The primary focus of the theme markets and trade is on the vertical column in food provision and agricultural trade.

In this column macro, meso and micro levels are distinguished. At the macro level international trade-related agreements, e.g. Doha-agenda under WTO and bilateral trade agreement, and regulations, e.g. General Food Law, direct and structure contemporary ordering of markets. Also, international agreements on public goods, such as carbon and biodiversity, have an impact on the dynamics in transactions between economic partners. At the meso level, new forms of cooperation, e.g. between public and private partners or between chain actors, shape conditions and capabilities to enter markets and bring about novel modes of regulation and governance, redefining roles and responsibilities of stakeholders. Our understanding of the interaction between economic institutions (markets, contracts, forms of exchange, etc.) and development is deepening, which gives new orientations for investment and policies. At the micro level is where livelihoods are at stake in view of food insecurity, poverty, lack of income-earning assets and vulnerability to risk – it is also where rural entrepreneurship is needed on-farm and off-farm. A variety of learning networks are developing, e.g. assembling producers’ associations, NGOs and retail, which connect the vertical column to the social and agro-ecological environment. At this level issues such as development of entrepreneurship, value addition and production innovation, diversification of markets and business strategies, and the effect of social coherence on participation in food chains can be addressed jointly with activities in the rural development theme.

An integrative approach is essential for connecting the different levels and configurations. In the priority area of ‘policy support’ the activities in the science network will play a relatively more prominent role, while in the other priority areas the consultative platforms and implementation coalitions will be relatively more important.

Cooperation with national and international partners will be a key element of all activities in these fields:

·            International institutes such as WTO, World Bank and OECD on issues related to applied global economic analyses;

·            Coalitions of public and private partners (FAO, IFAD investing in agricultureal and rural development) working on learning from and supporting market-economic development initiatives such as AgriProFocus, International Commodity Bodies, WSSD-partnerships in Market Access and the Re-Governing Markets Group;

·            National government institutes – ministries, SPS-organisations, etc. – in the Netherlands and elsewhere (including the LNV Agricultural Counsellors and other embassy staff).

We envisage that issues of market access, governance in trade and chains, market and business strategies linked to public policy, and dynamics of public-private partnerships can be addressed by a focus on certain fresh products, i.e. fruits, vegetables and flowers, and aquatic food, and a selection of ‘traditional commodities’, i.e. coffee, cocoa, palm oil, sugar. The growing importance of livestock and aquacultural production systems supplying domestic and international markets opens the opportunity of introducing water-related natural resource policy frameworks to the realm of trade and markets wherein safety and quality requirements prevail. Likewise, the trade in timber and oil palm relates trade issues to the public concern for maintaining biodiversity. The latter two possibilities suggest cross fertilisation with the themes ‘water’ and ‘biodiversity’, which informs policy, cooperation and implementation on how to achieve sustainable use of natural resources in a commercial setting.