Innovation through the creation, diffusion and use of knowledge has been recognised as a
key driver of economic growth. Trends in agrifood systems are challenging farmers,
produce traders, processors and other stakeholders to improve the efficiency of their
operations and to be more responsive to consumer demands as well as regulatory
frameworks.
In the case of high income countries their agrifood systems exhibit a high level of
sophistication, but competitive pressures threaten family farm units and rural communities.
Conventional wisdom suggests that their agrifood systems should focus on high-value
products and not try to compete in commodity markets on the basis of price. In the case of
low and middle-income countries a variety of circumstances exist. On one hand some 1.2
billion people survive on less than $1 per day and 800 million are undernourished. Seventy
percent of these people live in rural areas and either directly or indirectly rely on
agriculture. On the other hand there exist agrifood systems that effectively meet the
requirements of national and international markets and successfully apply technical and
business processes.
It is obvious that all countries face challenges in the evolution of their agriculture. In
each case the focus must be on fostering competitive agrifood systems that can provide
income, meaningful employment, and food and agricultural products that meet the
demands of the intended consumer or user. The Agricultural Support Systems Division is
launching work to build the capacity of stakeholders to lead the development of policies
and institutions that can foster competitive agrifood systems within their constituency. This
is expected to have two primary foci: supply chain management and commercial farming is
one, the other is fostering product and agro-industry innovation. This working document
on Food Product Innovation is the first element of work related to the focus on innovation.