Growing urban demand for food – which now constitutes about 60–70 per cent of food consumption in Asia and more than half in Africa – is met largely by trade. This paper reviews evidence for what this trade means for rural areas, and for successful rural economic transformation. It also reviews trade and other policy options for generating a stronger “win” between urban consumption and rural transformation.
This working paper is accompanied by a four-page briefing (http://pubs.iied.org/17337IIED.html?c=urban [1]) that also explains how urban consumers are linked to farmers and processors by supply networks that can span great distances. Whether rural areas are winning or losing from increased trade, however, remains uncertain. Urban areas can draw in imports rather than domestic suppliers because of proximity to ports, shifts in consumption, poor competitiveness or poor infrastructure.
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