Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
Green Growth Knowledge Platform (GGKP)
Fourth Annual Conference on
Transforming Development Through Inclusive Green Growth
6-7 September 2016
Jeju International Convention Center, Republic of Korea
FOSTERING GREEN GROWTH BY DEVELOPING GREENER FOOD VALUE CHAINS:
A BOTTOM-OF-THE-PYRAMID PERSPECTIVE
Martin Hilmi 1
1
Rural and Urban Crop and Mechanization Systems Group (AGPML), Plant Production and
Protection Division (AGP), Food and Agriculture Organization of the United Nations (FAO),
Rome, Italy [email protected]
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The Fourth Green Growth Knowledge Platform Annual Conference (2016)
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Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
ABSTRACT
The main objective of the research was to attempt to better understand green growth and its
potential from a field-based, bottom-up perspective. The focus of the research covered commonly
found greening practices of food value chain actors in bottom-of-the-pyramid (BOP) contexts
that could potentially contribute to developing greener food value chains. Such green “innovations”
were not seen only from a technology point of view, but also from an activities, processes, systems,
knowledge, know-how and behavioral point of view. The intended outcomes of the research
were to verify how such practices could be built on and to ascertain their feasibly for replicability,
so as to enable the (wider) dissemination of such practices with other food value chain actors in
similar settings in diverse countries across the globe. Further, this would also provide field-based
evidence on how such lessons learnt could potentially be valid contributors for developing specific
policies targeted at such grass-root level contexts so as to foster and enhance green growth.
Keywords: green growth, green value chain development, bottom-of-the-pyramid, innovation,
policy advice
1. BACKGROUND
The bottom-of-the pyramid (BOP) population is the largest, but poorest, segment of the world
population accounting for about four (4) billion people earning between US$1 and US$5 per day
(Rangan, 2011). One (1) billion of these live in urban slums (GIZ, 2012) and with the increase in
migration to urban centers, this figure is destined to grow further. The BOP segment of the world
population does have some similar characteristics across the globe, but also has considerable
diversities based on multiple cultures, ethnicity, literacy, capabilities and needs (Prahalad, 2011).
In some countries, the informal economy is larger than the formal economy ( Bass et al., 2016),
consequently many of the activities conducted by food value chain actors (small-scale farmers,
traders, retailers, etc.) who work (and live) in BOP settings are set in the informal food sector. It is
estimated that about 80 to 90 percent of all smallholder markets are informal (De Pozo-Vergnes,
2013). The informal food sector relates to activities of food production, transport, and retailing, for
example, that are not under the direct purview of national governments (FAO, 2003). The main
characteristics of the informal food sector are that it targets households with very small budgets
and commonly provides food of low safety, hygiene, and quality. Further there are strong
relationships between production and consumption, and the informal food sector relies on local
sourcing of food, is vulnerable to seasonal changes, and seemingly has a poor environmental track
record (FAO, 2003).
Scarcity of, and access to resources, be they economic, environmental, etc.,
does not
necessarily translate into scarcity of means and competencies. Food supply systems that operate in
BOP poverty settings tend to provide for “innovations” that are very effective and efficient in
using the natural environment, with positive economic and social benefits consequently.
Innovation at grass root level focuses on individuals as well as organized individuals as agents
for innovation working commonly in formal and informal BOP settings. Grass root innovations are
innovative skills, activities, processes, systems and products found in the BOP commonly deriving
from challenges, hardship and necessities ( Hilmi, 2012). Thus it is becoming increasingly clearer
that successful attempts to achieve more climate resilience and green growth will need to be
grounded in a sound understanding of the informal economy, especially if such efforts are to be
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The Fourth Green Growth Knowledge Platform Annual Conference (2016)
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Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
inclusive, and to benefit the economically disadvantaged and insecure in both rural and urban areas
( Brown et al., 2014).
The BOP is too big to ignore and consequently plays a large role in green food value chain
development. Thus a conventional regulatory or investment-led approach, which ignores the BOP,
is unlikely to be sufficient or even appropriate in developing greener food value chains.
Consequently only a tailored and inclusive approach will succeed in alleviating such
poverty( Brown et al., 2014). Emerging evidence suggests that green growth can lead to poverty
reduction, economic growth, reduced vulnerability to climate change and natural disasters, greater
energy security, and more secure livelihoods for those directly dependent on the use of natural
resources ( Barbier, 2015).
Within this background the green food value chain development approach takes a “bottom-up”
perspective and considers BOP settings. In this way it addresses poverty while greening, and
can support and create opportunities for the realization of women’s and men’s aspirations as well
as gain societal support (Bass et al., 2016). Important lessons were learnt in many countries the
world over on how doing more with the same and doing more with less were found ( see for
example Westlake 2014a & 2014b, FAO 2014 & 2015a & Hilmi, 2016). Such lessons learnt
contributed to defining a field-based and “bottom-up” concept and approach to developing green
food value chains.
A green food value chain can be
defined as a food chain that provides value at each stage,
proactively reducing the usage of the natural environment, (natural resources, ecosystem services
and biodiversity), so as to diminish or mitigate adverse impacts, or even have positive impacts,
while considering disposal and recycling patterns of generated waste, to recapture value at every
stage of the food value chain and thus further reduce environmental impact (FAO, 2014). This
concept provides a basis on which to define a conceptual framework for developing green food
value chains. The framework, shown in Figure 1, provides for a circular (and open-ended)
non-linear flow of forward and reverse food values that progress from the natural environment to
final markets. The forward flows increase not only food economic value, but importantly food
environmental, social and cultural values and the food value that is lost (wasted) is recaptured with
reverse flows that reset such food value from an economic, environmental, social and cultural
point of view. The intent is to provide for a holistic, circular and open-ended framework that
inherently reduces and mitigates effects on the natural environment and at the same time attempts
to replenish what has been used/consumed from the natural environment (FAO, 2014).
There are three (3) main strategies that are an integral component of this conceptual framework:
prevention, reduction and recapture. Prevention strategies are those that attempt to eliminate
natural environmental usage and impacts of food value chain activities at the source: For
example using hydropower to provide energy to maize milling machines, which eliminates the
need for using non-renewable sources of energy ( Lubinza & Hilmi, 2013). Reduction strategies,
for example, are those that attempt to reduce natural environmental usage and impact by better
loading transport vehicles with produce, so as to reduce the need for multiple transport trips and
thus more consumption of petrol. Recapturing strategies focus on re-using and recycling any
residual value that may be found in waste along the food value chain: For example using waste
from soybean oil processing for animal feed.
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The Fourth Green Growth Knowledge Platform Annual Conference (2016)
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Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
Figure 1 The green food value chain development framework
Source: Martin Hilmi (FAO,2014)
Each of these three (3) strategies can be used at every stage of the food value chain. However, the
green food value chain development approach attempts to learn from BOP settings, and how these
tender with the usage of the natural environment, and apply the lessons learnt to the approach. This
is not only intended to build on what is found locally in terms of green technologies, activities,
processes, systems, knowledge, know-how and behaviors and to upgrade them where needed and
found viable to do so,
but also use such “ models” so as they can be adapted and applied
provide green upgrading
to
in other locations and contexts.
2. RESEARCH AND METHODOLOGY
In 2012 and 2013 an initial extensive and in-depth literature research and review was
conducted, followed by country-based case study researches conducted in Africa, the Caribbean
and the Pacific. This was followed by other in-country researches conducted in Africa and the
Middle East, based mainly on embedded and pictographic research methodologies. The findings
from such initial research provided the basis to organize a knowledge exchange forum in 2014 in
FAO, Rome, Italy to review and validated such findings. In 2015 further in-country case study
researches were conducted in Central America, North Africa and the Middle East and a series of
unstructured one-to-one e-interviews were conducted with a panel of global experts on the subject
matter of developing greener food value chains to foster green growth.
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The Fourth Green Growth Knowledge Platform Annual Conference (2016)
6-7 September 2016. Jeju, Republic of Korea
Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
3. RESEARCH RESULTS
It has to be stated that many (green) practices that were found in BOP settings are undoubtedly
carried out and motivated as a matter of need (poverty) and to earn whatever meagre living can be
made. However, such practices can also potentially reduce the environmental impact of food value
chain operations. For example the reintroduction of recycled materials into food value chain
activities, which many food value chain actors are involved in, causes a reduction in the emissions
of pollutants generated during the production and marketing of food (GIZ, 2011).
It has to be also stated that many of the people interviewed in BOP settings had a considerable
awareness and good knowledge in relation to environmental pollution and the degradation of the
natural environment and resources (these findings coinciding with those of Viswanathan [2013]).
This awareness and knowledge emanated from people being embedded in some rather
degraded environments, for example peri-urban slums, but also being fully conscious that public
services could not support and help them and thus action had to be taken by themselves. This
resulted in behaviours that considered the natural environment more as a source of perennial
income by using it carefully
and considering its replenishing capacity. This was encapsulated in
a statement made by a horticultural trader in Nakuru city in Kenya interviewed in 2014 who
stated “ Rain does not always come and it has been coming less and less over the years, so farmers
need to use water carefully. If they (farmers) do not do this, I will be without a job as no crops will
be available for me to buy and resell and I and my family will go hungry. Thus I also have to
contribute to saving water when I wash produce and I must help farms to understand more and
better how precious water is and how to use it properly”.
The research conducted on (green) “innovations” in BOP settings was not seen only from a
technology point of view, but also from an activities, processes, systems, knowledge, know-how
and behavioral point of view. The intended outcomes of the research were to verify how such
practices could be built on and to ascertain their feasibly for replicability, so as to enable the
(wider) dissemination of such practices with other food value chain actors in similar settings in
diverse countries across the globe. Further, this would also provide field-based evidence on how
such lessons learnt could potentially be valid contributors for developing specific policies targeted
at such grass-root level contexts so as to foster and enhance green growth.
Some of the research findings provided for the following:
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Technologies: Self-made “water filters” for water “purification” for washing table
tomatoes were found in Dar es Salaam, Tanzania. The “water filter” was simply
composed of two pieces of cloth, and sand was sandwiched and wrapped in the cloth and
water was passed through the “filter” in attempts to purify the water for cleaning
tomatoes.
Activities: In Banjul, The Gambia, it was observed that many activities carried out by
actors in the egg value chain were related to green activities. Eggs were packaged for
transport in fillers (capacity of 30 eggs) that would be used over and over again. The
average re-use of these fillers were for over 57 transport trips. Moreover the eggs were
packaged and stacked in such a way that enabled fewer transport journeys to be
conducted. A good deal of transport for egg distribution was conducted by bicycles, this
The Fourth Green Growth Knowledge Platform Annual Conference (2016)
6-7 September 2016. Jeju, Republic of Korea
Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
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not only enabled better efficiencies in transport, but also enabled effective and intensive
coverage as bicycles could tender not only to uneven roads and off-road transport , but
could also tender to some of the narrow streets found in some parts of the city.
Processes: It was found, for example, that many of the processes adopted in the table
tomato value chain in Tunis, Tunisia and Cairo, Egypt were devoted to the reduction of
waste as much as possible. For small street vendors of horticultural produce, any
tomatoes that were not fit for fresh sales (bruised, grazed, starting to wilt, etc.), were sold
on to close by small road-side street food “restaurants”. The processes adopted for such
methods were found to be highly effective and efficient as commonly such re-usage
processes were short and in the vicinity of the small street vendor.
Systems: It was observed in the southern part of Tehran, Iran, that food distribution
systems were intensive and covered small physical distances and provided per retail
outlet ( either stationary and/or mobile) a good consumer coverage. In some instances, it
was observed that door to door food distribution was offered.
Knowledge: In Nairobi, Kenya and Dar es Salaam, Tanzania it was noted that many of
the small-scale farmers in peri-urban areas, traders and street vendors of horticultural
produce were very well aware of the effects of environmental degradation and the harm it
could have on them and their customers. For example, some small-scale farmers, would
only use rain water collected in used paint buckets, and not water from stagnant water
sources, for washing and irrigation reasons and were aware that even rain water may
contain contaminates derived from pollution and natural hazards such as bacteria and
viruses. This was counteracted by attempting to use simple filtration systems produced
with cloth and sand. Traders were found to cover the horticultural produce, while in
transport, to protect it not only from the sun, but also from pollution. Street vendors,
selling ready made food, would always cover their food to protect it from pollution, but
would also use charcoal very sparingly to cook food and the cookers were usually made
out of recycled materials, such as large petroleum barrels that had been cut in half and a
wire hand made grills placed on top of them. Many of the vendors were well aware of
how harmful inhalation of charcoal fire smoke could be, and some of them covered their
mouth and noses with a wet cloth.
Know-how: In Accra, Ghana, it was found that some women street food vendors had a
good know-how of tendering to green issues. For example, many used group-owned
charcoal cookers that would be used in turn and when required. In one instance it was
found that a food container to store fresh horticultural produce was made of a small
bucket which was filled with produce and a lid placed on it. The bucket was then placed
in a cubical container that was full of water and would thus keep produce cool. In
another instance it was found that a shop owner would rent out to street food vendors
spaces in her shop fridge, so they could keep their produce in it.
Behavioral: Many of the behaviors observed demonstrated that many food value chain
actors were clearly aware of the need to treat natural resource and the natural
environment as a source of replenishable income, not as a capital just to use. For example,
it was observed that some street food vendors in Dar es Salaam, Tanzania would collect
ash from their charcoal fires and store it in sacs. This was to avert them inhaling the ash,
but as advised by some, also to barter with farmers who would use it in their fields. In
other instances it was found that there was a drive for zero-waste: For example in Nairobi,
Kenya, some horticultural traders observed would always find a way to re-use and recycle
The Fourth Green Growth Knowledge Platform Annual Conference (2016)
6-7 September 2016. Jeju, Republic of Korea
Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
produce that may not be fit for being sold as fresh.
Other research findings along the food value chain provided for the following:
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Pre-production: In Lusaka, Zambia, it was found that some of the peri-urban small-scale
poultry farmers used only recycled materials ( scrap wood, metal, broken bricks, etc.) to
build small chicken houses for broiler and egg layer chicken housing. Many small-scale
farmers also used local breeds only as they not only provided to be more resistant to
disease, climatic aspects (high and low temperatures) and low mortality rates , but would
also ensure a good ratio of meat to bone.
Production: Still in Lusaka, Zambia, it was found that a small-scale farmer in peri-urban
settings, was attempting to build her own form of drip irrigation. This had been
constructed by using watering canisters placed at a certain height on trees and tilted with
its nozzle downwards. The nozzle of the canister was attached to a rubber and flexible
pipe which had small incisions in it at regular intervals. The canister would be tipped at
regular intervals, enabling water to flow into the rubber pipe. This, the farmer claimed,
was an attempt to use less water, from the already dwindling water table found locally,
but also to provide more efficient watering of horticultural produce as diverse as lettuce,
tomatoes and orange and tangerine trees!
Post-harvest: While waiting for sorting in Dar es Salaam, Tanzania, table tomatoes
were covered with large green leaves that provided not only protection from the sun,
but also cooling. This was very interesting as the same method, green leaves, was
used by another farmer at retail level, still in Dar es Salaam, who was selling table
tomatoes and referred to this as her “refrigerator”.
Processing: In the Southern Highlands of Tanzania, Njombe district, a maize mill was
found to be using hydropower to mill maize. The owner of the processing mill had
inserted a water wheel in a near by stream and with an elaborate mechanism had
conveyed this power to his processing machines. The processor also offered other power
services, as for example recharge services for car batteries and mobile phones and at the
time of the research , 2013, was preparing to sell electricity to a few nearby houses. In
other words he was in the process of being attached on to the local electricity grid.
Retailing: In Southern Tehran, Iran it was found that some street vendors of horticultural
produce would use on their covered stall a watering system to keep their produce cool
during the hot summer periods. The watering system was composed of rubber tubes
placed on the perimeters of the stall and water would be pumped using a pedal. The tubes
had attached to them at regular intervals small shower like nozzles that would spray very
fine and small quantities of water on to produce, in attempts to keep it cool. This also
provided to be a relief for clients, who while buying, were provided with cooling relief
from this shower system, undoubtedly an added marketing value, as temperatures in
summer can reach 40 degrees Celsius!
Consumption: In Tunis, Tunisia, it was found that at consumption level bread was overly
bought as a result of price subsides. This would seemingly result in bread waste, but it
was observed that consumers, who had left over bread, either would donate it to the needy
or would feed it to chickens in their backyards as part of the feed mix.
Waste: In nearly all findings of the research, it was found there was a focus on providing
for as little waste as possible at all levels of the food value chain and if waste did occur,
The Fourth Green Growth Knowledge Platform Annual Conference (2016)
6-7 September 2016. Jeju, Republic of Korea
Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
waste streams generated were managed by people in such a way that any residual value
left in waste was recaptured. For example, in Iran it was found that in pistachio
processing enterprises that provide for shell-less pistachio , the shells were used as an
energy fuel for powering processing machinery. It was also found, in some processing
enterprises, that waste water from pistachio washing was treated and then used again
for washing operations (Hokmabadi, 2015).
4. CONCLUSIONS AND IMPLICATIONS FOR FURTHER RESEARCH
The research may seemingly provide for what are “small” and/or “ micro” level impact green
practices and innovations, and it is agreed that from a statistical point of view, an accumulation
of small and/or micro impacts in proportion do not add up to a large impact. However, there is
still a positive effect on reducing impact and importantly also what was found was
environmentally-sensitive green practices, processes, systems, knowledge, know-how and
behaviors that can be: firstly learnt from and then built on to provide for green upgrading
strategies and “ models” acceptable in local contexts; and secondly enable for such “models” to be
replicable and adaptable to differing contexts.
Over all from the research, there is some evidence to suggest that food value chain actors in BOP
settings can provide for viable, scalable and replicable green practices. For example the green
practices found by some street vendors in using group owned self –made charcoal stoves is only
one of the many “innovative green practices” found that has potential for replication and
adaptation. It is clear that such practices derive from dire necessity, but as such tend to have a
strong green connotation that if encouraged, upgraded and replicated, via appropriate and targeted
policies at local municipality level, for example, could provide for the development of greener
food value chains and thus contribute to fostering green growth.
A good example of how local knowledge and practices can be upgraded, “modeled” and made
transferable and adaptable to many millions of small-scale farmers is FAO’s Save and Grow
approach. This approach builds on local knowledge and know-how and can provide for some very
good greening results. The basic premise of Save and Grow is to produce more with the same, it
is a win-win model that enables higher yields by conserving resources. The approach uses
resources efficiently, reducing negative impacts on the environment, while at the same time
enhancing natural capital and the flow of ecosystem services (FAO, 2011). Its focus is on nature’s
contribution to crop growth, such as soil organic matter, water flow regulation, pollination and
bio-control of insect pests and diseases. Vitally important, and very much like the overall green
food value chain development approach, the Save and Grow approach, builds ( and learns) on
traditional knowledge, and combines it with modern technologies that are adapted to the needs of
small-scale farmers. It offers a “ menu” of options to choose from and adapt to local needs, based
on local production conditions and constraints. It considers farming systems that incorporate
conservation agriculture, soil health, improved crops and varieties, efficient water management
and plant protection via integrated pest management (FAO, 2016b). Studies conducted in 57
low-income countries found that more efficient use of water, reduced use of pesticides and
improvements in soil health had led to average crop yield increases of 79 percent. A further study
provided results that agricultural systems that conserve ecosystem services by using practices such
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Fostering green growth by developing greener food value chains: A bottom-of-the-pyramid perspective
Hilmi
as conservation tillage, crop diversification, legume intensification, and biological pest control,
perform as well as intensive, high input systems (FAO, 2016b).
In conclusion there is a clear indication that there is a need to follow up with far more research, in
more countries, which would enable a greater number of practices ( and lesson learnt) to be
ascertained in terms of green innovations. There is a need also for more research to be conducted
on green entrepreneurship in BOP settings, and further research to ascertain how, especially the
local public sector (municipalities) , and importantly the public economy, could interact with
such food value chain actors and their greening practices. This not only in attempts to provide
incentives for encouraging the diffusion of such green practices, for example, but also
to provide a better understanding on how a common platform for dialogue, for example
multi-stakeholder platforms, can provide better understanding between the public and informal
food sector and how this can effectively contribute to more inclusive green growth.
Acknowledgements
Thanks and gratitude are owed to Ms. A. Hodder, Senior Officer, Rural and Urban Crop and
Mechanization Systems Group (AGPML), Plant Production and Protection Division (AGP), FAO,
and Mr. J. Kienzle, Agricultural Engineer, AGPML, FAO, for enabling and supporting the
finalization of research on green food value chain development. Much gratitude and thanks are
also owed to Ms. E. Serova, Director LOR, FAO-Russia, for enabling, encouraging and motiving
the work on green food value chain development over the years. Thanks are owed also to Ms A.
Rousseau, Green food value chain researcher, FAO, for her research work on
bottom-of-the-pyramid innovations and green entrepreneurship.
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The Fourth Green Growth Knowledge Platform Annual Conference (2016)
6-7 September 2016. Jeju, Republic of Korea