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ACCESSIBILITY TO FOOD

Accessibility to food concerns both physical access and af-

fordability. Access to markets concerns transportation of

commodities and its costs as well as the transmission of

price developments to producers. Poor transmission of

price incentives to producers results in broadening the gap

between consumers and producers, especially in periods

of changing diets.

ACCESS TO MARKETS

According to the latest UN estimates, almost all of the

world’s population growth between 2000 and 2030 will be

concentrated in urban areas in developing countries (Fig-

ure 32). By 2030, almost 60% of the people in developing

countries will live in cities (FAO, 2003). If present trends

continue, urban population will equal rural population by

around 2017.

Large urban markets create the scope for the establishment of big

supermarket chains, with implications for the entire food supply

chain. In 2002, the share of supermarkets in the processed/pack-

aged food retail market was 33% in Southeast Asia and 63% in East

Asia (Figure 33). The share of supermarkets in the fresh foods mar-

ket was roughly 15–20% in Southeast Asia and 30% in East Asia

outside of China. The 2001 supermarket share of Chinese urban

food markets was 48%, up from 30% in 1999. Supermarkets are

also becoming an emerging force in South Asia, particularly in ur-

ban India since the mid-1990s (Pingali and Khwaja, 2004).

The increasing growth and power of international food corporations

are affecting the opportunities of small agricultural producers in de-

veloping countries. While new opportunities are being created, the

majority are not able to utilize them because of the stringent safety

and quality standards of food retailers, hence barring market entry.

The economy of the corporate food supply chain has grown steadily

over the past years. Between 2004 and 2006 total global food spend-

Urban and rural population

in less developed regions (billions)

1960 1970 1980 1990 2000 2010 2020 2030

0

1

2

3

4

Rural

Projections

Estimates

Urban

Figure 32: Urbanization in developing countries be-

tween 1960 and 2030.

(Source: UN, 2007).

Supermarket share of retail food sales

Central America

Southeast Asia

Central Europe

Kenya

Zimbabwe

South America

East Asia

(excl. China)

South Africa

China (urban)

0

10

20

30

40

50

1992

2002

Figure 33: Supermarket share of retail food sales.

(Source: Reardon

et al

., 2003).