Food system in the context of "Rural economics"

A smallholding or smallholder is a small farm operating under a small-scale agriculture model. Definitions vary widely for what constitutes a smallholder or small-scale farm, including factors such as size, food production technique or technology, involvement of family in labor and economic impact. There are an estimated 500 million smallholder farms in developing countries of the world alone, supporting almost two billion people. Smallholdings are usually farms supporting a single family with a mixture of cash crops and subsistence farming. As a country becomes more affluent, smallholdings may not be self-sufficient. Still, they may be valued for providing supplemental sustenance, recreation, and general rural lifestyle appreciation (often as hobby farms). As the sustainable food and local food movements grow in affluent countries, some of these smallholdings are gaining increased economic viability in the developed world as well.

Small-scale agriculture is often in tension with industrial agriculture, which finds efficiencies by increasing outputs, monoculture, consolidating land under big agricultural operations, and economies of scale. Certain labor-intensive cash crops, such as cocoa production in Ghana or Côte d'Ivoire, rely heavily on smallholders; globally, as of 2008, 90% of cocoa is grown by smallholders. These farmers rely on cocoa for up to 60 to 90 per cent of their income. Similar trends in supply chains exist in other crops like coffee, palm oil, and bananas. In other markets, small scale agriculture can increase food system investment in small holders improving food security. Today, some companies attempt to include smallholdings into their value chain, providing seeds, feed, or fertilizers to improve production.

A fertilizer or fertiliser is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from liming materials or other non-nutrient soil amendments. Many sources of fertilizer exist, both natural and industrially produced. For most modern agricultural practices, fertilization focuses on three main macro nutrients: nitrogen (N), phosphorus (P), and potassium (K) with occasional addition of supplements like rock flour for micronutrients. Farmers apply these fertilizers in a variety of ways: through dry or pelletized or liquid application processes, using large agricultural equipment, or hand-tool methods.

Historically, fertilization came from natural or organic sources: compost, animal manure, human manure, harvested minerals, crop rotations, and byproducts of human-nature industries (e.g. fish processing waste, or bloodmeal from animal slaughter). However, starting in the 19th century, after innovations in plant nutrition, an agricultural industry developed around synthetically created agrochemical fertilizers. This transition was important in transforming the global food system, allowing for larger-scale industrial agriculture with large crop yields.

The grain trade refers to the local and international trade in cereals such as wheat, barley, maize, rice, and other food grains. Grain is an important trade item because it is easily stored and transported with limited spoilage, unlike other agricultural products. Healthy grain supply and trade is important to many societies, providing a caloric base for most food systems as well as important role in animal feed for animal agriculture.

The grain trade began as early as agricultural settlement, identified in many of the early cultures that adopted sedentary farming. Major societal changes have been directly connected to the grain trade, such as the fall of the Roman Empire. From the early modern period onward, grain trade has been an important part of colonial expansion and foreign policy. The geopolitical dominance of countries like Australia, the United States, Canada, and the Soviet Union during the 20th century was connected with their status as grain surplus countries.

The breadbasket of a country or of a region is an area which, because of the richness of the soil and/or advantageous climate, produces large quantities of wheat or other grain. Rice bowl is a similar term used to refer to Southeast Asia; California's Salinas Valley is sometimes referred to as America's salad bowl. Such regions may be the subject of fierce political disputes, which may even escalate into full military conflicts.

Breadbaskets have become important within the global food system by concentrating global food-production in a small number of countries and, in countries such as India, in small geographic regions. As climate change increases weather variability around the world, the likelihood of multiple breadbaskets failing at a time increases dramatically. The 2022 food crises has been in part facilitated by a series of failures in key breadbasket regions, and the 2022 Russian invasion of Ukraine has created significant potential disruption of the respective breadbasket regions that are important for global wheat and oil seed production.

Food preservation includes processes that make food more resistant to microorganism growth and slow the oxidation of fats. This slows down the decomposition and rancidification process. Food preservation may also include processes that inhibit visual deterioration, such as the enzymatic browning reaction in apples after they are cut during food preparation. By preserving food, food waste can be reduced, which is an important way to decrease production costs and increase the efficiency of food systems, improve food security and nutrition and contribute towards environmental sustainability. For instance, it can reduce the environmental impact of food production.

Many processes designed to preserve food involve more than one food preservation method. Preserving fruit by turning it into jam, for example, involves boiling (to reduce the fruit's moisture content and to kill bacteria, etc.), sugaring (to prevent their re-growth) and sealing within an airtight jar (to prevent recontamination).

Sustainable agriculture is farming in sustainable ways meeting society's present food and textile needs, without compromising the ability for current or future generations to meet their needs. It can be based on an understanding of ecosystem services. There are many methods to increase the sustainability of agriculture. When developing agriculture within the sustainable food systems, it is important to develop flexible business processes and farming practices.

Agriculture has an enormous environmental footprint, playing a significant role in causing climate change (food systems are responsible for one third of the anthropogenic greenhouse gas emissions), water scarcity, water pollution, land degradation, deforestation and other processes; it is simultaneously causing environmental changes and being impacted by these changes. Sustainable agriculture consists of environment friendly methods of farming that allow the production of crops or livestock without causing damage to human or natural systems. It involves preventing adverse effects on soil, water, biodiversity, and surrounding or downstream resources, as well as to those working or living on the farm or in neighboring areas. Elements of sustainable agriculture can include permaculture, agroforestry, mixed farming, multiple cropping, and crop rotation. Land sparing, which combines conventional intensive agriculture with high yields and the protection of natural habitats from conversion to farmland, can also be considered a form of sustainable agriculture.

The causes of food going uneaten are numerous and occur throughout the food system, during production, processing, distribution, retail and food service sales, and consumption. Overall, about one-third of the world's food is thrown away. A similar amount is lost on top of that by feeding human-edible food to farm animals (the net effect wastes an estimated 1144 kcal/person/day). A 2021 meta-analysis, that did not include food lost during production, by the United Nations Environment Programme found that food waste was a challenge in all countries at all levels of economic development. The analysis estimated that global food waste was 931 million tonnes of food waste (about 121 kg per capita) across three sectors: 61 percent from households, 26 percent from food service and 13 percent from retail.

Wasted food is a major part of the impact of agriculture on climate change (it amounts to 3.3 billion tons of carbon dioxide equivalent emissions annually) and other environmental issues, such as land use, water use and loss of biodiversity. Prevention of food waste is the highest priority, and when prevention is not possible, the food waste hierarchy ranks the food waste treatment options from preferred to least preferred based on their negative environmental impacts. Reuse pathways of surplus food intended for human consumption, such as food donation, is the next best strategy after prevention, followed by animal feed, recycling of nutrients and energy followed by the least preferred option, landfill, which is a major source of the greenhouse gas methane. Other considerations include unreclaimed phosphorus in food waste leading to further phosphate mining. Moreover, reducing food waste in all parts of the food system is an important part of reducing the environmental impact of agriculture, by reducing the total amount of water, land, and other resources used.