Brazilian policies for food andnutrition security: PublicProcurement from family farming.

Topics Addressed

• Public policies for family farming.

• The context and designing of instruments for PublicProcurement from family farming.

• The Food Acquisition Program (“Programa de Aquisição de Alimentos” - PAA)

• The PAA modality called Institutional Procurement(“Compra Institucional” - PAA-CI)

Policies for family farmingLaw 11.326/2006

Credit andprotection of

yield

National Program for Strengthening Family

Agriculture (Pronaf), CropInsurance Program (Guarantia

Safra) SEAF...

TechnicalAssistance andRural Extension

National Policy on Technical Assistance and Rural Extension (PNATER), Technical Assistance and Rural Extension law (ATER

Law ...)

PublicProcurement

PAA, National SchoolFeeding Program (PNAE),

PAA - InstitutionalProcurement

To contribute to

food and nutritional

security

To expand trade

channels of family

farming using the

purchase power of

the State

To supply food to

public facilities of

the social

assistance network

To promote healthy

food

To promote income generation for extremely poor farming families

To encourage local

production

Public

Procurement

GOALS

2003

• Zero Hunger Plan• Reimplementation of the

Interministerial Chamber for Food and Nutrition Security - CONSEA

• Creation of the PAA – Law 10,696

• Definition of Family Farming - Law 11,326 • Creation of the National System on Food

and Nutrition Security (SISAN) - Lei 11,346

• School Feeding (PNAE) and30% of family farmingproducts - Law 11,947

2006 2007

Regulation of theCONSEA and CAISAN -Decrees 6,272 and6,273

2009

• EC 064/2010 -Human Right to Foodinserted in Art. 6 of the Federal Constitution of 1988

• Decreto 7,272 – National Policy for Food and Nutrition Security (PNSAN)

PAA Update – Law 12,512/2011 Creation of the PAA

Institutional ProcurementModality - Decree 7,775

20102012

2014 2015

• PAA Update–Decree 8,293

• Creation of PAA Seeds Modality

• Decree 8,473 – All federal entitiesthat purchase food must acquire atleast 30% of products from familyfarming (defense, health, education)

The context and designing of instruments for Public Procurementfrom family farming

Source: Elaborated by DECOM/SESAN (2015)

Public Procurement and Family Farming

PAA MDS and

MDA

PNAE

PAA

Inter-sector policy that promotes the human right to adequatefood (“Direito Humano à Alimentação Adequada” - DHAA), withfood purchased from family farming.

Tool for the strengthening of family farming and at the sametime for the promotion of access to food by the food andnutrition facilities and the social assistance network.

The Program was created in 2003 by articulation with the civilsociety through CONSEA, within the Zero Hunger Plan.

Goals To fight foodand nutrition

insecurity

Supply ofhealthy

sustainablefood

Strengthening family farming

HOW DOES THE PAA WORK?

PAA management Managing Group: Ministry of Social Development and Fightagainst Hunger (MDS-coordinator), Ministry of AgrarianDevelopment (MDA), Ministry of Education (MEC), Ministry ofFinance (MF), Ministry of Planning, Budget and Management (MPOG), Ministry of Agriculture and Supply/National Company for Food Supply (MAPA/Conab)

Source of fundsfor the Program

MDS, MDA and any public entity interested in the Program

Implementing agencies Conab, the Brazilian states, the Federal District and theMunicipalities

Beneficiary : the suppliers Family farmers recognized by Law 11,326/2006 and theirorganizations, holders of the PRONAF Eligibility Declaration(DAP)

Beneficiary : the consumers People under food and nutritional insecurity and all thoseattended by the public health and education network, social assistance network ,and public facilities for food and nutrition

4.7 thousand tons of acquired food

Healthy food habitsMore than 3,000

different food itemsacquired

USD 1.7 thousandfor food acquisition

Over 380 thousand farmers and suppliers

Over 20 thousand food and nutrition entities

and facilities benefited / year

Present in 3,238 municipalities

In 2015Regional development

49% of supplies are in the NE region

In 201540%

of suppliers are women

In 2015Social inclusion

63% of farmers are in theUnified Registry

(CadÚnico)

Source: SESAN/MDS 2015. USD 1,.0 = R$ 3.49

PAA Large Numbers (2003 a 2015)

SimultaneousDonation

DirectPurchase

PAA MilkSeed

AcquisitionStock

FormationINSTITUTIONAL

PURCHASE

MDS MDS MDS MDS MDA

Any interestedpublic entity

PAA Modalities

Sourcee: DECOM/SESAN/MDS (2016). PAAData. Milk PAA (Jan to Dec 2015 – Data subject to change)

69.12

47.20

29.61

5.954.11 3.18

0.15-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

Doação Simultânea - CONAB

Doação Simultânea -Termo de Adesão

Leite Formação de Estoque - CONAB

Sementes - CONAB Compra Direta -CONAB

Convênio

US

D m

illio

n

Execução (milhões USD) por modalidade/executor Implementation (million USD) by modality/executor - 2015

Simultaneous

Donations –

Agreement Term

Simultaneous

Donations

- CONAB

PAA

MilkStock Formation

- CONAB

PAA Seeds -

CONAB

Direct Purchase -

CONAB

Source: SESAN/MDS 2015. USD 1,.0 = R$ 3.49

Covenant

Number of beneficiary farmers by modality/executor -2015

38131

33090

19757

27781559 1060

154,0

5000,0

10000,0

15000,0

20000,0

25000,0

30000,0

35000,0

40000,0

45000,0

Doação Simultânea -Termo de Adesão

Doação Simultânea - CONAB

Leite Formação de Estoque - CONAB

Compra Direta -CONAB

Sementes - CONAB ConvênioSimultaneous

Donations

- CONAB

Simultaneous

Donations –

Agreement Term

Milk Stock Formation

CONAB

Direct Purchase

CONAB

PAA Seeds - CONAB Covenant

Total: 96.529

Family farmers

95.884 Family

farmers

without

overlapping

63% Unified Registry

40,5% woman

10% land reform

settlers

6% Traditional

Communities

Implementation (USD million) by Region

73.80

37.96

18.94 18.24

10.39

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

NORDESTE SUDESTE NORTE SUL CENTRO-OESTE

Milh

ões

NORTHEAST SOUTHEAST NORTH SOUTH MIDWEST

Source: SESAN/MDS 2015. USD 1.00 = R$ 3.49

NORTHEAST SOUTHEAST NORTH SOUTH MIDWEST

Category of Beneficiary: Suppliers

Source: DECOM/SESAN/MDS (2016). PAA Data.Milk PAA (Jan to Dec 2015 – Data subject to change).

FAMILY FARMERS 83%

LAND REFORMER

SETLLERS;10%

TRADITIONAL COMMUNITIES 6%

OTHERS 1%

Beneficiary: the consumers, entities by category

Soure: DECOM/SESAN/MDS (2016). PAAData.Milk PAA (Jan to Dec 2015 – Data subject to change).

NeighborhoodAssociation and

Religious Entities; 1214

Food Facilities 380

Others162

Public Education Network 5636

Public Justice Network; 24

Public Health Network 425

Social Assistance Network: 3798

Number of Attendances

14.8 million people were

served

2.477.845

3.740.434

2.925.202

4.192.874

1.521.168

Idade de 0 A 06

Idade de 07 A 14

Idade de 15 A 23

Idade de 24 A 65

Idade de 65 ou maisAge: 65 ou more

Age: 15 to 23

Age: 7 to 14

Age: 0 to 6

Source: DECOM/SESAN/MDS (2016). PAAData. Milk PAA (Jan to Dez 2015 – Data subjetc to change).

Age: 24 to 65

Source: DECOM/SESAN/MDS (2016). PAAData

SUGAR AND SWEETS; 4%

MEAT AND EGGS; 5%

SEASONINGS, HERBS AND SPICES; 3%

FLOUR, STARCHES AND PASTA; 2%

FRUITS; 17%

VEGETABLES; 26%

DAIRY; 23%

BAKERY; 5%

FISH; 2%

JUICE AND POLP FRUITS; 3%

OIL SEEDS, NUTS, OIL, CEREALS,AND GRAIN;

9%SEEDS; 1%

Percentage distribution of the purchased products (R$)

2.49

5.3

1.0

5.1

1.419.2

7.12

2012 2013 2014 2015

PUBLIC PROCUREMENT MADE THROUGH THE PAA MODALITY INSTITUTIONAL PURCHASEBY LEGISLATION AND BY YEAR

ESTADUAL FEDERAL

Total: UDS 2.5 MILLION

Total: UDS 6.68 MILLION

Total: UDS 10.20 MILLION

Total : UDS 12.17 MILLION

TotaL by legislation: State - USD 13,3 MILLIONFederal – USD 17,5 MILLIONTotal – USD 30,8 MILLION

STATE

Source: DECOM/SESAN/MDS (2016).

Evolution of Family Farming Public Purchase in Brazil (PAA, PNAE e CI) – 2000 to2015 – in USD Million

Source: Elaborated by DECOM/SESAN 2016Data PNAE: Source: FNDE 2011 a 2014, and DECOM estimate for 2015Assumptions: PNAE Estimae 2015 = USD 249.3 mi (estimated increase 22% - same growth rate as 2013-2014) USD 1.00 = R$ 3.49

0,00

50,00

100,00

150,00

200,00

250,00

300,00

350,00

400,00

450,00

500,00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

The Food Acquisition Program (PAA) MDS+MDA School Feeding (PNAE) Institucional Purchase (PAA CI)

TOTAL 2015: USD 430,16 Millions

Program 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

PAA 41,55 51,88 84,69 142,65 133,27 146,72 169,41 193,45 191,21 240,25 126,99 166,65 168,48

PNAE 67,24 105,05 166,48 203,81 249,51

PAA CI 2,49 6,68 10,22 12,18

Total 41,55 51,88 84,69 142,65 133,27 146,72 169,41 193,45 258,45 347,78 300,14 380,67 430,16

Potential of Federal Purchases from Family Farm – PAA CICGDIA Assessment of food by Federal Organs in 2015 stated in ComprasNet – (Subsistence item) USD

Órgão Superior Total UDS Potencial Family Farm UDS

MINISTRY OF FISHING AND AQUACULTURE 9.011,47 623,60 MINISTRY OF SOCIAL DEVELOPMENT AND FIGHT AGAINST HUNGER 22.777,08 22.777,08 MINISTRY OFDEVELOPMENT, INDUSTRY AND FOREIGN TRADE 30.296,62 26.716,59 MINISTRY OF COMMUNICATION 36.041,04 22.448,01 MINISTRY OF NATIONAL INTEGRATION 45.769,01 18.044,80 MINISTRY OF SPORT 48.180,38 6.002,01 MINISTRY OF CULTURE 105.794,76 65.914,87 MINISTRY OF PLANNING BUDGET AND MANAGEMENT 179.426,75 28.017,26 MINISTRY OF TRANSPORTATION 192.717,23 129.851,98 MINISTRY OF AGRARIAN DEVELOPMENT 235.062,92 143.072,69 MINISTRY OF FOREIGN RELATIONS 246.166,56 239.910,50 MINISTRY OF LABOR AND EMPLOYMENT 466.792,34 326.309,45 MINISTRY OF THE ENVIRONMENT 547.295,74 417.545,54 MINISTRY OF SCIENCE, TECHNOLOGY AND INNOVATION 694.193,96 605.981,91 MINISTRY OF SOCIAL SECURITY 713.815,16 348.910,29 PRESDIENCY OF THE REPUBLIC 872.913,45 332.433,40 MINISTRY OF MINING AND ENERGY 1.066.352,65 510.066,07 MINISTRY OF FINANCE 1.337.158,56 668.241,06 MINISTRY OF AGRICULTURE, LIVESTOCK AND SUPPLY 1.483.963,33 1.028.082,34 MINISTRY OF JUSTICE 3.877.811,97 3.314.778,82 MINISTRY OF HEALTH 11.964.843,24 3.984.554,34 MINISTRY OF EDUCATION 118.396.626,65 81.476.902,29 FEDERATIVE REPUBLIC OF BRAZIL 161.438.282,25 112.918.995,08 MINISTRY OF DEFENSE 767.668.687,57 590.216.972,07

Total 1.071.679.980,67 796.853.152,05

USD 1,00 = R$ 3,49

Source: DECOM/SESAN 2016

DECOM/SESAN

Departamento de Apoio à Aquisição e à Comercialização da Produção Familiar

(Department of Support to the Acquisition and Trade of Family Farm Production)

Secretaria Nacional de Segurança Alimentar e Nutricional(National Secretariat for Food and Nutrition Security)

sesan.institucional@mds.gov.br

Informações sobre os programas do MDS(Information on MDS programs)

0800-707-2003mdspravoce.mds.gov.br