Decoding transformation (1): a systems approach to sustainable agrifood systems

For the past few weeks, I’ve been on a whirlwind journey across different continents; from the iconic halls of the European Commission in Brussels to the vibrant streets of Manhattan, San Francisco, Dubai and Seoul. In each city, I found myself immersed in a world pulsating with the energy of change. These places have long been drivers of profound changes in the way we live.

And yet, amidst all this change, I could not help but wonder why were we so far from ending hunger and poverty – a goal that was set some 79 years ago??

Engaging directly with agrifood pioneers, researchers and policy makers in Europe, Canada, the United States, the Republic of Korea, entrepreneurs from Africa, Asia and Latin America, I heard a resounding consensus: the need for a transformation in how we cultivate, distribute, and consume food has never been more urgent.

It is a call that has found resonance within the corridors of power and the fields alike, a testament to the collective recognition of our shared responsibility to lead towards sustainability in a new era of uncertainty.

The journey towards transforming our agrifood systems is not linear. It demands a radical departure from the existing status quo and a fundamental reimagining of the very essence of our agrifood systems. This journey also requires a profound understanding of the intricate web of interconnected challenges and opportunities that shape our agrifood system landscape, recognizing their diversity and the need for context-based solutions. While it is clear there is no one-size-fits-all solution, there is also no single organization capable of solving this complex problem of mammoth proportions. In other words, when embarking on such an ambitious journey, partnership, collaboration and multilateralism are key.?

Reimagining the Future

Spearheading this global endeavor with its partners, the Food and Agriculture Organization (FAO) stands at the vanguard, leveraging science, innovation, and climate action as potent catalysts for change. From fostering stakeholder dialogues to orchestrating innovative financing solutions, FAO's strategic deployment of key accelerators of transformation underscores its unwavering commitment to a future where hunger is but a relic of the past.

Imagine a world where nutritious food is produced sustainably, and is accessible for everyone. This is a new vision where the objective is not only about producing more with less for a growing population but it is also giving equitable access to healthy food, produced in a sustainable manner for everyone to live a healthy life (encapsulated as FAO’s Four Betters). This is FAO’s vision of a sustainable agrifood system, and it is within our reach.

But we need a fundamental reimagining of the way we produce, distribute, and consume food if we want to achieve it. We need a transformation that is intentional, holistic, and inclusive. And we need innovation as the catalyst for change.

This was the message I delivered in various fora, where I shared my insights and field experiences, while engaging with agrifood pioneers, researchers, policy makers, and farmers. I highlighted the urgency and the opportunity of transforming agrifood systems, the challenges and solutions, and the pathways and partnerships that can make it happen.

Desperate times call for urgent means

Today our global food systems are failing to provide food security and nutrition for all. The COVID-19 pandemic has exposed the fragility and vulnerability of our agrifood systems, exacerbating the existing inequalities and injustices. The numbers are staggering: around 730 million people go to bed hungry every night, while almost 900 million people suffer from obesity. One third of the food we produce goes to waste, while millions of small-scale farmers struggle to make a living. The hidden costs of our agrifood systems to society and the planet are estimated at $12 trillion annually. These include social, economic, and environmental damages, such as health impacts, biodiversity loss, greenhouse gas emissions, and soil degradation.

The current trajectory of our agrifood systems is unsustainable. Existing within these changes and merely reacting, mitigating or adapting is not enough.

This is why we urgently need a transformation that is not just incremental, but systemic. We need to design our agrifood systems in such a way that better serves all of us and the planet.

A system transformation that addresses the root causes, not just the symptoms, of the problems that plague our agrifood system is the only option. This pathway to transformation must recognize the complexity of agrifood systems across contexts and cultures, without imposing a one-size-fits-all solution.

And for this transformation to happen, we need to act proactively and decisively, and make these conscious choices to drive lasting change. Transformation is the WHAT, Innovation is the HOW.

Innovation: the catalyst for transforming agrifood systems

A laser focused approach

A concept underpinning agrifood system transformation, that is closely linked to addressing the root causes, is the need to identify the leverage points, the places within a complex system where a small shift in one thing can produce big changes in everything. Leverage points are like “acupuncture points — places where a finely tuned, strategic intervention is capable of creating lasting change, creating positive impact” (Donatella Meadows).

Let me illustrate this issue with an example borrowed from UNDP’s work in Mongolia: in Mongolia's cashmere industry, falling prices led to increased herd sizes, causing overgrazing and environmental degradation. This cycle continued as the quality and price of cashmere fell. A significant price premium for sustainably produced cashmere was identified as a leverage point to encourage herders to adopt sustainable grazing practices. This economic incentive reduced herd sizes and alleviated pressure on grasslands. Additionally, by making premium buyers visible in the market, it motivated producers to adopt sustainable practices and attracted other buyers, signaling a profitable market for sustainable cashmere. Implementing these leverage points reorganized the value chain, with middlemen and processors developing separate channels for sustainable cashmere, which led to direct connections between sustainable producers and premium buyers. The economic incentives from price premiums resulted in lasting changes in herding practices, making sustainable methods more profitable.

In this example, the leverage points of price premiums and visibility of premium buyers’ work by creating economic incentives and market visibility drove a systemic change, leading to sustainable practices and a reorganized value chain in Mongolia's cashmere industry.

Innovation: the future of sustainability

Our global food value chain is responsible for approximately 25-30% of total greenhouse gas emissions. To combat this, we are seeing a push towards integrating sustainability into every step of the food production and consumption process. This includes enhancing the efficiency of production methods, improving transportation and processing to reduce energy use and waste, and shifting consumer behavior towards more sustainable food choices.

Efforts to localize food sources are reducing the carbon footprint associated with long-distance transport and are simultaneously strengthening local economies and food security. By supporting local farms and agricultural operations, we not only foster community resilience but also enhance the adaptability of our food systems to local conditions and needs.

Let us consider also the remarkable advancements in Vertical Farming and Controlled Environment Agriculture. These technologies allow us to cultivate crops in urban and harsh environments, utilizing minimal space and resources, and completely independent of weather conditions. By optimizing conditions such as lighting, nutrients, and water, we can significantly increase crop yields while reducing resource use and environmental impact. This method not only brings food production closer to consumers but also opens up new possibilities for agriculture in areas previously unsuitable for farming.

Digital and Technological Advances are making a profound impact on our global food systems. Consider the role of Satellite Remote Sensing in managing our food, land, and water systems. This technology has become indispensable for integrated and efficient system management, enabling us to monitor risks to crop yields, and respond to natural disasters like flash floods and locust infestations. Artificial Intelligence (AI) is also revolutionizing our approach to agricultural productivity. AI is used to manage and analyze vast amounts of data collected under controlled conditions. I am thinking of the partnership between FAO and Digital Green—a grassroots approach to agricultural knowledge sharing. By harnessing the power of digital technology, artificial intelligence and local expertise, we empower rural communities with vital information on agriculture, health, and nutrition. Utilizing local social networks, Digital Green connects farmers with experts, enhancing learning through relatability. Since 2008, it has worked in India, Ethiopia, Afghanistan, Ghana, Niger, and Tanzania. In these countries, Digital Green has reached over 1 million people in 13,000 villages with 4,000 videos, demonstrating significant impact. Nearly 600,000 viewers have adopted these agricultural best practices. This is innovation at its most human—community-driven solution that delivers tangible impact, bridging traditional knowledge with modern technologies, including AI in the most recent version of the application.

Last but not least, the adoption of circular economy principles within food systems is revolutionizing how we view and manage waste. By transforming organic waste into valuable resources like bioenergy and compost, we are closing the loop and reducing the overall environmental impact of our food systems.

As you can see, innovation is not just a new app, drone, or gadget. It is not just a technological fix. Often, it is a mix of innovations that can be technological, social, financial, policy, or institutional that create change if supported by a strong enabling environment, that provides the right policy, financial, and social incentives. Innovation is an outcome, a process and a mindset, a way of thinking and doing things differently, and a way of creating value and impact.

One key lesson from past initiatives is that a user-centric and participatory approach is key. It implies that solutions are co-designed and co-created with the people who are affected by the problems and who will benefit from the solutions.

It also implies a collaborative and multi-stakeholder approach, where diverse actors work together to foster synergies and amplify the impact of solutions, transcending geographical and sectoral boundaries.

Interventions also need to be future-focused and anticipatory, using foresight and horizon scanning to identify and leverage the trends and opportunities that will shape the food sector in the coming years and decades.

Across the continents, we can see the power of innovation at work, from sustainable practices to digital advancements, from grassroots initiatives to global partnerships. Examples of the potential of innovation that exist in agrifood systems are but a drop in an ocean of infinite possibilities. They show us that innovation is not only possible, but also necessary, to achieve the transformation that we need. They also show us that innovation is not only within the domain of experts, but also the result of the creativity and resilience of people everywhere; that it is not only a technical solution, but also a social process that involves collaboration, participation, and empowerment.

Removing barriers to innovation: the power of social sciences

But another reality is that many innovative solutions are not used or put into practice. In agriculture, many proven "good practices" are not adopted on the ground. People may have the best of intentions, but often, there is a gap between intention and action (and we all experience it in our own lives). In Ghana, FAO teams used behavioural science together with farming communities on farmer field schools. Farmers planned to disinfect their feet but often did not do so, creating a breach in biosecurity and potentially compromising the health status of their hers. Urgent daily needs overshadowed future benefits. To overcome this, farmers worked with FAO behavioural scientists to develop and test visual reminders and slogans, to solve challenges creatively and these significantly increased foot bath use.??

And the potential of behavioural science is not limited to promoting good production practices. We can use this approach to help us follow through with health goals, strengthen human-centered policy design and reduce food loss and waste. Another critical opportunity is using social and behavioural sciences to redesign food environments, from in-person markets to online shops, incorporating labels like NutriScore and developing responsible discount structures. These behaviourally informed innovations can make the healthy and sustainable food choice the easier choice.

Aligning our ambitions and joining forces

But despite these advancements in innovation, significant gaps and challenges remain in our investment strategies within agrifood systems. The scarcity of specific quantitative data on investments in agrifood systems innovation hampers our ability to measure impact and allocate resources effectively. The global agrifood system, with an estimated asset value of $14 trillion—representing up to 20% of global GDP—presents not only a massive business opportunity but also a considerable responsibility.

Regrettably, much of the hundreds of billions of dollars invested annually in agrifood systems is misaligned, driving outcomes that incur hidden costs to society, which bears repeating, estimated at $12 trillion annually. These costs include social, economic, and environmental damage. Even more concerning is the staggering $1.8 trillion allocated to environmentally harmful subsidies.

When we consider that only 3% of total public climate finance is directed towards agrifood systems, the mismatch in funding allocation becomes starkly apparent.

What is the solution?

First and foremost, we need to align our ambitions, investments, and actions with the vision of a sustainable agrifood system. We must bridge the gaps between the availability and demand of capital, the supply and adoption of solutions, and the intention and action of stakeholders.

Additionally, we need to revamp our investment and financial models to ensure they align with the social and environmental goals of the transformation.

We need to enhance our policy and regulatory frameworks to ensure that they are anticipatory, evidence-based, and supportive of bottom-up innovations.

Building our human and institutional capacities is also instrumental in nurturing the skills and capabilities needed to manage and scale innovations. And we need to embrace collaborative multi-stakeholder approaches to foster synergy and amplify the impact of solutions.

We are at a critical juncture in history, where the choices we make today will shape our agrifood systems and our planet, tomorrow. We have the opportunity and the responsibility to make a difference, to be part of the transformation journey, and to be part of the solution.

Whether we are farmers, consumers, entrepreneurs, researchers, policy makers, or civil society, we all have a role to play. We all have a stake in the outcome and a voice in the process. Let us use our creativity, knowledge, resources, and networks to innovate and transform our agrifood systems for a better world for everyone.