Author
Listed:
- Gilbert, Rachel
- Costlow, Leah
- Matteson, Julia
- Rauschendorfer, Jakob
- Krivonos, Ekaterina
- Block, Steven A.
- Masters, William A.
Abstract
Recent use of least-cost diets as a measure of global food security revealed that over 3 billion people are unable to afford sufficient nutritious food for an active and healthy life, driving demand for policy changes to improve access and affordability. This study quantifies the role of imports in consumer prices, matching retail prices in 144 countries to imports by origin of the item or its main ingredient, resulting in a total of 13,846 pairs of a retail price and its import cost in 2017. We find that 55% of retail items had some active imports supplementing domestic production, and of those around 48% have nonzero tariffs whose average effective rate is around 6.7% of the imported commodity price. Over all countries for which data are available, the share of consumer prices for least-cost healthy diets that is attributable to tariffs and non-tariff measures averages 0.67% and 2.45% globally. The highest restrictions are on nutrient-rich vegetables, fruits and animal-sourced foods. Access to bulk commodities from diverse origins is essential for food and nutrition security, providing a greater diversity of foods and food ingredients at lower and more stable prices than can be grown at any one location. On average over all food products that are imported, 83% of the retail price is domestic value added after arrival. We conclude that food imports are best understood as inputs to the domestic production and distribution of retail items, with consumer prices and growth of the food sector dependent on the cost levels, infrastructure and institutions underlying each product’s entire value chain.
Suggested Citation
Gilbert, Rachel & Costlow, Leah & Matteson, Julia & Rauschendorfer, Jakob & Krivonos, Ekaterina & Block, Steven A. & Masters, William A., 2024.
"Trade policy reform, retail food prices and access to healthy diets worldwide,"
World Development, Elsevier, vol. 177(C).
Handle:
RePEc:eee:wdevel:v:177:y:2024:i:c:s0305750x24000056
DOI: 10.1016/j.worlddev.2024.106535
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