Sustainable Food Systems

Equally concerning are the projected increases in population and growth in climate-related disasters—which have doubled since the early 1990s. A growing population means more mouths to feed with the same limited resources; an increase in climate disasters means more droughts, floods, and storms hindering global food production.

Can society hope to resolve these problems and achieve universal food security? Yes—but doing so will require agricultural, technological, and economic innovation, along with new forms of cross-sector collaboration.

Achieving and sustaining universal food security hinges on creating sustainable food production and distribution systems, as well as resilient agricultural practices. Among the many players working to surmount the food security challenge, businesses will need to play a key role. They’ll have to enable sufficient increases in food production—plus ensure access to food.

Tailoring food sustainability strategies to diverse income levels will be vital. For instance, strategies must address the low purchasing power of the so-called “bottom billion”—the very poorest, who cannot afford to pay prices equal to or above companies’ production costs.

Development funding also needs to evolve. For example, a previous lack of interest and investment in African agriculture has catalyzed a food crisis on the continent. Yet agriculture is Africa’s biggest source of jobs and a crucial contributor to human welfare. Thankfully, the problem has begun attracting attention and investment, fostering a new focus on adapting African agriculture to enhance food security. 

How can food companies tailor their food-security strategies to the bottom billion? These three models can help:

1. External Subsidies. Governments, foundations, and other social sector organizations provide external subsidies in such forms as cash transfers or food vouchers to people in need through social welfare programs—enabling recipients to buy food at market rates.
2. Cross-Consumer Subsidies. Consumers with higher incomes provide a subsidy to make products affordable to the very poor. These include global customers in wealthy countries or those in the middle- and upper-income classes in developing countries, who pay an implicit or explicit premium through measures, such as branding and package sizing.
3. The Social Business Model.Social businesses are non-dividend companies created solely to solve societal or environmental problems. Investors get their invested capital back over time, but all further profits are reinvested in the company for expansion and improvement. The company can make profits, but it does not distribute them to investors.

While progress has been made toward combating global hunger, much work remains. If every organization seeking to address this worldwide scourge can commit to collaborating and innovating in new ways, they can set the stage for enduring advances in the war on hunger. The payoff? More people around the world will have the nourishment and energy needed to live productive, satisfying lives. They’ll be able to contribute to their families, their communities, and their national economies. And for the businesses that contribute, there is an opportunity to increase their bottom lines.

BCG's consultants and industry experts focusing on sustainable food systems continue to partner with leading social organizations, corporations, nonprofits, and philanthropic bodies to arrive at solutions for environmental sustainability and food security. These are some of our experts on this topic.