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Healthy Diets: The role of Business in making them desirable, affordable and eaten Lawrence Haddad Global Alliance for Improved Nutrition Outline • Diet quality is central to the prevalence of all forms of malnutrition • Diets are poor for 1 in 3 of world’s people • People get most of their food through market purchases • Urbanization and income growth driving these food choice trends forward -- and they negative and positive • The nutritional quality of food supply and demand in markets is shaped by businesses within the food system • Some ways forward for businesses to have a higher impact on diet quality for low income citizens Six of the top 11 risk factors driving the global burden of disease are related to diet http://www.glopan.org/news/foresight-report-food-systems-and-diets Even in low income countries, most people get food from the market Percentage of household value of food consumed by source of acquisition http://www.glopan.org/news/foresig ht-report-food-systems-and-diets Urbanization is driving the consumption of highly processed foods http://www.glopan.org/news/foresight-report-food-systems-and-diets Food systems shape diet choices & are populated by Businesses Where are we right now with business and nutrition? How do you see the world? Business can do no wrong Silent majority trying to figure out when and how to engage with businesses to advance nutrition Business has no business in nutrition We need to understand how to navigate the maze • Business can do positive and negative things for nutrition • How do we expand the former and minimize the latter? World views Significant reputational risk Power imbalances Missed opportunities High risk of doing harm So what is holding us back? Weakly governed space We are missing opportunities to advance nutrition Businesses also do negative things for nutrition Compliance with Code on marketing of breastmilk substitutes Nestlé 36% | Danone 31% | FrieslandCampina 24% Heinz 17% | Abbot 7% | Mead Johnson 5% (100% = full compliance) Access to Nutrition Index Report 2016 Some Ways Forward 1. Create the Demand for Nutritious Food Can we do better in creating demand for healthy diets? 2. Strengthen Ability of Business to Deliver Healthier Diets Increase Large Scale Fortification Rates Fortification routinely shows benefit-cost ratios of 69 (& much higher for salt iodization) Hoddinott, Torero and Rosegrant 2012 Copenhagen Consensus paper Only about a quarter of fortifiable food is actually fortified. Reasons? • Capacity to Legislate, Capacity to Fortify, Capacity to Monitor and Capacity to Enforce Arusha Summit 2015 Statement http://www.hki.org/sites/default/files/attach/2015/09/Final%20Arusha%20Statement%20on%20Food%20Fortifica tion%2011%2009%202015.pdf Marketplace for Nutritious Foods to Accelerate nutritious food to market by helping SME’s to break the barriers to market entry 20 Millions of additional chicken serving sales generated by a one time $100,000 public investment. 14 Chicken Choice, Kenya Note: blank columns are hypothetical sales 8 2.5 Servings /$ 2015 2016 2017 2018 25 105 245 445 http://www.gainhealth.org/knowledge-centre/bringing-nutritious-food-closer-home/ 3. Strengthen the Enabling Environment for public and private actors to work together • Strengthen Accountability Infrastructure • Develop new Blended Financing Mechanisms • Evaluate and Share Business Resources Can Be Leveraged by Public Funds • Power of Nutrition (DFID & CIFF) • Amsterdam Initiative Against Malnutrition (Government of Netherlands) • Global Development Alliances (USAID) • Business Platform for Nutrition Research (Government of Canada) Businesses have incentives to invest in nutrition: need to align with public priorities • Smart thing to do: productivity, absenteeism, turnover • Sustainable thing to do: – The World Business Council for Sustainable Development 2017 Report – Top 3 business opportunities in food sector (worth $1 trillion) • Building food markets for low income consumers • Product reformulation • Reducing food loss Thank You