The Virtuous Emulsification of Business and Nutrition: Why bother and some ways forward Martin J. Forman Lecture December 2016 Lawrence Haddad Global Alliance for Improved Nutrition
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Why this topic? For development to be sustainable, the powering of it also has to be sustainable more governments and businesses, less ODA But we are at a stalemate on how to engage business & this is locking up potential We need more open and honest dialogue, thinking and action on this issue And.
I m at GAIN
Relevance of business for nutrition? Diet quality is central to the prevalence of all forms of malnutrition Diets are poor quality for about 1 in 3 people People get most of their food through market purchases Urbanization and income growth driving these trends forward The nutritional quality of food supply and demand in markets is shaped by businesses
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
What businesses? They come in all shapes and sizes 52% 15% Share of worldwide sales, top 10 soft drink companies Share of worldwide sales, top 10 packaged food companies Alexander E, et al. Major multinational food and beverage companies and informal sector contributions to global food consumption: implications for nutrition policy. Globalization and Health. 2011;7:26. doi:10.1186/1744-8603-7-26.
Where are we right now? 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 collect and use evidence to navigate the maze Business can do positive and negative things for nutrition How do we expand the former and minimize the latter?
Positive things: Fortification Fortification routinely shows benefit-cost ratios of 6-9 (& much higher for salt iodization) Hoddinott, Torero and Rosegrant 2012 Copenhagen Consensus paper Fortification is paid for mostly by businesses Cost of scaling up multiple food vehicles in 25 countries: Donors $135m Governments $149m Private Sector $2,519m 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
Negative things 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
Significant reputational risk High risk of doing harm Power imbalances World views Missed opportunities Weakly governed space So what is holding us back? We are missing opportunities to advance nutrition
Examples of how businesses could do more Help shape demand for nutritious foods Bring nutritious and safe foods to market at lower costs at scale Reformulate products to make them less harmful and higher nutrient density Bring more resources to the table Comply with legislation and codes of conduct
Can we do better in creating demand for healthy diets?
The Extraordinary Science of Junk Food Salt + Fat 2 x Pleasing Mouth Feel Satisfying Crunch = A Food Designed to Addict Can this kind of cloak and dagger know how be utilized to generate desirability in healthier foods? http://www.nytimes.com/2013/02/24/magazi ne/the-extraordinary-science-of-junkfood.html
Millions of additional chicken serving sales generated by a one time $100,000 public investment. Chicken Choice, Kenya Marketplace for Nutritious Foods Accelerate nutritious food to market by allowing SME s to break the barriers to market entry 8 14 20 Note: blank columns are hypothetical sales 2.5 2015 2016 2017 2018 Servings /$ 25 105 245 445 http://www.gainhealth.org/knowledge-centre/bringing-nutritious-food-closer-home/
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)
One Way Forward: A Modest Proposal Need Virtuous Emulsification Emulsification Mixing Business and Nutrition Virtuous But Mixing to create Healthy, not Unhealthy, outcomes We can get this by Building the Enabling Environment for Public Private Engagement De-risk the space for public & private organizations
Build the Enabling Environment 1. Strengthen Accountability Infrastructure Governments set goals and codes of conduct Conflicts of interest declared (primary interest is influenced by a secondary interest) Contractual arrangements behind PPPs are put in a public register SMART indicators are set by all stakeholders, independently monitored and results shared widely
Build the Enabling Environment, contd 2. Expand Public Dialogue Don t intimidate people for talking Difficult to change behavior without communication 3. Work Together Working together is the best way to establish trust and to identify any bad behavior
Build the Enabling Environment, contd 4. Build Capacity Governments (set and enforce norms) SMEs (to overcome barriers) Civil Society (to monitor) Development Partners (to identify the opportunities) 5. Evaluate Always open access, independent, appropriate rigor Funded by those without a direct vested interest, or if a vested interest, clearly declared in a highly visible way
A final word Two Recommendations to USAID from the review. 1. Consider the principal interventions points in the national food system to determine whether there are opportunities for improvement of foods 1. Encourage greater involvement of the private sector in the local production and marketing of nutritious foods
Thank You