CGIAR Initiative: Rethinking Food Markets and Value Chains for Inclusion and Sustainability <p class="ql-align-justify">The food sector constitutes about one fifth of the global economy and is the world's largest source of income and employment. The livelihoods of most of the world’s poor and vulnerable people depend on it. In recent decades, agricultural productivity has steadily grown, and t<span style="color: rgb(49, 49, 49);">echnological and institutional innovations have proliferated within agri-food markets and value chains,&nbsp;</span>helping reduce poverty and food insecurity around the world.&nbsp;</p><p class="ql-align-justify">Despite these critical contributions, the ways in which food markets are structured and operate have negative impacts. Much of the rural population employed within the agri-food sector remains poor and food- and nutrition-insecure, and evidence suggests that at least 3 billion people globally, including both the rural and urban poor, cannot afford nutritious diets. These populations have been unable to&nbsp;<span style="color: rgb(49, 49, 49);">benefit from expanding food markets. More food processing has brought food diversity and more convenience to consumers, but also worrisome increases in the consumption of unhealthy foods.&nbsp;</span>The sector’s over- and misuse of natural resources has also degraded the environment and exacerbated the climate crisis and biodiversity loss. Many of these failures are rooted in markets hindered by multiple deficiencies in infrastructure, equipment, and standards; incentives that do not foster sustainability, nutrition, or inclusiveness; concentrated market power; and weak value-chain integration. The key challenge is how to address these multiple constraints and develop value chains that efficiently deliver more nutritious and safe foods to retailers and consumers, while generating decent livelihoods for farmers and food sector workers—including women and vulnerable groups—and reducing the carbon footprint of agriculture.&nbsp;&nbsp;</p><p class="ql-align-justify">But there are also enormous opportunities.&nbsp;Food markets and value chains are undergoing rapid changes, including in developing countries, as urbanization accelerates, technologies proliferate, policies aim to address market failures, and dietary patterns shift. New products, modern distribution systems, and digital technologies continue to transform supply chains. These changes represent unique and timely opportunities for more gainful employment and business activity for disadvantaged&nbsp;agrifood&nbsp;actors, including smallholders and workers in small- and medium-size enterprises (SMEs), especially women and youth.&nbsp;More appropriate incentive structures and repurposed agricultural policy support can encourage the adoption of sustainable practices at the farm level and across food value chains. Food standards for quality, safety, environmental sustainability, and fair trade can protect both consumers and the environment&nbsp;and make&nbsp;smallholders and&nbsp;agrifood&nbsp;SMEs more competitive.&nbsp;</p><p class="ql-align-justify">No single approach, innovation, or policy will suffice. Improving the ability of food systems to reduce poverty, improve nutrition,&nbsp;promote gender equality,&nbsp;and sustainably use resources will require combining technical and organizational innovations with enabling market incentives, institutional and regulatory frameworks, and public policy, all within specific value chains and food markets&nbsp;.&nbsp;&nbsp;</p><p class="ql-align-justify">Therefore, the Initiative aims to provide evidence on what types of bundled innovations, incentive structures, and policies are most effective for creating&nbsp;<span style="color: rgb(49, 49, 49);">more equitable sharing of income and employment opportunities in growing food markets, while reducing the food sector’s environmental footprint.&nbsp;It will&nbsp;seek to discover&nbsp;promising&nbsp;and adaptable&nbsp;innovations&nbsp;for&nbsp;improved vertical coordination, inclusive contracting, certification for food quality and sustainability, inclusive digital platforms, and more.&nbsp;It will&nbsp;pilot and&nbsp;</span>assess the potential&nbsp;for&nbsp;and tradeoffs associated with bringing these bundled innovations to scale,&nbsp;to make a sustained development&nbsp;and environmental&nbsp;impact.&nbsp;&nbsp;</p>