Leveraging fruit value chains

for diet diversity in Peru

Jason Donovan

ICARF

Lima, Peru

CGIAR Science Forum 2013

Bonn, Germany

Sept 23-25, 2013

Malnutrition in Peru

• Important advances in reducing rural malnutrition, although problems remain…

• In addition, major problems with overweight and obesity: • Women: urban 57%, rural 48%

• Men: 40%

• Children: 25%

• Low diet diversity

• High density of fast food restaurants

• Growing awareness of problem: Anti-Junk Food Law (2011)

El Comercio (Sept 19, 2013)

Lots of fruit, but few are eating it…

Agro-industrial production: for export

Smallholder production: for local consumption

Fruit marketing environment

• Luxury item: Urban poverty and the relatively high costs for fruit

• Limited nutritional information on native fruits

• Aggressive marketing of sugary beverages and junk food

• High costs for bringing fruits to market (direct and indirect)

• Informal wet markets cater to the majority of consumers

Fruit marketing in Lima

1

2

3

4

Food environment

(corner stores, supermarkets,

markets, schools, restaurants,

government, NGOs)

Fruit consumption

(consumers, government, NGOs)

Fruit production, processing, and

intermediation

(smallholders, agro-industry,

government, traders, processors,

NGOs)

Secondary goal: increased incentives for fruit

production in AF, improved farmer wellbeing

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Primary goal: more diversified diets through

increased fruit access and consumption

Where to start?

Lot of complexity, and limited experience (interest?)

� Private sector partners?

� NGO, government, and research partners?

� Which consumers? Rich ones? Poor ones?

� Which producers?

� Where to start (sequencing)?

Success requires risk taking and long term commitments - Are we ready?

Towards a strategy for promoting

diet diversity in Lima

Key questions Site: Canto Grande, Lima

What changes are required of consumers, chain actors, service providers, and of the food environment?

What do these opportunities imply for fruit growers and agroforestry in general?

How can diet diversity in urban areas be improved through fruit consumption?

Towards a strategy

Data collection – Fruit consumption

Consumers � Preferences, attitudes � Fruits consumed (not consumed)� Expenditures on fruits � Fruit preparation � Knowledge on nutrition and safety� Access points (where and when)

Government� Regulations

� Strategies� Capacities

NGOs + industry groups� Strategies� Capacities

� Evidence of impacts

Towards a strategy

Data collection – Food environment

Corner stores � Relevance of fruit sales� Investments fruit sales� Strategies, interests � Chain relations

Schools/restaurants� Use of fruits � Sourcing � Chain relations � Strategies, interests

Market sellers � Sourcing � Selling practices � Chain relations� Strategies, interests

NGOs + industry groups� Services offered� Capacities

Government� Regulations � Capacities

Towards a strategy

Data collection – Chain actors

Smallholders� Practices � Access to inputs� Capacities/strategies� Supply constraints

Traders� Practices � Capacities/strategies� Supply constraints

Agro-industry � Sourcing � Selling practices � Chain relations� Marketing strategies� Bottlenecks

NGOs� Services offered� Capacities

Government� Regulations � Capacities

Concluding thoughts

� Promoting diet diversity in Latin America has not been a priority for governments, NGOs, or the CG

� A focus on fruit consumption is critical for addressing diet and health problems in urban areas

� VC approach is important, but has limitations where demand is weak and risks are high: � consumers (culture, preferences) � food environment� role of governments, NGOs

� Ultimate goal: win-win outcomes for consumers and producers – possible?

� Lessons from Peru have important implications for future middle income countries