ken davies p4p presentation
TRANSCRIPT
Purchase for Progress (P4P)
Connecting Farmers to Markets
Hunger…
1 billion people go to bed hungry every night
Every six seconds, one child dies from hunger
Major impact on economy: losses of 6-10 % in foregone GDP
WFP, feeding the poorest of the poor…
When an emergency strikes…
Refugees…
School children…
For a better future…
... But there is more…
Logistical power and transport capacity• Logistical and storage networks worldwide including UN Humanitarian Response
Depots • Leads global logistics and ICT clusters for the humanitarian system • Early warning systems• Vulnerability assessment methodologies
• Mitigating the impact of climate change in the developing world
• WFP helped women in Timbuktu reclaim land from advancing desert to grow vegetables and rice
WFP:
Builds roads
De-mines areas
Renovates tracks
Builds bridges
WFP’s food
basket meets the
nutritional needs
of beneficiaries
WFP helps to get more girls to school
Improves the lives of people affected by HIV/AIDS
United Nations’ frontline agency in addressing hunger
World’s largest humanitarian organization
In 2009, will provide food assistance to 108 million people in 74 countries
What is WFP?
Why is WFP unique?
Entirely voluntary funded
93% of donations to feed the hungry
Has both emergency and development mandate
Uses food, cash and vouchers to help communities achieve sustainable food security
In 2008, bought US$ 1.1 billion of food commodities in 73 developing countries
New Challenges
Global Context Today
Growing demand for food
Conflicts over land resources
Declining natural resources
Climate changeTightening food stocks
High commodity costs
Natural disasters
Increased migration
“PERFECT STORM”
What can we do?
Purchase for Progress
Quick facts about P4PGeographic Coverage – 21 countries
Africa – Burkina Faso, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Rwanda, Sierra Leone, Sudan, Tanzania, Uganda, Zambia
Asia – Afghanistan, Laos
Latin America – El Salvador, Guatemala, Honduras, Nicaragua
Global Facts
Beneficiaries: 500,000 farmers
Duration: 5 years (Sept 2008 - Sept 2013)
Total funding: US$115 million for technical capacity for 5 years (food not included)
Key donors – Bill & Melinda Gates Foundation, Howard G. Buffett Foundation, Governments of Belgium, Canada and the United States of America
P4P’s Two Key Questions Assessment Criteria
OBJECTIVES 1 & 2
What procurement modalities/platforms* best support capacity building and create an enabling environment for procurement from smallholder farmers?
Group marketing capacity
Production / productivity response
Livelihood improvement
*Modalities include direct and forward contracts, soft tendering, warehouse receipt systems, commodity exchanges
OBJECTIVES 3 & 4
What is the best way for WFP to balance the risks and costs associated with pro-smallholder procurement in order to optimise and transform it’s local procurement practices?
Scale of procurement,
timeliness, cost, efficiency and
quality/safety of procured food
Market
development impact
Impact on livelihoods of smallholder
farmers
Three Fundamental Components Connecting Smallholder Farmers to Markets through Market and Agricultural Development
WFP Local Procurement – the Foundation of P4P Principles of acceptable, timely and cost efficient food procurement remain the same for P4P purchases
Local procurement principles underpin P4P purchases
Best practices will be mainstreamed into WFP local procurement procedures by the end of the pilot
Learning and Sharing Monitoring & EvaluationLessons Learned/Best PracticesInforming policy
Supply-side PartnersProviding technical expertise in agriculture & market development Building capacity Empowering Women
Innovative Procurement ModalitiesPro-smallholder competitive tenderingDirect contractingForward contracting
Procurement Modalities
Competitive Processes
Local & Regional Procurement, “soft” tendering, Warehouse Receipts Systems, Commodity exchanges
Direct Contracting Forward Contracting
Targeted P4P Market Entry Points
Consumers
Retailers
Large-scale Food Processors/Large-scale Millers/Large-scale Wholesalers
Blended Food or Small-scale Processors
Smallholder Farmers
Farmer OrganizationsThrid Tier
Second TierFirst Tier
*Levels and characteristics of FOs are different in each P4P country
WFP Point of Entry RP/LP
WFP Point of Entry RP/LP
Agricultural. inputs & services
Warehouse Receipts System
Commodity Exchange
Medium-scaleTraders
Small-scale Traders(Collectors)
WFP P4P Point of
Entry
WFP P4P Point of
Entry
Farmer Organizations
CREDITGovernments, IFAD,
IFC, Banks and Microfinance Institutions
PRODUCTION INPUTSGovernments, NGOs, FAO, AGRA, Bilateral Partners and Private
Sector
POLICY & ADVOCACYGovernments, Regional Economic Communities,
NGOs, Media, Universities and Private Sector
MARKET ACCESSGovernments, FAO, IFAD, AGRA, Regional Economic
Communities, Research Institutions, Universities and
Private Sector
QUALITY Governments, FAO,
NGOs, Research Institutions and Private Sector
CAPACITY DEVELOPMENT(Skills, Market Analysis, Post-harvest
Handling, etc.)
Governments, IFAD,AGRA, FAO, Regional Economic Communities, NGOs and
Universities, Private Sector
INFRASTRUCTUREGovernments, AU, IFAD, World Bank and Bilateral
Programmes, Private Sector
Strategic Partnerships
Illustrative Indicators for P4P Learning Framework
Assessment Criteria
Group marketing Production Household welfare
Best practices models will be compared on the basis of their:
Impact on farmer groups: Organizational capacityFinancial capacityCapacity to aggregateInfrastructureAccess to markets
Effects on:Agricultural productionYieldsCropping patternsInvestments in agriculture
Impact on:Number of smallholder farmers engagedAnnual household incomesFood consumption scoreLivelihood/wealth indexOther indicators of household welfare (e.g. health and education access, housing quality)Net buyer/seller status
Transforming WFP’s local procurement will require a clear understanding of the benefits in terms of:
Number of smallholders engagedSmallholder household income and other welfare measuresProcurement cost (food cost and administrative cost)Pipeline risksMarket impacts (positive and negative)Market development impactsAgricultural development impacts
Indicators for Learning Framework
Challenges
Limited presence of supply side partners at field level
Insufficient availability of rural credit for smallholder farmers
Price discovery and price expectations
Natural disasters affecting agricultural production
What can you do?
www.wfp.org