P4P Purchase for Progress Connecting Farmers to Markets

1. P4P Purchase for Progress Connecting Farmers to Markets

2. What is P4P? Access agricultural markets & being competitive players Links with supply-side partners Learning and sharing experiences

3. VISION The vision of P4P is to promote the development of agricultural markets in such a way that by 2013 at least 500,000 low-income smallholder farmers – the majority of whom are women – will produce food surpluses and sell them at a fair price to increase their incomes.

4. WFP Demand New Procurement Modalities Pro-smallholder competitive tendering Direct contracting Forward contracting • Supply-side Partners Providing technical expertise Building capacity Empowering Women Building Blocks Learning and Sharing Monitoring & Evaluation Lessons Learned/Best Practices Informing policy Best practices will be 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

5. Objectives • Identify and share best practices for WFP, NGOs, Governments and agriculture markets stakeholders to increase profitable engagement in markets • Improve capacities in order to raise income from agriculture markets • Increase farmers’ sales to WFP • Transform WFP food purchase programmes P4P focuses on smallholder and low-income farmers

6. Where did we purchase in 2009? Europe 809,280 mt 221,460,293 US$ North America 62,942 mt 28,464,506 US$ Asia 1,079,465 mt 438,258,374 US$ Latin America 62,717 mt 47,869,489 US$ Africa 590,222 mt 228,444,879 US$ Oceania 786 mt 695,792 US$ 92 Countries:75 Developing 17 Developed UN World Food Programme, Food Procurement Service, Procurement Division

7. Procurement Modalities Competitive Processes Local & Regional Procurement, “soft” tendering, Warehouse Receipts Systems, Commodity exchanges Forward Contracting Direct Contracting

8. Targeted P4P Market Entry Points Consumers Retailers WFP Point of Entry RP/LP WFP Point of Entry RP/LP Large-scale Food Processors/Large-scale Millers/ Large-scale Wholesalers Blended Food or Small-scale Processors Commodity Exchange WFP P4P Point of Entry Warehouse Receipts System WFP P4P Point of Entry Medium-scale Traders Farmer Organizations Thrid Tier Second Tier First Tier *Levels and characteristics of FOs are different in each P4P country Small-scale Traders (Collectors) Agricultural. inputs & services Smallholder Farmers

9. Strategic Partnerships PRODUCTION INPUTS Governments, NGOs, FAO, AGRA, Bilateral Partners and Private Sector QUALITY Governments, FAO, NGOs, Research Institutions and Private Sector CREDIT Governments, IFAD, IFC, Banks and Microfinance Institutions MARKET ACCESS Governments, FAO, IFAD, AGRA, Regional Economic Communities, Research Institutions, Universities and Private Sector POLICY & ADVOCACY Governments, Regional Economic Communities, NGOs, Media, Universities and Private Sector Farmer Organizations CAPACITY DEVELOPMENT (Skills, Market Analysis, Post-harvest Handling, etc.) Governments, IFAD,AGRA, FAO, Regional Economic Communities, NGOs and Universities, Private Sector INFRASTRUCTURE Governments, AU, IFAD, World Bank and Bilateral Programmes, Private Sector

10. COORDINATION FAO STENGTHENING • Technical Assistance Capacity building Incentives Connection to local land CENTA (GOVT) UNDP (PDP) • Technical Assistance Capacity building on post harvest On-going support Business management • Organizational strengthening Connection with buyers New markets Capacity building ORGANIZATIONS WFP • Purchases Infrastructure Funding Business management / organizational strengthening New markets CO- FUNDING STENGTHENING

11. Quick Facts about P4P 21 Pilot Countries • Africa:Burkina Faso, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Rwanda, Sierra Leone, Sudan, Tanzania, Uganda, Zambia • Asia:Afghanistan and Laos • Latin America:El Salvador, Guatemala, Honduras, Nicaragua

12. Quick facts about P4P Global Facts Beneficiaries: 500,000 farmers Duration: 5 years (Sept 2008 - Sept 2013) Total funding: US$137 million for technical capacity for 5 years (food not included) Key donors – Bill & Melinda Gates Foundation, Howard G. Buffett Foundation, European Commission, Governments of Belgium, Canada, Ireland, Luxembourg and the United States of America and the Kingdom of Saudi Arabia

13. Main Achievements Food Purchases – 50,000 metric tons (mt) of food contracted in 17 countries Farmers Involved • 580 farmers’ organizations representing almost 700,000 farmers have been identified to be involved in P4P — so far, 80 of those farmers’ organizations have sold food commodities to WFP Capacity Building • 25,000 people trained in skills including organization management, farming techniques, quality control & post harvest handling • 700 WFP and partner staff members trained Partnerships • Working with approximately with 100 different partners including, Government (ministries & other agencies), UN agencies, local and international NGOs Learning and Sharing • A comprehensive M & E system is currently being rolled out • Technical Review Panel established and held its 1st meeting

14. Challenges • Access to credit and other financial services • Weak farmers organizations • Insufficient matching between supply-side partners and P4P targeted farmers

15. We are excited because we are going to gain (agricultural and marketing) knowledge. Through increased information on proper commercial farming, there is a chance of reduced poverty levels.. We are going to get a bigger profit because we will have access to a bigger market. Our children will be able to finish school and to dress and feed better. Sophia Chemtai, Ugandan farmer