Investing in more sustainable and resilient food logistics in Istanbul

Istanbul – Tuesday’s high-level workshop zeroed in on the enabling policy and investment environment needed to improve Istanbul’s food logistics – from modernizing infrastructure, diversifying urban food supplies and shortening food chains to fostering stronger public-private partnerships.

The event, jointly organized by the European Bank for Reconstruction and Development (EBRD) and the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), provided the roughly 40 participants from the public and private sectors an opportunity to exchange knowledge, network and identify critical next steps.

Istanbul, Türkiye’s commercial capital, is home to over 15.7 million people. It consumes nearly one-third of the country’s total food supply and relies on solid linkages to rural areas to ensure a reliable flow of staple foods and fresh produce.

Consumer preferences are changing rapidly. And the surge in e-commerce and home deliveries has created new logistics challenges in the city, intensifying urban congestion, air pollution and single-use packaging waste. This also represents new opportunities for innovative modern retailers such as Migros Ticaret or A101 to diversify with digital payment, electric vehicle charging, cloud kitchens and loyalty programmes.

Iride Ceccacci, Head of Corporate Sector Advisory from the EBRD, explained that Istanbul is a member of the EBRD’s Green Cities network, which, broadly speaking, identifies infrastructure investment and policy solutions to address pressing environmental challenges.

“Istanbul has many entry points to make urban food logistics more sustainable, efficient and resilient, from supporting local producers and upgrading infrastructure to enforcing standards to reduce food loss and unfair competition and fostering more inclusive, participatory food governance,” she said.  

Identifying priority actions

The workshop was part of the new EBRD/FAO regional Agrifood Climate and Environmental Sustainability initiative (ACES). Known as ACES, this initiative promotes low-carbon, climate-smart and efficient practices across agrifood value chains, from farm to table.

During one roundtable, participants discussed the importance of upgrading urban logistics infrastructure and rethinking food delivery, including integrated planning and the transformation of public spaces to adapt to urban distribution. Urban distribution hubs, cold chain transportation, incentives to use electric vehicles and smart routing solutions would promote more sustainable last-mile delivery, reducing emissions, congestion and pollution.

Istanbul, like many cities, needs to be able to respond to changing and polarizing food demand. Some households are more focused on budget-conscious shopping, while others are seeking out convenient, organic, sustainably produced or pesticide residue-free foods.

The workshop’s participants discussed how to boost urban and peri-urban food production and unlock local sourcing through shorter supply chains among urban retailers.

They weighed the costs, feasibility and scalability of using greener packaging solutions to cut down on waste as well as retail innovations, including digital solutions, to improve value chain efficiency and sustainability.

One roundtable discussion also focused on steps to improve governance, financing and public-private coordination. This includes, among others, alignment of multistakeholder platforms with the Milan Urban Food Policy Pact, better real-time data, and climate neutrality goals and monitoring tools.

For Serdar Şen, Regional Manager, Fruit and Vegetable Purchasing at Migros Ticaret, "The workshop sessions created strong momentum for dialogue on Istanbul’s urban food logistics, highlighting both challenges and opportunities.”

He added that “the active engagement of private sector leaders alongside public stakeholders enriched the discussion and laid the groundwork for a shared, cross-sector vision for the city."

During the workshop, the EBRD and FAO team shared key findings from their joint report Building resilience in urban food logistics systems, which looked at how the COVID-19 pandemic reshaped the urban food distribution landscape.

Insights from nine city case studies, including Istanbul, show how urban authorities and the private sector adapt and innovate to keep food moving in and around urban areas while meeting evolving consumer demand and working towards climate-neutral urban food logistics operations.