ISSUE 7 PURCHASE FOR PROGRESS MARCH 2013 NEWSLETTER ISSUE 54 MARCH 2013 Despite crisis in Mali, P4P activities continue without interruption Last year’s military coup in Mali and the ensuing conflict provided considerable challenges to farmers’ organisations (FOs), as well as P4P activities. However, P4P was able to maintain its assistance and commodities delivered to WFP since the beginning of the crisis have surpassed contracted quantities. What proved crucial in this time of political crisis was P4P’s extensive network of partners with a strong field presence, as well as the support of the Government and the use of innovative contract modalities. Since the beginning of the pilot in 2009, P4P in Mali has focused on establishing strong partnerships to provide comprehensive support in capacity building to targeted farmers’ organisations. P4P works together with three national and two international NGOs which have a well-established field presence in P4P areas of operation. Following the military coup in March 2012, movement of WFP staff was hindered by security restrictions. However, local partners continued to monitor and supervise the progress of the project, while at the same time continuing to provide critical support services to the FOs, including marketing their commodities to buyers beyond WFP. With the support received, FOs which were affected by conflict (such as four assisted groups which are based in the region of Mopti), were able to aggregate crops and deliver them to WFP warehouses, thereby honouring their contracts. By maintaining a P4P presence through local partners, even in times of crisis, smallholder farmers and traders have come to trust WFP as a trusted buyer and were thus encouraged to fulfil their contracts. In addition to continued assistance by P4P’s local partners, the Government of Mali has also maintained its support to enhancing agricultural production. In spite of the financial crisis following the suspension of bilateral and multilateral aid, the Government subsidized fertilizer and seeds for the main agricultural commodities. To enable smallholder farmers to access these subsidised inputs in this critical period, WFP signed forward delivery contracts for about 2,000 metric tons with eleven FOs. This type of contract not only provides FOs with an assured market and price, but also commits WFP to renegotiate the price in case market prices increase by more than 10%. In addition, forward delivery contracts provide credibility and can be used as collateral with financial institutions, helping FOs to secure loans. Through the use of this contract modality in Mali, P4P was able to assist FOs to tackle some of their financial and other input challenges that would otherwise have hampered their agricultural production. As forward delivery contracts were signed before the planting season in June, FOs were able to secure necessary loans and production inputs at the right time. Following favourable seasonal rains, the harvest was good and FOs were able to deliver higher quantities than originally contracted to WFP. The combined efforts of P4P, the Government and local partners, as well as the strong commitment of the farmers themselves, has helped P4P in Mali to remain operational and successful throughout the on-going crisis. However, the wider impact of the conflict on markets beyond WFP still needs to be carefully observed. P4P is currently conducting a survey to assess availability and readiness of financial institutions to provide loans to farmers’ organisations during the coming season. Inside this Issue: Interview with Sheryl Schneider, P4P Guatemala Country Coordinator on page 2 P4P National Annual Reviews: DRC, Burkina Faso, Ghana and Nicaragua on pages 3-5 Howard G. Buffett and Eva Longoria visit P4P in Guatemala and Honduras on page 5 Other updates and information on page 6 20 P4P pilot countries Asia: Afghanistan Africa: DRC, Ethiopia, Ghana, Kenya, Burkina Faso, Liberia, Mali, Malawi, Mozambique, Rwanda, Sierra Leone, South Sudan, Tanzania, Uganda, Zambia Central America: El Salvador, Honduras, Guatemala, Nicaragua The conflict in Mali has triggered displacement within Mali and into neighbouring countries. It has uprooted hundreds of thousands of people and placed pressure on vulnerable host communities still recovering from last year’s Sahel drought. The P4P initiative currently works with 12 farmers’ organisations based in four regions in the south of the country. Women farmers packaging cow peas. Copyright: WFP/Romain Bouveau.
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ISSUE 7
PURCHASE FOR PROGRESS
MARCH 2013 NEWSLETTER
ISSUE 54
MARCH 2013
Despite crisis in Mali, P4P activities continue without interruption
Last year’s military coup in Mali and the ensuing conflict provided considerable challenges to farmers’ organisations (FOs), as
well as P4P activities. However, P4P was able to maintain its assistance and commodities delivered to WFP since the
beginning of the crisis have surpassed contracted quantities. What proved crucial in this time of political crisis was P4P’s
extensive network of partners with a strong field presence, as well as the support of the Government and the use of
innovative contract modalities.
Since the beginning of the pilot in 2009, P4P in Mali has focused on
establishing strong partnerships to provide comprehensive support in
capacity building to targeted farmers’ organisations. P4P works
together with three national and two international NGOs which have
a well-established field presence in P4P areas of operation. Following
the military coup in March 2012, movement of WFP staff was
hindered by security restrictions. However, local partners continued
to monitor and supervise the progress of the project, while at the
same time continuing to provide critical support services to the FOs,
including marketing their commodities to buyers beyond WFP.
With the support received, FOs which were affected by conflict (such
as four assisted groups which are based in the region of Mopti), were
able to aggregate crops and deliver them to WFP warehouses,
thereby honouring their contracts. By maintaining a P4P presence
through local partners, even in times of crisis, smallholder farmers and traders have come to trust WFP as a
trusted buyer and were thus encouraged to fulfil their contracts.
In addition to continued assistance by P4P’s local partners, the Government of Mali has also maintained its support
to enhancing agricultural production. In spite of the financial crisis following the suspension of bilateral and
multilateral aid, the Government subsidized fertilizer and seeds for the main agricultural commodities. To enable
smallholder farmers to access these subsidised inputs in this critical period, WFP signed forward delivery contracts
for about 2,000 metric tons with eleven FOs. This type of contract not only provides FOs with an assured market
and price, but also commits WFP to renegotiate the price in case market prices increase by more than 10%. In
addition, forward delivery contracts provide credibility and can be used as collateral with financial institutions,
helping FOs to secure loans. Through the use of this contract modality in Mali,
P4P was able to assist FOs to tackle some of their financial and other input
challenges that would otherwise have hampered their agricultural production.
As forward delivery contracts were signed before the planting season in June,
FOs were able to secure necessary loans and production inputs at the right
time. Following favourable seasonal rains, the harvest was good and FOs were
able to deliver higher quantities than originally contracted to WFP.
The combined efforts of P4P, the Government and local partners, as well as
the strong commitment of the farmers themselves, has helped P4P in Mali to
remain operational and successful throughout the on-going crisis. However,
the wider impact of the conflict on markets beyond WFP still needs to be
carefully observed. P4P is currently conducting a survey to assess availability
and readiness of financial institutions to provide loans to farmers’ organisations
during the coming season.
Inside this Issue:
Interview with Sheryl Schneider, P4P Guatemala Country Coordinator on page 2
P4P National Annual Reviews: DRC, Burkina Faso, Ghana and Nicaragua on pages 3-5
Howard G. Buffett and Eva Longoria visit P4P in Guatemala and Honduras on page 5
Other updates and information on page 6
20 P4P pilot countries Asia: Afghanistan Africa: DRC, Ethiopia, Ghana, Kenya, Burkina Faso, Liberia, Mali, Malawi, Mozambique, Rwanda,
Sierra Leone, South Sudan, Tanzania, Uganda, Zambia Central America: El Salvador, Honduras, Guatemala, Nicaragua
The conflict in Mali has
triggered displacement within
Mali and into neighbouring
countries. It has uprooted
hundreds of thousands of
people and placed pressure on
vulnerable host communities
still recovering from last year’s
Sahel drought. The P4P
initiative currently works with
12 farmers’ organisations based
in four regions in the south of
the country.
Women farmers packaging cow peas.
Copyright: WFP/Romain Bouveau.
Interview with Sheryl Schneider, P4P Country Coordinator in Guatemala
Purchase for Progress Guatemala began in late 2008 in Guatemala and to date has supported over 13,000 smallholder
farmers from 72 cooperatives. These cooperatives have achieved sales of more than 19,500 metric tons of food to both
WFP and markets beyond WFP. Sheryl Schneider, P4P Country Coordinator in Guatemala, reflects on achievements and
future plans.
1) What has been the most interesting thing about P4P during
the last 4 years?
The most interesting thing, for me, has been the change in attitudes, the self
-appreciation of the participants as they transition from subsistence farmers
to agricultural entrepreneurs. Women in particular have shown significant
changes in their vision. A genuine interest in working the land and
commercializing the product of their labor has awakened in many of them.
They are much more open to adopt new technologies, to follow the advice
of technical experts and endorse the technical knowledge acquired, to such
a degree that many of them are already an important reference for the
whole community.
2) Working with partners is one of the pillars of P4P. How has this experience been in Guatemala?
P4P works together with partners that have provided lots of support in the area of capacity development. We
have achieved through P4P a synergy of cooperation efforts that allows organizations and communities to be
actively engaged in a real development process. As Keith Andrews, Representative of the Inter-American Institute
for Cooperation in Agriculture, said: “P4P is truly an innovative initiative, focused on rural development
throughout the value chain.”
3) What are the notable results from the P4P initiative?
The importance in the quality of the grains produced and commercialized is highlighted by many stakeholders as a
key result. In fact, the advisors of the Ministry of Agriculture have made numerous references to the “application of
the quality standards of the farmers and small traders in the field.” At the same time, the maize processing industry
for tortilla flour (Demagusa) has made a repeated reference “to the increase in the farmers’ production of quality
grains.” Another important result, we can cite that the smallholder farmers participating in P4P in Guatemala have
improved their food security. In addition the Government led initiative, “Triángulo de la Dignidad” (Triangle of
Dignity) was inspired by the P4P model, recognizing the importance of providing access to credit (see below).
4) What do you consider to be the lessons learned during this period?
One of P4P’s measures of success is the significant quantity of grains sold to WFP and other buyers. For me,
success must be measured by the change of mind that occurs when rural dwellers stop thinking in terms of
subsistence and open themselves to production and the marketing of surpluses. This leads to the partnership of
men and women, the access to inputs at competitive prices, good agricultural practices, and access to credit for
production and trade at reasonable interest rates. It also means that people can negotiate with buyers with their
heads held high, confident of the quality they produce.
5) What are the main challenges P4P faces in 2013?
For 2013, we face the challenge of analysing what has worked and what hasn’t, of presenting recommendations
regarding the implementation of this concept to the Government and other
partners. A first attempt in Guatemala has been the “Triángulo de la
Dignidad” (Triangle of Dignity), supported by the current government, which
provides technical assistance through the reactivation of agricultural extension
services, access to credit, and links with potential buyers, all directed to the
memberships of agricultural organizations. P4P is an initiative that explores
adapting working modalities to the realities of each participating country. In
Guatemala we have special challenges posed by the country’s cultural and
geographical diversity.
ISSUE 54 Page 2
P4P Guatemala Country Coordinator,
Sheryl Schneider.
Copyright: WFP/P4P Guatemala
Triángulo de la Dignidad
The “Triangle of Dignity” is an
initiative of the Ministry of
Agriculture, Livestock and Food
that seeks to help over 67,500
smallholder farmers by providing
credit for the production of
basic grains.
Page 3 ISSUE 54
P4P Democratic Republic of the Congo - 2013 National Annual Review
Introduction
The DRC P4P national Annual Review took place on March 12th – 13th, 2013 in Kinshasa and was attended by 22
participants from WFP, FAO and implementing partners (SNV, Oxfam, and BUCODED), as well as representatives of the two main P4P donors in DRC – Belgium and France. The objectives of the review were to share lessons on P4P
achievements, challenges, opportunities and risks in 2012 and plan for 2013. The review, facilitated by Martin Kabaluapa, Kenya P4P Country Coordinator, was co-chaired by Francis Bere, DRC P4P Country Coordinator and Michel Ngongo,
P4P’s counterpart at FAO.
DRC’s P4P model is unique among the 20 pilot countries, as WFP acts only as buyer of last resort. Smallholders have little incentive to invest in producing surpluses because trade is minimal and yields lag far behind those of other
countries in the region. WFP guarantees to buy a certain amount of their produce if they are unable to find a buyer. This role as buyer of last resort also helps to promote the development of local markets and supports local small traders.
The bulk of P4P supported smallholders’ marketable produce has been purchased by local traders. By the end of 2012, 264 metric tons of maize had been contracted in DRC by WFP since P4P began in 2010.
For more on how this model works, read the story of Mama Mbango Amba here.
Opening Remarks, Presentations and Debates
In their opening remarks, WFP and FAO representatives highlighted the main achievements in 2012 and expressed their commitment to work together in the
implementation of P4P in DRC. The Minister of Agriculture and Rural Development stated that P4P aligns with the national strategic framework for
poverty alleviation and the five-year plan for the development of the agricultural sector. The Minister insisted on the need to work with local
communities in all aspects of the project to guarantee its sustainability.
Achievements
Following presentations on the first day, the second day was dedicated to
reviewing progress to date and planning for 2013. FAO and Oxfam have assisted smallholders to organize themselves into farmers’ organizations, which
P4P is now supporting. Through its partners, P4P has rehabilitated and constructed roads, markets and household granaries to enable smallholders to
access tools and seeds. A market information system has been put in place to disseminate prices through local radios stations or by SMS.
Warehouses have been built in Kabalo (Katanga province) and Bikoro (Equateur province) and mobile storage units and cleaning, drying and bagging equipment installed for smallholders to gather and prepare commodities for the market. Old
WFP vehicles, bicycles and trolleys were made available or distributed to allow smallholders to transport the yields from the field to the warehouses.
Suggested Way Forward
Stay the course: As P4P is a capacity development pilot, it requires time to have an impact.
Partners’ needs: Some local NGOs, many of which are essential for wider and deeper impact of P4P activities,
require organizational capacity development and funding.
Capture lessons: Identify the best strategy for the commercialization of farmers’ produce.
Ensure sustainability: Investments such as construction/rehabilitation of stores and provision of equipment should be provided on a cost-sharing basis.
Sustainable exit strategy needs to be defined.
Promote inclusion: Invite more stakeholders to participate in the pilot such as field staff from the Ministry of Agriculture, women producers and traders, seed companies, the private sector and state owned companies in
charge of river and railway transport.
Advocate for trade infrastructure: The main challenge for the marketing of farmers’ produce is the poor state of transport infrastructure.
Consultation and exchange with partners lies at the heart of P4P. Beyond the global Annual Consultation that gathers up to 200
stakeholders from around the world every year, each P4P pilot country holds its own national Annual Review. This is an opportunity for the P4P pilot countries to discuss past successes, challenges and the best way forward for implementing over the next project
year. The following pages offer country specific insights into the challenges, collaborations and successes of P4P in DRC, Burkina Faso, Ghana and Nicaragua.