David versus Goliath: Consequences of mainstream agricultural export commodities and niche products

A study published by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) examines the differences between globally traded agricultural commodities and domestic niche products in terms of economic, environmental and social impact on the region of origin. The results provide new evidence to make supply chains more sustainable.

Niche products versus globally traded agricultural commodities. There is no good or bad. © Initiative for Sustainable Agricultural Supply Chains, 2022

By Initiative für Nachhaltige Agrarlieferketten (INA)

The Initiative für Nachhaltige Agrarlieferketten (INA) is an alliance of stakeholders from the private sector, civil society and politics and part of the Nachhaltige Lieferketten und Standards (Sustainable Supply Chains and Standards) program of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). Its goal is to achieve greater sustainability in global agricultural supply chains and to improve the living conditions of smallholder farmers. To achieve this, INA works independently of individual commodities, instead focusing on the development of sustainable regions in which a cross-commodity approach is applied.

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What impact do globally traded agricultural commodities have on local sustainability compared to the niche products of the region of origin? This question is addressed in the newly published study "David versus Goliath: Niche products and mainstream agricultural export commodities - to what extent do they promote sustainable development?" by the Initiative for Sustainable Agricultural Supply Chains (INA).

 

Ten development projects of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Swiss development organisation Helvetas in Asia, Africa and Latin America were analysed. Economic, ecological and social consequences were focused. The analysis was based on interviews with key actors from the project teams and the private sector as well as a literature review. The results provide new information on how to make supply chains more sustainable and offer a solid basis for future projects. Mainstream agricultural export commodities, due to the size of the industry and their relatively high contribution to gross domestic product, have a much higher importance at the macroeconomic level than niche products, whose contribution to gross domestic product and foreign trade is smaller and often not recorded. However, this perspective neglects marginalised rural communities for which niche products often represent important sources of income.

 

In the cases analysed, niche products contribute significantly to biodiversity conservation. In contrast, mainstream agricultural export commodities have often been found to be drivers of deforestation. Contrary to expectations, it has not been confirmed that the promotion of major mainstream agricultural export commodities automatically leads to a higher number of beneficiaries compared to niche products. Such projects may even reach fewer beneficiaries than projects supporting smaller supply chains. However, this assessment does not take into account the scaling potential of so-called mainstream products.

 

Overall, the study shows that there is no "good" or"bad" in mainstream agricultural export commodities or niche products.

 

Both can be seen as complementary elements within a sustainable landscape approach. The INA study thus provides important food for thought for the discussion of future project approaches. According to the study, however, the following must be taken into account when promoting niche products: As it is difficult to identify and analyse all circumstances and market options in advance during the planning phase, projects promoting niche products should be able to act flexibly. Biodiversity-based niche products are often produced or collected per se in compliance with sustainability criteria. Certification, on the other hand, incurs high costs.

 

Care should therefore be taken to ensure that the effort required for a certification process is not too high, as otherwise the incentive for smallholder farmers is too low and this can even impair sustainable use.

 

Find the results of the study here under ‘For Experts’ on the INA website.

 

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Time to dig deeper: We can only benefit from technical progress if we have a solid legal framework for everybody. But so far, none is in sight - in many countries. Instead, international corporations grow ever more powerful.

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Frank Schultze / Agentur_ZS

The communicator

A contribution by Jan Rübel

What do electrical engineering, telecommunications and agriculture have in common? They arouse the passion of Strive Masiyiwa: Thirty years ago, he started an electrical installation company with $75, later riding the telecommunications wave as a pioneer. Today he is committed to transforming African agriculture.

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(c) Privat

Borderless food security

A contribution by Christine Wieck

Enabling smallholders to trade across regions and borders promotes food security and economic growth. Although everyone is calling for exactly that, implementation is still difficult

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© GIZ

Actual Analysis: The locusts came with the crises

A report by Bettina Rudloff and Annette Weber (SWP)

The Corona-Virus exacerbates existing crises through conflict, climate, hunger and locusts in East Africa and the Horn of Africa. What needs to be done in these regions? To face these challenges for many countries, all of these crises need to be captured in their regional context.

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Successful Blueprints for African Agriculture

A Contribution by GIZ

At the 8th German-African Agribusiness Forum (GAAF) representatives from business and politics discussed successful investment models to improve living conditions in Africa.

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Our Food Systems are in Urgent Need of Crisis-Proofing: what needs to be done

An Artikel by TMG

Based on a scientific study by TMG Think Tank, the authors highlight various challenges in the fight against the hunger crisis. The findings show that climate change, conflict and covid-19 are increasing food and energy prices.

 

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2022, a year of crisis – What does it mean for African trade and food security?

A Contribution by Ousmane Badiane

The Africa Agriculture Trade Monitor 2022 (AATM) was published by IFPRI and AKADEMIYA2063. The report analyses the short- and long-term trends and drivers of African agricultural trade flows, including regional policies and the role of global markets.

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Agricultural prices and food security – a complex relationship

A Contribution by Dr. Fatima Olanike Kareem and Dr. Olayinka Idowu Kareem

High agricultural prices affect developed and developing countries alike, but the problem is aggravated for the latter through the lack of or inadequate resilience measures. Dr. Fatima Olanike Kareem, AKADEMIYA2063, and Dr. Olayinka Idowu Kareem, University of Hohenheim, explain what can be done to mitigate the negative effects on food security.

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Earth’s well, all’s well!

A Contribution by Fairtrade Germany

With the annual topic "Earth’s well, all’s well!", Fairtrade Germany is focusing on the concept of agroecology at all levels - and is thus taking the next step towards achieving greater global sustainability. At the Green Week trade fair, Fairtrade Germany will show how this can be achieved taking the cocoa supply chain as an example.

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