Presentation about WFP procurements and fight with hunger for the"Right to Food" class, LL.M. in Agricultural and Food Law.

1. WFP LOCAL AND REGIONAL
PROCUREMENTS (LPR) AS
FOOD AID INSTRUMENTS
HOW EXISTING INTERNATIONAL
FOOD AID SYSTEM CAN BETTER
FIGHT HUNGER?
South
Sudan
Libya
It costs as little
as US 25 cents a day
to feed a hungry child
and change her life
forever.
About 795 million
people, or 1 in 9 of the
world’s population,
go to bed hungry
each night.
Together we are
making progress
in reducing the number
of hungry people in the
world. We can achieve
Zero Hunger in our
lifetimes.
***
Prevalence of undernourishment in the population (percent) in 2014-16
Very low
<5%
Moderately low
5-14,9%
Moderately high
15-24,9%
High
25-34,9%
Very high
35%
and over
Missing
or insufficient data
***
State of Palestine
The map shows the prevalence of undernourishment in the population of developing countries as of 2014-16. The indicator measures the
probability that a randomly selected individual in the population is consuming an amount of dietary energy, which is insufficient to cover her/his
requirements for an active and healthy life.
Source: FAO, IFAD and WFP. 2015. The State of Food Insecurity in the World 2015. Meeting the 2015 international hunger targets: taking stock
of uneven progress. Rome, FAO. Further information is available at www.fao.org/publications/sofi/en/
Undernourishment data: FAO Statistics Division (ESS) - www.fao.org/economic/ess
© 2015 World Food Programme
The designations employed and the presentation of material in this map does not imply the expression of any opinion whatsoever on the part of WFP concerning the legal
or constitutional status of any country, territory or sea area, or concerning the delimitation of frontiers.
* A dispute exists between the Governments of Argentina and the United Kingdom of Great Britain and Northern Ireland concerning sovereignty over
the Falkland Islands (Malvinas).
** Dotted line represents approximately the Line of Control in Jammu and Kashmir agreed upon by India and Pakistan. The final status of Jammu and Kashmir has not
yet been agreed upon by the parties.
*** Final boundary between the Republic of South Sudan and the Republic of Sudan has not yet been determined.
Brunei
Darussalam
Comoros
Seychelles
Hunger Map 2015

2. FAO: 2015
Global Food Supply is enough to provide:
2800 calories and 76g proteins per day for every person
BUT there are still
795 millions hungry people in the world
98% of hungry people are in developing countries
Global Food Aid: 2015
it is a voluntarily commitment of states
distributed annually around 5-5.5m metric tons of food
annually reaches around 200 millions people
in more than 80 countries
50 kg per reached person per year
OR only 12 kg per year for all hungry people

3. MAJOR TYPES
OF FOOD AID
Program Food Aid
Project Food Aid
Emergency Food Aid
Distribution ways:
1) directly between states under bilateral
and multinational agreements (FAC)
2) through special NGOs and the UN
Agencies
Forms of Food Aid:
1) in-kind-food aid
2) cash based food aid (direct cash
transfers, local and regional
procurement, food vouchers)
Food Aid Deliveries by
Categories
0%
20%
40%
60%
80%
100%
1991 2002 2012
68%
57%
17%
28%
25%25%
4%
19%
58%
Program Food Aid
Project Food Aid
Emergency Food Aid
*Food Aid Flows Report. WFP 2012

4. Provided Food Aid is slightly more 5.0m metric tons
WFP is responsible for 58% of all food aid
(WFP 2013: $4,38b = 3,1m tons)
Food Aid by Category
(millions tons)
3.4
1.4
0.2
Program aid
Project aid
Emergency aid
Food Aid by Channel
(millions tons)
1.5
0.5
3.0
Multilateral
Bilateral
NGOs

5. SIGNIFICANT GROWTH OF CASH
CONTRIBUTIONS
1) the UN, including WFP and
humanitarian partners, appealed
for $18.04 billion but received
only $10.78 billion in 2014.
2014: WFP
Contributions
($5.6 billions)
4.1
1.5
in-kind cash
*the highest record,
but only 66% from requested
2) WFP budget is 10x larger than
IFAD and FAO budgets
3) Total assistance for agriculture
and rural development has been
cut by half in the past two
decades: $5.14b — $2.2b
(FAO, 2005)

6. WFP top donors
Chart represents in-kind food and cash contributions
received under different programs

7. *Food Aid Flows Report. WFP 2012
The total amount of food aid deliveries significantly decreased in past
decades (from 18m tons in 1980th to 5m tons todays). But, on the other
hand, annual number of food emergencies have doubled - from 15 per year
in 1980th to 30 per year nowadays (in Africa the numbers even tripled).
*FAO, 2004a

8. International Food Aid is the important instrument
in progressive realization of right to food
and fight with global hunger (FAO: Voluntarily Guidelines)
Food Aid:
Should be provided in ways which do not adversely affect local
producers and local markets
Should be organized in ways that facilitate the return to food self-
reliance of the beneficiaries
Should be based on assessed needs of the intended beneficiaries
Should be safe and culturally acceptable to recipients
*General Comment No.12
Food aid can support food security in emergencies and in
cases of chronic hunger if it is properly managed

9. POSSIBLE MISUSES OF FOOD AID
Food aid can be used to dispose surpluses (now it is rare because there is
enough demand on food markets; hidden export = violation of WTO rules)
Food aid may create dependency on food aid / food import, and it may be
used to capture new markets (sometimes it is directly stated in donors’ laws)
In-kind food aid can destroy or damage local markets that poor farmers
depend on and undermines recovery (instead of support local producers food
aid compete with them)
It may be cost ineffective and be late (delivery delays could be more than
few months and too much is spent on shipping from donors country)
To summarize: Food Aid may cause harm if it arrives or is purchased at the
wrong time; if it is not well targeted; if the local markets are poorly integrated with
broader markets.

10. INDONESIA, 2001
“I harvest my rice usually two times per year. Last year I sold my rice at Rp
2,600–Rp 2,700 [approx. $0.25] per kg. This year, its price was only Rp
1,500–1,700 [$0.15] per kg due to the flooding of rice from the social
safety net program to the local market.... Some people said that rice came
from the US…”
Wagino, 42, farmer and father of four children,
Boyolali Regency, Central Java Province, Indonesia, 2001
“Meaningful and immediate increases in food aid now could mean the
difference between survival and financial disaster for rice mills in this region…”
Thomas Ferrara of Greenville, Mississippi, USA,
Chairman of the Rice Millers’ Association, 2001

11. MALAWI, 2002-2003
Food donors overreacted to projected 600k tons food
deficit in Malawi, causing severe decline of food prices
and hurting local producers (maize prices dropped from
$250 to $100 per tonne, local production on cereals fell
significantly, estimated loses to economy $15m)
Guyanese rice export to Jamaica was displaced by US
food aid, which doubled after a bumper crop in the USA.
Guyana is developing country and lost source of foreign
currency income.
GUYANA and JAMAICA, 2000th

12. SOMALI, 2011
3,2m Somalis - half of population needed food after drought
and war, food aid flooded the capital with little or no
control. Up to half of all food aid was stolen and sold by
some businessmen.
After tsunami 2m of people were in emergency, despise the
availability of local food on the markets the donors - developed
countries send in-kind-food aid to these countries. $92m from
total $210m relief budget was spent on shipping and
storage of food. Delay deliveries resulted in competition of
food aid with local food on markets.
INDONESIA and SRI LANKA, 2004

13. The USA provides around
50% of all food aid with $2,5b
annual budget spendings

14. Targeted reforms to U.S. food aid programs could reach up to
17.1m additional hungry people at no additional cost to taxpayers.
The 2014 Farm Bill established LRP program with authorized funding levels of
only $80m annually for FY2014 through FY2018 (around 3% of all spendings).
Many other donors still prefer direct transfers: Brazil and China used
them for 100% of their deliveries and the USA — for 94%.

15. Donors should avoid falling into “relief trap”, when
many resources are devoted to emergencies and
longer-term needs are neglected
Emergency food aid is essential to fight hunger,
but it cannot overcome the underlying social and
economic causes of poverty and hunger
LOCAL AND REGIONAL FOOD PROCUREMENTS FROM
SMALL FARMERS IN DEVELOPING COUNTRIES
TOGETHER WITH LOCAL FOOD RESILIENCE PROJECTS
ARE EFFECTIVE INSTRUMENTS IN FIGHTING HUNGER

16. The mission of WFP is to end global hunger
WFP strategic goals:
Save lives and protect livelihoods in emergencies;
Support or restore food security and nutrition and
establish or rebuild livelihoods in fragile settings and following
emergencies;
Reduce risk and enable people, communities and
countries to meet their own food and nutrition needs;
Reduce undernutrition and break the intergenerational
cycle of hunger.
* WFP Strategic plan (2014-2017)

17. SHIFTS IN GLOBAL FOOD AID
1) LRP is cheaper (33% cheaper for region; and 46% - if buy locally)*
2) LRP, vouchers and direct cash transfers reduces aid delivery time (from 4-6
months to 1-2 months)
3) LRP and other cash aid bolsters local markets and support local
agribusiness
4) LRP develops local infrastructure, improve food production in the region
5) LRP promote growing of food crops instead in developing countries in food
insecure regions
**http://publications.wf.org/en/apr/2013/
*Clay, E., B. Riley, I. Urey (2004) ‘The Development Effectiveness of Food Aid
and the Effects of its Tying Status’, OECD Development Assistance Committee
WFP cash aid programs growth — from $139m in 2010
to $1.37b in 2014.
In 2013, WFP procured 2.1m tons of food valued at US$1.16b in 91 countries, 50%
purchased by LRP (86% in developing countries). WFP increased number of projects
on resilience building activities (land&infrastructure improvements, education etc.)**

18. WFP procurements
the UN procurement system - Global Market
(https://www.ungm.org/)
Large companies dominate export trade in developing countries (Cargill and
ADM controls 75% of world grain market). And small farmers in the poorest
(most hungry) countries may not benefit from increased LRP because of bad
infrastructure and UNGM contract and financial terms*.
direct local procurements from small farmers
P4P pilot program in 2008-2014 in 20 countries = generated $150m for
farmers and WFP (400k tons of food in 5 years). Additionally farmers’
trainings and infrastructural improvements (local food resilience projects) were
conducted.
*Small-scale farmers in Mozambique also produced a surplus in 2005. Yet, they are unlikely to
supply food to WFP because of higher costs due to the country’s poor road and infrastructure.

19. HOW FOOD AID CAN BE IMPROVED?
Advocate to untie food aid from domestic procurement and shipping
requirements and increase cash aid
Food aid should not be linked to donor’s commercial transactions
Food aid should be provided in cash for increased LRP and
supporting projects
In-kind food aid from donors - only in acute local/regional food
shortage and/or non-functioning local food markets
Monetization of food aid should be limited and replaced with cash
donations, to avoid displacement of local production or imports
All food aid transactions must be notified to the FAO and WTO
*The State of Food and Agriculture. FAO 2005

20. – FAO. The State Of Food And Agriculture. Rome 2006
“In many cases, food aid is used because it is
the only available resource, not because it is
the best solution to the problem at hand.
Increased and more flexible resources are
needed to address food insecurity.”
”
“Better to teach hungry persons how to fish,
than give them fish every day.”
”
– Very old folk saying