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In this blog before World Food Day 2011, Jennifer Smith from the Plunkett Foundation explores the complex arena of food prices and what can be learned from small, community-based enterprises who are trying to respond to the direct needs of their communities. 

The instability and upward curve of food prices globally presents a range of challenges to governments, to policy makers, to business and to communities. The theme for this year's World Food Day 2011 held on 16th October is "Food prices - from crisis to stability" and it aims to look seriously at the causes of swings in food prices and what needs to be done to reduce their impact globally. Food is an essential part of life, but is seen by most as a commodity - a low-margin, high-risk market that is incessantly squeezed to provide the best price to consumers at the cost of the farmers and farming communities.  

However, there is another way to look at food. Food is a great motivator, as people care about food. Food brings people together, has cultural meaning, and people have evocative memories and associations with food. Food has social value. And this social value is unlocking opportunities for food businesses that makes economic sense.  

Community food enterprises are businesses run by communities that are involved in at least one part of growing, harvesting, processing, distributing, selling or serving local food. They are not immune to the challenge of unstable and increasing food prices. However, many are coming up with a wide range of innovative enterprises to help minimise the impact.  

Canalside Community Food in Warwickshire, UK has a scheme whereby members can work in exchange for vegetables grown on the site. This helps those on low incomes or those unemployed to access fresh, healthy and local food.

Headingly Pig and Fowl Co-ops in Yorkshire, UK has set up a group buying arrangement with two producers at their local farmers market. In exchange for lower prices, the members of the co-ops guarantee the farmers that they have relationships with a certain level of trade over a six month period.
 
The key to these examples and others is a direct relationship between producers and consumers where the risks and rewards of producing and consuming food are shared. This sharing is significant: many of these enterprises are small and food is a low-margin market; therefore making ends meet is an ongoing battle, a battle which has been lost by many small-scale farmers and producers across the world. There is value in collaboration. Taking this one step forward, when enterprises identify activities they can share, such as distribution or sharing labour, they can also share the cost and minimise the risk to their own business. This makes economic sense but also encourages a partnership approach to business, a sharing of control. For example, a group of nine like-minded enterprises in Manchester had a shortage of skilled labour, particularly during harvest time. Collectively they have a developed a 'land army' to help increase production of sustainable food for Greater Manchester.

The value of co-operation should not be under-estimated.  In fact, co-operation is being celebrated across the globe next year as 2012 is the first ever United Nations International Year of Co-operatives.  The year will focus on showcasing to a wider audience how co-operatives can build a better world.  As part of this Plunkett will be hosting an international conference in Ireland in September 2012 called The World of Rural Co-operation - How Rural Co-operatives Build a Better World.  The event will bring together rural co-operatives operating in food and farming, energy, credit, retail and many other areas to explore how together they can build a better world.


Jennifer Smith, Head of Programme Management, Plunkett Foundation
Mike Perry, Head of Information and Communication, Plunkett Foundation

The Plunkett Foundation is a charity that helps rural communities take control of the issues affecting them through community ownership. Through a programme called Making Local Food Work, they have worked with around 1,200 community food enterprises over the past four years.

All views expressed within this article are those of the writer and not of the BBC.