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Innovating food distribution systems and markets

Food supply and distribution are complex systems of activities, functions and relations (production, handling, storage, transport, process, package, wholesale, retail) enabling populations to meet their food requirements. These activities are performed by different actors: producers; assemblers; importers; transporters; wholesalers; retailers; processors; shopkeepers; street vendors; service providers (credit, storage, porterage, information, extension); packaging suppliers; public institutions (city/local governments; food marketing boards; government departments).

These actors need infrastructure, facilities, services and laws, as well as formal and informal regulations to govern their decisions, where each element influences other elements in a system of cause and effect, and reciprocal relationships.

In low-income countries current problems include: poorly functioning markets; the inadequacy of transport to markets; and the inability to afford the costs of production and consumption. Rural populations in low-income countries are hit particularly hard, with 16% of rural populations lacking convenient access to a market and only one-third of farmers selling their crops. Transportation is often very limited with few high-quality roads or railways to transport goods and people to the centralised markets. Transportations routes are expensive and require public funding and maintenance.

Historically, international trade has helped reduce food insecurity and diversified consumer access to nutritious foods by connecting regions with limited agricultural output to regions with increased agricultural production. However, for trade to improve food security for the greatest number of people, greater international cooperation is necessary to create a just agricultural trading system.