PURCHASE FOR PROGRESS ISSUE 62 NOVEMBER 2013 … · Salvador Chamber of Commerce (CCIE), University...

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20 P4P pilot countries Asia: Afghanistan Africa: Burkina Faso, DRC, Ethiopia, Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Rwanda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia Latin America: El Salvador, Honduras, Guatemala, Nicaragua ISSUE 7 ISSUE 62 NOVEMBER 2013 PURCHASE FOR PROGRESS NOVEMBER 2013 NEWSLETTER Inside this issue: Markets beyond WFP in El Salvador……………………………………………………………………………………………………………pages 1-2 WFP collaboration with Tanzanian National Food Reserve Agency……………………………………………………………pages 3-4 Evaluation of P4P pilot: Terms of reference released……………………………………………………………………………………page 4 Award winners: Best farmers’ organizations in Africa……………………………………………………………………………………page 5 Contact information, calendar and news…………………………………………………………………………………………………………page 6 Smallholder farmers ready to sell their beans to supermarkets Continued on page 2 Since the beginning of the P4P implementation in El Salvador, the strategy has been to strengthen smallholder farmers’ capacities and link them to sustainable markets beyond WFP. Despite facing numerous challenges, the P4P-supported farmers have now organized themselves, developed logos and created barcodes for collective sales to supermarkets and other stable buyers. For almost five years, P4P and its partners have developed the capacities of farmers’ organizations across El Salvador by helping participating smallholders understand staple grain markets, the importance of quality and commercialization, and how to manage a small business. Thanks to funding from the Howard G. Buffett Foundation – the main donor to P4P in El Salvador - more than 15,000 smallholder farmers have been trained in agricultural techniques, post-harvest management and grain processing since 2009. In addition, almost 2,500 of these farmers have received further training in organizational management, and institutional capacity building as well as the many legal aspects to be considered when dealing with the retail market. The training sessions have been conducted by P4P’s technical experts, and by strategic partners including El Salvador Chamber of Commerce (CCIE), University of El Salvador, Instituto Salvadoreño de Fomento Cooperativo (INSAFOCOOP) and Comisión Nacional de la Micro y Pequeña Empresa (CONAMYPE). Organised in P4P clusters to access markets Thanks to their new skills, the farmers have been able to produce high quality grain and sell their surplus in formal markets. This has provided them with more sustainable livelihoods, which in turn have improved food security and helped families become more resilient. In order to further respond to the retail market’s demand for beans, 20 farmers’ organizations with over 8,000 smallholder members have organized themselves into three P4P-supported clusters. The largest one, Asociación de Productores de Granos Básicos de Occidente de R.L (PROGRANOS) consists of over 4,000 farmers from the Western part of El Salvador. The remaining two are Asociación Cooperativa de Comercialización y Producción Agrícola "Compañero Erick", de Responsabilidad Limitada (ACOPROERICK) that consists of farmers from the Eastern part of the country and Asociación Cooperativa de Aprovisionamiento Agropecuario San Sebastián de R.L. (ACAASS) that covers the central region. On average, 34 percent of the members are women. The cluster structure of the farmers’ organizations has allowed them to sell greater volumes of grains and therefore to negotiate better prices. By selling quality products in bulk, the farmers have gained access to various markets beyond WFP. As an example, the farmers in the PROGRANOS cluster collectively sold some 45 metric tons of produce to El Salvador’s farming product stock market Bolsa de Productos y Servicios (BOLPROS), putting over US$ 44,000 in the pockets of the smallholders. The cluster brands and logotypes have been approved and will be entering the retail market in El Salvador.

Transcript of PURCHASE FOR PROGRESS ISSUE 62 NOVEMBER 2013 … · Salvador Chamber of Commerce (CCIE), University...

Page 1: PURCHASE FOR PROGRESS ISSUE 62 NOVEMBER 2013 … · Salvador Chamber of Commerce (CCIE), University of El Salvador, Instituto Salvadoreño de Fomento Cooperativo (INSAFOCOOP) and

20 P4P pilot countries Asia: Afghanistan Africa: Burkina Faso, DRC, Ethiopia, Ghana, Kenya, Liberia, Malawi, Mali, Mozambique, Rwanda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia Latin America: El Salvador, Honduras, Guatemala, Nicaragua

ISSUE 7

ISSUE 62

NOVEMBER 2013 PURCHASE FOR PROGRESS

NOVEMBER 2013 NEWSLETTER

Inside this issue: Markets beyond WFP in El Salvador……………………………………………………………………………………………………………pages 1-2 WFP collaboration with Tanzanian National Food Reserve Agency……………………………………………………………pages 3-4

Evaluation of P4P pilot: Terms of reference released……………………………………………………………………………………page 4 Award winners: Best farmers’ organizations in Africa……………………………………………………………………………………page 5 Contact information, calendar and news…………………………………………………………………………………………………………page 6

Smallholder farmers ready to sell their beans to supermarkets

Continued on page 2

Since the beginning of the P4P implementation in El Salvador, the strategy has been to strengthen smallholder farmers’ capacities and link them to sustainable markets beyond WFP. Despite facing numerous challenges, the P4P-supported farmers have now organized themselves, developed logos and created barcodes for collective sales to supermarkets and other stable buyers.

For almost five years, P4P and its partners have developed the capacities of farmers’ organizations across El Salvador by helping participating smallholders understand staple grain markets, the importance of quality and commercialization, and how to manage a small business.

Thanks to funding from the Howard G. Buffett Foundation – the main donor to P4P in El Salvador - more than 15,000 smallholder farmers have been trained in agricultural techniques, post-harvest management and grain processing since 2009. In addition, almost 2,500 of these farmers have received further training in organizational management, and institutional capacity building as well as the many legal aspects to be considered when dealing with the retail market.

The training sessions have been conducted by P4P’s technical experts, and by strategic partners including El Salvador Chamber of Commerce (CCIE), University of El Salvador, Instituto Salvadoreño de Fomento Cooperativo (INSAFOCOOP) and Comisión Nacional de la Micro y Pequeña Empresa (CONAMYPE).

Organised in P4P clusters to access markets

Thanks to their new skills, the farmers have been able to produce high quality grain and sell their surplus in formal markets. This has provided them with more sustainable livelihoods, which in turn have improved food security and helped families become more resilient.

In order to further respond to the retail market’s demand for beans, 20 farmers’ organizations with over 8,000 smallholder members have organized themselves into three P4P-supported clusters. The largest one, Asociación de Productores de Granos Básicos de Occidente de R.L (PROGRANOS) consists of over 4,000 farmers from the Western part of El Salvador. The remaining two are Asociación Cooperativa de Comercialización y Producción Agrícola "Compañero Erick", de Responsabilidad Limitada (ACOPROERICK) that consists of farmers from the Eastern part of the country and Asociación Cooperativa de Aprovisionamiento Agropecuario San Sebastián de R.L. (ACAASS) that covers the central region. On average, 34 percent of the members are women.

The cluster structure of the farmers’ organizations has allowed them to sell greater volumes of grains and therefore to negotiate better prices. By selling quality products in bulk, the farmers have gained access to various markets beyond WFP. As an example, the farmers in the PROGRANOS cluster collectively sold some 45 metric tons of produce to El Salvador’s farming product stock market Bolsa de Productos y Servicios (BOLPROS), putting over US$ 44,000 in the pockets of the smallholders.

The cluster brands and logotypes have been approved

and will be entering the retail market in El Salvador.

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Continues from page 1

Preparing smallholders for retail markets

In the beginning of 2013, the three clusters initiated a legal process to create their own brands and patents in order to sell their beans to retail and supermarkets. A partnership was formed with the Intellectual Property Unit from the National Registration Center (CNR), while farmers’ organizations received training on how to proceed with the official trademark registration for their products.

The farmers also came to understand the importance and impact of the commercialization of their grains. For example, they learned about how their beans have to go through a nutrient analysis and health inspections in order to access supermarkets and local shops. They also learned that the product needs a packaging design and appropriate retail barcodes. Through navigating the demanding process of meeting all the criteria, the participating farmers strengthened their business and management skills. As a result, they also reduced the need for intermediaries, allowing the farmers’ organizations to sell products directly to stores.

Despite success many challenges remain

As the clusters recently finished the legal process of creating their brands, logotypes and patents, they are now in the process of strategically planning for entering the retail markets.

“Being able to join as one has given us the ability to access other markets. We can now negotiate the sales of better volumes of beans during negotiations rounds, as well as access local supermarkets with our own brand" said Leonidas Ramirez, president of Progranos cluster and treasurer of his farmers’ organization, the Adesco-Agrisal.

By becoming a part of the retail market for beans, farmers will be able to get revenues from the sale of beans year-round and not only after harvest.

Since the clusters now have the capacity to negotiate better prices for their high quality production and be competitive in new markets, one of the goals is to further diversify their customer base. These achievements will increase both profit and income stability for farmers, since they capture a higher margin of the final retail price, and because food prices in retail markets are typically less volatile.

However there are still challenges that farmers’ organizations must overcome in order to access food markets - low production and aggregation capacity, lack of access to credit through financial institutions, competition with larger agroindustry and the risk of defaulting if the contracted quantities are not achieved.

While collective marketing and the cluster structure will mitigate some of the challenges mentioned above, WFP and partners are committed to continue to support smallholder farmers in El Salvador.

Story by Marta Ortiz and Luis Penutt, WFP El Salvador

READ MORE:

P4P El Salvador fact sheet

WFP operations in El Salvador

P4P-supported farmers in El Salvador trying new

WFP price monitoring system

Previous reports from El Salvador about the benefits of collective action and how female farmers are able to expand production.

P4P-supported farmers in El Salvador. Copyright: WFP/Damien Fontaine

Leonidas Ramirez, president of PROGRANOS Cluster presenting their organizational chart. Copyright: WFP/

Maritza Morales

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P4P links Tanzanian smallholders to national food reserve

Thanks to an agreement between WFP and Tanzania’s National Food Reserve Agency (NFRA), smallholder farmers have gained access to a sustainable market for their crops. By building smallholder farmers’ capacity and connecting them to the NFRA, P4P continues to boost sales and incomes for the farmers and their families, while contributing to the long-term food security of the country.

The agreement between WFP and NFRA, signed in August 2012, formalized the understanding that WFP will purchase food from the NFRA, who in turn will buy from smallholder farmers’ organizations, including those linked to the Purchase for Progress (P4P) initiative.

Supporting smallholder farmers to improve access to markets

In Tanzania, some 85 percent of the country’s maize is produced by smallholder farmers. Low productivity, long distance from markets, a lack of credit, and inadequate storage limit smallholder farmers’ capacity to sell their produce. In 2008, WFP initiated P4P to help smallholder farmers sell their crops at a fair price and increase production to boost their income, creating a more secure future. P4P and partners’ activities have built the capacity of some 5,000 farmers in 28 farmers’ organizations to sell food to WFP and other markets. Since 2009, P4P-supported farmers’ organizations have supplied WFP with 13,000 metric tons – over 500 truckloads – of maize and beans valued at US$ 5.4 million.

Promoting food security in the region

The NFRA is Tanzania’s main food security instrument and first response to localized food emergencies. By buying maize at a fair price from smallholder farmers during harvest time, and selling at reasonable prices to consumers during the lean period, the NFRA contributes to market stability and food security in the country.

In 2011, WFP and the Government of Tanzania accelerated their mutual partnership in support of smallholder procurement, as the NFRA started selling grain to WFP’s operations addressing humanitarian needs in the region.

Tanzania as a regional grain trader

“The NFRA provides a service to the nation in times of local food shortages by gathering stocks so that we can effectively manage emergency preparedness and response. At the same time, part of our mission is also to uplift smallholder farmers. We do so by buying directly from farmers’ organizations, at fair prices that is covering their costs for adding quality to the grains. Our relationship with WFP now allows us to extend

our response to neighboring countries in East and Central Africa,” said NFRA CEO Charles Walwa. “This is helping Tanzania to be recognized as a food basket for the region, and uplifting smallholder farmers in doing so.”

Between November 2011 and May 2012, WFP Tanzania purchased nearly 100,000 metric tons of grain valued at close to US$ 17 million from NFRA, most of which was delivered to humanitarian operations in South Sudan, Kenya and Somalia. “This marked a significant shift in Tanzania’s role as a regional grain trader,” said WFP Country Representative Richard Ragan. “Not only is the agreement good for the overall economy, it is good for the smallholder farmers who make up 75 percent of Tanzania’s workforce.” Unfortunately a drought in 2012 caused a poor maize production, leaving Tanzania with a short supply nationwide. Because of this, WFP has not been able to buy any maize from NFRA in 2013.

Successful deliveries so far

In July 2013, as a step towards fulfilling the formal agreement, 17 P4P-supported farmers’ organizations signed delivery contracts with the NFRA. As of November 2013, farmers’ organizations have aggregated and delivered a total of 2,500 metric tons of maize to the NFRA.

The capacity building activities provided to facilitate the successful sales have included training and technical assistance to improve farmer organizations’ governance, organizational structures, post-harvest management, marketing and production activities. P4P investment has also rehabilitated 23 village warehouses to facilitate aggregation and collective marketing. Ten of the warehouses have met the Tanzanian Warehouse Licensing Board criteria and are currently being

The warehouse of the Gallapo SACCOS in Manyara region was rehabilitated under P4P initiative. Thanks to the improved storage capacity and reduced post-harvest losses, Gallapo is now

one of WFP’s most reliable P4P-supported vendors. In 2013, they sold 300 metric tons of maize to NFRA. Copyright: WFP/Jennifer Kunz

Continued on page 4

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Preparations for independent evaluation of P4P

registered as part of the new national Warehouse Receipt System.

Exploring deepened collaboration

Now both organizations are looking to the future. While NFRA’s procurement activities are usually completed from July through October, many farmers’ organisations still have additional stocks ready to market beyond October. P4P will continue to make efforts and strengthen farmers’ organizations’ capacity to compete and sell as much as possible during the NFRA purchase campaign. Furthermore, WFP Tanzania is also exploring possibilities to buy maize from smallholder farmers’ organizations between October and December, to help complement the NFRA procurement activities. “This would optimize both WFP and the NFRA’s impact on the business of smallholder farmers.” said Mr Walwa.

With NFRA’s procurement shift of focus to include smallholder farmers’ organizations, instead of dealing only with larger traders, one of the primary objectives of the P4P initiative in Tanzania is being met – farmers’ organizations have established a market beyond WFP and in doing so are becoming part of the solution to food insecurity in Tanzania.

Story by Jenna Cattermole, WFP Tanzania

Continued from page 3

Read More: P4P in Tanzania - fact sheet

WFP operations in Tanzania Article about how Government and WFP planned to

increase market opportunities for smallholders in 2012

P4P-supported farmer in his maize field in Arusha region. Copyright: WFP/ Jennifer Kunz

With the five year P4P pilot treatment period coming to a close in December 2013, a comprehensive independent final evaluation will be conducted next year. The terms of reference for the evaluation were recently finalised after close consultation with a broad range of internal and external stakeholders.

P4P has gathered significant knowledge and research about what works most effectively when linking smallholder farmers to formal markets; and how WFP’s procurement footprint can be a catalyst for development. The final evaluation is a vital step in the pilot project, as it will further determine the ways in which lessons from the 20 pilot countries can inform future engagement of WFP in the area of pro-smallholder market development. P4P implementation in all pilot countries will continue in 2014, dependent upon funding.

Click here to read the full terms of reference.

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Launch of the International Year of Family Farming (IYFF)

As a worldwide celebration of family farming, IYFF was officially launched on November 22, at the United Nations' headquarters in New York. The initiative aims to highlight and stimulate the creation of policies for the sustainable development of family farming. The IYFF is supported by the United Nations General Assembly and over 360 civil society and farmers’ organizations. The P4P coordination unit is representing WFP on the international multi-agency Steering Committee.

ISSUE 62

Report examines pro-smallholder programmes in Brazil

The Centre of Excellence against Hunger recently released a report on “Structured Demand and Smallholder Farmers in Brazil”, sponsored by the Bill and Melinda Gates Foundation. This report examines Brazil’s success in decreasing food insecurity by linking smallholder farmers to the national school feeding program and other institutional buyers. The report suggests that these policies can substantially improve smallholder farmers’ lives and livelihoods by providing them with consistent demand and encouraging them to increase the quality of their products.

Awards for the best farmers’

organizations in Africa

At the 2013 annual Africa Farmer’s Organization Award ceremony, 8 out of 16 awards presented went to P4P-supported farmers’ organizations. The ceremony took place during the Africa Farmer Organization Conference in Ghana, where farmers met to share ideas and experience to improve their productivity and income.

The 2013 Africa Farmer Organization Award was organized by African Investment Climate Research (AFRICRES) in partnership with the Alliance for a Green Revolution in Africa (AGRA), with support from Bill and Melinda Gates Foundation. The purpose of the event is to recognize the vital role played by farmers’ organizations in promoting sustainable agriculture across the continent. Awards were given in five key categories: governance and accountability; income diversity; advocacy; female and youth participation; and access to markets. P4P-supported farmers’ organizations were represented among the winners in all categories. Winners of each category received US$ 8,000 per farmer organization, 1st runners up received US$ 6,000 and 2nd runners up received US$ 4,000.

Dr. Hannah Bissiw, Ghanaian Deputy Minister of Food and Agriculture delivered the keynote address.

“The smallholder farmers play an important role in the economies of many countries but are not often

recognized. I hope this awards programme will encourage farmer organizations to expand their work and increase their income. Africa has the potential and is capable of feeding itself if farmers are supported to produce more food to ensure food security,” she said. The Deputy Minister also appealed to the private sector to recognize agriculture as a viable business and to take advantage of the opportunities it offers by investing in the sector.

Click here to read more about the event and the winners.

P4P-supported farmers’ organizations from Kenya, Mali, Sierra Leone, Burkina Faso and Ghana were represented among the winners. Copyright: WFP/Vera Boohene

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P4P COUNTRY COORDINATORS/FOCAL POINTS

ASIA

Afghanistan: Djordje Vdovic <[email protected]>

EASTERN & CENTRAL AFRICA

Ethiopia: Mauricio Burtet <[email protected]>

Kenya: Zippy Mbati <[email protected]>

Rwanda: Patrice Nzeyimana, OIC <Patrice.Nzeyimana @wfp.org>

South Sudan: Emmanuela Mashayo <[email protected]>

Uganda: Germain Akoubia <[email protected]>

Regional Bureau Focal Point: Simon Denhere <[email protected]>

SOUTHERN AFRICA

Democratic Republic of Congo: Francis Bere <[email protected]>

Malawi: Irene Del Rio <Irene.Del-Rio@wfp,org>

Mozambique: Ana Touza <[email protected]>

Tanzania: Marina Negroponte <[email protected]>

Zambia: Aurore Rusiga <[email protected]>

Regional Bureau Focal Point: Sarah Longford <[email protected]>

WEST AFRICA

Burkina Faso: Yves Aklamavo, <[email protected]>

Ghana: Hassan Abdelrazig <[email protected]>

Liberia: James Legg <[email protected]>

Mali: Isabelle Mballa <[email protected]>

Sierra Leone: Betty Cooper, OIC <[email protected]>

Regional Bureau Focal Point: Isabelle Mballa

<[email protected]>

LATIN AMERICAN & CARIBBEAN

El Salvador: Jaime Hernandez <[email protected]>

Guatemala: Sheryl Schneider <[email protected]>

Honduras: Lenin Gradiz <[email protected]>

Nicaragua: Francisco Alvarado <[email protected]>

Regional Bureau Focal Point: Hebert Lopez <[email protected]>

The update is published by the P4P Coordination Unit in Rome, Italy.

External: www.wfp.org/p4p Internal: http://go.wfp.org/web/purchaseforprogress

KEY P4P CONTACTS IN ROME

P4P COORDINATION UNIT

Ken Davies, P4P Global Coordinator:

[email protected]

Catherine Feeney, Senior Programme Adviser,

Communications & Partnerships; Ghana, Liberia and

Sierra Leone:

[email protected]

Edouard Nizeyimana, Senior Programme Advisor for

Eastern and Southern Africa:

[email protected]

Romain Sirois, Senior Programme Advisor for Latin

America and Afghanistan:

[email protected]

Clare Mbizule, Programme Adviser, M&E:, Learning and

Sharing:

[email protected]

Bhai Thapa, Finance Officer:

[email protected]

Batamaka Some, Gender Consultant:

[email protected]

Ahnna Gudmunds, Communications and Advocacy

Officer:

[email protected]

Barbara Pfister, Reports Officer:

[email protected]

PROCUREMENT DIVISION

Shane Prigge, Food Technologist:

[email protected]

Stephane Meaux, Food Technologist:

[email protected]

Brigitte Labbé , Procurement Officer:

[email protected]

LOGISTICS OFFICE

Adrian van der Knaap, Senior Logistics Officer:

[email protected]

The fifth WFP/P4P

Annual Consultation,

Five Years on,

Embracing Change,

will take place in

Rome from January

29th—30th, 2014.

P4P in Malawi

Click here for an article from

The Nation which discusses P4P’s role in increasing

farmers’ outputs and incomes in Malawi.

First maize arriving in Lesotho Click here to read more about when

WFP Lesotho received its first

delivery of maize produced by smallholder farmers in South Africa.

Building on lessons from the P4P experience, the purchase is a part of a US$ 20 million contribution from the

government of South Africa. It is planned to purchase 40 percent of the

food from smallholder farmers.

P4P inspired procurement in Haiti Click here to read about WFP’s recent call

for bids from smallholder farmers in Haiti, linking smallholder farmers to formal

markets and increasing the developmental benefits of local food purchases.

Partnership catalyst in Ethiopia

Click here to read about the

positive impact of the Ethiopian Agricultural Transformation

Agency’s partnership with P4P, which led to a ground-breaking

achievement in the form of WFP’s largest purchase from

farmer cooperatives.

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