Purchase for Progress

(P4P)

Connecting Farmers to Mark

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
 What is
WFP?
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
 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 High commodity

for food costs
Climate
change Tightening food
“PERFE stocks
CT
Natural
disasters
STORM
” Conflicts over land
resources
Declining natural
resources Increased migration
What can we do?
Purchase for Progress
 Quick facts about P4P
Geographic 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
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)

Latin America – El Salvador, Key donors – Bill & Melinda

Guatemala, Honduras, Gates Foundation, Howard
G. Buffett Foundation,
Nicaragua
Governments of Belgium,
 P4P’s Two Key Questions
Assessment Criteria

OBJECTIVES 1 & 2 Group marketing Production / Livelihood

capacity productivity improvement
response
What procurement
modalities/platforms* best support
capacity building and create an
enabling environment for
procurement from smallholder
farmers?

*Modalities include direct and forward contracts, soft tendering, warehouse receipt systems, commodity exchanges

OBJECTIVES 3 & 4 Scale of Market Impact on

procurement, development livelihoods of
timeliness, cost, impact smallholder
What is the best way for WFP to efficiency and farmers
balance the risks and costs quality/safety of
associated with pro-smallholder procured food
procurement in order to optimise
and transform it’s local
procurement practices?
 Three Fundamental Components
Connecting Smallholder Farmers to Markets through Market and Agricultural Development

Supply-side Partners
Innovative Procurement Modalities •Providing technical expertise in
•Pro-smallholder competitive tendering agriculture & market development
•Direct contracting •Building capacity
•Forward contracting •Empowering Women

Learning and Sharing

•Monitoring & Evaluation
•Lessons Learned/Best Practices
Best practices will be
•Informing policy
mainstreamed into WFP local
procurement procedures by
the end of the pilot
Local procurement principles
underpin P4P purchases

WFP Local Procurement – the Foundation of P4P

Principles of acceptable, timely and cost efficient food procurement remain the same for P4P purchases
 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

WFP Point of Entry Large-scale Food Processors/Large-scale Millers/ WFP Point of Entry
RP/LP RP/LP
Large-scale Wholesalers

Blended Food or Commodity

Small-scale Processors Exchange
Warehouse
Receipts
System
WFP P4P Medium-scale
Farmer Organizations Traders WFP P4P
Point of Thrid Tier
Second Tier Point of
Entry First Tier Entry
*Levels and characteristics of FOs are Small-scale Traders
different in each P4P country (Collectors)

Agricultural. inputs & services

Smallholder Farmers
 Strategic Partnerships
PRODUCTION INPUTS
Governments, NGOs, QUALITY
CREDIT Governments, FAO,
Governments, IFAD, FAO, AGRA, Bilateral
Partners and Private NGOs, Research
IFC, Banks and Institutions and
Microfinance Sector
Private Sector
Institutions

POLICY & ADVOCACY MARKET ACCESS

Governments, Regional Farmer Governments, FAO, IFAD,
AGRA, Regional Economic
Economic Communities, Organizations
NGOs, Media, Universities Communities, Research
and Private Sector Institutions, Universities and
Private Sector

CAPACITY DEVELOPMENT
(Skills, Market Analysis, Post-harvest INFRASTRUCTURE
Handling, etc.) Governments, AU, IFAD,
Governments, IFAD,AGRA, World Bank and Bilateral
FAO, Regional Economic Programmes, Private
Communities, NGOs and Sector
Universities, Private Sector
 Indicators for Learning
Framework
Illustrative Indicators for P4P Learning Framework

Assessment Criteria
Group marketing Production Household welfare

Best practices Impact on farmer Effects on: Impact on:

models will be groups: •Agricultural production •Number of smallholder farmers engaged
•Organizational •Yields •Annual household incomes
compared on the •Cropping patterns •Food consumption score
capacity
basis of their: •Financial capacity •Investments in •Livelihood/wealth index
•Capacity to agriculture •Other indicators of household welfare (e.g. health and
aggregate education access, housing quality)
•Infrastructure •Net buyer/seller status
•Access to markets

Transforming WFP’s
Number of smallholders engaged
local procurement •Smallholder household income and other welfare measures
will require a clear •Procurement cost (food cost and administrative cost)
understanding of the •Pipeline risks
benefits in terms of: •Market impacts (positive and negative)
•Market development impacts
•Agricultural development impacts
 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