Purchase for Progress (P4P) Connecting Farmers to Markets

Where did WFP purchase in 2008?

North America

221,289 mt

US$ 99 million

Africa

1,024,255 mt

US$ 427 millionLatin America

185,812 mt

US$ 236 million

Europe

557,163 mt

US$ 220 million

Asia

846,148 mt

US$ 424 million

78% of all food purchased was from developing countries

Map from Nations Online Project

WFP purchases from COMESA members in 2008

Country Quantity mt

Value US$ Country Quantity mt

Value US$

Burundi 2,615 1,275,709 Malawi 30,597 15,314,167

DRC 7,724 4,561,315 Rwanda 23,875 13,213,079

Egypt 6,451 6,381,456 Sudan 104,876 42,723,736

Ethiopia 49,209 30,212,540 Uganda 109,689 54,454,094

Kenya 57,538 29,595,282 Zambia 29,846 10,571,215

Zimbabwe 6,191 3,666,314

428,611 mt valued at US$212 million

A Tradition of Local Procurement

Mission Statement: “provide acceptable food… in a timely and cost efficient manner”

P4P builds on WFP’s decades of experience in local procurement

What is P4P?

Building Blocks

Market Interventions

Monitoring & Evaluation

Supply-side Partnerships

Procurement Ongoing M&E

Three Fundamental Components

Pilot Countries in Africa

• Burkina Faso, Democratic Republic of Congo, Ethiopia,

• Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Rwanda,

• Sierra Leone, Sudan, Tanzania, Uganda, Zambia

Procurement Modalities

P4P focuses on smallholder and low-income farmers

Bu

rkin

a F

aso

El S

alva

dor

Gu

atem

ala

Hon

du

ras

Lib

eria

Mal

awi

Mal

i

Moz

amb

iqu

e

Nic

arag

ua,

Tan

zan

ia

Uga

nd

a

Procurement Modalities Enhance pro-smallholder

competitive tendering practices

Direct purchasing

Forward contracting

Develop or support existing pro-smallholder processing options

Facilitate entrance of small/medium-scale traders into competitive markets

Warehouse Receipt System (formal/informal)

Cereal Fairs (informal trading exchange)

Purchase directly from food reserve agencies

Smallholder Farmers

Small-scale Traders (Collectors)

Medium-scale Traders

Retailers

Farmer Organizations*

Third Tier Second Tier

First Tier

*Levels and characteristics of FOs are different in each P4P

country

Large-scale Food Processors/Large-scale Millers/ Large-scale Wholesalers

Consumers

WFP Point of

Entry- RP/LP

WFP P4P Point of

Entry

Agric. Inputs & Services

WFP P4P Points of

Entry

Targeted P4P Points of Entry in Markets

WFP Point of

Entry- RP/LP

WFP P4P points of entry in markets will be different in the 21 pilot countries

Blended Food or Small-scale Processors

Commodity Exchange

Warehouse Receipts System

Farmer Organizations

CREDITGovernments, IFAD,

IFC, Banks and Microfinance Institutions

PRODUCTION INPUTS

Governments, 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

INFRASTRUCTUREGovernments, AU, IFAD, World Bank and Bilateral

Programmes

Key P4P Areas of Strategic Partnerships

Monitoring & Evaluation

• Tracking progress/achievements of pilots

• Identifying lessons/best practices

• Monitoring the impact of LRP

Enhancing Female Participation

Challenges

• Organisational Change• Prices• Credit • Quality

Interface with ACTESA

• Engagement from HQ, Regional and Country level

• Sharing lessons, best practices and case studies

• Raising policy issues

• Linking with other relevant programmes

Cycle of Confidence

Increased Confidence to Invest in improving

productivity

Improved output market price – greater share

of terminal price

ZAMACE aggregation and market option

Increased incomefacilitating investment

in inputs

Inputs made available by private sector

through cost effective and profitable agent

mechanism

Agent network bringsCritical knowledge,

goods and services

Spray and tillage Service providers

Improve timeliness and effectiveness

SMALLHOLDER PRODUCTIVITY

ENHANCEMENT -INCREASED INCOMES

Conservation FarmingTechnology offers 35% yield benefits

Improved yields

Expected P4P results

Partners’ Interventions

ZAMACE

Input/output

Village Agents

Public Certified WarehouseMedium enterprises/traders

Farmers Organisation

Private and Public Sector – the choice is the

producers depending on price

Large TradersMillers

FRAMainMarket

1st Level Aggregation

Main Aggregation

Small Traders Farmers Organisation

www.wfp.org/p4p

wfp.p4p@wfp.org