auctions, farmers and processors have been able to achieve very significant sales volumes and prices. Previously, coffee inevitably changed hands many times between the producer and the buyer. In fact, most coffee sold today still moves under the old trader system. However, more and more coffee is moving directly. In 2007, the highest price paid for coffee was US$130 per pound for 100 lbs (US$13,000) of Panamanian coffee from a smallholder plantation through an Internet auction.
Potential for Technologies to Deliver Benefit in Different
many developing countries. Increased food availability only makes sense when evaluated with respect to the impact on individuals, as it may have positive or negative effects. Moreover, there is increasing evidence that nutrients present in a food (i.e. as listed in food composition tables) may not be totally available for absorption in the gut. Also, absorption varies drastically (e.g. by up to 70%) for the same food depending, for example, on processing conditions and pres-ence of other components in the diet. In many cases, processed foods show improved nutrient bioavailability when compared to raw or fresh foods that only suffer mastication prior to ingestion (Parada and Aguilera, 2007). The concept of nutrition and the impact of technologies may change, as we learn more about the fate of food components after ingestion (‘food processing inside the consumer’).
Food safety
Contaminated foods represent one of the most ubiquitous health problems in the world. They not only result in increased morbidity and mortality, but are also a major contributing factor to reduced economic productivity in many countries.
The illnesses contracted from contaminated foods are generally caused by micro-organisms (bacteria, viruses, moulds and their toxins), parasites, drug and pesti-cide residues, environmental pollutants (such as heavy metals, dioxine) and unconventional agents (e.g. bovine spongiform encephalopathy – BSE). They usually result in conditions such as diarrhoea, gastrointestinal pain, vomiting and headaches and, in the most serious cases, death. Worldwide, food pathogens have been estimated to cause 70% of the approximately 1.5 billion (109) cases of diarrhoea and three million deaths of children under the age of 3.
Because of their magnitude, very few countries have the ability and infra-structure to monitor the incidence of foodborne diseases. The Centers for Disease Control and Prevention in Atlanta (CDC) estimates that the number of cases of foodborne diseases in the USA is now equivalent to about 30% of the population per year. Although long-term chronic sequelae are characteristic of many foodborne diseases, they have not received the same degree of attention that the primary, acute symptoms have. Most foodborne disease victims and their physicians are happy to get over the short-term effects and seldom worry about future consequences.
Because of the difficulty in calculating the impact of long-term sequelae upon the health care system, they are seldom considered when determining the full impact of foodborne diseases. Long-term chronic effects are also over-looked simply because the data on them are not systematically collected and, as a result, it is difficult to link them directly to an originating cause. In fact, the significance of long-term sequelae is only beginning to be considered more comprehensively and the conclusions indicate that they can be very serious.
Foodborne diseases have been implicated in many subsequent health disorders (Bula et al., 1995; Smith, 1995; Stanley, 1996). Long-term chronic sequelae can destroy an individual’s morale and quality of life and often result in measur-able changes in personality.
In developing countries food safety has some specific implications beyond those listed above. Populations in these countries are particularly at risk because they do not have adequate supplies of safe water, appropriate waste disposal systems and access to refrigeration. Their low incomes preclude paying the extra cost involved in reducing food safety risks and countries may have only limited capacity to control the safety of foods. It is quite obvious that most efforts should be directed at avoiding the entrance of contamination sources into the food chain. In the second place, small-scale food industries and house-holds should be advised on the critical points involving food safety risks during manufacturing or food preparation at home. Even a traditional technology like fermentation that normally contributes to food safety in developing countries where refrigeration is not available needs the implementation of a hazard anal-ysis and critical control points (HACCP) system (Motarjemi, 2002).
There are some technological options that reduce the risk of contaminated foods. Irradiation is particularly suited to inactivate pathogens and parasites from fresh and dry foods, but its use depends on consumers’ perception of irradiated foods. Other technologies are actively being explored for food decon-tamination, among them ozone treatment, pulsed and UV light and the use of electrolysed water. Physical, chemical or microbiological technologies can be used to detoxify grain and oilseed cakes by destroying, modifying or absorbing the mycotoxins so as to reduce or eliminate their toxic effects.
The application of appropriate technologies must be accompanied by good management and good hygiene practice along the supply chain as pre-requisites to an appropriate HACCP and traceability system. These, together with training and education of personnel, provide the essential components of a food safety management system (see Figure 7). The extent of such a system and its degree of complexity will depend on the size and complexity of the operation in question. However, the basic principles must be applied in all sizes of operation, whether relating to food retailing or the food service or catering sector.
Increased concern about food safety will affect developing countries in two major aspects. First, their exports will be exposed to increasingly demanding food safety standards from Codex Alimentarius and by unilateral requests from individual importers. Second, attitudes and standards in vogue in the developed world will spill over to the local market (Pinstrup-Andersen, 2000). A new form of protectionism may arise in which the high quality and safety standards imposed by importing countries may not be accommodated rapidly by local production technologies or guaranteed by local analytical capabilities, leading to an increased level of rejections at the entry ports.
Developing countries exporting fish and shellfish, as well as fresh fruits and vegetables, are likely to experience a more stringent inspection at the entry ports due to negative episodes involving food safety. For example, consumers in the USA have expressed their concerns over the fact that currently the FDA only inspects 1.2% of all imported seafood, which means that large quantities of contaminated products may be reaching the supermarket. Moreover, even if the problem regarding the safety of an imported food has been overcome, the credibility of the exporting country to produce safe food may be at stake, thus
affecting the volume of its food exports. For this reason alone, developing countries should consider implementing or strengthening their foodborne dis-ease control, investigation and surveillance systems.
Sustainability
Historically, the concern for the environment was not a matter of great appeal in the pursuit of economic gain. Throughout the centuries, large areas of the globe were laid waste as a result of mismanagement of resources. During the latter half of the 20th century, it became increasingly apparent that the earth was rapidly running out of the ability to support its burgeoning population.
Following the UN World Commission on Environment and Development in 1987, the concept of sustainable development, the employment of socio- ecological processes that match the realization of human needs while at the
Crop & animal production
Storage &
distribution
Processing &
packaging
Traceability–one up, one down
Hazard analysis critical control pointsHACCP implementation/microbiological risk assessment
Harvest/slaughter
Storage &
distribution
Consumer Food retail &
food service
Good consumer practice Training and education of personnel Good hygiene practice Good retail/food service practiceGood manufacturing practiceGood agricultural practice
Figure 7. Integrated approach to food safety.
same time preserving the quality of the global environment, became a generally accepted understanding.
The current status of economic development among countries was not the result of this view of sustainability. Natural resources, often usurped from other less powerful countries, were callously exploited and the environment boldly compromised in the rush to develop wealth. In some parts of the world this abuse is still taking place. Indeed, it is difficult for those that have not yet achieved an adequate level of economic development to accept the notion that global concerns for the environment will have to be respected, even though they may serve as a short-term constraint to growth. It makes it that much more challenging for developing countries to create an enabling environment and promulgate policies that will support the entrepreneurial sector.
The term sustainability also reflects a business concept related to the main-tenance of a competitive position. The phrase ‘Sustainable Competitive Advantage’ or SCA was coined in 1985 by Michael Porter (Porter, 1985) and addressed as a potential strategy for the agro-industrial sector in developing countries development by FAO in 1986. The goal of SCA is to have entrepre-neurs develop unique value-creation strategies that separate them from the competition. When first discussed in the context of agro-industries for develop-ing countries, a number of constraints were readily apparent. Government policies seldom introduced incentives for entrepreneurial creativity. On the contrary, most policies stifled creativity. Very little effort went into coordinating agricultural production with agro-industrial processing; indeed, in most coun-tries, the Ministries of Agriculture and Industry were competing agencies with very little interaction. Agro-industrial processors had little access to markets and competitive raw material resources. Within most developing countries and generally within the United Nations agencies, the overriding attitude was that it was the goal of agro-industry to serve the farmers of the developing world, despite the fact that, as a separate sector in the developed world, agro-industry far outstripped agriculture in terms of economic output and employment.
Thus, two different concepts of sustainability are at work in the creation of policies in support of the agro-industrial sector in developing countries: one, which manages access to raw materials and imposes controls upon unsuitable processing practices, in order to maintain the integrity of the environment and protect natural resources; and another, which requires an understanding of the competitive nature of the agro-industrial sector and the unique role of the entre-preneur. New technologies and new trade paradigms have a tendency to level the playing field – after that it is up to the players. Rational policies, a consistent approach and an enabling environment are what entrepreneurs require to com-pete successfully and be sustainable.
Competitiveness
Much has changed in the last 15 years. The globalization of the economy and the creation of the WTO have subjected small entrepreneurs to vastly greater markets that are becoming more visible and accessible. The wealthy developed
markets are becoming more aware of processed goods available from develop-ing countries. To supplement this, the growdevelop-ing sensitivity of consumers is moti-vating them to purchase products they perceive to be compatible with the classical concepts of social responsibility and environmental sustainability. This enhanced form of consumption is a large and growing sector. It includes high-quality commodities, such as selected or organic produce, value-added conveni-ence foods, fair trade and environmentally responsive (e.g. bird-sensitive, shade-grown) products. Technologies such as irradiation are permitting exotic fruits and vegetables to travel much greater distances to reach profitable markets than they have in the past.
In light of these new developments, the more traditional ideas of competi-tiveness, such as economies of scale, may have to be reconsidered. Our con-cept of the comparative ability of an entrepreneur to sell and supply goods or services to a given market must consider how rapidly these markets are chang-ing as well as how crucial changes to technologies have flattened the world and levelled the playing field for entrepreneurs. This is particularly the case for niche markets such as for organic foods.
One of the best indicators of how successful organic foods have been is that they have gone way beyond foods for human consumption and can now be found everywhere – even in the pet food markets. These types of pur-chasing patterns are all based on the notion that people want to express their individuality and there is no better way to do this than to indulge their specific tastes in foods and beverages. People also want to live a longer and better life and are suspicious of factory foods that contain many additives, even if their governments vouch for the safety of these foods. Of course, this is bad news for large processors, because their business depends on cost-effectiveness of food production, which, in turn, is the result of efficiencies obtained through large volume production. Large volume production, on the other hand, is not very suitable for an individual’s specific preferences, which, of course, are better served by small operators. Historically, France and Italy have always been known as countries where you can find the best foods. It is not by chance that large multinational food companies are not nearly as popular on those markets as the thousands of domestic smaller manufacturers.
Twenty years ago, the number of different producers of juices and wines in the USA was quite limited. These days, that landscape has changed dramat-ically. Literally dozens of different organic juice manufacturers (including several local ones) are selling to supermarkets, and hundreds of new small-scale winer-ies are serving the desires of consumers – not to mention the multiplicity of imported wines from small foreign operations.
Our current understanding of nutrition recommends that we consume between 5 and 10 servings of fruits and vegetables per day. Although, there is usually a variety of fruits and vegetables available from local agriculture, con-sumers are broadening their horizons in the search for alternatives to conven-tional fruits such as apples, pears, peaches and bananas. The phenomenal growth in the market for mangoes is an excellent example of this. It is very likely that we will see the same thing in markets for many other tropical fruits.
And tropical fruits are not limited to the fresh varieties. Preserved fruits, by can-ning, by infusion with sugar or by drying, are also niche markets to look for-ward to. These products do not necessarily go only to individual consumers, but also to small manufacturers who want to include them as exotic ingredients in their baked goods or mixed cereal products. These changes are providing small-scale entrepreneurs in developing countries an ability to compete with far greater effectiveness than they have ever experienced before.
Technologies fostering agro-industrial development
The importance of technologies discussed in Section 3 is that they add value to raw materials or existing products. The value added may vary from incremental (e.g. a better package) to a radical change in production technology (e.g. a nano-based product). This is relevant in the sense that the impact of techno-logies should not be judged by the sophistication involved but by its relevance to better match the needs imposed by the final markets. Based on targets depicted in Figure 6, some major technology-based events that are likely to have a future impact on policies that foster agro-industrial development are presented in Table 1.
Conditions for successful adoption of food technologies
Technologies are not applied in vacuo; they are implemented by private entrepreneurs that sense a stable and propitious environment for their long-term investments. Under favourable conditions, the time frame in which the impact of food technologies can be fully realized may be only 10–15 years.
For example, the Chilean salmon industry evolved from a quasi-artisan indus-try in the early 1990s to a world-class player in only 15 years; exports of farmed salmon in 2006 were US$ 2200 million. This figure represents one-half to one-third of the gross national income of three countries in the region.
The role of governments in providing the human technical resources and the adequate regulatory framework must not be underestimated. There are other issues that also affect the adoption of technology, such as the support by equipment manufacturers and the availability of local technical personnel to implement and run the technology. In low-income and emerging countries the government can play a crucial role in providing support for new adopters of a technology.
In general, food policies as applied to technology tend to provide an enabling environment for food-processing entrepreneurs, create fiscal incen-tives for innovation, supply the necessary infrastructure for entrepreneurship and promote the adequate backward (e.g. financial support to SMEs, risk capital and information about future markets) and forward linkages (e.g. inter-national promotion, ‘ country’ brand).
The direct access to markets through information and communication technologies is probably the most important new development in recent history
Table 1. Technical implications for policy to foster agro-industrial development based on the identified technological trends.
Trends Technical implications
Need for more foods, driven by rising incomes
Reduction of postharvest losses by improved storage and better marketing channels
Adoption of processing technologies that foster the supply of processed raw materials
Demand for high-quality and safe foods
Adoption of novel technologies that preserve freshness and supply better taste and flavour
Critical evaluation of emerging preservation technologies as to their equivalent effectiveness compared to proven technologies
Consumption of internationally traded foods
Development of appropriate traceability systems based on information technologies (ITs)
Adoption of non-destructive inspection technologies for quality control
Creation or strengthening of a regulatory framework attuned with international agencies
Foods for health and well-being Design foods for the gut (e.g. functional foods) and the brain (gastronomy)
Select processing technologies that preserve nutrients, secure functionality and provide a high bioavailability Increased markets for
organic products
Adoption of organic production systems and presence of reliable certification organizations
Adapt preservation processes and packages that are non-invasive and replace synthetic additives by natural ones
Exports of value-added products
Develop human resources, technical infrastructure and technology transfer capabilities
Build infrastructure and distribution chains for refrigerated and frozen products
Cater to niches that require specific processed products (fresh and dried exotic fruits, etc.); strengthen quality management capacity
Environmental concerns Strengthening of integrated management systems Adoption of life cycle assessment as evaluation criterion
of impact of processing technologies Globalization of market
information by the Internet
Widen access to wireless communication technologies in rural areas and improve command of foreign languages at school level
Knowledge-based food industries and biorefineries
Strengthen the Science and Technology base at universities and national research institutes
Apply advances in biotechnology and keep abreast of developments in nanotechnologies
for entrepreneurs. However, the potential to capitalize on this will largely be dependent upon the economic policies that are or are not in place. Government policies may be based upon a number of realities and business principles:
● No technology (processing or information/communications) will flourish in an economic environment not prepared to support it.
● It is the entrepreneur who takes the greatest risk and should receive the greatest reward if profits are achieved.
● It is a very competitive world and, in anticipation of an initial, non-profita-ble period, policy support has to endure a certain amount of ‘staying’
power (often up to 5 years) until profits start to flow. Grace periods in loans, for instance, can be made to address this issue.
● The entrepreneur’s chief task is to make a profit – everything else is sec-ondary to that goal.
● Policies in support of successful entrepreneurs will have the consequent benefit of generating employment and collecting taxes that can be put to social use.
Policy makers in developing countries interested in fostering entrance into food export markets should be aware that competing in these markets requires the use of production technologies that are of the same standard as those issued in the receiving (usually high-income) countries. To become and stay as major players in export markets, technological policies should address also the follow-ing complementary issues:
● Availability of well-trained local technical personnel with command of inter-nationally spoken languages to run the production and processing aspects, as well as marketing operations. This imposes added competences to be built through the educational (technical and university levels) and continu-ing education system.
● A basic science and technology and innovation system that provides sup-port to the local industry and promotes the entrance of new small and medium entrepreneurs into the business. This local talent is at present most probably located in universities and government research institutes.
Specialized centres for adaptation, demonstration and transfer of techno-logies in areas with validated market potential will have to be implemented and sustained through time for the support of small and medium agro- industries (as is now the case with agricultural research units).
● Geographical associations in the form of interconnected technology clus-ters where suppliers, food processors, government agencies and institu-tions such as universities, research centres and trade associainstitu-tions merge to empower the innovation process.
● A basic infrastructure for roads, ports and connectivity (communications) that links producers and consumers inside the country and across the globe.
● A central regulatory food authority that protects consumers’ interests locally and abroad and assures that food produced and exported meets the highest standards of food safety and hygiene.