How can global value chains enhance sustainable agricultural development?

Over the past three decades, an increasing share of agricultural production has been traded through global value chains. The 2020 edition of FAO’s flagship report The State of Commodity Markets (SOCO) estimated that about one‑third of global food and agricultural exports are traded within a global value chain. This growth has enabled the creation of jobs, generated incomes and, in many cases, improved access to markets, inputs, expertise and technology in rural areas. However, global value chains can also have adverse impacts on local communities and the environment. 

To maximize the developmental benefits of value chains while minimizing their risks, FAO and OECD launched in 2016 the OECD-FAO Guidance for Responsible Agricultural Supply Chains, which provides a common framework to help agri-businesses and investors contribute to sustainable development, by identifying, managing and reducing risks of adverse impacts. 

Recently, several governments have introduced legislation to mitigate the adverse environmental and social impacts of agricultural supply chains by requiring companies to establish mandatory risk-based due diligence systems. Due to the urgent need for rapid and deep greenhouse gas (GHG) emission reductions in all sectors, as recently confirmed by the Intergovernmental Panel on Climate Change (IPCC), these requirements increasingly also address business impacts on climate. 

While these various regulatory initiatives are expected to support sustainable agricultural development, suppliers in developing countries, in particular smallholder farmers and small- and medium-scale enterprises can face challenges in adapting to them and meeting the requirements of downstream companies and clients. Furthermore, the negative impacts of the COVID-19 pandemic and the war in Ukraine, including soaring costs of energy, inputs and transportation and supply chain disruptions, are placing agricultural producers in a difficult situation that affects their ability to address these challenges. In this regard, the provision of adequate support to agricultural producers and traders is indispensable to be able to adopt risk-based due-diligence systems and responsible business practices that will help them to increase their resilience and sustainability.

Objectives

The side event will provide a platform to discuss the challenges and possible solutions to ensure that global agrifood value chains effectively support sustainable agricultural and rural development in developing countries. To this end, panellists will briefly present their work on the subject and address the following guiding questions:

• What are the challenges faced by farmers and agri-businesses in developing countries in adapting to policies for responsible agrifood value chains adopted by major importing countries? 
• How can developing countries help their farmers and agri-businesses to overcome these challenges?
• How can developed countries help developing countries to adapt to their policies for responsible agrifood value chains?
• How can international development agencies help developing countries to transition to carbon neutral value chains?

The side event will be organized in all FAO official languages.

Provisional agenda 

12.45  Welcome address 

Mr Gustaf Daud Sirait, Chairperson of FAO’s Committee on Commodity Problems (CCP) 

12.50  Introduction of the topic, questions and panelists by the moderator

Ms Kimberly Sullivan, FAO Communications Coordinator

12.55  Panel discussion

Mr Juan Jose’ Pons Arizaga, Consejero Presidencial ad honorem, Politica Publicas sector Bananero, Ecuador 

Mr Medi Moungui, Alternate Permanent Representative of Cameroon to FAO (tbc)

Mr Leonard Mizzi, Head, Sustainable Agri-food Systems Unit, DG INTPA, European Commission

Ms Silvia Campos, Senior Advisor, Global Products, Programs & Policy, Fairtrade International

Mr Pascal Liu, Senior Economist, FAO Markets and Trade Division, Team Leader on Responsible Global Value Chains

13.40  Questions and answers session

14.00  Side event closes

Please register here