P4P Purchase for Progress Connecting Farmers to Markets

What is P4P?

Access agricultural markets & being competitive playersLinks with supply-side partners

Learning and sharing experiences

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.  

Building Blocks

Local procurement principles underpin P4P purchases

Best practices will be mainstreamed into WFP local procurement procedures by the end of the pilot

Learning and Sharing Monitoring & Evaluation

Lessons Learned/Best PracticesInforming policy

Supply-side PartnersProviding technical expertise

Building capacity Empowering Women

WFP DemandNew Procurement ModalitiesPro-smallholder competitive tendering

Direct contractingForward contracting

WFP Local Procurement – the Foundation of P4P Principles of acceptable, timely and cost efficient food procurement remain

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

Where did we purchase in 2009?Where did we purchase in 2009?

Latin America62,717 mt

47,869,489 US$

Europe809,280 mt

221,460,293 US$

Asia1,079,465 mt

438,258,374 US$

Africa590,222 mt

228,444,879 US$

Oceania786 mt

695,792 US$

North America62,942 mt

28,464,506 US$

92 Countries: 75 Developing 17 Developed

UN World Food Programme, Food Procurement Service, Procurement Division

Procurement Modalities

Competitive Processes

Local & Regional Procurement, “soft” tendering, Warehouse Receipts Systems, Commodity exchanges

Direct Contracting Forward Contracting

Targeted P4P Market Entry Points

Consumers

Retailers

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

Blended Food or Small-scale Processors

Smallholder Farmers

Farmer OrganizationsThrid Tier

Second TierFirst Tier

*Levels and characteristics of FOs are different in each P4P country

WFP Point of Entry RP/LP

WFP Point of Entry RP/LP

Agricultural. inputs & services

Warehouse Receipts System

Commodity Exchange

Medium-scaleTraders

Small-scale Traders(Collectors)

WFP P4P Point of

Entry

WFP P4P Point of

Entry

Farmer Organizations

CREDITGovernments, IFAD,

IFC, Banks and Microfinance Institutions

PRODUCTION INPUTSGovernments, 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, Private Sector

INFRASTRUCTUREGovernments, AU, IFAD, World Bank and Bilateral

Programmes, Private Sector

Strategic Partnerships

FAO•

Technical Assistance Capacity building

Incentives Connection to local land

WFP•

Purchases Infrastructure Funding Business management / organizational strengthening New markets

CENTA (GOVT)

•

Technical Assistance Capacity building on post harvest On-going support Business management

UNDP (PDP)

•

Organizational strengthening Connection with buyers New markets Capacity building

ORGANIZATIONS

STENGTHENING

STENGTHENINGCO- FUNDING

COORDINATION

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

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

Main AchievementsFood 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

• Access to credit and other financial services

• Weak farmers organizations

• Insufficient matching between supply-side partners and P4P targeted farmers

Challenges

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