Future Scenarios for EuroMed Agrifood
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Future Scenarios for EuroMed Agrifood With the participation of The PRIMA programme is an Art. 185 initiative supported and funded under Horizon 2020, the European Union’s Framework Programme for Research and Innovation
Future Scenarios for EuroMed Agrifood With the participation of The PRIMA programme is an Art. 185 initiative supported and funded under Horizon 2020, the European Union’s Framework Programme for Research and Innovation
Index Main Findings p. 4 Detailed Results p. 7 Comments by Experts and Partnering Institutions p. 22 Views from PRIMA Countries p. 30 This report is edited by the Italian Secretariat of PRIMA, with the contribution of the PRIMA Foundation, the Union for the Mediterranean, the European Commission, the Food Agriculture Organisation, FACCE JPI, EIT Food, Ain Shams University, the World Farmers Organisation, Future Food Institute, Parliamentary Assembly of the Mediterranean, SDSN Mediterranean. The views and opinions expressed do not necessarily reflect those of the above-mentioned Institutions. The report is based on the results of the Euro-Mediterranean agrifood survey launched in April in the frame of PRIMA (Partnership for Research and Innovation in the Mediterranean Area) and on the debate of the webinar promoted by PRIMA and the Union for the Mediterranean in July. Data of the report have been elaborated by Francesca Gagliardi. The graphic design made by Guido Bellini. We also thank Monica Cavicchioli, Barbara Di Paola, Fiorino Iantorno, Giovanni Stanghellini and Cristiana Tozzi for their contribution. The PRIMA programme is an Art. 185 initiative supported and funded under Horizon 2020, the European Union’s Framework Programme for Research and Innovation
Foreword H umanity is facing what could be described as the biggest global crisis of the generation. The United Nations published a report on March do not know borders and collective responses are the only possible solutions. In this sense, the PRIMA Partnership and the equal-footing 2020 identifying the main socio economic principle that is underpinning it, proves to be the impacts provoked worldwide by the COVID-19 right path, as reiterated in the EU-Africa Strategy. with reference to the 17 Sustainable Development To better tailor its role in the Mediterranean area, Goals (SDGs) of the Agenda 2030. In addition to PRIMA launched a survey meant to understand the devastating effects on public health (SDG 3), the current trends, the emerging needs and the main problems emerged concern inter alia challenges, the possible solutions and the best the loss of income leading vulnerable segments practices, within the agrifood sector after the of society to fall below poverty line (SDG 1), the pandemic outbreak. risk of collapse of essential services including food production and distribution (SDG 2) and The transition towards sustainability is clean water supply (SDG 6). It is clear from these unavoidable and essential to preserve our planet observations that it is necessary to promote and innovation is key to strengthening adequate transitions to a new developmental model profitability for farmers, smallholders and SMEs. inspired by the SDGs. Many of these challenges They, on one side, will experience major financial have even greater relevance in the Mediterranean problems, on the other, shall be supported as region, which is a hot spot for Climate Change, as actors able to generate a new model, which authoritatively reported in the UFM. promotes prosperity for all, so valorizing the role of local territories and communities as well as the Research and innovation also have a great role to protection of land and soil. play in order to foster positive transformations in view of more sustainable and equitable The issue of leaving no one behind is also Mediterranean region. With this in mind, PRIMA essential, considering that “Healthy diets are is willing to contribute for the years to come to unaffordable to many people, especially the the recovery of the region, promoting concrete poor, in every region of the world.” According to solutions for a sustainable euro-med water, FAO recent report on Food Security, innovation farming and agrifood sectors. This is even might play a role also in this regard, by ensuring more compelling if framed in light of the Next more affordable diets, which “..are estimated Generation EU, which backed and reinforced to be, on average, five times more expensive the European Green Deal and the Farm to Fork than diets that meet only dietary energy needs”. Strategy and in the 25th Anniversary of the Innovation is also decisive in preserving Barcelona Declaration that opened an era of biodiversity, boosting resilience and preventing dialogue and cooperation for the Mediterranean the spread of future outbreaks, while creating region. new economic opportunities in rural areas. As the European Union launches its “..€ 1 billion The agrifood ecosystem was among the most European Green Deal call” as the biggest call affected sectors due to the international borders under Horizon 2020 PRIMA with innovation closure, national lockdowns and the enforced at its heart – as commented by Commissioner restrictions on mobility and flow. We were Gabriel - PRIMA is ready to play its role in clearly shown also that health is a single, all- fostering sustainable transitions and systemic encompassing concept. As expressed in the transformations to the benefit of citizens and Farm to Fork Strategy “a shift to a sustainable Mediterranean societies. food system can bring environmental, health and social benefits, offer economic gains and ensure that the recovery from the crisis puts us onto a sustainable path”. The pandemic has also Angelo Riccaboni – Mohamed El-Shinawi reminded us, once again, that certain challenges Chair and Co-Chair PRIMA Foundation Future Scenarios for EuroMed Agrifood 3
Main Findings T he following pages summarize the answers and opinions received as well as the comments and views expressed by experts and some PRIMA The respondents are 181 experts in agrifood and sustainability of the Mediterranean basin. Most of them are academic or work in public institutions. Countries Representatives. The self-administered The representatives of the PRIMA Board of survey was meant to understand the situation of Trustees as well as the members of the Scientific the Euro-Mediterranean agrifood system in light Advisory Committee have been involved. of the COVID pandemic, the emerging trends, the new challenges as well as the transformations to Here below the results are reported, based on the be positively induced. “consensus” or “divergence” that the interviewees have shown on each statement. Detailed per/ All respondents have been asked to state their question data are presented in the Annex (p. 7) opinion on several statements concerning the for the entire sample and disaggregated at area future of Euro-Med scenario for agrifood. The level, North and South Mediterranean countries. statements have been divided into three pillars: In addition, each statement is also interpreted agrifood systems and society, businesses, using the Threat/Opportunity perspective, consumers. The answers have been provided on highlighting some concrete questions that can the base of the following Likert scale: better help addressing the issue. 1. I strongly disagree 2. I don’t agree 3. Neither agree nor disagree 4. I agree 5. I fully agree Summary of agrifood systems and society pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y Limitations to mobility of temporary agricultural y Major disruptions in international food supply work force will negatively impact production chains will occur y International trade will slow down y Agrifood supply chains will become shorter y International policies on agri-food need to be defined to allow a broader governance and more effective controls on sustainable production of food y Food security and regional/national self-sufficiency will become more important y Innovative approaches will be needed to secure food supplies to vulnerable groups y Price volatility of agricultural commodities will grow Summary of businesses pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y The introduction of technological innovations y Major financial problems will affect big agrifood (Agriculture 4.0, artificial intelligence, businesses digitalization, blockchains, innovative research- y Attention to the scenario post COVID will based products …) will become crucial for induce businesses to give less attention agrifood businesses to survive to Agenda 2030 y The introduction of organisational innovations (new business models, aggregations, partnerships, …) will become crucial for agrifood businesses to survive y E-commerce will streamline value chains and digital sales will grow y Major financial problems will affect smallholders y Major financial problems will affect SMEs in the agrifood sector y Risk management will become more relevant 4 Future Scenarios for EuroMed Agrifood
Summary of consumers pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y Due to the economic crisis, consumers will give y Consumers will give more attention to attention mainly to the price of food sustainably produced food y Consumers will give more attention to rigorous y Consumers will give more attention to traceability of inputs, production processes nutritious and healthy food and logistics (not strong consensus) y Consumers will give more attention to canned y E-commerce and digital sales will grow and long-life food y The Mediterranean diet will be increasingly adopted y Major disruption of street markets will occur In addition to the empirical results, experts research methods while others went more specific have also provided a professional opinion about and highlighted the need to further investigate what they believe are possible future scenarios, interdependencies across geographical areas underscoring and commenting the issue, aspect and the different types of value chain. On the or trend considered mostly relevant in the other hand, other experts mentioned that under agrifood Euromed sector. the current circumstances and because the Some opinions supported the general idea that emergency is still on, it is difficult to predict what new priorities will emerge and that some post specific trends will prevail. pandemic changes will take place especially on However, it was realised also that meeting the short-term, but they still believe that the pre- the demand for constant food supply under COVID-19 priorities will become important again. pandemic conditions was a challenge, and However, some opinions went in the opposite as a result, for the post-COVID scenario it is direction that the situation with Covid-19 had important to promote innovative solutions that been exaggerated beyond facts and that many can improve the global and local efficiency of people jumped into conclusions without any the entire Agrifood production chain, while objective data regarding the Agrifood sector, maintaining high nutritional values and affordable which has shown remarkable resilience over retail prices. Innovation therefore plays a crucial the years and therefore it would not be greatly role in allowing food productions to satisfy new affected by the covid-19 pandemic. needs with the widest possible benefits: those In regards to consumers, experts think that operating in this sector must introduce forms this crisis is going to worsen the gap between of technological, organizational and social the rich and poor; and that food choices will be innovation into their production, processing and linked to that. Therefore, price will be the main distribution activities. In the absence of new influencer of poor consumers food choices, while ways to produce and redefine their own business the richest will consider other dimensions such as models, the companies operating in the sector sustainability, healthy foods and their traceability. could hardly be able to exploit the full potential Economic uncertainty of families, conditioned of the Mediterranean Diet, so as to bring about to wages discontinuities induced by crises, and the desired benefits for themselves and their the exacerbated distance between the richest communities. Technological and organizational and poorest compromise access to healthy innovation is therefore a decisive factor if we food, often limiting options to low cost, over- seek to have agri-food systems that meet the processed and indefinitely storable foodstuff. nutritional needs of all citizens, all the while Local food suppliers, including small farmers and respecting the environment and animals and retailers, can contribute to match the demand of safeguarding public health. fresh food and fill the void left by large retailers For the majority of experts, agrifood value chains thus representing a strategic asset to face crises. will also need restructuring post COVID-19, but Food safety originates from the work of producers this may only be driven by wise policies in order and control authorities, but consumers, with to achieve better sustainability. These policies their food habits, play the most important role should focus more on protecting smallholders in preventing effects of pandemics. The rate of and supporting short and regional supply chains, obesity is impressively around 20% of the Euro- as well as highlighting the advantages of fast on- mediterranean population and obese people shelf delivery with less mediators, which will not belong the category of most vulnerable to virus only enhance food security characteristics, but attack. Empowering consumers to make better- will also increase smallholders’ earnings. informed decisions that are healthier for them More in general, a wider governance is needed and for the planet is an urgent measure. to share policies and strategies for the agrifood Several opinions supported the idea that we sector that need to be discussed and agreed by need to introduce more innovatively designed experts, food operators and policy makers. Future Scenarios for EuroMed Agrifood 5
In conclusion, lessons learnt from the COVID Despite the disruption caused by the pandemic pandemic suggests that a prosperous reboot to economies, experts still believe that the major will require testing and deploying innovative challenges Agrifood production was facing and solutions for preventing or eventually managing will face in the future are current and ongoing, new crises. The post-COVID innovation action and therefore, emphasis should be given to create must cover a wide range of issues, from education more resilient Agrifood systems in conjunction addressed to consumers to promote sustainable with more sustainable and anthropocentric food patterns, to solutions addressed to value social and economic systems, and that markets chain actors, including technologies, nature will pick up faster than predicted. based solutions and organisational frameworks. More in general, the desirable direction goes towards a transformative resilience and the agrifood sector in particular will have a crucial role in this transition process. Union for Mediterranean The region’s existing energy or food are used elements of fragility – most in an unmaintainable way. notably the high levels of Demands for water, food socio-economic inequality and energy are increasing I n the span of a few months, the pandemic of COVID-19 has spread to and the pressing climate change emergency – are indeed set to worsen as due to population growth and economic development. It is estimated that by year every corner of the world, a result of the pandemic. 2050, 50% more water, and has pushed us into The rise of temperatures 60% more food and 80% an unprecedented crisis, is notably progressing more energy would be the severity of which has 20% faster than the global required globally; by 2030, not been seen in almost average across the region. the world is projected to a century. The socio- Therefore, the health and face a 40% global water economic repercussions of wealth threat multiplier deficit under the business- this crisis will be extremely represented by climate as-usual climate scenario. far-reaching, and will likely change is especially intense In the absence of a unfold for years to come. over the Mediterranean globally coordinated Even levelled out across the Basin. response and with the world, the OECD estimates Water, food, energy and risk of environmental that for each month of ecosystems are intertwined considerations slipping confinement, there will and essential for human at the bottom of the be a loss of nearly 2% in well-being, poverty agenda in these times annual GDP growth, and the reduction and sustainable of economic crisis, we economic impact alone is development, including by can expect more shocks now expected to be worse addressing climate change in the form of extreme than the 2008 recession. impacts. We are therefore weather events or further The pandemic has working through a nexus infectious outbreaks. reconfirmed that the of natural, institutional, While addressing the systems on which we economic and social unprecedented situation depend, are not only frameworks. Indeed, created by the Covid-19 increasingly interdependent, agriculture accounts for 70 pandemic, the UfM will but also growingly % of total global freshwater therefore continue to vulnerable. This reality, withdrawals, while about 30 drive the very necessary valid at a global scale, is % of total global energy is conversations aimed at nonetheless a more urgent used by the food sector. preparing the region to one for the Mediterranean Healthy ecosystems support face, tackle and even region, where conditions of the sustainability of the reverse the inevitable fragility and exposure are above and are negatively impacts of climate and further concentrated. affected if water, environmental change. 6 Future Scenarios for EuroMed Agrifood
Detailed Results Agrifood systems and society 1. Limitations to mobility of temporary agricultural work force will negatively impact production There is a strong agreement on this statement from all respondents; 79% agree or fully agree on it and there is no different view between respondents of South or North Med. 60 South 20,44 I full agree North 50 58,56 I agree 40 30 14,92 Neither agree nor disagree 20 5,52 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Limitations to mobility Yes Threat Statistics show trends of abandon of rural settlements of temporary agricultural in the EuroMed area with a constant increase of urban work force will negatively population and decrease of employees in the agrifood impact production sector. The composition and dynamics of labour force in agriculture is a critical issue as well as labour rights and fair salaries of growers being determinant actors of the value chain. The emerging THREAT enhances the role of temporary agricultural workers as crucial agents for food security. CHALLENGES: How to limit uncertainty? How to guarantee labour rights? How to support agribusinesses? 2. Major disruptions in international food supply chains will occur Responses to this statement are more eterogeneous and less convergent: 53% of respondents agree or fully agree with it, but 26% have no opinion on it and 21% disagree with it. Responses are also different between respondents from North or South Med. While South respondents mostly agree, North respondents are very scattered between agree/don’t agree/neutral. 60 South 11,05 I full agree 50 North 42,54 I agree 40 30 25,97 Neither agree nor disagree 20 19,89 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Major disruptions in Yes Threat Instability of international supply chain concerning international food supply food trade represents a THREAT that confirms the chains will occur importance of local food supply, among the possible mitigation measures. Countries with high rates of food income are more vulnerable. CHALLENGES: What policies are need to guarantee international food supply as a factor of food security? Future Scenarios for EuroMed Agrifood 7
3. International trade will slow down The statement has got a large consensus: 69% of respondents agree or fully agree with it. South Med respondents converge more on agreeing the statement. 22% of respondents have no opinion. 80 South 11,05 I full agree 70 North 60 42,54 I agree 50 40 25,97 Neither agree nor disagree 30 20 19,89 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No International trade will Yes Threat The slow down of international trade is perceived as a slow down THREAT, especially concerning economy of agrifood value chain actors, in some cases almost fully oriented to the global market. CHALLENGES: What policies are needed to limit the effects of trade block? How to promote market differentiations schemes and versatility? 4. International policies on agri-food need to be defined to allow a broader governance and more effective controls on sustainable production of food There is a strong agreement on this statement: 82% of the respondents agree or strongly agree on it and there is also almost an uniform distribution between North and South respondents. 60 South 34,81 I full agree 50 North 47,51 I agree 40 30 10,5 Neither agree nor disagree 20 6,63 I disagree 10 0,55 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No International policies Yes Opportunity Sustainability of food value chain is generally on agri-food need to interpreted as an OPPORTUNITY and priority requisite be defined to allow a to be met at the international level, in compliance with broader governance the EC 2020 “farm to fork” communication. and more effective controls on sustainable CHALLENGES: How to enforce international production of food cooperation to increase governance and control on agrifood practices? 8 Future Scenarios for EuroMed Agrifood
5. Food security and regional/national self-sufficiency will become more important There is a strong agreement on this statement: 82% of the respondents agree or strongly agree on it but if we consider the responses by area the situation is very different between North and South respondents. While North respondents all converge in agreeing or fully agreeing the statement, the South respondents are equally divergent between agree and don’t agree. 50 South 40,33 I full agree 40 North 41,99 I agree 30 12,15 Neither agree nor disagree 20 3,87 I disagree 10 1,66 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Food security and Y&N Opportunity Increasing the rate of food internal supply at national regional/national self- & Threat and regional level is seen as an OPPORTUNITY in sufficiency will become most cases. Nevertheless, this is highly dependent more important from climate and environmental contexts, and can represent a THREAT for example in conditions of water scarcity (limited self-sufficiency). Divergent results recorded for the southern area may depend from contextual reasons. CHALLENGES: How to support the establishment of more consistent national and regional food value chain networks? How to remedy the lack of self-sufficiency (when relevant) to guarantee food security? 6. Agrifood supply chains will become shorter There is not a strong convergence for this statement: only 50% of the respondents agree on it, while 30% have a netrual position. South respondents agree with it more than North repondents. 80 South 9,39 I full agree 70 North 60 48,62 I agree 50 40 29,83 Neither agree nor disagree 30 11,6 I disagree 20 10 0,55 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Agrifood supply chains Yes Opportunity Short food supply chains and lively local food will become shorter markets are generally agreed to be an OPPORTUNITY to enforce local economies around welfare and healthiness of local communities, including rural settlements. This is expected to increase resilience of the agrifood sector and contribute to food security. CHALLENGES: how to support rural communities? How to engage smallholders and agribusinesses? How to strengthen value chain networks as market leverage? Future Scenarios for EuroMed Agrifood 9
7. Innovative approaches will be needed to secure food supplies to vulnerable groups There is a strong agreement on this statement: 84% of the respondents agree or strongly agree on it and there is also almost a uniform distribution between North and South respondents. 60 South 36,46 I full agree 50 North 46,96 I agree 40 30 13,26 Neither agree nor disagree 20 2,21 I disagree 10 0 1,1 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Innovative approaches Yes Opportunity Innovation offers multiple OPPORTUNITIES from will be needed to both the production and the consumption side but secure food supplies to also concerns social issues that need to be managed vulnerable groups by combining efforts of public institutions and businesses. CHALLENGES: How to increase the access to fresh food with a key role played by retailers and local food suppliers? How to decrease food waste throughout the production chain? How to promote healthy food habits (e.g. Mediterranean diet) and avoid low-cost hyper-processed food consumption? 8. Price volatility of agricultural commodities will grow 68% of the respondents agree or fully agree on this statement and the distribution of the answer by area are completely equivalent. 23% of respondents are neutral on this statement. 60 South 17,68 I full agree 50 North 49,72 I agree 40 30 23,2 Neither agree nor disagree 20 9,39 I disagree 10 0 - I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat SOCIETY Yes - No Price volatility Yes Threat Price volatility is generally perceived as a THREAT of agricultural especially concerning agricultural commodities with commodities will grow potential consequences on food security. CHALLENGES: What policies are needed to safeguard primary productions from market changes? 10 Future Scenarios for EuroMed Agrifood
Summary of systems and society pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y Limitations to mobility of temporary agricultural y Major disruptions in international food supply work force will negatively impact production chains will occur y International trade will slow down y Agrifood supply chains will become shorter y International policies on agri-food need to be defined to allow a broader governance and more effective controls on sustainable production of food y Food security and regional/national self-sufficiency will become more important y Innovative approaches will be needed to secure food supplies to vulnerable groups y Price volatility of agricultural commodities will grow Future Scenarios for EuroMed Agrifood 11
Business 1. The introduction of technological innovations (Agriculture 4.0, artificial intelligence, digitalization, blockchains, innovative research-based products …) will become crucial for agrifood businesses to survive There is a strong agreement on this statement: 74% of respondents agree or fully agree with it. If we consider the distribution of the responses by area, South med respondents agree more than North ones. North respondents have a larger percentage of neutral positions. 80 South 27,62 I full agree 70 North 60 46,41 I agree 50 40 19,89 Neither agree nor disagree 30 20 4,42 I disagree 10 0 1,66 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No The introduction Yes Opportunity Innovative technologies offer multiple of technological OPPORTUNITIES by engaging different value chain innovations (Agriculture actors and can become a leverage for the market, 4.0, artificial intelligence, by increasing yields, efficiency and sustainability digitalization, blockchains, of food productions as well as communication and innovative research-based engagement of consumers. products,…) will become crucial for agrifood CHALLENGES: What tools and incentives should be businesses to survive implemented to support innovation action? What direction is expected to be addressed by innovation? 2. The introduction of organisational innovations (new business models, aggregations, partnerships,…) will become crucial for agrifood businesses to survive There is a strong consensus on this statement: 80% of the respontents agree or fully agree on this statement and the distribution of the answer by area is completely equivalent. 17% of respondents are neutral on this statement. 60 South 29,83 I full agree 50 North 50,28 I agree 40 30 17,13 Neither agree nor disagree 20 1,66 I disagree 10 0 1,1 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No The introduction of Yes Opportunity Organisational innovation has much to do with the organisational innovations problem of fragmentation of the agrifood sector and (new business models, the OPPORTUNITY to increase cooperation among aggregations, partnerships, value chain actors, made of smallholders, including …) will become crucial for farmers, food processors and retailers. agrifood businesses to survive CHALLENGES: How to increase innovation capacity building of smallholders and SMEs in the agrifood sector? How to support smallholders and give them access to innovation through direct collaboration with research centres and open innovation initiatives? 12 Future Scenarios for EuroMed Agrifood
3. E-commerce will streamline value chains and digital sales will grow There is a strong consensus on this statement: 85% of the respontents agree or fully agree on this statement and the distribution of the answers by area is very similar. North respondents have an higher percentage of strong agreement. 80 South 27,62 I full agree 70 North 60 46,41 I agree 50 40 19,89 Neither agree nor disagree 30 4,42 I disagree 20 10 1,66 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No E-commerce will Yes Opportunity Sustainability of e-commerce is controversial, streamline value chains especially concerning the spatial dimension of the and digital sales will grow supply chain that is often global. Nevertheless, it represents an effective OPPORTUNITY for accessing food sources and eventually supporting smallholders. CHALLENGES: How to guarantee sustainability and traceability through e-commerce? What strategies to prevent overexploitation, delocalisation and spill- over effects of globalisation? 4. Major financial problems will affect smallholders There is a strong consensus on this statement: 73% of the respontents agree or fully agree on this statement and the distribution of the answers by area is very similar. 20% of respondents have a neutral to the statement. 80 South 34,25 I full agree 70 North 60 50,83 I agree 50 40 12,15 Neither agree nor disagree 30 2,21 I disagree 20 10 0,55 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No Major financial problems Yes Threat Given the majority of food growers are smallholders will affect smallholders with limited financial allocation, economic sustainability of the agrifood sector depends to the capacity to manage this THREAT attempting food security in case of emergency. CHALLENGES: What financial tools can support smallholders and foster value chain networks development? Future Scenarios for EuroMed Agrifood 13
5. Major financial problems will affect SMEs in the agrifood sector 63% of respondents agree or fully agree on the statement and the distribution is similar by area. The percentage of respondents with a neutral position versus this statement is very high: 28%. 50 South 29,28 I full agree North 40 44,2 I agree 30 20,44 Neither agree nor disagree 20 5,52 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No Major financial problems Yes Threat Given the majority of food value chain actors are will affect SMEs in the SMEs with limited financial allocation, economic agrifood sector sustainability of the agrifood sector depends the capacity to manage this THREAT attempting food security in case of emergency. CHALLENGES: What financial tools can support smallholders and foster value chain networks development? How to make big retailers interact and cooperate with SMEs as local suppliers? 6. Major financial problems will affect big agrifood businesses There is no convergence versus this statement, 32% of respondents don’t agree with it, 30% agree or fully agree and 38% are neutral. 40 South 6,08 I full agree 35 North 30 24,31 I agree 25 20 38,12 Neither agree nor disagree 15 10 31,49 I disagree 5 0 - I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No Major financial problems No Opportunity Big agrifood businesses, including food industry and will affect big agrifood retailers, are perceived as most stable and resilient. businesses Their role as business collectors can represent an OPPORTUNITY, given the necessary condition of a drastic transition to sustainable practices and fair trades. CHALLENGES: How to operate the transition to more sustainable practices, including traceability and fair trade of big businesses? What tools and innovations can contribute to drive the change? 14 Future Scenarios for EuroMed Agrifood
7. Attention to the scenario post COVID will induce businesses to give less attention to Agenda 2030 Also this answer, as the previous one, presents very scattered answers: 41% of respondents agree or fully agree with it, 25% don’t agree or strongly disagree and 34% have a neutral position. South Med respondents agree more than North ones. 50 South 11,6 I full agree North 40 29,28 I agree 30 34,25 Neither agree nor disagree 20 22,65 I disagree 10 2,21 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No Attention to the scenario Y&N Opportunity The THREAT of less attention to SDGs exists, but post COVID will induce in general the COVID crisis is interpreted as an businesses to give less OPPORTUNITY to emphasize the urgency of the attention to Agenda 2030 climate crisis and the need of change. CHALLENGES: How to make agribusinesses operate as agents of change by implementing sustainable practices and healthy food production. What tools and innovations are needed to prevent or eventually face new crises? 8. Risk management will become more relevant This statement reports a strong consensus: 82% of respondents agree or strongly agree on it. The level of agreement is similar for both Med area, with the South respondents that report higher level of agreement, while 13% of North respondent are neutral to this statement. 60 South 30,94 I full agree North 50 50,83 I agree 40 12,71 Neither agree nor disagree 30 20 4,97 I disagree 10 0,55 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat BUSINESS Yes - No Risk management will Yes Opportunity Among the OPPORTUNITIES emerged from the health become more relevant emergency, risk management can become a standard practice to avoid crisis and reduce THREATS. CHALLENGES: What tools for risk management should be developed and made accessible to both big agribusinesses and smallholders? What risk assessment methods and policies should be implemented at national/regional level? Future Scenarios for EuroMed Agrifood 15
Summary of business pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y The introduction of technological y Major financial problems will affect big agrifood innovations (Agriculture 4.0, artificial businesses intelligence, digitalization, blockchains, y Attention to the scenario post COVID will innovative research-based products…) will induce businesses to give less attention to become crucial for agrifood businesses to Agenda 2030 survive y The introduction of organisational innovations (new business models, aggregations, partnerships, …) will become crucial for agrifood businesses to survive y E-commerce will streamline value chains and digital sales will grow y Major financial problems will affect smallholders y Major financial problems will affect SMEs in the agrifood sector y Risk management will become more relevant 16 Future Scenarios for EuroMed Agrifood
Consumers 1. Consumers will give more attention to sustainably produced food This statement does not resch the convergence between respondents: 47% agree or fully agree with it, 21% don’t agree or strongly disagree and 32% are neutral versus the statement. The distributions of answers by area are similar, the largest differences in percentage is for the South respondent that fully agree with the statement with a pergentage higher than North ones, while for the North respondents we fined the opposite situation in ‘don’t agree’. 40 South 9,94 I full agree 35 North 30 37,02 I agree 25 20 31,49 Neither agree nor disagree 15 10 20,44 I disagree 5 0 1,1 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Consumers will give more Y&N Opportunity Despite current trends to purchase low cost instead attention to sustainably of healthy food are increasing and represent a produced food critical THREAT, consumers look more sensible to sustainability and origin of food. The OPPORTUNITY to make European Food a standard for sustainability (EC 2020) is concrete but will require efforts in terms of innovation and communication. CHALLENGES: What strategies can be implemented to support sustainable practices of food production and promote sustainable food consumption? What tools to inform consumers on sustainability and origin of food? 2. Consumers will give more attention to nutritious and healthy food Also for this statement the level of agreement is not so high: 58% of respondents agree or fully agree with it, but the percentage of neutral respondents is high, 30%. Again respondents from North Med are more neutral than South ones and respondents from South fully agree with the statement with a pergentage that is double than the one of North Med respondents. 50 South 14,92 I full agree North 40 43,09 I agree 30 30,39 Neither agree nor disagree 20 10,5 I disagree 10 0 1,1 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Consumers will give more Yes Opportunity Consumers look more sensible to quality of food. attention to nutritious and The OPPORTUNITY to change food habits of healthy food consumers is concrete but will require efforts in terms of innovation and communication. CHALLENGES: What strategies can be implemented to support proper practices of food production/ conservation and promote healthy food consumption? What tools to inform consumers on quality and origin of food? Future Scenarios for EuroMed Agrifood 17
3. Due to the economic crisis, consumers will give attention mainly to the price of food 65% of respondents agree or fully agree with this statement, with North Med respondents that report a percentage of fully agreement double than South Med respondents. The percentage of neutral respondents is quite large: 21%. 50 South 21,55 I full agree 40 North 43,65 I agree 30 21,55 Neither agree nor disagree 20 12,71 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Due to the economic Yes Threat Current trends to purchase low cost instead of healthy crisis, consumers will give food are increasing in the EuroMed area and still attention mainly to the represent a critical THREAT. price of food CHALLENGES: What tools can be implemented to promote healthy food consumption? What tools to inform consumers on quality and origin of food? 4. Consumers will give more attention to canned and long-life food There is not convergence at all for this statement, with a bit larger percentage of disagreement: 38% of respondents don’t agree or strongly disagree with it. 35% of respondents are neutral versus the statement and 27% agree or fully agree with it. Again the percentage of neutral respondents is higher for North Med respondents. 50 South 3,31 I full agree 40 North 23,76 I agree 30 34,81 Neither agree nor disagree 20 35,91 I disagree 10 0 2,21 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Consumers will give more Y&N Opportunity Trends to purchase canned and long-life food can be attention to canned and & Threat increased due to the COVID emergency and represent long-life food a THREAT. The OPPORTUNITY to change food habits, especially concerning fresh food, from common retailers and local suppliers, will require efforts in terms of innovation and communication. CHALLENGES: What tools can be implemented to promote healthy food consumption? What tools to inform consumers on quality and origin of food? 18 Future Scenarios for EuroMed Agrifood
5. Consumers will give more attention to rigorous traceability of inputs, production processes and logistics 51% of respondents agree or fully agree with this statement; however, 31% are neutral versus it and 18% don’t agree with it. The distribution by area are identical. 50 South 7,73 I full agree 40 North 43,09 I agree 30 30,94 Neither agree nor disagree 20 18,23 I disagree 10 0 - I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Consumers will give more Y&N Opportunity Consumers are more interested in knowing food attention to rigorous origin, quality and production processes. The traceability of inputs, OPPORTUNITY to change food habits of consumers production processes and will require efforts in terms of innovation and logistics communication. CHALLENGES: What tools can be implemented to promote healthy food consumption? What tools to inform consumers on quality and origin of food? 6. The Mediterranean diet will be increasingly adopted Also for this statement, responses don’t converge versus a precise direction. 40% of respondents agree or fully agree with it, while 38% are completely neutral and 17% don’t agree or strongly disagree. 50 South 9,39 I full agree 40 North 35,91 I agree 30 37,57 Neither agree nor disagree 20 16,02 I disagree 10 0 1,1 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No The Mediterranean diet will Yes Opportunity Given current trends towards high trophic diets be increasingly adopted and the abandon of Mediterranean diet, this is still perceived as an OPPORTUNITY to promote sustainable and healthy food habits. CHALLENGES: What strategies can be implemented to promote the Mediterranean diet? What tools to inform consumers on quality and origin of food? Future Scenarios for EuroMed Agrifood 19
7. E-commerce and digital sales will grow This statement reaches a strong consensus between respondents, 80% of them agree or strongly agree with it with the same level of percentages by area. 80 South 16,57 I full agree 70 North 60 62,98 I agree 50 40 16,02 Neither agree nor disagree 30 20 3,87 I disagree 10 0,55 I strongly disagree 0 I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No E-commerce and digital Yes Opportunity Sustainability of e-commerce is controversial and may sales will grow & Threat represent a THREAT, especially concerning the spatial dimension of the supply chain that is often global. Nevertheless, it represents an effective OPPORTUNITY for accessing food sources and eventually supporting smallholders. CHALLENGES: How to guarantee sustainability and traceability through e-commerce? What strategies to prevent overexploitation, delocalisation and spill-over effects of globalisation? 8. Major disruption of street markets will occur There is no convergence in responses to this statement: 42% of respondents agree or fully agree with it, while 35% are neutral versus it and 23% do not agree with it. Respondents from South Med have a bit larger percentages in neutral and ‘agree’ position, while North Med are mostly equally distributed in the three central positions. 50 South 6,63 I full agree 40 North 35,36 I agree 30 34,81 Neither agree nor disagree 20 22,65 I disagree 10 0 0,55 I strongly disagree I full agree I agree Neither agree I disagree I strongly nor disagree disagree Statements Prevalent Opportunity Critical issues and challenges answer vs Threat CONSUMERS Yes - No Major disruption of street Y&N Threat The effects on street markets that have been markets will occur temporary closed has been interpreted as a critical THREAT. Local food suppliers and retailers are the most vulnerable to the crises but could also represent and OPPORTUNITY for short supply networks in terms of healthiness, sustainability and food security. CHALLENGES: What policies to support street markets and small growers and retailers as important agents to face new crises? What innovation and tools can help increasing food security through the direct engagement of small retailers? 20 Future Scenarios for EuroMed Agrifood
Summary of consumers pillar Large consensus versus ‘agree’ position Not convergence and doubtfull positioning y Due to the economic crisis, consumers y Consumers will give more attention will give attention mainly to the price to sustainably produced food of food y Consumers will give more attention y Consumers will give more attention to nutritious and healthy food to rigorous traceability of inputs, y Consumers will give more attention production processes and logistics to canned and long-life food (not strong consensus) y The Mediterranean diet will be increasingly y E-commerce and digital sales will grow adopted y Major disruption of street markets will occur Future Scenarios for EuroMed Agrifood 21
Comments by Experts and Partnering Institutions Jamie Morrison - FAO T he disruptions created by the COVID-19 crisis have accentuated many of the fragilities in contemporary food systems. Challenges include to the sustainability of food systems and the need to factor these into the response and recovery. As reiterated in a vast array of recent studies, many accessing safe, nutritious food at affordable food systems already fell short of the aspirations prices when movement is restricted or markets of the 2030 Agenda. Poverty and hunger remain close and the vulnerability of employees engaged entrenched and obesity with its associated health throughout the food system. There are risks to the and economic costs is rising. Food systems very survival of firms and industries, particularly contribute up to 29% of all anthropogenic micro, small and medium sized enterprises greenhouse gas emissions and have been a key including producers, manufacturers, traders, food driver of land use change and biodiversity loss. processors, transporters, and retailers. Those Food systems themselves are also significantly engaged in high value, labour intensive, perishable affected by climate change. commodities such as fruits and vegetables, fish Recovery from the multifaceted crisis must lead and aquaculture products and meat and dairy to a different way of doing business. It is critical products, which are essential for good nutrition to “build back better” with actions that catalyze and have been disproportionally affected. In many transformation to food systems that are resilient countries, the significant proportions of labour to shocks and that ensure individuals’ health engaged in informal sector activities throughout and wellbeing, while at the same time promoting the food system has compounded the impacts on inclusiveness and improving environmental and livelihoods. economic sustainability by increasing efficiency and reducing waste. In taking action to support The pandemic has increased focus on many the improved functionality of these systems contemporary issues such as antimicrobial during response and recovery, it is imperative that resistance, zoonotic diseases, climate change, a holistic approach to the analysis of constraints food fraud, and the digitalization of food systems, and to the trade-offs implicit in their resolution is each having potentially significant implications adopted. for the safety of food. Equally, the importance of preserving and protecting environmental To support countries in building back better, the resources and biodiversity to maintain the Food and Agriculture Organization has identified buffer capacity of nature against diseases has five key action areas: (i) innovations for increased drawn greater attention to significant levels of efficiency, resilience and inclusiveness of food deforestation and destruction of natural habitats supply chains, (ii) ensuring food safety and associated with land use change driven by food nutritional quality of food, (iii) reducing food systems developments. loss and waste; (iv) sustaining and strengthening agribusiness enterprises; and (v) mechanisms for However, the disruptions in food systems also increased investment in sustainable food value create opportunities for driving forward their chains. These action areas together comprise transformation. The crisis has also shown how the basis of FAO’s COVID-19 response priority on quickly many parts of the food system have been Food Systems Transformation. able to respond. Many enterprises have had to deviate from business-as-usual approaches, using A concrete example of how FAO is working to alternative input sourcing channels, creating new support such transformation in the Euro-Med and more localized markets, increasing focus agrifood sector is the Sustainable Food Systems on inventory management, which will enable Mediterranean Platform. Here, FAO is joining increase ability to withstand future disruptions, forces with CIHEAM and the Union for the staggering investment plans, reviewing staff Mediterranean as well as other potential partners, occupational health and safety practices, and to establish a multi-stakeholder platform to bring human resource planning in the face of increased together policy makers, scientists with other key demand or absenteeism. Such actions will have players across the system, to collectively move longer-term ramifications for organizational towards solutions that work for sustainable food and social innovations, low- and high-tech systems that deliver healthy diets and offer innovations, automatization, digitalization, and new economic and social opportunities in the technologies to protect workers, consumers, and Mediterranean region, driving more sustainable those engaged in the recovery, redistribution, development, particularly for small scale farmers and disposal of food. and fishers, as well as for youth and women in rural areas highly affected by rural migration to At the same time, we should not lose sight of cities. some of the fundamental longer-term challenges The SFS-MED platform aims to support the 22 Future Scenarios for EuroMed Agrifood
development of “flagship” projects to facilitate a series of five interdependent Action Tracks resource mobilization with key partners, and to on ensuring access to safe and nutritious food, scale-up actions to positively transform the way shifting to sustainable consumption, boosting in which food is produced, processed, distributed nature positive production, advancing equitable and consumed across the Mediterranean region. livelihoods and building resilience. Complemented by country level dialogues, they will offer a space Flagships such as these can constitute a key input to share and learn across constituencies with a to the United Nations Food Systems Summit in view to accelerating progress by fostering new 2021, which provides a timely opportunity to forge partnerships and amplifying existing initiatives. the interconnected actions and commitments that are needed to transform to more sustainable food systems. A central component of the process towards the Food Systems Summit is Marta Guadalupe – JPI FACCE T he priority for the agri-food sector should be to be able to provide healthy and sustainable food for all which is resilient to shocks like COVID With the pandemics one of the trends we are witnessing is a reinforcement of regional and local food markets and the recognition of or climate change. That means to reinforce agriculture as an essential activity. The lockdown small-scale and family farming so they can: 1) has reduced the provision of food from the global increase their sustainability by reducing the use market, as well as the availability of farming inputs of agrochemicals; 2) create learning platforms for industrial farming. In that manner, reinforcing where farmers can share knowledge with those local and regional markets has been perceived producers already implementing agroecological as one way to increase resilience in the food practices; 3) access local markets (that also system. This does not mean to close the global need to be reinforced) and sell their product at market, but rather to continue reinforcing local a fair price that allows them to cover production and regional ones. From this perspective, the costs; 4) increase the number of producers pandemics has opened a window of opportunity in Europe, that has been suffering a constant into this direction. Indeed, local farmers who decline, as well as in those Mediterranean where had some previous conditions (e.g. processing countries young people is also abandoning rural and conservation infrastructures, networks with areas. That means among other challenges, that other farmers) have autonomously increased farmers can have access to land; and 5) reduce their marketing options. These types of initiatives the production of industrial animal farming and need to be reinforced and make easy to those reinforce mix-farming systems and extensive/ farmers access the market, reducing, for instance, pastoralist production systems. At the consumer the bureaucratic workload and restrictions. From side, it is also needed to increase the access a food system perspective, that means also to healthy and sustainable food by changing changes in diets, for instance, towards seasonal the food environment, e.g. supporting through food products, which also is a positive feedback fiscal measures healthy and sustainable food, in our pursuit of sustainable food systems. reinforcing local markets, including farmers markets. Social safety nets are also required to I would consider one specific action both at the allow vulnerable consumers to access healthy producer and consumer side. At the producers’ and sustainable food since are those vulnerable side one of the most important actions is to social groups the ones suffering the most the guarantee safe access to land to young farmers impacts of the nutrition transition and the that can produce healthy and sustainable food, associated pandemics of obesity. Measures ensure generational renewal (one of the weakest approaching the consumer side should also aim points of our food systems now) as well as reduce at changing dietary habits and reducing food the number of inhabitants in our overcrowded waste. One of the most rapid and easiest changes cities. At the consumers’ side I would prioritise the into the directions I outline here is through the reduction of meat consumption from industrial role played by the public procurement, where farming through fiscal measures and education the public administrations should provision their campaigns, among other potential actions. different institutions (e.g. schools, hospitals, nursing homes) with healthy food produced in a sustainable way reinforcing the local production. All these measures should also lead to reducing greenhouse gas emissions associated with the food system and adapt to climate change. Future Scenarios for EuroMed Agrifood 23
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