Background
Well functioning value chains are a major incentive to increase agricultural productivity and are a pre-requisite for the generation of a sustainable income for producers, transporters, processers, input suppliers and service providers. At the same time population growth and climate change are putting pressure on biodiversity, ecosystems and on access to raw materials and assets. There is an urgent need to practically implement combined approaches to poverty reduction (people), economic growth (profit) and ecological sustainability (planet).
Issues and Challenges
The Netherlands’ strategy on this theme has been formulated jointly by the Ministry of Agriculture, Nature and Food Quality (LNV) and the Ministry of Foreign Affairs in the policy document ‘Agriculture, Rural Economic Development and Food Security’ (2008) and entails the following elements:
- Sustainable trade a.o. through the Sustainable Trade Initiative (IDH)
- Public-private partnerships for more sustainable commodity chains and market access
- Product standards
- Functioning of local markets, including input markets
- Market access and fair competition
- Trade related aid from the Netherlands in regional markets.
The interdepartmental policy programme on biodiversity identifies trade chains and biodiversity as its first priority. The Netherlands, because of its strong international trading position, is pioneering sustainable use of certain raw materials. Investment in innovation and international knowledge networks are considered crucial to sustainable economic growth, both in the public (nature, government institutions, non-trade concerns, animal welfare) and the private domain (agri-sector, trade and market access).
This theme is divided in two sub-themes:
- International trade in sustainable production
- Local trade; contribute to chain development between local production and urban markets and supermarkets.
International trade
International trade is a crucial factor for economic development. International trade is an important driver for economic growth in emerging as well as developing economies. Cooperation with the Netherlands has in the recent past has led to important economic progress in some regions. The objective of this sub-theme is to stimulate and facilitate trade in sustainable and innovative products from and to the Ministry’s partner countries, paying particular attention to the role which can be played by Dutch business as driver of economic development in partner countries.
Local trade
The improved functioning of local markets remains a key priority and plays an important role in the broader private sector development agenda. In many developing economies local markets do not function adequately to meet the growing demand (quantity and quality) for food products in urban areas. For instance local food production is often poorly linked to development of supermarkets in cities in Africa. The objective of this sub-theme is to contribute to initiatives aimed at promoting interaction between local production and consumption in LNV partner countries, paying special attention to urban areas and with the emphasis on the chains to which Dutch expertise can provide added-value.
Approach
The thematic priorities as described above are addressed through only bilateral projects.
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