1 Why informal markets should no longer be neglected Food Security and Nutrition in an Urbanizing World Thon Hotel EU, Rue de la Loi 75, Brussels, Belgium Delia Grace, Flagship Leader CRP Agriculture 4 Nutrition & Health, IFPRI Program Leader International Livestock Research Institute Overview Who feeds the cities? Four myths about the informal food sector – Informal will fade away – Informal consumers don’t care about safety – Informal is risky and formal is safe – More rules mean better practice Ways forward 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Overview Who feeds the cities? Four myths about the informal food sector – Informal will fade away – Informal consumers don’t care about safety – Informal is risky and formal is safe – More rules mean better practice Ways forward 16 17 18 Most fresh foods are produced and sold in the informal sector Kenya 80% Tanzania 98% W. Africa 90% India 83% Assam 97% Nicaragua 86% Dairy sector % informal Benefits of wet markets Cheap, fresh, Local breeds, Accessible, Small amounts (kidogo) Sellers are trusted, Credit may be provided (results from PRAs with consumers in Safe Food, Fair Food project) Informal is not set to fade away 0 10 20 30 40 50 60 70 80 90 100 2010 2040 Formal Informal Own production Structure of food marketing system in east and south Africa in 2010 and projected 2040 Tschirley et al., 2014 Growing concern about food safety • Many/most reported concern over food safety (40-97%) • Willing to pay 5-10% premium for food safety • Buy 20-40% less during animal health scares • Younger, wealthier, town- residing, supermarket-shoppers willing to pay more for safety Jabbar et al., 2010 Formal not necessarily safe, nor informal risky Fahrion et al., 2013 22 0 10 20 30 40 50 60 70 80 90 100 Poor total bacteria Unacceptable total bacteria Unacceptable faecal bacteria Unaccpetable Staph Unacceptable listeria Any unacceptable Supermarket Wet market Village Pork in Vietnam Fahrion et al., 2013 23 More rules may mean worse practice Average of 17.25 risk mitigation strategies used Farmers who believed UA was legal used more strategies Grace et al., 2008 Overview Who feeds the cities? Four myths about the informal food sector – Informal will fade away – Informal consumers don’t care about safety – Informal is risky and formal is safe – More rules mean better practice Ways forward 24 ToCs of change for A4NH food safety in informal markets https://dx.doi.org/10.1177/1356389015605198 https://dx.doi.org/10.1177/1356389015605198 • Branding & certification of milk vendors in Kenya & Guwahti, Assam led to improved milk safety. • It benefited the national economy by $33 million per year in Kenya and $6 million in Assam • 70% of traders in Assam and 24% in Kenya are currently registered • 6 milllion consumers in Kenya and 1.5 million in Assam are benefiting from safer milk Johnson et al., 2015 Ways forward • Improved understanding of multiple benefits and risks associated with informal food markets • Understanding how policy has, is and could affect agri-food sector transition • Support interventions shown to work such as professionalising the informal sector Acknowledgements  The research featured in this presentation was funded the CGIAR research program on agriculture for nutrition and health, the Department for International Development UK, the Australian Centre for International Agricultural Research, the International Development Research Centre, the Bill and Melinda Gates Foundation led by the International Food Policy Research Institute and other donors 28