The Data4Food2030 project aims to foster a fair and sustainable data economy in food systems. By engaging various stakeholders – researchers, farmers, policymakers, and industry representatives – the project explores how data is used, who benefits from it, and what challenges arise in its application. A key finding from stakeholder discussions is that data-driven solutions can enhance the sustainability of the food system. However, concerns remain regarding data accessibility, equitable usage, and transparent governance.
Baltic Studies Centre's involvement
Baltic Studies Centre (BSC) researchers collaborate with food system stakeholders to understand their views on the data economy and how it can be effectively integrated into food system governance. BSC's senior researcher and board member Tālis Tisenkopfs emphasizes: "Our task is to understand how different food system stakeholders perceive the data economy, what their experiences are, and what possible best practices exist for data governance."
This article examines seven key data economy issues identified in stakeholder discussions: 1) unequal access to data and its benefits; 2) data flow and transparency challenges; 3) lack of access to digital infrastructure; 4) the need for balanced regulation; 5) economic and environmental regulation; 6) data compatibility issues and 7) the impact of the data economy on sustainability and innovation.
Data accessibility and inequality
While the data economy should, in theory, benefit all actors in the food system, significant disparities exist in access and capacity to use data. Larger, technologically advanced stakeholders gain more advantages than smaller ones, leading to inequality and the risk of excluding less powerful players from digital transformation. "Primary data producers, such as farmers, often do not understand how their data is used and do not receive adequate returns," explains T. Tisenkopfs. Stakeholder insights highlight these concerns:
"Farmers are the weakest link in food systems. Everyone needs data from farmers, yet they do not derive enough benefit from it." (Researcher)
"Digital transformation and the data economy are more accessible to larger actors in the food system due to financial and other cost-related factors." (Data industry representative)
"There is a risk that data reflects existing social inequalities, neglecting marginalized groups due to a lack of data collection. Additionally, data models designed around a white male prototype may be less relevant for women." (Health sector representative)
Data flow and transparency
Efficient data flows are essential for optimizing decision-making processes in the food system. However, transparency also brings challenges, particularly regarding competition and privacy. Managing data flows requires balancing speed and efficiency with the protection of sensitive information to ensure both operational benefits and data security. T. Tisenkopfs notes that food systems are among the largest environmental polluters, and data utilization can help make them more efficient and sustainable. "At the same time, the data economy can reduce inequalities among food chain actors by fostering more transparent and equitable collaboration." Stakeholders describe both the advantages and risks of data flows:
"Data flows enable very rapid responses at every stage of the supply chain, from procurement to retail shelf management. They support order placement, purchasing forecasts, and consumer insights." (Retail organization)
"To move towards sustainability, we need transparency. We need to know requirements from suppliers or product details. But if we become too transparent, we lose our competitive edge. If everyone has access, what happens to our market position?" (Retail organization)
"People often ask whether they can request data controllers to delete their data. They feel that data is being collected about them, but they cannot use it themselves to benefit or support businesses they prefer." (Belgian discussion participant)
For data to be effectively utilized in the food system, stakeholders need access to digital infrastructure, analytical tools, and relevant skills. However, not all actors have the necessary resources, further exacerbating the gap between large and small players.
"Data availability is one aspect, but another is knowing how to analyze and extract insights from it. Some consultants have developed these skills, while others still need to acquire them. Until you can transform data into conclusions and decisions, it remains just data." (Consultancy organization)
"In the agricultural and food sector, farmers do not always have access to the data they generate. They may not have the means to obtain it, or they may not even know how to retrieve it… Farmers, as data owners, often lack the capacity to utilize it. One reason is limited access to digital infrastructure." (Netherlands discussion participant)
Policy measures, economic and environmental costs
Stakeholders recognize the importance of policy measures to ensure fairness in the data economy. However, they also express concerns about overregulation and bureaucratic burdens, which may stifle innovation and business development.
"Regulations and public institutions must exist to balance existing asymmetries and prevent power imbalances." (Researcher)
"Sometimes, bureaucratic burdens are overwhelming. But perhaps they are necessary to ensure a secure future. Data regulations can become problematic if they hinder progress and development—if we overprotect everything." (Food safety authority)
While data-driven solutions enhance efficiency in food production and policymaking, they also entail financial and environmental costs, which are sometimes overlooked.
"The economic benefit comes from the ability to make immediate decisions. Businesses can survive by using market data innovatively. Data is available more frequently, and opportunity windows become shorter." (Farmers' organization)
"IT consumes energy and has a carbon footprint; rare earth metals are present everywhere data processing is needed. We need to monitor this and find a balance. High-tech solutions demand substantial natural resources, and this will become even more critical in the future as data volumes continue to grow." (Data industry representative)
The Data4Food2030 project highlights both the opportunities and challenges of the data economy in the food sector. To ensure a fair and efficient data economy, a balanced regulatory approach, investment in digital infrastructure, and capacity-building for stakeholders are essential. T. Tisenkopfs emphasizes that this project seeks to bridge traditional food economics with the data economy to create more sustainable and equitable food systems. BSC continues to develop policy recommendations and roadmaps to reduce barriers and promote more effective data governance in food systems.
Stakeholder discussions, quotes and infographics can be viewed here: Stakeholder Dialogues - Data4Food2030