The food production system is out of control and puts small-scale farmers at risk as it is controlled by few major companies, according to a report from Fairtrade Foundation.
The report noted that about 500 million smallholder farmers grow 70% of the world's food. However, most of them go hungry. The farmers do not get a fair price for their produce even when the commodity prices are high.
The way the food is currently traded and consumed can affect the long-term availability of products such as chocolate, coffee, bananas and tea.
The report is being published to coincide with the unveiling of a three-year food campaign by the Fairtrade Foundation, to correct the broken food system. Its recommendations include asking governments to ensure more transparency and fair competition in international supply chains.
Fairtrade Foundation chief executive Michael Gidney said that placing too much power in the hands of few companies increases the risk of exploitation in food supply chains, where producers have no choice but to sell for low prices.
Unless something is done, millions of small farmers can be subjected to poverty, which can in turn put many of the foods at risk, Gidney added.
The report noted that farmers can be supported by ensuring that they adapt to climate change, farm sustainably, and have access to finance, according to the report.
The Fairtrade Foundation is a charity based in the UK that works to empower disadvantaged producers in developing countries.
