Food Systems

Worldwide, government spending on subsidies in agriculture, fishing, and fossil fuels amounts to a staggering $1.25 trillion annually. Subsidies play a significant role in every country’s fiscal policies, regardless of income level or spending patterns. Spending on energy and agricultural subsidies consistently accounts for 2%-3% of GDP on average across income levels and make the production and transportation of food cheaper.

Agrifood value chains (AVCs) in low- and middle-income countries (LMICs) have been expanding due to a range of factors, including income growth, urbanization, more market-oriented policies, globalization, and technological changes. Integrating smallholder farmers into those growing value chains, particularly for higher-value commodities, is an important path towards reducing poverty and generating employment opportunities, particularly for women and rural youth.

Food systems around the world face growing challenges. They must be transformed to sustainably feed a growing global population and made more resilient to shocks from extreme weather to conflict. Efforts on those fronts are increasingly interlinked—and depend on well-targeted local interventions.

Climate change, malnutrition, and poor diets are interconnected. Without well-financed climate change adaptation plans and strategies global nutrition disparities could worsen.

Food, land, and water systems face daunting challenges in the future, and the body of research exploring these challenges is growing rapidly. This note is part of a series developed by the CGIAR Foresight Initiative to summarize what we know today about the future of various aspects of food systems. The goal of these notes is to serve as a quick reference, point to further information, and help guide future research and decisions.

Key messages