Briefing

on

Purchase

for

Progress

April 2008

Kansas City

United Nations

World Food Programme

This presentation will cover:

Global Food Procurement Background

Key figures/trends

Purchase For Progress

Concept and Challenges

Food Procurement

Mission statement: “ to provide acceptable food to

beneficiaries in a timely and cost efficient manner”.

MaizeMaize

SorghumSorghum

WheatWheatMung BeansMung Beans

SoybeansSoybeansBlack BeansBlack Beans

KEY FIGURESKEY FIGURES

Total PurchasesTotal Purchases

US$US$767 million767 million

2.1 million 2.1 million mtmt

2007

2003 includes 518,000 mt worth US$ 182 million for Iraq2003 includes 518,000 mt worth US$ 182 million for Iraq

2004 includes 1,562,000 mt worth US$ 540 million for Iraq2004 includes 1,562,000 mt worth US$ 540 million for Iraq

Food Procurement TrendsFood Procurement Trends

0

200

400

600

800

1,000

1,200

90 92 94 96 98 00 02 04 060.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Value (US$ million) Value - without Iraq (US$ million)

Qty (million mt) Qty - without Iraq (million mt)

million mtmillion mtUS$ millionUS$ million

2007

Where did we purchase in 2007?Where did we purchase in 2007?

North AmericaNorth America206,857 mt206,857 mt

68million US$68million US$

Latin America135,316 mt

111million US$

Europe167,399 mt

72million US$

Asia667,961 mt

262million US$

Oceania22 mt

9,000 US$

Africa902,297 mt

253million US$

82 Countries: 69 Developing 13 Developed

UN World Food Programme, Food Procurement Service

Purchase for ProgressPurchase for ProgressContextContext

Changing global environment Changing global environment

Part of a range of tools to enable Part of a range of tools to enable hunger solutionshunger solutions

Focus on low-income farmers and Focus on low-income farmers and communitiescommunities

Concept widely supportedConcept widely supported

What is Purchase for Progress?What is Purchase for Progress?

A CONCEPT

AN OPPORTUNITY

A PLAN

ObjectivesObjectivesWith a particular focus on low-income and small-With a particular focus on low-income and small-

holder farmers, Purchase for Progress aims to:holder farmers, Purchase for Progress aims to:

Identify and sIdentify and share hare best practicesbest practices for WFP, NGOs, for WFP, NGOs, governments and agricultural market governments and agricultural market stakeholders to increase profitable stakeholders to increase profitable engagement engagement in marketsin markets

Increase Increase capacitiescapacities in order to raise in order to raise incomeincome from from agricultural marketsagricultural markets

Increase farmers’ Increase farmers’ salessales to WFP to WFP

Transform WFP food purchase programmesTransform WFP food purchase programmes

ActivitiesActivities

1.1. Competitive tendering practicesCompetitive tendering practices

2.2. Purchasing directly Purchasing directly

3.3. Contracting for risk reductionContracting for risk reduction

4.4. Processing optionsProcessing options

Cross-cutting activities are:Cross-cutting activities are:

Partnerships & Training, Monitoring & EvaluationPartnerships & Training, Monitoring & Evaluation

Policy Advice & AdvocacyPolicy Advice & Advocacy

UN Agencies&

The World Bank

NGOs

Regional Organisations

Bilateral Partners

Donors

Research Institutions

National Governments

Traders & Processors

Farmers&

Communities

Why WFP?Why WFP?

• Relatively stable demand

• Experience

• Operational capacity

Challenges

Inputs and finance Infrastructure Quality Prices Contract defaults

Monitoring

Business-as-usual Pilot activities Food security, market and policy

analysis System design Indicators against baseline: real-

time, mid- and end-term evaluations

Innovations to connect low-income and small-scale farmers to markets