What's Happening?
A recent analysis has revealed a significant slowdown in global research and development (R&D) funding for agricultural science, which experts warn is exacerbating global food inflation and threatening long-term food security. Between 2015 and 2021, the
annual growth rate in real spending on agrifood R&D was one-third less than the rate recorded between 1980 and 2015. This decline in investment is occurring despite rapid population growth and increasing global demand for food. The analysis identifies three major shifts: a widespread slowdown in spending, a rise in middle-income country spending, and an increased contribution from the private sector. The slowdown in public spending growth has coincided with a greater contribution from the private sector, which now accounts for nearly 50% of the total global spend.
Why It's Important?
The slowdown in agricultural R&D funding poses a significant risk to global food security, as it could lead to higher food prices and increased pressure on natural resources, poverty, and malnutrition. The delay between investment in agricultural R&D and its resulting benefits often spans years, meaning the consequences of the current slowdown are already impacting the future global food economy. The analysis calls for a rapid increase in global agrifood R&D spending to meet projected food demand by 2050. Without immediate and sustained financial commitment, the world faces a high risk of a resurgence of hunger and malnutrition, particularly affecting the poorest populations.
What's Next?
To address the slowdown in agricultural innovation, the analysis suggests that countries worldwide must double their collective spending on agrifood R&D in the next five years and maintain a real annual growth rate of around 3% thereafter. It also proposes better alignment between public and private funding, with public funds focusing on projects with high societal value but low commercial returns. New funding models, such as those used in Australia and the U.S., should be scaled up to support public-private collaborations and insulate essential research from political cycles. An efficient regulatory environment is necessary to facilitate the deployment of valuable innovations.
