This chapter is concerned with identifying: (i) challenges to food systems in Africa, Asia, and Latin America caused by urban development, (ii) how existing food systems respond to these challenges, and (iii) what can be done to improve their responsiveness. The chapter is based on the authors’ published research complemented by additional literature. We define ‘urban food systems’ as food systems linked to cities by material and human flows. Urbanisation poses challenges related to food and nutritional security with the co-existence of multiple forms of malnutrition (especially for women and children/adolescents), changing employment (including for women), and environmental protection. It is widely acknowledged that contemporary food systems respond differently to these challenges according to their traditional (small-scale, subsistence, informal) versus modern (large-scale, value-oriented, formal) characteristics. We go beyond this classification and propose six types of urban food system: subsistence, short relational, long relational, value-oriented small and medium enterprise (SME)-driven, value-oriented supermarket-driven, and digital. These correspond to different consumer food environments in terms of subsistence versus market orientation, access through retail markets, shops or supermarkets, diversity of food, prices and food quality attributes. Urban food supply chains differ not only in scale and technology, but also in the origin (rural, urban or imports) and perishability of food products. We stress the complementarity between short chains that supply many perishable and fresh food items (usually nutrient-dense) and long chains that involve collectors, wholesalers, retailers, storage and processing enterprises for many calorie-rich staple food commodities. More and more SMEs are upgrading their business through technologies, consumer orientation, and stakeholder coordination patterns, including food clusters and alliances.

Urban food systems based on micro, small and medium enterprises (MSMEs) have proven resilient in times of crisis (including in the ongoing Covid-19 pandemic). Rather than promoting the linear development of so-called ‘traditional’ towards ‘modern’ food systems, we propose seven sets of recommendations aimed at further upgrading MSME business, improving the affordability and accessibility of food to ensure food and nutritional security while accounting for the specificities of urban contexts of low- and middle-income countries.

1. Objective and Focus of the Chapter

This chapter is concerned with identifying: (i) challenges to food systems in Africa, Asia, and Latin America caused by urban development, (ii) how existing food systems respond to these challenges, and (iii) what can be recommended to improve their responsiveness. The chapter is based on the authors ‘published research complemented by published literature.

We define ‘urban food systems’ as food systems linked to cities by material and human flows. “A food system gathers all the elements (environment, people, inputs, processes, infrastructures, institutions, etc.) and activities related to the production, processing, distribution, preparation and consumption of food, and the outputs of these activities, including socio-economic and environmental outcomes” (HLPE 2014:29). This definition is close to the definition of food chains, with three major differences. First, it includes food acquisition, diets and consumer behaviour. Second, it considers a diversity of food products, which is crucial for nutrition security, as well as for the sustainability of production systems. Third, it emphasises the key role of food environments, i.e., “the physical, economic, political and socio-cultural context in which consumers engage with the food system to make their decisions about acquiring, preparing and consuming food” (HLPE 2017:28). Often, contradictory objectives are attributed to food systems, gathered under the general objective of achieving sustainability (Béné et al. 2019). According to FAO (2018:1), a sustainable food system (SFS) delivers food security and nutrition for all in such a way that the economic, social and environmental bases for generating food security and nutrition for future generations are not compromised. Among SFSs, inclusive food systems are defined by Fan and Swinnen (2020:9) as “reaching, benefiting, and empowering all people, especially socially and economically disadvantaged individuals and groups in society.”

2. Challenges Posed by Urban Development

3. The Characteristics of Urban Food Systems in the Global South

3.1. Spatial and Relational Organisation

The organisation of urban food systems in Africa, Asia, and Latin America is summarised in Fig. 1. We review the characteristics of the chains that supply food to urban consumers, their relations with urban food environments, and urban consumer profiles. The nature of urban food environments, especially food retailing landscapes, as well as consumer living standards, in addition to the perishability and origin of food, results in major differences among food supply chains.

Fig. 1

The characteristics of urban food systems in the Global South. (Source: Adapted from HLPE (2017) and David-Benz et al. forthcoming)

Food chains and food systems in LICs are currently classified differently depending on their operation and organisation, which is related to the evaluation of their outcomes, impacts and performance. This type of classification relates to the market orientation, the scale of activities, informal versus formal (i.e., whether the business is registered or not), added value in the chain through the adoption of technologies and orientation towards consumer expectations, in particular regarding visual, organoleptic, and sanitary quality. The High Level Panel of Experts (HLPE 2017) report distinguishes traditional food systems, which are dominant in rural areas and involve open-air markets and small shops with limited concern for food quality or diversity, and modern food systems, which emerge in urban areas and are driven by the development of supermarkets and increased income, as well as an intermediary type termed mixed food systems. As the HLPE typology mostly considers differences between rural and urban settings, and as urban food supply chains are diverse, the rest of the chapter highlights the determinants of variable organisation and performance of urban food systems and leads us to propose six types.

Even though subsistence agriculture is of minor importance in terms of total urban food consumption, in cities in the Global South, it can play an important role in the livelihoods and social inclusion of some vulnerable inhabitants, as proven in Tamale and Ouagadougou (Bellwood-Howard et al. 2018), Cape Town (Olivier and Heinecken 2017), Hanoi (Pulliat 2015), Quito and Rosario (Renting and Dubbeling 2013). Urban gardens also have important pedagogical functions, e.g., through schooling programmes or community gardens (Hou 2017). The multi-functionality of urban agriculture means that it is a ‘cheap’ producer of public goods.

We now turn to market-oriented urban food systems. Urban consumers are mainly supplied by small-scale market vendors and neighbourhood shops, even though supermarkets and convenience stores are increasing their market share. Supermarket distribution is still limited for food, especially in Africa and South-East Asia: less than 10% of purchases in Côte d’Ivoire (Neveu-Tafforeau 2017), Kenya and Uganda (Wanyama et al. 2019), and less than 20% in Vietnam (University of Adelaide 2014) – the percentages being even lower for fresh food, all of which may be explained by low consumer purchasing power, as well as by consumer preference for traditional retail formats. So-called traditional urban food systems predominate in the urban context of LICs. There is overlap between what is termed traditional or informal markets/sectors/systems, both terms referring to the small scale of production, the absence of registration and public support. Traditional systems are often described as ‘poor-friendly,’ as suppliers are mostly concerned with subsistence incomes (Vorley 2013). Moreover, they are an important part of the social fabric of low-income urban communities, as seen in studies in Ghana and Kenya (Pradeilles et al. 2021). Food processing, food distribution, and food catering are major sources of urban employment, especially for the vulnerable poor (particularly women) who lack qualifications and social and economic capital (Allen et al. 2018). The urban food catering sector is varied, ranging from school canteens to street caterers and restaurants targeting different types of customers. Most processing takes place in MSMEs at an artisanal scale (Tschirley et al. 2020) in various locations within and outside cities. While street vendors are documented as major providers of food and livelihoods for poor urban residents, especially women, in Africa and Asia, they usually lack public support (Turner and Schoenberger 2011; Ogunkola et al. 2021).

Traditional food systems are sometimes judged to be inefficient in responding to new consumer expectations, especially concerning quality and convenience (Reardon et al. 2019). Low investments in infrastructure may limit the regular supply and availability of some nutrient-dense foods like fruit and vegetables (Maestre et al. 2017). Regarding the effect of traditional food systems on waste reduction, some studies report evidence for inefficiency related to poor logistics, while others argue that less stringent quality criteria help reduce waste.

In addition to scales and technology, another major factor that influences the organisation of food chains is food perishability, as it influences the location of production and the length of food chains, especially when logistics are limited, which is even worse in times of crisis, like the current Covid-19 pandemic. The location of production and the possibility of producing locally depend on the climate and the soil, as well as on the history of specialisation in some territories. Mapping food supply chains is crucial for representing differences in the length of chains, in the number of intermediaries and in their origin. This is the basis of approaches such as foodsheds, city-region food systems and short versus long chains (Blay-Palmer et al. 2018; Schreiber et al. 2021). Short versus long chains refers to physical as well as relational factors, and the two are linked. Short chains (in terms of distance and relations) have fewer intermediaries than long ones. This may lead to lower final prices than longer chains, but this is not systematically the case, because long chains may enable economies of scale (De Cara et al. 2017). In line with predictions from spatial economics, short food chains predominate in the supply of perishable produce, e.g., leafy vegetables, milk, eggs and chicken. These commodities are nutrient-dense and commonly under-consumed relative to nutritional recommendations. The farmers themselves, or their relatives, are frequently involved in wholesale and/or retail distribution. On the other hand, staple food crops, including cereals, tubers, pulses, vegetables that can be stored, e.g., onions, and some animal products, are supplied by long chains originating in local rural areas or by imports (Moustier 2017a, b; Karg et al. 2019; Lemeilleur et al. 2019). They often involve a chain of rural collectors, rural wholesalers, urban wholesalers, and urban retailers who supply all types of urban consumers. Transactions take place in wholesale and retail markets located so as to minimise traders’ and consumers’ transport costs (Blekking et al. 2017; Lemeilleur et al. 2019). With the development of transport, credit, and mobile phones, these chains may be shortened, and the roles of rural collectors and wholesalers may be reduced. This transformation is termed the ‘quiet revolution’ in agrifood value chains in low- and middle-income countries by Reardon (2015).

Another important aspect of chain organisation concerns business-to-business relationships. Food chains in LICs are characterised by long-term acquaintanceship and reciprocity, together with competition among hundreds of vendors, resulting in a certain degree of price homogeneity, even though oligopolies of wholesalers are observed because of limited access to credit and storage facilities (Fafchamps 2004).

Modern distribution systems, driven by supermarkets, are characterised by labour-saving and capital-intensive technologies in terms of logistics, refrigeration, self-service, packaging, and cash registers, in addition to the recourse to contractual arrangements with dedicated wholesalers (Hagen 2002). They are judged to be efficient in terms of logistics and quality (Reardon et al. 2019), but with potential negative effects on nutrition, because they supply a wide range of highly processed foods rich in fats and sugar (Demmler et al. 2018; Giordano et al. 2019; Wertheim-Heck and Raneri 2019). Regarding affordability for the poor, modern systems are usually presented as less poor-friendly because of higher prices and transport constraints. Modern systems also create less employment per unit of product (Moustier et al. 2009; Wertheim-Heck and Raneri 2019). Regarding differences in prices between supermarkets and traditional vendors, when controlling for quality differences, results are country-specific. When supermarkets gain a substantial market share, they can reduce their logistic costs and provide food at lower prices, especially food that can be stored (Reardon et al. 2010; Nuthalapati et al. 2020). Prior to that stage, food is usually cheaper and more accessible in open markets and small shops than in supermarkets (Moustier et al. 2009; Wanyama et al. 2019). Moreover, supermarkets favour the use of plastics for wrapping fresh food, which is a major environmental concern (Letcher 2020).

3.3. Six Types of Urban Food System

To summarise, we advocate going beyond the simplistic classification of traditional versus mixed and modern food systems. This classification may stigmatise the small-scale relational food systems that are competitive in terms of food availability, accessibility, and affordability. Moreover, it suggests a linear trend of change from one system to another, while the reality frequently turns out to be combinations and synergies between different patterns. Hence, based on our review of the literature, we propose the following typology – while acknowledging that overlaps between and combinations of types are possible. The main characteristics of each type are summarised in Table 1.

Table 1

Characteristics and outcomes of the six types of urban food system

4. Adaptation to Demand and Crises in Urban Food Systems

The capacity of food systems in low- and middle-income countries to supply urban populations in sufficient quality and quantity is often questioned. The development of agribusiness at all stages of food chains is sometimes seen as one way to overcome these shortcomings. Large-scale private investments in mechanised production, processing, storage, and retailing are put to the fore. Yet, innovations are not neutral in terms of social inclusion. It is sometimes even claimed that the present problems of food security, including unhealthy food, are caused by innovations and agribusinesses (Glover and Poole 2019). Labour-saving and scale-biased innovations have a negative impact on employment for the poor and they are less suitable in regions where labour is in excess supply than is the case with capital-saving or neutral innovations (unless massive credit programmes targeting the poor are launched). Moreover, they ignore the diversity and creativity that exist at the level of food systems driven by MSMEs, including producer organisations, as explained in Sect. 3.2.

The Covid-19 crisis has caused major disturbances, the most important being the decrease in sources of income among vulnerable urban dwellers, with an impact on women and children, due to restrictions on movement and the disturbances in logistics systems (Shekar et al. 2021). In some countries, the increased vulnerability of the urban poor has been addressed through food aid programmes and increased social safety nets targeting women (Shekar et al. 2021). At the same time, the local food provisioning sector has proven to be quite resilient, with no major breaks in the food supply chains. Public policies restricting the sale of food in open markets have been varied, with mixed consequences for access to employment and to food by the poor. For instance, the municipalities of Abidjan and Dakar found ways to maintain retail sales of food in open markets through regulations concerning hygiene and social distancing, enabling some contactless proximity, which was not the case in Burkina Faso, where markets were shut down at the beginning of the crisis (Dury et al. 2021; IPES Food 2020; Moustier 2020; Devereux et al. 2020).

Considering their inclusiveness and resilience, we recommend supporting urban food transformations based on MSMEs. These are discussed in more detail in the following section.

5. Solutions for Enhancing Inclusive Urban Food System Transformations

In the previous section, we reported insights from the literature on the advantages and shortcomings of current urban food systems. Yet, these insights are quite patchy in terms of time, space, and commodity coverage. That is why our first recommendation concerns the need for better data. Second, we provide recommendations related to urban food planning, mostly concerning the protection of land for agriculture, marketplaces, and shops, as well as regulations pertaining to supermarkets and food safety. These should enable urban consumers to benefit from a variety of food retailing formats. We also recommend communication actions to promote nutrient-dense foods, e.g., fruit, vegetables, nuts and legumes, which may be available to consumers locally, but are not always purchased, because consumers may have little knowledge of their health benefits or of how to include them in their meals and dietary practices. Rural-urban transportation, which is the mandate of national governments, should be a priority to improve both food availability and quality and to reduce food losses. National programmes should also improve access to credit and training on food processing and storage for food MSMEs. Improvements in food quality can be obtained through food processing and storage technologies, which are not always available to MSMEs because they have no access to credit and training programmes. Finally, securing coordination among food system actors is required to enhance the quality and availability of diverse food items. Details of these recommendations are given below. Some recommendations concur with the recent work of the Centre for Food Policy (London University) aimed at identifying policies and actions that can orient food systems towards healthier diets for all (Hawkes et al. 2020).

While some recommendations (Sects. 5.1 and 5.3) relate to all types of urban food system, some are more particularly relevant for some of the urban food system types identified here (see Table 2).

Table 2

Recommendations according to targeted types of urban food systems

The recommended interventions are intended to upgrade the operation of MSMEs, as well as changing consumers’ environments to enable healthier food, while keeping costs and prices affordable for the urban poor. This is why the proposed interventions are sober in terms of capital and energy; moreover, economies of scale are reached through coordination of SMEs, rather than by providing support to agribusinesses.

6. Conclusion

In the context of continuous urban development and widening income disparities, urban food systems in countries of the Global South are becoming more market-oriented and innovative, with new investments in logistics and quality. Small-scale, labour-intensive food supply chains with relational governance and decentralised food distribution that provide food at a low price close to consumers’ homes have proven resilient. They are poor-friendly and adapted to the time and work demands of women, in particular compared to agro-industrial schemes. Relative to the vast recent literature on food systems, this chapter highlights some peculiarities of the urban context and food systems of low- and middle-income countries. These include the importance of food caterers and mobile and open market vendors, as well as urban agriculture, in the provisioning of the urban poor; the high pressure on urban agricultural land and water; the innovative nature and consumer orientation of many food MSMEs; and the growing concerns and involvement of urban authorities in urban food security. Opportunities exist to respond to consumer demand and needs in terms of nutritional balance and food safety, while creating employment for less educated urban populations, especially for women. To exploit these opportunities, we have recommended a set of actions representing public support to endogenous patterns, adapted to the six types of urban food system that we brought to the fore, as a variety of food systems is needed to target different objectives and local contexts (Seck 2021).

Acknowledgements

Thanks to Ninon Sirdey, two anonymous reviewers from the UNFSS scientific group for their comments on an earlier version, and to Jemimah Njuki, International Food Policy Research Institute, Africa Regional office c/o ILRI Nairobi.

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Footnotes

1

The lack of data was underlined at the Milan Urban Food Policy Pact meeting in Ouagadougou, February 15-19, 2021.