How do you improve food security in conflict-led, fragile settings?
ITC's approach to developing markets
The consequences of conflict are devastating, profound and long-lasting. Apart from the tragic loss of human life, they result in substantial losses of livelihoods, employment, and income.
Conflict exacerbates existing vulnerabilities, with even minor economic setbacks capable of pushing individuals and families to the brink of existence. In these settings, rebuilding markets is a critical step towards economic reconstruction and resilience, as well as for improving food security.
The International Trade Centre (ITC) has developed a comprehensive two-fold approach to rebuild these markets:
- through supporting a conducive business environment in collaboration with governments and policymakers, and
- by empowering local farmers and firms with the help of alliances.
Conflicts disrupt agricultural systems, leading to a decline in production, investment and exports. These effects can be attributed to a wide array of factors, including security concerns, disruption of traditional trade routes, damaged infrastructure, weakened institutions, and the displacement of labour, alongside fractured communities. Farmers and small firms face severe challenges, struggling with restricted access to essential inputs, markets and business support services. But they are the ones playing a major role in rebuilding local economies.
Addressing broken down agricultural systems requires a holistic approach that combines grassroots empowerment with systemic policy reforms.
This is why ITC develops market systems by promoting alliances among producers and small firms, empowering them to collaborate on production, quality standards, and distribution. This leads to better competitiveness and market access.
At the same time, ITC collaborates closely with governments and policymakers to drive critical policy reforms that facilitate a stable and conducive environment for market recovery. This model, that also embeds assistance to select business support organizations, has proven successful in conflict-affected areas such as Iraq, where alliances, coupled with strategic infrastructure and market linkages, have led to tangible improvements in productivity, business operations, and food security.
In early 2021, ITC, through the European Union funded SAAVI project, brought together local farmers in conflict-affected areas of Iraq, such as Al Quba village in Mosul. Moving away from traditional models that rely on external subsidies, the project introduced a competitive approach which transforms farmers into profitable business owners. A new a "buyer-led" approach changed the game.
Agribusiness alliances now collectively engage with large buyers. Each alliance receives support in aligning the produce with a buyer’s requirements – from seeds to logistics, sorting and cleaning to storage and transportation.
Moreover, to optimize sustainable growth, supply chain efficiency, and streamline post-harvest processes, ITC in partnership with the World Food Programme and the UN Agency for Refugees (UNHCR), co-invested in essential facilities, such as storage units and aggregation hubs.
ITC’s approach has attracted major buyers, including PepsiCo, Carrefour, BEPP and Holland Bazar who are interested in establishing long-term partnerships with these alliances.
Ultimately, these partnerships create a win-win situation: producers secure higher revenues, while consumers can access locally produced, nutritious food at competitive prices.
In parallel, ITC collaborates with the Iraqi government to advocate for economic and trade-related reforms, and particularly, to support Iraq’s accession process to the World Trade Organization (WTO).
Complying with WTO standards offers a more predictable business environment and investment climate, attracting foreign investment in agriculture and agri-food sectors. This investment can lead to value chain efficiency, better production, less post-harvest losses and thus, directly improving food availability.
Finally, this approach led to the creation of the Iraq National Trade Forum with a focus on agribusiness. Its second edition in 2024 featured business matchmaking and networking, while highlighting the role of trade and investment in strengthening food security through resilient local supply chains.
A few highlights
- 15 new agribusiness alliances (of which 1 woman-led), encompassing 1,700 farmers
- Monthly business transactions with retailers with over 215 tonnes of fresh produce, amounting to over 456 million IQD (equivalent to $350,000)
- $5 million in business matchmaking at second Iraq National Trade Forum
- 72% of businesses introduced significant changes in their practices, for instance increased profitability
- 88% of businesses adopted new farming practices that have enhanced their competitiveness
- 68% of businesses experienced improvements in farm efficiency that positively impacted productivity in 2023
Developing markets in conflict-affected fragile settings is vital for economic recovery and food security. Policymakers have a crucial role in facilitating these processes. Below are our recommendations based on lessons learned:
1. Market-led approach: Encourage interventions that prioritize market demands and buyer preferences. By engaging local farmers and small firms in understanding market dynamics, policies can be shaped to enhance competitiveness and align agricultural production with consumer needs.
2. Build a conducive business environment and investment climate: Implement reforms that streamline trade processes and improve regulatory frameworks for businesses. Ensure that policies are responsive to the unique challenges faced by businesses in fragile contexts, facilitating easier access to inputs, markets and resources.
3. Foster public-private dialogue and partnership: Promote partnerships among government agencies, private sector, development partners, and civil society to create a comprehensive support ecosystem. Collaborative efforts can lead to shared resources, knowledge transfer, and coordinated strategies that bolster local economies and food security.
Through these supportive policies and targeted investments, policymakers can create conditions that not only address immediate food security concerns but also lay the foundation for long-term economic stability in fragile settings.