic development (HLPE, 2017) Double burden of malnutrition: coexistence ofOvernutrition (overweight and obesity) andUndernutrition (stunting and wasting) at all levels of the populationConsumption of diversified and balanced foods can safeguard against malnutrition and non-communicable diseases
What is the potential of producing GLDC crops with novel functional food traits to tackle global nutritional challenges?
Slide42. DEFINITION
Definition of functional food: satisfactorily demonstrated to affect beneficially one or more target functions in the body, beyond adequate nutritional effects, to either improve health and well-being and/or reduce of risk of disease.Must remain food and demonstrate its effects in amounts that can normally be expected to be consumed in diet, i.e. not pill/capsule, but part of normal food pattern (Diplock et al., 1999)
Types
Definition
Example
Fortified products
Food fortified with additional nutrients
Juices fortified with vitamins,
Enriched products
Food with added new nutrients or components not normally found in a particular food
Probiotics and prebiotics
Altered products
Food from which a deleterious component has been removed, reduced or replaced with another substance with beneficial effects
Fibres as fat releasers in meat,
alflatoxin
free ground nuts
Non-altered products
Foods naturally containing increased content of nutrients or components
Natural foods
Enhanced products
Food which one of the component has been naturally enhanced through special growing conditions, new feed composition, genetic manipulation or otherwise.
Eggs with increased omega-3 content achieved by altered chicken feed , golden rice, orange fleshed sweet potato
Slide53. Functional foods in the global market
The rapid advances in biotechnology and functional foods confront us with a need to address the benefits of these with regard to improving health and managing or decreasing disease risks. (Hite and Bernstein, 2012)The global functional foods market size was estimated at USD 161.49 billion in 2018 and is projected to reach USD 275.77 billion by 2025 (https://www.grandviewresearch.com/press-release/global-functional-foods-market)
Slide64. Potential and pitfalls
FFs generally sold at higher prices than usual foods
larger margins of profit for companies
Sector attractive to various players along the supply chain such as food manufacturers
(
Siró
et al., 2008)
.
Developing FFs is expensive in nature, as it requires in depth knowledge of both products
and
consumer purchasing attitudes (Grand View Research, 2019).
high reported failure rates in this category,
given the m
any marketing and technological challenges faced by product developers
Figure 2. Reasons behind the rapid global growth of the functional food markets. Adapted from
Vergari
,
Tibuzzi
and Basile (2010).
Slide7What opportunities are there for GLDC crops in the functional foods markets and for nutrition more generally?
South-Asian diets are traditionally rich in pulses, with GLDC crops being consumed daily. Lentils, chickpea and pigeon pea are normally part of at one to two meals daily, and are usually consumed together with rice and vegetables (FAO, 2019). GLDC crops already represent a viable and healthy dietary option, especially among the poorest sections of the population. Sorghums and millets contain valuable micro-nutrients including iron
However, micro and macro nutrients deficiencies are only part of the solution to improved diets and health outcomes as this is compounded by poverty and other health issues, gender dynamics and problems of food access and affordability. These issues have been further exacerbated by the COVID-19 pandemic.
Raising income in urban centres and in the global north is creating market interest in functional food could present an opportunity for GLDC crops because of their inherent traits but also as a commodity that could be bred with novel traits: for example high oleic oil ground nuts or golden sorghum
Slide8BUT HOW TO MOVE FORWARD? WHAT ARE PATHWAYS THAT LINK SMALLHOLDER FARMERS TO OPPORTUNITIES AND HOW FEASIBLE ARE THESE?
Slide9OPPORTUNITY AND PATHWAY
Nutritious GLDC CROPS PRODUCED AND CONSUMED BY THE POOR
Promotion and awareness
Breeding to introduce varieties with functional properties
Nutritious GLDC CROPS CREATE NEW DOMESTIC MARKET OPPORTUNITIES
Promotion campaigns create demand
Policy changes encourage novel uses/ stimulate demand
Preferences of higher income consumers create demand
GLOBAL DEMAND FOR FFS CREATES NEW INTERNATIONAL MARKETS FOR GLDC CROPS
Global/regional value chains source GLDC to supply rich country demand for functional foods
ANTICIPATED OUTCOME
Improved nutrition of small holder farmers producing GLDC crops
New market demands will lead to improved profitability/increased income for GLDC farmers
demand for FFs and PBM grows globally, creating new high value markets opportunities for small scale farmers
ASSUMPTIONS
Farmers are mainly consuming the GLDC crops that they produce (surpluses will be sold to other poor consumers)
people are willing to change dietary patterns
improved diets will led directly to improved nutrition and health
Consumers change food preferences
Niche products create sufficient demand to increase prices to farmers
Farmers have access to and can grow varieties preferred by the market
Willingness of private sector to invest, develop and produce foods with functional properties
Government willing and able to integrate the poor in the value chain and insulate the poor from shocks
Farmers have access to and can grow varieties preferred by the market
Willingness of private sector to invest, develop and produce foods with functional properties
Private sector or big multinational will not capture the market
NECESSARY CONDITIONS
the government is willing to set up an integrated set of policies that enable promotion including health campaigns
the private sector will supply new seed varieties
Willingness of consumers to pay for niche products
The private sector will supply new seed varieties adapted to niche products
Export policy, collective marketing and governance of global value chains actively supports procurement from the smallholder sector (
eg
fairtrade
coco)
TRADE OFFS
Nutritious crops for self consumption may compete with cash crops grown for the market
Farm household may have better nutrition but it won’t deal with other dimensions of health such as poverty (won’t increase farm incomes) and may not match with farmers aspirations
Farmers who do not adopt these crops are worse off
Small farmers might be worse off compared to medium large scale farmers
Price raises make nutritious food unaffordable by poor non-farm consumers
If not supported properly, scaling can endanger poor producers (cant compete) and consumers (can’t afford) instead of benefitting them
Slide10Pathway 1: Crops produced and consumed by the poor: the case of
Orange Flesh Sweet Potato (OFSP)Orange Flesh Sweet Potato (OFSP)Improved vitamin A intake in rural and poor communities in several regions Policies: product ownership remains with small/medium size farmers Committed leadership for innovation for over 20 years: critical for scalingStrong evidence base: prerequisite for obtaining donor support for scaling
Common vision for diverse organizations involved in scaling
Four dimensions addressed for scaling
Technical
: evidence of benefits
Organizational:
research go beyond traditional mandate of breeding/applied research; focus on facilitation and dissemination in collaboration with partners
Leadership
combined with institutional environment drove organizations to adapt and change
Institutional
supportive policies and institutions
Slide11Pathway 2: Creation of new domestic market opportunities:
the case of amaranth in east africa
High quality protein, also rich in fibre and unsaturated fatty acids
Not really any adverse effect from the introduction of Amaranth, whose promotion benefitted to certain segments of the population .
However, the crop diffusion has remained limited to niche markets
especially in urban areas,
by specific consumer groups, such as high‐performance athletes, malnourished children, and people suffering from diabetes and coeliac disease.
Slide12Pathway 3 Creation of new International Markets
: the case of quinoaQuinoa was marketed as the “miracle grain” of the Andes. Quinoa went global, and international sales soared for small-scale quinoa farmers, the rising popularity of the crop could represent a significant opportunity. However, as quinoa popularity and demand increased globally (especially from consumers in the US, Canada, Australia and the UK) this generated unanticipated consequences (Perez, Nicklin, and Paz, 2011):Demand for quinoa pushed up prices Now “more expensive than chicken” quinoa has become too expensive for locals, who rather have to consume cheaper junk food
medium and large-scale farmers started to commercialize their quinoa production
risk of establishment of monocultures, less diversified production, more reliant on volatile global markets
Increased mechanization of processes (e.g. use of tractors, pesticides etc.)
concerns over long-term sustainability of quinoa production, and its effects on soil health and biodiversity
Slide13Pathway 3 Creation of new International Markets
: The case of plant-based MeatsIncreasing global demand for plant-based meats (PBM): increasing awareness of environmental sustainability, health and safety concerns, animal rights/welfare of meat consumption; but mainly in Global North2018: US plant-based foods retail market grew five times faster than total US retail food salesDespite growing demand,
critical issues remain
Willingness to replace meat with substitutes remains low
Consumer awareness of environmental impact of meat production remain low
Little political effort to reduce meat and dairy consumption in the Global North
Is this an opportunity for GLDC crops? PBM mostly based on pea protein isolated extracted from yellow peas
Pigeon pea not used as protein source: yellow peas often preferred due to relatively neutral color and flavor
Is this an opportunity for
poor producers in low income
countries?
PBM likely to expand in areas with existing food manufacturing (plant/machinery, labor skills, supply chain infrastructure)
Often cited opportunities for Australian and US farmers to grow legumes and grains for PBM
How to become competitive vis-à-vis industrial producers (US, Australia)?
Conclusion: no current realistic prospect for poor producers to be integrated into the PBM value chain
Slide14Recommendations
Pathway 1. A no-regret strategy
GLDC crops:already have a range of desirable nutritional properties are widely consumed by smallholders and poor consumers more generally.there are already domestic and, in some cases, established export markets for these crops.
A no-regrets strategy would be to further enhance the existing functional properties of these crops.
Slide16Pathway 2 The scale challenge of promoting niche product
Can create new high value market for smallholdersNutritional benefits more targeted at higher income groups, national benefits may not spill over to poor consumers unless specifically targetedIntroducing FFs in niche markets could be a pathway, but the potential to scale these niches remain uncertain. Best left to local development agencies work on community scale initiatives
Slide17Pathway 3. The fallacy of miracle nutritional crops
Global value chain will not preference the procurement of high value crops from small holders unless regulations and standards are in place to promote this (e.g. fair trade, provenance labeling etc )Farmers in the Global North have a comparative advantage in producing ”miracle crops” e.g. quinoaInternational competition and fluctuating prices and policy and regulatory shifts make this a risky strategy for smallholders
Slide18Opportunities abound, but there is a need for realism about the feasible of these and an understanding of the impact pathways and scaling logics associated with these opportunities
There are 4 consideration in investing in GLDC crops to improve nutritional properties areFeasibility -- is there a likelihood that the opportunity can be made to work for the poor, given the power dynamics and risks and uncertainty in global markets ? Can income and nutrition trade-offs be reconciled?Scalability -- is an opportunity an that can trigger wider transformations in agri-food systems that enables scaling beyond pilots and niches? Is the opportunity more in the domain of local agency acting at a community scale?Humility – is this something that can be led by crop improvement originations or does it need to be part of a consortium approach with national and international agencies with broader nutritional and health mandates?Probity -- is this an opportunity that puts smallholder farmers at risk (e.g. from global market competition) and what trade-offs might arise that will require further policy, regulatory or technology responses to mitigate down sides
Slide19References:
Diplock, A., Aggett, P., Ashwell, M., Bornet, F., Fern, E. and Roberfroid, M., 1999. Scientific Concepts of Functional Foods in Europe Consensus Document. British Journal of Nutrition, 81(4), pp.S1-S27.FAO. 2019. The state of food security and nutrition in the world 2019. Rome, Italy.Grand View Research, 2019. Functional Foods Market Size, Share & Trends Analysis Report By Ingredient (Carotenoids, Prebiotics & Probiotics, Fatty Acids, Dietary Fibers), By Product, By Application, And Segment Forecasts, 2019–2025. [online] Available at: <https://www.grandviewresearch.com/industry-analysis/functional- food-market> [Accessed 21 April 2020].Hite, A. H. and Bernstein, L. H. (2012) ‘Functional foods: Needs, claims, and benefits’, Nutrition
. Elsevier, pp. 338–339.
doi
: 10.1016/j.nut.2011.08.016.
HLPE. 2017. Nutrition and food systems. A report by the High Level Panel of Experts on Food Security and Nutrition of the Committee on World Food Security, Rome
Perez, C.,
Nicklin, C. and
Paz, S., 2011.
Food crisis, small-scale farmers, and markets in the Andes.
Development in Practice
, 21(4-5), pp.566-577.