Agroecology seeks to reconnect producers and consumers through a circular and solidarity economy that prioritizes local markets and supports local economic development by creating virtuous cycles. Agroecological approaches promote fair solutions based on local needs, resources and capacities, creating more equitable and sustainable markets. Strengthening short food circuits can increase the incomes of food producers while maintaining a fair price for consumers. These include new innovative markets, alongside more traditional territorial markets, where most smallholders market their products.

Social and institutional innovations play a key role in encouraging agroecological production and consumption. Examples of innovations that help link producers and consumers include participatory guarantee schemes, local producer’s markets, denomination of origin labelling, community supported agriculture and e-commerce schemes. These innovative markets respond to a growing demand from consumers for healthier diets.

Re-designing food systems based on the principles of circular economy can help address the global food waste challenge by making food value chains shorter and more resource-efficient. Currently, one third of all food produced is lost or wasted, failing to contribute to food security and nutrition, while exacerbating pressure on natural resources. The energy used to produce food that is lost or wasted is approximately 10 percent of the world’s total energy consumption, while the food waste footprint is equivalent to 3.5 Gt CO2 of greenhouse gas emissions per year.