In my opinion the discussion paper is one of the most useful CFS publications ever - comprehensive, analytical, practical, and to the point. A big "thanks" to the working group!
Helvetas has worked for decades on inclusive value chains in over 30 countries, and more recently applied a specific nutrition focus. Since most value chains are driven by private sector entities that often focus on specific commodities (in order to use economies of scale), a big challenge is to identify the business case for diversification and for the production of nutritious foods. The example of an organic and fairtrade rice project in India and Thailand shows that diversification into nutritious crops grown in rotation with the focus crop enables farmers to improve diets as well as incomes ("climbing the value ladder"), provides business opportunities to local processors and traders (e.g. selling pulses and vegetables in local markets) and even drives innovation among specialized companies (e.g. launching rice-pulse mixtures).
Nutrition sensitive approaches seem easier to implement in initiatives driven by development actors. The Nutrition in Mountain Agroecosystems Project under the Swiss Global Program Food Security successfully promotes diversified ecological farming and value chains by assisting rural service providers and advocating for conducive environments. Both projects simultaneously pursue the three pathways indicated in the paper: raising smallholder incomes, increasing their own production of nutritious foods and increasing their availability in local and regional markets.
In both cases (private sector and development initiatives), awareness raising among producers AND consumers is key in order to ensure that people increasingly choose nutritious and sustainably produced food. Initiatives to raise "food literacy" among consumers, such as the ones launched under the Sustainable Food Systems Program (Food for Life, My Food Skills and Sustainable Gastronomy Sector) are important to enhance the demand-pull that in the end determines whether or not producers and businesses engage in nutritious food value chains.
Last but not the least a hypothesis that may further add value to the paper: Scaling-up of sustainable food value chains and systems that are "good for people and planet" requires four factors to work together: 1) Know-how at the production and value chain level, 2) Market demand, 3) a Conducive policy environment, and 4) Multi-stakeholder collaboration (see discussion paper of the Swiss National FAO Committee).
I look forward to your feedback!
Frank Eyhorn