Food calamities and governance; an inventory of approaches

In normal circumstances a governance structure of the food system has evolved that serves the system so as to reduce transaction costs. While its overarching conditions are often set by the government policy as to the sector, the private sector, with the help of an enabling government, has developed arrangements to its own liking. The question addressed in this review is whether this governance structure of the food system is robust enough to cover extreme events, calamities, that strike unexpectedly and may harm large sections of the system. Do normal arrangements cover part of what should be done in these circumstances, or do they perhaps hinder the application of adequate governance fit for such extreme events

Determinants of the place of sell and price of kale for Kiambu, Kenya

Kale is a major source of cash for many households in Kenya. A study of households in Kiambu district revealed that kale made the highest contribution to household income among the crops. The farmers of Kiambu sell their kale either in Nairobi, at farm gate, or at the local market and fetch different prices. The farm gate price is highest when kale is sold in Nairobi, but only a small fraction of the farmers sell kale in Nairobi. This paper endeavored to know what influenced the decision of where to sell the kale, and why the prices were so variable between destinations. The results showed that the price of kale was influenced by the place of production and distance to a local market. The results further showed that the decision to sell kale in Nairobi where the price was highest depended on labor availability, the household’s wealth status and transport access to the market. Poorer households were more likely to seek higher prices in the city than the wealthier households. Improving marketing of kale could be a way of targeting the poorer households and improving their welfare

Resilience of food companies to calamities - perceptions in the Netherlands

Calamities such as extreme droughts and trade or infrastructure breakdowns potentially hamper the continuity of individual food companies, as well as the continuity of food supply in Europe at large. There is a lack of insight into food companies’ resilience in case of cumulative calamities or calamities that did not happen before in recent history. In this context, an expert elicitation study among feed and food companies in the Netherlands was undertaken. Results show that lengthy or structural unavailability of electricity and a lengthy crisis of road transport are perceived as the most threatening calamities.Outcomes also show a relatively limited implementation of BCM (business continuity management) at company level. Complete BCM programs for top-3 calamities perceived to threaten the continuity of food supply in Europe are reported by 0% to 30% of the companies. For calamities perceived to be important for business continuity this is between 20% and 40%. In the field of risk management a leading role is attributed to the public sector for improving international governance and setting up a so-called masterplan with measures such as larger raw-materials stocks and broad sourcing. Findings suggest that further actions are needed, starting with prioritised calamities and the design of a masterplan. Yet, stakeholders are also urged to pro-actively “think the unthinkable

Governance of the world food system and crisis prevention

The present study offers a framework, rooted in Disaster Studies. The next few sections will first discuss the analytical tool box, which we have largely drawn from Disaster Studies. Thereafter the food regime will be looked into in the quantitative (food security, Section 3.1) and qualitative sense (food safety, Section 3.2), and the actors and rules and regulations for international food aid discussed. It will become clear that the private sector has a key role to play in both categories. Chapter 4 calls attention to the increasing complexities and uncertainties in the global food system that complicate food governance. To get anything done at all, a simplification seems necessary, such as declaring a food problem a safety issue

Seasonality, precautionary savings and health uncertainty: Evidence from farm households in central Kenya

The high prevalence of risks in low income economies makes managing uncertainty critical for productivity and survival. This paper analyzes seasonal changes in farm households’ per capita consumption and saving in response to weather and health shocks. Using a sample of 196 households in central Kenya, it tests the notion that people save most of their transitory income, and examines their precautionary saving motives. The results show that the propensity to save out of transitory income is about a fifth of what the permanent income hypothesis postulates. The propensity to save differs by wealth, with the poor exhibiting stronger precautionary motives towards rainfall variability. But the wealth effect is weak, suggesting that the asset base is vulnerable even for the better-off. However, precautionary savings tend to increase with wealth among HIV/AIDS affected households. Since illness is associated with higher consumption, and therefore less investment, we find more volatile consumption for HIV/AIDS affected households