local and regional food aid procurement successes and challenges as lrp moves into its second...
TRANSCRIPT
![Page 1: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/1.jpg)
Local and Regional Food Aid Procurement
Successes and Challenges as LRP Moves into its Second Generation
David TschirleyMichigan State University Food Security Group
Panel on “Opportunities: Local and Regional Procurement”
International Food Aid ConferenceKansas City, MO
Wednesday, 8 April, 2009
![Page 2: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/2.jpg)
Outline World Food Program’s record in first
generation LRP Nature of success Bases for success
Second generation LRP More complex objectives
Key issues in 2nd generation LRP
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WFP’s record in 1st generation LRP High level of procurement Highly cost effective Improved timeliness Market development
Maize in Uganda Faffa, Likuni Phala
Generally good performance not distorting the market
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Cost savings = feeding more people On actual WFP procurement of maize in
Kenya, Uganda, and Zambia from 2001-2005: Savings compared to U.S. food aid:US$67,700,000 Extra maize this would purchase: 437,719 mt People this could feed: 1,200,000 for 2
years 1,800 kcal/person/day
During at most 8/180 months would U.S. food aid have been cheaper
Consistent with other findings Savings on CSB and maize meal even higher
And timeliness advantage also larger
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Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
![Page 6: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/6.jpg)
Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
Wholesale price
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Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
![Page 8: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/8.jpg)
Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
Price to farmers
![Page 9: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/9.jpg)
Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
![Page 10: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/10.jpg)
Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
Retailprice
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Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
![Page 12: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/12.jpg)
Maize prices in various SSA markets vs. imported U.S. food aid – April 2007
0
50
100
150
200
250
300
350
400
Randfontein,SA
EasternProvince,Zambia
Malaw i Kampala
Market
US
$/m
t
US food aid Local market
Wholesale price
![Page 13: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/13.jpg)
LRP’s Track Record- Zambia
0
5,000
10,000
15,000
20,000
25,000
30,000
Year & Month
Qu
an
tity
(m
t)
0
50
100
150
200
250
300
350
400
Pri
ce (U
S$/m
t)
WFP Purchases, local wholesale prices, and IPP from SA in Lusaka
Local price Import
parityWFP price
WFP PurchaseQuantities
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LRP’s Track Record- Zambia
0
5,000
10,000
15,000
20,000
25,000
30,000
Year & Month
Qu
an
tity
(m
t)
0
50
100
150
200
250
300
350
400
Pri
ce (U
S$/m
t)
Prices Paid – generally good performance
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LRP’s Track Record- Zambia
0
5,000
10,000
15,000
20,000
25,000
30,000
Year & Month
Qu
an
tity
(m
t)
0
50
100
150
200
250
300
350
400
Pri
ce (U
S$/m
t)
Decision to procure or not – good performance
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LRP’s Track Record - Zambia
0
5,000
10,000
15,000
20,000
25,000
30,000
Year & Month
Qu
an
tity
(m
t)
0
50
100
150
200
250
300
350
400
Pri
ce (U
S$/m
t)
Decision to procure or not – good performance
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LRP’s Track Record - Zambia
0
5,000
10,000
15,000
20,000
25,000
30,000
Year & Month
Qu
an
tity
(m
t)
0
50
100
150
200
250
300
350
400
Pri
ce (U
S$/m
t)
Decision to procure or not – good performance
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Bases for this SuccessClear objectives
Minimum cost subject to timeliness needs
Simple decision rule consistent with a market environmentBuy locally if P<IPPSubject to timeliness
Rigorously applied
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Second generation LRP P4P (including USAID support to it) USDA USAID working with NGOs
More actors More complex objectives
Explicitly developmental More gain (maybe) More risk (definitely)
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Key issues in 2nd generation LRP Benefit:Cost ratio
Not clear it will be high M&E critical Need for learning
Pricing Need for a consistent approach across
actors WFP’s plans for forward contracting
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Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail
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Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail 1998-99
Tripled
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Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail
2000-01:Continual decline
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Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail
2001-02:Quintupled
![Page 25: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/25.jpg)
Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail
2004-05:Decline
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Maize grain prices in Eastern Province, Zambia
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.401
99
4
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
US
$/k
g,
Re
tail
2005-06:> doubled
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Key issues in 2nd generation LRP (2) Coordination
Taking advantage of strengths of different organizations
To keep objectives well defined Avoiding uncoordinated purchases
Who are you really reaching? 2% of Zambian farmers provide 50% of marketed
surplus coming out of smallholder sector 10%-20% provide the rest
Comparable patterns elsewhere P4P and related approaches will not reach other
80%-90%
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Key issues in 2nd generation LRP (3) Having the discipline not to buy
0
100
200
300
400
500
600
2000 2002 2004 2006 2008
nom
inal
US
D p
er m
etri
c to
n
Blantyre-Lunzu, southern Malawi
import parity from South Africa
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Key issues in 2nd generation LRP (3) Having the discipline not to buy
0
100
200
300
400
500
600
2000 2002 2004 2006 2008
nom
inal
US
D p
er m
etri
c to
n
Blantyre-Lunzu, southern Malawi
import parity from South Africa
![Page 30: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/30.jpg)
Key issues in 2nd generation LRP (3) Having the discipline not to buy
0
100
200
300
400
500
600
2000 2002 2004 2006 2008
nom
inal
US
D p
er m
etri
c to
n
Blantyre-Lunzu, southern Malawi
import parity from South Africa
![Page 31: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/31.jpg)
Key issues in 2nd generation LRP (3) Having the discipline not to buy
0
100
200
300
400
500
600
2000 2002 2004 2006 2008
nom
inal
US
D p
er m
etri
c to
n
Blantyre-Lunzu, southern Malawi
import parity from South Africa
![Page 32: Local and Regional Food Aid Procurement Successes and Challenges as LRP Moves into its Second Generation David Tschirley Michigan State University Food](https://reader036.vdocuments.net/reader036/viewer/2022062516/56649d8d5503460f94a764c9/html5/thumbnails/32.jpg)
Thank you