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21.2 Nutrition-Sensitive Value Chains
Achieving the second Sustainable Development Goal (to end hunger, achieve food
security and improved nutrition, and promote sustainable agriculture) is challenging
in a changing climate. Under most conditions, dietary choice does not align with
what is optimal nutritionally (Allen and de Brauw 2017). There are, however, ways
to improve the nutritional intake of consumers. Nutrition sensitive value chain interventions are a class of interventions that take place through a range of value chain
actors to ensure more nutritious products reach consumers. Relative prices can shift
either through improvements in the value chain or through regulation. Likewise,
marketing campaigns and improved labelling can persuade the consumer to purchase more nutritious foods.
Decisions made on the supply side, for example regarding which foods to produce or with whom to trade, largely depend on the expected profit, which limits the
nutritional composition of foods in the value chain. The nutrition-related or environmental consequences of value chain activity are rarely monetised. Producers are
unlikely to shift production to more nutritious or environmentally sustainable foods
if they will not result in increased profit. Previous research on nutrition-sensitive
value chains, therefore looked for ways to ensure profitability, such as temperaturecontrolled supply chains for perishable foods, contracts that support the production
of vegetables, and increased subsidies for infrastructure and inputs (Allen et al.
2016; Chege et al. 2015; Stifel and Minten 2017).
To create sustainable, climate-smart value chains consideration of synergies and
trade-offs among economic, environmental and social objectives, including nutrition and health may be required (FAO 2013). For example animal source foods
(meat, milk, eggs) are nutrient-dense, but producing them is both land and water
intensive (Marlow et al. 2009). As the climate changes, these social, environmental,
and economic trade-offs will shift with relative prices and the profitability of specific activities will change. Examples of this include the effect of variations in monsoon timing and strength in India (upon which both agriculture and energy depend),
and the effects of biofuel policies in countries such as Ethiopia, that can lead to
higher food prices and land use changes when compared to policies focused on
agriculture and food security (Lobell et al. 2014).
Figure 21.2 illustrates the complex relationships that must be considered in
nutrition- sensitive value chains: a delicate balance of economic (profit), social
(including nutrition), and environmental impacts, including greenhouse gas emissions (figure adapted from FAO 2013). Though many of these social and environmental impacts are not monetised, pressure on resources (for example, through
drought, floods and changes in soil productivity) and changes in consumer demand
(for example, for products such as palm oil or animal source foods) can affect profitability and promote unsustainable production decisions.
21 Nutrition-Sensitive Value Chain Development in a Changing Climate
21.2 Nutrition-Sensitive Value Chains
Achieving the second Sustainable Development Goal (to end hunger, achieve food
security and improved nutrition, and promote sustainable agriculture) is challenging
in a changing climate. Under most conditions, dietary choice does not align with
what is optimal nutritionally (Allen and de Brauw 2017). There are, however, ways
to improve the nutritional intake of consumers. Nutrition sensitive value chain interventions are a class of interventions that take place through a range of value chain
actors to ensure more nutritious products reach consumers. Relative prices can shift
either through improvements in the value chain or through regulation. Likewise,
marketing campaigns and improved labelling can persuade the consumer to purchase more nutritious foods.
Decisions made on the supply side, for example regarding which foods to produce or with whom to trade, largely depend on the expected profit, which limits the
nutritional composition of foods in the value chain. The nutrition-related or environmental consequences of value chain activity are rarely monetised. Producers are
unlikely to shift production to more nutritious or environmentally sustainable foods
if they will not result in increased profit. Previous research on nutrition-sensitive
value chains, therefore looked for ways to ensure profitability, such as temperaturecontrolled supply chains for perishable foods, contracts that support the production
of vegetables, and increased subsidies for infrastructure and inputs (Allen et al.
2016; Chege et al. 2015; Stifel and Minten 2017).
To create sustainable, climate-smart value chains consideration of synergies and
trade-offs among economic, environmental and social objectives, including nutrition and health may be required (FAO 2013). For example animal source foods
(meat, milk, eggs) are nutrient-dense, but producing them is both land and water
intensive (Marlow et al. 2009). As the climate changes, these social, environmental,
and economic trade-offs will shift with relative prices and the profitability of specific activities will change. Examples of this include the effect of variations in monsoon timing and strength in India (upon which both agriculture and energy depend),
and the effects of biofuel policies in countries such as Ethiopia, that can lead to
higher food prices and land use changes when compared to policies focused on
agriculture and food security (Lobell et al. 2014).
Figure 21.2 illustrates the complex relationships that must be considered in
nutrition- sensitive value chains: a delicate balance of economic (profit), social
(including nutrition), and environmental impacts, including greenhouse gas emissions (figure adapted from FAO 2013). Though many of these social and environmental impacts are not monetised, pressure on resources (for example, through
drought, floods and changes in soil productivity) and changes in consumer demand
(for example, for products such as palm oil or animal source foods) can affect profitability and promote unsustainable production decisions.
21 Nutrition-Sensitive Value Chain Development in a Changing Climate