Agri-food markets, trade, and food and nutrition security

Abstract Agri-food markets and trade have been changing quickly over the last decades with implications not only in terms of their functioning but also for long-term outcomes such as food and nutrition security. This chapter describes processes that affect the functioning and dynamics of agri-food markets as well as policies and practices shaping the contribution of agri-food markets and trade to food and nutrition security. Global and domestic drivers (e.g., changes in policies and diets, urbanization, globalization) brought about significant changes in both the organization and functioning of agri-food markets with far-reaching implications in terms of international agri-food trade and food and nutrition security. The ongoing transformation of agri-food markets implies opportunities and challenges for the actors of the food chain (e.g., farmers, processors, consumers, policymakers). The functioning of modern agri-food markets affects the access of producers to markets as well as the accessibility of consumers to nutritious, sufficient, and safe food. Markets also have intersections with the availability, utilization, and stability dimensions of food security. Moreover, agri-food trade is considered, on the one hand, to balance food deficits and surpluses on domestic markets and broaden consumer choice but, on the other hand, it can expose small-scale producers to greater competition and speed up “nutrition transition.” There are different channels through which trade affects food security and nutrition, for example, income changes, food prices volatility, productivity gains, and changes in dietary diversity and quality. Improvement of the operation and management of the current agri-food markets is essential to attain sustainable food security and improved nutrition for all. The long-term goal is to develop inclusive, competitive, accessible, well-performing, and nutrition-sensitive agri-food markets that ensure a fair trade of agri-food commodities.