Pro-Smallholder Food Assistance - A Background Paper for WFP's Strategy for Boosting Smallholder Resilience and Market Access Worldwide
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Fighting Hunger Worldwide Pro-Smallholder Food Assistance A Background Paper for WFP’s Strategy for Boosting Smallholder Resilience and Market Access Worldwide October 2017
Front cover: Adamu Alidu, Balchisu Iddrisu, Amishetu Salifu, and Samata Dawuda winnow rice at a P4P project site in Nyankpala, Northern Region, Ghana. WFP/Nyani Quarmyne Grace Mukamana, Vice President of KOREMU farmer organization, shows a hermetic storage bag in the KOREMU warehouse in Rukiri village, Rwanda. WFP/Rein Skullerud 2
Pro-Smallholder Food Assistance A Background Paper for WFP’s Strategy for Boosting Smallholder Resilience and Market Access Worldwide 3
FFA participants construct half- moons from soil to improve water conservation in Koumari village, Dosso, Niger. WFP/Rein Skullerud 4
Table of Contents Summary ..................................................................................................... 6 Background and Objectives ......................................................................... 8 Smallholders in WFP’s Strategic Plan 2017-2021 ...................................... 11 Key Concepts and Principles ..................................................................... 12 Food Assistance ................................................................................. 12 Food Systems .................................................................................... 13 Resilience .......................................................................................... 13 Smallholder Farmers ........................................................................... 14 Farmer Organizations.......................................................................... 14 Aggregators and Aggregation Systems .................................................. 16 Pro-Smallholder Procurement............................................................... 17 Gender Equality and Women’s Empowerment ........................................ 18 Strategic Positioning ................................................................................. 19 Why Smallholders? ............................................................................. 19 Why WFP? ......................................................................................... 20 Strategic Framework ................................................................................. 22 Purchase-Driven Support ...................................................................... 23 Theme-Based Support ......................................................................... 26 Integrated Support .............................................................................. 30 Alignment with Strategic Results 3 and 4 ............................................... 31 Partnerships.............................................................................................. 32 Key Risks and Mitigation Measures ........................................................... 33 References ................................................................................................ 36 Acronyms .................................................................................................. 38 List of Figures and Tables ......................................................................... 39 Annex 1: Examples of activities for purchase-driven support to smallholders ......... 40 Annex 2: Examples of activities for theme-based support to smallholders.............. 41 Annex 3: Illustrations of integrated pro-smallholder food assistance activities........ 42 5
Summary WFP’s Food Assistance for Assets programmes directly and indirectly benefited 23.7 million people in 53 countries, most of them smallholders. Sustainable Development Goal Target 2.3 to Purchase for Progress initiatives in 35 countries double smallholder productivity and incomes by supported more than 1.5 million members of 1,000 2030 presents major challenges for national smallholder farmer organizations, generating authorities. All actors with relevant strengths, benefits for up to 7.5 million people. Home Grown knowledge, and capacities must take deliberate School Meals programmes were supported in 45 steps to more effectively support pro-smallholder countries. 93,000 smallholders in Uganda received national efforts and investments. Due to their support under the Post-Harvest Loss initiative. The physical, economic, social, and political Rural Resilience Initiative reached 40,000 farmers marginalization, millions of smallholders are in four African countries, with benefits for 200,000 chronically food insecure and vulnerable to shocks. people. And the recently-launched Farm to Market Smallholders produce much of the world’s food, Alliance reached over 70,000 farmers with training but face major challenges in profitable market and other forms of support in three pilot countries. engagement. Smallholders are therefore strongly represented in the World Food Programme’s Pro-smallholder food assistance draws on (WFP’s) food assistance initiatives, either as direct principles and priorities set out in a number of or indirect beneficiaries, or as sources of locally corporate policies that address issues vital to procured food. WFP is fully committed to Agenda smallholders. These include policies on Food 2030 and especially to leaving no one behind, Procurement in Developing Countries (2006), including smallholders. At issue for WFP is how to Safety Nets (2012), School Feeding (2013), leverage its strengths, knowledge, and capacities Building Resilience for Food Security and Nutrition to most effectively support national efforts to boost (2015), South-South Cooperation (2015), Gender productivity, resilience, and market access for (2017), Environment (2017), Climate Change smallholders in a range of contexts. (2017), and Nutrition (2017). This document presents the background analysis In addition to this comprehensive normative for WFP’s strategy for food-assistance based framework, guidance materials have been support to smallholders across the globe. A major developed for most smallholder-facing initiatives. aim of this strategy is therefore to overcome the These include Food Assistance for Assets, simplistic perception of WFP’s role in rural areas as Smallholder Agricultural Market Support, Home a mere deliverer of food handouts to passive Grown School Meals, Food Procurement, Nutrition, recipients. The message is that, working closely Food Quality and Safety, and Systemic Food with partners, WFP possesses a wide array of Assistance. capacities to develop context-specific solutions to fundamental challenges facing smallholders. These Despite these supportive policies and guidance solutions entail innovations that build resilience, documents, a framework that provides an increase market access, and bridge emergency integrated view of WFP’s pro-smallholder portfolio relief, recovery, and long-term development and establishes a unified rationale for its contexts. component thrusts does not yet exist. This strategy fills that gap, but not as an operational WFP’s portfolio of smallholder-facing food guide. Rather, it aims to support leaders and assistance initiatives has been developed relevant staff at country and regional level as they progressively over many years. It is now wide and advocate for and develop food assistance deep, covering the bulk of WFP’s countries of initiatives that address the challenges and operation. The current scale and reach of is the opportunities facing smallholder farmers in their portfolio are significant, with food assistance countries and regions. It also targets counterparts defined not as old-style “food aid” handouts of in host country government and partner agencies physical food commodities, but rather as a charged with overseeing policies and investments comprehensive range of instruments, activities and related to food assistance, as well as agricultural platforms that together empower vulnerable and and broader rural development, aiming to clarify food-insecure people and communities to access the rationale, principles, and content of WFP’s nutritious food in different contexts. In 2016, worldwide efforts to support smallholders. 6
Key concepts and standards underpinning pro- which WFP typically operates). Direct intervention smallholder food assistance are defined: food by WFP is not essential. assistance, food systems, resilience, smallholder farmers, farmer organizations, aggregators and Each of WFP’s purchase-driven and theme-based aggregation systems, pro-smallholder procurement, interventions can stand on its own and generate and gender equality and women’s empowerment. significant benefits for targeted smallholders. Much Together these concepts and standards establish greater value can be generated through integrated the motivation for and potential of pro-smallholder measures. A number of successful examples of food assistance. integration exist or are being actively explored. Explicit efforts to develop guidance for some To articulate the case for pro-smallholder food integrated activities have commenced. In all cases, assistance as a multi-faceted platform for delivering careful targeting, geographical coordination and support to smallholder farmers, two questions are proper sequencing of activities are vital, aiming for posed and answered: (1) Why does WFP care about context-specific trajectories to enhanced smallholder farmers? WFP cares because productivity and resilience. Given the highly smallholders need to become competitive actors in dispersed nature of smallholder agriculture, the food systems, yet they live in rural areas where private sector features prominently in many poverty and hunger are concentrated, making them interventions, as does collective action among and their families the most vulnerable and food- smallholders. Gender equality in access to inputs, insecure groups; (2) What does WFP have to technologies, finance, and knowledge is critical. contribute to smallholder-led agricultural Improved nutrition is a cross-cutting objective. development, and to the broader rural and structural transformations within which that Smallholders face massive challenges that extend development is embedded? WFP occupies a unique well beyond the capacity of WFP to address on its position at the intersection of short-term own. The 500 partnerships developed with public, humanitarian action and longer-term hunger private, and civil society organizations under the reduction and thus is able to work with a wide P4P initiative signal the profound partnership range of partners to apply numerous innovations to imperative of pro-smallholder food assistance. The the many causes of food insecurity. private sector is the engine of sustainable change. Government leadership and civil society The strategic framework for pro-smallholder food engagement are fundamental to ensure inclusive assistance builds directly on the perspective on outcomes. Complementary strengths and capacities smallholders signalled in WFP’s Strategic Plan 2017- of WFP and the other two Rome-based United 2021, which seeks to leverage WFP’s core Nations agencies (RBA), the Food and Agriculture capacities and accumulated experience in ways that Organization of the United Nations and the support national efforts to achieve the Sustainable International Fund for Agricultural Development, Development Goals. The framework derives open considerable scope for enhanced partnership principally from corporate Strategic Objective 2 to to boost national efforts to enhance smallholder Achieve Food Security. Under this Strategic resilience and market engagement and inclusive Objective, smallholders are the focus of Strategic rural transformation more broadly. Result 3, which is Sustainable Development Goal Target 2.3 to boost their productivity and incomes. Practical considerations based on local experience Smallholders are also strongly implicated in and analysis should define country-level Strategic Result 4 (Sustainable Development Goal approaches. Several risks arise for WFP Country Target 2.4) that aims to ensure sustainable food Offices pursuing pro-smallholder food assistance systems. initiatives and partnerships, falling within eight categories: smallholder production and productivity, Two strategic thrusts are identified, depending on smallholder storage and aggregation, smallholder whether support to smallholders is driven by food and farmers’ organization marketing, farmers’ purchases (aiming to help smallholders able to organization capacity, gender equality and women’s produce marketable surpluses overcome challenges empowerment, buyer behaviour, enabling in accessing markets) or rests on theme-based environment, WFP staffing, programme design and interventions (aiming to address the myriad factors implementation. Mitigation measures are proposed. that undermine resilience in the fragile contexts in 7
Nsuma Amoa, a member of an FFA- supported women’s collective in Walewale, Northern Ghana. WFP/Nyani Quarmyne Background and dominates employment, yet generates low incomes (IFAD, 2016a). Not surprisingly, therefore, Sustainable Development Goal (SDG) Objectives Target 2.3 seeks to double smallholder productivity and incomes by 2030. The challenge Smallholder farmers account for 80 percent of facing national authorities seeking to achieve this food produced in Asia and Africa. Smallholder target is immense. All actors with relevant agriculture supports the livelihoods of up to 2.5 strengths, knowledge, and capacities must take billion people worldwide (IFAD, 2015). But these deliberate steps to more effectively support livelihoods are constrained by a range of factors national pro-smallholder efforts and investments. that limit smallholders’ access to technology, finance, knowledge, and markets.1 Many This document presents the background analysis smallholder regions are rendered increasingly for the World Food Programme’s (WFP’s) strategy vulnerable to shocks by climate change to support smallholders. The rationale for the interacting with population growth, seasonal strategy springs from WFP’s strong commitment volatility in prices of key goods (especially to Agenda 2030, and especially to the objective staples), and physical displacement and of leaving no one behind. Due to their physical, commercial disruption due to conflict and civil economic, social, and political isolation, millions strife (WFP, 2017g). Smallholders are prominent of smallholders are chronically food insecure and among households likely to be strongly impacted vulnerable to shocks. They are strongly by structural challenges that will intensify in the represented in WFP’s food assistance coming years – e.g., climate change, water programmes. Given that in many countries in scarcity, and natural resource degradation (FAO, which WFP operates, the bulk of food available in 2016). In many contexts, sustainable growth and local markets originates from smallholder inclusive structural transformation cannot be farmers, WFP’s procurement footprint in these achieved without significant productivity growth markets can provide a basis for partnership with in smallholder agriculture. This is especially true governments and the private sector to catalyse where agriculture looms large in GDP and demand-driven platforms that enable 1 This document uses the terms “smallholders” and “smallholder farmers” interchangeably. The intended meaning is that found in Agenda 2030 in which smallholders include small-scale farmers, fishers, foresters, and pastoralists. 8
smallholders to have sustainable and profitable uptake of new technologies linked to access to engagement with local markets beyond WFP crop insurance, savings, and credit. (WFP, 2016). The Post-Harvest Loss (PHL) initiative promotes affordable post-harvest The principal audience for the strategy are management technologies and practices that leaders and relevant staff in WFP Country Offices cut post-harvest losses significantly. (COs) and Regional Bureaux (RBs) as they advocate for and develop food assistance The Farm to Market Alliance (FtMA, initiatives that address the challenges and formerly known as the Patient opportunities facing smallholder farmers in their Procurement Platform) is based on a global countries and regions. In particular, the strategy partnership with large private companies. It serves as input into CO and RB efforts to seeks to boost smallholder incomes through conceptualize and develop smallholder-related formal long-term contracts backed by food assistance outcomes, outputs and activities facilitation of key value chain services. in Country Strategic Plans, Interim Country The Virtual Farmers’ Market (VFM) pilot Strategic Plans and Transitional Interim Country initiative deploys an app-based digital market Strategic Plans. Also targeted are counterparts in place approach to connect farmers and host country government and partner agencies buyers, enabling them to more easily and charged with overseeing policies and investments transparently negotiate prices and complete related to food assistance, as well as agricultural transactions. and broader rural development. For partners, the document clarifies the rationale, principles, and A comprehensive accounting of the scale and content of WFP’s worldwide efforts to support reach of the portfolio is underway, but has yet to smallholders. be completed. Available data reveal significant coverage. In 2016, WFP implemented FFA WFP’s portfolio of smallholder-facing food activities in 53 countries, benefiting 10.5 million assistance initiatives has been developed steadily people directly, and an additional 13.2 million over many years. It is now wide and deep, indirectly. P4P initiatives in 35 countries covering the bulk of the organization’s countries supported more than 1.5 million members of of operation. The current scale and reach of the 1,000 farmer organizations, generating benefits portfolio are significant. for up to 7.5 million people. HGSM programmes Long-standing Food Assistance for Assets were supported in 45 countries. In Uganda alone, (FFA) programmes deploying the Three- 93,000 farmers received support under the PHL Pronged Approach (3PA) to context initiative. R4 reached 40,000 farmers (benefiting analysis and livelihood programming seek to 200,000 people) in four African countries. FtMA enhance the resilience of smallholder reached over 70,000 farmers with training and livelihoods. other forms of support in three pilot countries The Purchase for Progress (P4P) (WFP, 2016b). programme leverages demand for food from WFP and other institutional buyers in support In addition to these measures that deliberately of smallholders. target smallholders, WFP’s food assistance Home Grown School Meals (HGSM) activities address a range of structural and initiatives connect smallholder farmers to institutional drivers of food and nutrition school meals programmes. These are highly insecurity in smallholder communities, generating prized by governments and regional bodies such benefits as improved nutrition, enhanced worldwide. resilience, gender equality and women’s empowerment, and improved food safety, The Rural Resilience Initiative (R4) alongside important technical and organizational enables vulnerable rural households to capacity development, policy reform, and increase their food and income security in the institutional innovation. face of increasing climate risks through comprehensive risk management, featuring 9
Table 1: WFP policies relevant to pro-smallholder food assistance Policy Principles and Objectives Food Procurement WFP has both procurement and programmatic objectives in food procurement, which must be in Developing balanced. The organization should ensure timely, cost-efficient and appropriate food Countries (WFP, procurement while also emphasizing market development, particularly by working with 2006) farmers’ organizations and small-scale traders. School meals programmes can be a platform to link to other interventions to achieve additional School Feeding developmental outcomes, for example through local procurement of food in order to augment (WFP, 2009) local economies, what is now widely known as HGSM. WFP has a key role in helping governments and partners enhance the coordination and Safety Nets (WFP, flexibility of safety nets. WFP’s experience in nutrition, education and agriculture-related issues 2012) may help foster institutional synergies among safety nets and other sectoral initiatives. Building Resilience for Food Security WFP can help build the resilience of vulnerable farmers through enhanced market access and and Nutrition (WFP, increased availability of financial services. 2015a) South-South WFP supports South-South cooperation around a variety of thematic areas, including Cooperation (WFP, agriculture, through knowledge-sharing, technical cooperation, policy support, joint advocacy, 2015c) in-kind support, and regional initiatives. Gender (WFP, All WFP’s efforts should be tailored to the diverse needs of men and women, ensure equal 2017h) participation, improve decision-making by women and girls, and ensure protection. Local procurement and post-harvest loss reduction can support environmental protection by Environment (WFP, reducing transport needs and increasing worldwide food availability without putting additional 2017i) strain on natural resources. WFP has a role to play in increasing capacity to respond to and recover from climate shocks at Climate Change various levels. This includes risk management, finance and insurance options, community (WFP, 2017j) resilience-building, livelihoods and disaster risk reduction programmes. No single WFP policy could address the full range Third, guidance for strategic positioning is offered, and depth of challenges facing smallholders addressing two questions: “Why smallholders?” worldwide. However, several corporate policies and “Why WFP?” Fourth, a pragmatic but provide principles and objectives that have been comprehensive strategic framework for pro- integrated into WFP’s various smallholder-facing smallholder food assistance initiatives is initiatives (Table 1). presented, including purchase-driven, theme- based, and integrated options. Principles for Guidance documents have been developed for the alignment with two key corporate Strategic majority of WFP’s smallholder-facing initiatives Results (SR) – SR3 on smallholder productivity (WFP, 2017b; WFP, 2017c; WFP, 2017d; WFP, and incomes and SR4 on food systems – are 2017e). However, a framework that provides an established. Fifth, the partnership imperatives integrated view of WFP’s pro-smallholder portfolio associated with pro-smallholder food assistance and establishes a unified rationale for its are set out. Finally, key risks and mitigating component thrusts does not yet exist. This actions are identified. document addresses that gap. The term “pro-smallholder food assistance” is First, the role and importance of smallholders in chosen very deliberately. For WFP, “food the Strategic Plan 2017-2021 are outlined. assistance” refers not to old-style “food aid” Second, key concepts and principles are defined handouts of physical food commodities, but rather and articulated: food assistance, food systems, to a comprehensive range of instruments, resilience, smallholder farmers, farmer activities and platforms that together empower organizations, aggregators and aggregation vulnerable and food-insecure people and systems, pro-smallholder procurement, and communities to access nutritious food in different gender equality and women’s empowerment. contexts (WFP, 2017g). WFP’s activities to support 2 Pro-smallholder food assistance can also be viewed as an illustration of “systemic food assistance”, which is defined as food assistance that addresses deeply rooted and widespread systemic problems in food systems (WFP, 2017f). 10
smallholders are prime examples of food implementation of the SDGs. This focus reflects assistance defined in this comprehensive way, WFP’s dual mandate and its strengths and illustrating how WFP is leveraging its core capacities as demonstrated in its programme of strengths, capacities, and knowledge to support work and the demand for its technical, national efforts toward Zero Hunger.2 operational, and common services. SR 3 of the Strategic Plan is directly linked to SDG Smallholders in Target 2.3 to Increase Productivity and Incomes of Smallholder Farmers. Through SR3, therefore, WFP’s Strategic increasing smallholder productivity and incomes is one of WFP’s primary aims. Because smallholders Plan 2017-2021 are strongly represented in many of the food systems in which WFP operates, they also feature The Strategic Plan 2017–2021 aligns WFP with the prominently in SR4 to Enhance Food System 2030 Agenda for Sustainable Development (WFP, Sustainability. The Strategic Plan points to other 2016). It focuses on ending hunger and less direct impact pathways related to contributing to revitalized global partnerships to smallholders. Increases in smallholder productivity implement the SDGs. It provides a conceptual and incomes should also improve access to food framework for a new planning and operational (SR1) and reduce malnutrition (SR2) for large structure that will enhance WFP’s contribution to numbers of people. Enhanced national capacity country efforts to achieve the 2030 Agenda. (SR5) and greater policy coherence (SR6) should Recognizing that all 17 SDGs are interconnected, boost smallholder productivity and incomes WFP prioritizes SDG 2 on achieving zero hunger (Figure 1). and SDG 17 on partnering to support Figure 1: Smallholders in WFP’s Strategic Plan Source: WFP (2016) 11
Key Concepts given quantity, quality, or value. Focused food procurement is a powerful demand-side tool. These instruments are applied in specific and Principles programmes to pursue a range of objectives for targeted populations, such as nutrition WFP’s approach to supporting smallholders improvement, increased agricultural productivity, reflects its mandate to save lives in emergencies gender equality, education expansion, or disaster while addressing long-term drivers of vulnerability risk reduction. Several supporting activities and and food insecurity. A number of concepts and institutional platforms such as early warning and principles relevant to smallholders underpin and preparedness systems, vulnerability analyses, reflect that dual mandate. needs assessments, supply-chain arrangements, information and communication technology, and Food Assistance capacity development of national agencies, safety nets and social-protection systems define the Food assistance refers to multi-faceted efforts to effectiveness and sustainability of these empower vulnerable and food-insecure people and instruments relative to the objectives. Food communities to access nutritious food (see Table assistance thus extends beyond the traditional 2). It seeks not only to save lives and livelihoods view of “food aid” as transfers of food in the short term, but also to combat the root commodities to hungry people to include causes of hunger over the medium to long term. development and implementation of interventions Food assistance thus includes instruments such as to prevent hunger and address its myriad drivers in-kind food, vouchers, or cash transfers, which and implications. are used to assure recipients’ access to food of a Table 2: Food assistance defined Food Assistance Supportive Activities and Instruments Objectives and Programmes Platforms In-kind food Improved nutrition Early warning and transfers General food distribution preparedness systems Commodity Targeted supplementary feeding Vulnerability analyses and vouchers mapping Increased resilience Cash transfers – Needs assessments Food and cash for assets, skills and public physical and Impact assessments works digital Increased agricultural productivity Supply chain arrangements Cash (value) Pro-smallholder food procurement Information and vouchers – communication technology physical and Post-harvest management digital Capacity development of Increased school enrolment national agencies, safety Food purchases School meals nets and social protection Take-home rations systems Gender equality Food and cash for training and education Disaster risk reduction Food and cash for assets and public works Source: WFP (2017g) 12
Food Systems food assistance. The resilience and overall performance of food systems thus hinge on how Food systems are interlocking networks of effectively these problems are handled. relationships that encompass the entire range of functions and activities involved in the production, processing, marketing, consumption, Resilience and disposal of goods that originate from Resilience is the ability of a system, community agriculture, forestry, or fisheries. This includes or society exposed to hazards to resist, absorb, inputs required and outputs generated at each accommodate to, and recover from the effects of step (FAO, 2013b). The scope of food systems a hazard in a timely and efficient manner, thus extends beyond physical food commodities, including through the preservation and to cover the goods and services required for food restoration of its essential basic structures and production, transformation, and consumption – functions (FAO/IFAD/WFP, 2015b). It is therefore i.e., agronomy, farm input provision, product a vital focus of humanitarian assistance, food harvesting, transport, storage and handling, assistance, and broader development processing, finance, wholesaling and retailing. investments. With increasing climate risks driving Security, political, policy, and climatic factors food insecurity and vulnerability, food assistance impact the cost and efficacy of these functions expertise can be put to use to help populations to and activities. In the long run, the food system is recover from shocks, prevent them from a key element of structural transformation, which destroying livelihoods and minimize the use of historically has been the only sustainable negative coping mechanisms. At household and pathway out of poverty. community levels, the core drivers of enhanced resilience are diversification of production In the short run, the food system is the arena in systems, diversification in income sources, which many of the poor make their living, and improvements in education, increased borrowing also where they face risks to their livelihoods – and savings, increased remittances from urban such as those linked to volatile food prices areas, improved management of natural (Timmer, 2014). Food systems everywhere are resources and more effective public institutions changing rapidly and deeply as a result of such (USAID, 2013). Also vital are gender equality and forces as urbanization, income growth, and women’s empowerment. At system and sector shifting consumer diets brought on by broader levels, effective early warning and preparedness structural transformation of economies (Reardon platforms are key. Food assistance initiatives that and Timmer, 2012; Timmer, 2014). Supply chain promote these outcomes enhance resilience integration, capital-intensive technology change, (USAID, 2017). expanded use of digital devices and internet access, and emergence and enforcement of For WFP, efforts to strengthen resilience should private standards of quality and safety are primarily target those who are food insecure or at spurring and accentuating the upheavals risk of becoming so. In most cases, this means (Reardon, 2015; Reardon and Timmer, 2012 and individuals and groups living in extreme poverty 2014; Tschirley et al., 2015a and 2015b). or close to the poverty line in rural areas. It also includes people living in fragile environments WFP’s experience and analysis point to three where conflict, natural disasters or other major deeply-rooted and related systemic problems in events can disrupt food systems or impede food systems in which millions of livelihoods are access to adequate and nutritious food for at embedded: (1) the bad year or lean season least part of the population. The type of problem; (2) the last mile problem; and (3) population group, its livelihood strategies and the good year problem (WFP, 2017f). When asset base, the institutional environment and the ignored or inadequately addressed the three type of shock or stressor all inform the practical systemic problems contribute to risks and definition of “resilience” that applies in each vulnerabilities that generate chronic hunger. By context.3 weakening food systems they also increase the risk that these systems will collapse under shocks, leading to food emergencies that call for 3 These principles also inform the strategies of the other two RBAs (FAO/IFAD/WFPa, 2016). 13
Smallholder Farmers volume and infrequent trade in small quantities of bulky and relatively low value products; and There is no unambiguous global definition of a spatially thin input markets. As a result, smallholder farmer.4 But as signalled by the smallholders are difficult to serve individually, terminology, scale of operation in terms of land either as sellers of their produce or as buyers of holding size is generally used as a classification inputs and services. Farmer organizations (FOs) criterion. For example, smallholders are often are the principal mechanisms through which this viewed as those farming less than two hectares. challenge is addressed. FOs encompass a variety However, even this farm size is considered of voluntary and self-governing farmer “large” in some countries or regions within collectives formed at local, district, and national countries. And where hunting, forestry, and levels. They allow members to develop skills and fishing are important in livelihoods, land size capacities that help them to: more effectively may be inadequate as a criterion. As a result, engage in collective contracting and brokering; other parameters are sometimes used, including access and disseminate market information; the volume of production, the source and access and link members with financial services; amount of available labour, and the value of negotiate and manage win-win partnerships with capital and inputs. other operators along agricultural commodity value chains; articulate a shared vision of a For WFP, if a host country has an accepted common and attractive future; and build definition of smallholder farmers under which it networks for cooperating on common objectives collects and reports agricultural and related data, and challenges (IFAD, 2016). such a definition should be followed whenever adequate. In countries where there is no clear Experience under the P4P pilot highlighted the definition, the two-hectare criterion may be importance of understanding the nature of FOs in employed, taking into account other livelihood terms of formality and core capacities. Three options as appropriate. Where explicit types of FOs were identified (Table 3): recognition of the importance of women among 1. Tier 1 FOs are typically informal. They tend smallholders is lacking, this must be to be small in size, with between 30 and 250 incorporated. For example, women may struggle members. They are often made up of small to own land and therefore be excluded from groups at the village level, and may not be definitions of smallholder farmers based upon officially registered with relevant authorities. land size. Because SDG Target 2.3 aims to boost They generally have low technical and smallholder productivity and incomes, these two organizational capacity. Tier 1 FOs are likely outcomes therefore represent the overarching able to aggregate and sell up to 50 mt of objectives of pro-smallholder food assistance. agricultural produce in a single sale. Women Even where smallholders are not direct smallholders tend to be members of this beneficiaries or participants, improvements in category of FO, suggesting that gender their productivity and incomes remain the equality may be most strongly advanced at motivation of food assistance-based investment this level. and capacity development in food systems. 2. Tier 2 FOs are umbrella organizations which typically operate at district or regional level. Farmer Organizations These umbrella organizations are collections of Tier 1 FOs, and can have more than 1,000 The vulnerability and food insecurity prevalent in members. Tier 2 FOs tend to be officially smallholder areas reflects several physical and registered with relevant regional or national institutional realities. These include: gender authorities. They ordinarily have moderate to inequalities; wide spatial dispersion of high technical and organizational capacity. production; low on-farm storage capacity; low- Activities may cover a number of products in 4 Other commonly used terms include small family farms and small-scale farmers. 14
a given area. FOs with medium technical and incomplete or inaccurate. Nevertheless, the organizational capacity would be able to consensus is that most smallholders are not handle up to 1,000 mt in a single sale. members of FOs (AGRA, 2010). For those who Those with high capacity would be able to are members, positive outcomes are not accommodate more than 1,000 mt in a automatic. Men and better-off members often single sale. derive more services from FOs than do women 3. Tier 3 FOs are typically national-level and poorer members. Inclusively beneficial umbrella organizations, which include a collective action that advances equality in all number of Tier 2 FOs, and can have well dimensions must be deliberately articulated and over 10,000 members. They frequently meticulously sustained. Local authorities must include other relevant industry stakeholders be on guard against opportunistic registration in their focus value chain. If dealing in as FOs by small-scale traders. agricultural products, these relatively high- capacity FOs can handle well over 1,000 mt Despite these challenges and difficulties, the in a single sale. evidence on viable alternatives to using FOs as links to smallholders is thin. Possibilities include private entrepreneurs providing key market At all levels, FOs are fraught with challenges engagement services at a fee, or large off- and difficulties linked to governance, takers using local agents to provide operations, financing, strategy, and policy complementary productivity-enhancing services engagement. This is especially true of Tier 1 to smallholders as they purchase their produce. organizations. Most countries do not possess Out-grower schemes are another option. In all comprehensive databases on FOs. Where such cases, effective aggregation is fundamental. data have been collected, they are often Table 3: Types of farmer organizations Aggregation Tier Level Registration Membership Overall capacity capacity Informal, and may Able to aggregate Composed of small not be officially Low technical and and sell up to 50 Village or groups at village Tier 1 registered with organizational mt of agricultural local level, with 30 to relevant capacity produce in a 250 members authorities single sale Moderate to high Medium capacity: Officially technical and up to 1000 mt registered with Collection of Tier 1 organizational in a single sale District or relevant regional FOs, with more capacity, with Tier 2 regional or national than 1,000 activities often High capacity: authorities members covering a number more than 1000 of products in a mt in a single given area sale Cover a number of Tier 2 FOs, often Officially exceeding 10,000 registered with members, and High technical and Well over 1,000 Tier 3 National relevant regional frequently including organizational mt in a single or national other relevant capacity sale authorities industry stakeholders in their focus value chain 15
Members of a P4P-supported farmers’ organization undergo training in Mozambique. WFP/Charlie Barnwell Aggregators and Efforts to strengthen inclusive aggregation systems empower farmers to work together to Aggregation Systems build collective businesses, increasing their An aggregator is any organization that actually bargaining power and access to markets. or potentially assembles farmers’ outputs in Effective and inclusive pro-smallholder order to facilitate sale to buyers at favourable aggregation systems allow farmers to engage terms and conditions. Aggregation systems only with intermediaries that add value along the encompass a variety of organizations to which supply chain. This will enable smallholders to sell smallholder farmers have access at local, district more quality crops while earning a larger share and national levels. These organizations are of the market price. either formal (i.e., legally registered) or informal. Membership is typically voluntary. Providing Building aggregator capacity enables more market access to smallholder farmers at effective and efficient procurement from favourable conditions is often one of the main smallholder farmers. Farmer organizations, for objectives of these organizations. In addition, example, often offer an option for higher-quality they frequently seek to provide a range of products that are subject to better traceability services to their members, such as facilitating and standards protocols than farm-gate trader access to inputs, credit, financial services, and products, as farm-gate traders rarely hold improved post-harvest handling technologies. smallholder farmers to quality or packaging Examples include: small, medium, and large standards. Selling through traders can also farmers’ organizations; small, medium, and large result in volatile prices, high credit costs, and traders; certified warehouses; satellite collection trader measurement error. Furthermore, lessons points; agro-processors; agro dealers; and other learned at the group aggregator level can trickle service providers that also assemble farm down into households. Building aggregator outputs. capacity can help individual members understand key lessons about budgeting, gender equality, and production practices that improve household well-being. 16
Pro-Smallholder minimum percentages of purchases from smallholders, again backed by a traceability Procurement system. Pro-smallholder procurement refers to a deliberate strategy or approach from a public COs have tested not only different contract or private buyer to procure from smallholder types but also different mechanisms for farmers with the objective of improving their aggregation. In addition to FOs, COs have also access to formal markets. This should thereby worked with small and medium scale traders boost incentives for adoption and application of and structured trading platforms such as productivity-enhancing technologies and warehouse receipt systems and commodity practices. Demand can be from private or exchanges, along with linking smallholders to public sources. Three elements are identified: processors. A number of COs have bought (1) consistent demand for quality food; (2) processed food such as high-energy biscuits targeted gender-specific capacity strengthening and fortified flour from processors using raw of smallholders, typically through FOs but not materials sourced from WFP-supported FOs. exclusively so; and (3) coordination and linkage support for providers of key supply Together, these contracting and aggregation chain services from private, public, and NGO modalities provide COs with the flexibility and actors. guidance required for pro-smallholder procurement strategies suited to their During the P4P pilot, WFP tested different ways particular contexts. of procuring staple foods (primarily cereals and pulses) from smallholders, aiming to identify Analysis and experience indicate that the models that could sustainably promote following conditions should be included in any smallholder agricultural development and pro-smallholder procurement strategy: access to public and private sector markets. 1. A guaranteed minimum volume of demand WFP’s procurement from smallholders and targeted at smallholder farmers; small/medium traders (the demand pillar) was 2. Use of contracts that allow fair and open intended to provide the inducement and negotiation between the farmers and buyers motivation for action around the P4P using commonly agreed price information development hypothesis. WFP designed the sources; and new procurement modalities specifically to deal with the difficulties that smallholder farmers 3. Whenever possible, pro-smallholder buyers face in selling to WFP. The pro-smallholder should also provide or deliberately facilitate procurement modalities fell into four general the provision of supply-side services categories: (1) pro-smallholder competitive (training, access to inputs, access to credit, (“soft”) tendering; (2) direct contracting; (3) market information, and gender forward contracting; and (4) processing sensitization) which define first-order options. barriers and opportunities for market-led productivity and income growth. New contracting modalities currently being piloted with COs include: (1) mandate contracting in which traders enter into contracts with farmers on WFP’s behalf, backed by a traceability system; (2) direct non- committal food supply agreements featuring pre-marketing season contracts with FOs based on estimated production and demand, and price call-offs according to market conditions; and (3) conditional contracting featuring 17
Gender Equality and exists in multiple domains, WFP food assistance focuses activities at the micro (household) and Women’s Empowerment the meso (community) level, including farmer Gender equality is the state in which women and organizations. Priorities include: mainstreaming men enjoy equal rights, opportunities, and gender in policies/programmes, making gender entitlements. For WFP, promoting gender analysis systematic, identifying challenges, equality means providing food assistance in ways targeting relevant strategies, actions, monitoring that assign equal value to women and men while and evaluation of results and capacity respecting their differences (WFP, 2017h). The strengthening of staff and partners on gender treatment of women and men should be issues. impartial and relevant to their respective needs. Women’s empowerment is the process through Application of the gender-transformative which women achieve choice, power, options, approach to food security and nutrition applies control, and agency in their own lives. It is a goal fully to smallholder-related food assistance in its own right. To be empowered, women must interventions. For example, under P4P, HGSM, have not only equal capabilities and equal access and FtMA, women smallholders’ economic to resources and opportunities to those of men, empowerment is pursued through three major but also the ability to use these rights and channels: (1) women’s participation in sales to opportunities to make choices and decisions as WFP and other formal markets; (2) women’s full and equal members of society. Rights to participation and leadership in FOs; and (3) own, control, and use land, water, and other women’s influence over decisions at the productive resources are especially important. household and FO level related to agricultural production, marketing, and profits from sales. For WFP, this means that food assistance policies More broadly, since adopting the IASC Gender and programmes must create conditions that Marker that tracks whether a project fully facilitate, and do not undermine, the possibilities addresses the particular needs, vulnerabilities for women’s empowerment. The emphasis is not and priorities of women, men, girls, and boys the only on economic empowerment, but also the percentage of WFP projects with a potential to social, political, and personal empowerment on contribute significantly to gender equality have which economic empowerment is based. increased from 24 percent in 2012 to 100 Recognizing that power is multi-locational and percent in 2016 (WFP, 2017g). A farmer participating in the joint UN project Accelerating Progress towards the Economic Empowerment of Rural Women shows the results of her harvest in Bhagwanpur, Nepal. WFP/Santosh Shahi 18
Strategic 3. The three systemic problems in food systems – bad year or lean season, last mile, and good year – converge more Positioning directly on smallholder farmers than on any other single group on the planet, with The case for food assistance as a platform for women being especially hard-hit; delivering support to smallholders is not always intuitively obvious to all stakeholders. 4. Numbering over 500 million worldwide, Especially challenging to overcome in some smallholders reside in the rural last mile, contexts are perceptions of WFP as an are exposed to weather-induced bad years, organization concerned only with delivering and suffer through good-year outcomes “food aid” commodities in emergencies. WFP’s every harvest. The physically and identity as an innovative actor and partner in economically remote, low-productivity, transition and development contexts is not subsistence-oriented production systems always recognized. As a result, WFP’s pursued by smallholders combine with poor comparative advantage in the pro-smallholder on-farm storage and post-harvest development agenda is seldom fully management technologies and practices to appreciated. generate meagre incomes that can support equally meagre and unhealthy diets. Such The P4P pilot helped to change the narrative. diets – typically featuring heavy As noted in the final evaluation of the P4P pilot, consumption of relatively cheap starchy P4P has transformed WFP’s relationship with staples – cannot support healthy lives. Not governments and other national and surprisingly, smallholders are chronically international stakeholders concerned with vulnerable and food insecure and thus smallholder-led agricultural development. strongly represented in WFP’s food Especially powerful and clearly appreciated by assistance programmes. governments is the model of smallholder- 5. Due to gender inequalities, many vulnerable oriented, market-based, micro-level and food insecure women are smallholders, interventions in staple food sectors. who therefore feature prominently as beneficiaries and participants in WFP’s food But important gaps remain. COs must have assistance initiatives. crystal clear answers to two questions: (1) 6. For these and several related reasons set Why does WFP care about smallholder out in the Strategic Plan, improving farmers? (2) What does WFP have to smallholder livelihoods is captured in SDG contribute to smallholder-led rural Target 2.3, which is WFP’s Strategic Result development, and to the broader rural and 3. WFP has an obligation to support host structural transformations within which rural country and global efforts to meet these development is embedded? targets. Why Smallholders? 7. The Strategic Plan also notes that, as captured in SDG Target 2.4 (WFP’s SR4), WFP is concerned about the plight of improved smallholder livelihoods also smallholders because: impact on food system functioning in the 1. Despite growing urbanization, poverty and many contexts and countries in which WFP hunger are concentrated in rural areas, is called to operate. Again, WFP has an where smallholders and their families obligation to support host country and comprise the most vulnerable and food- global efforts to strengthen these food insecure groups. systems via SR4 on enhanced food systems. 2. Without empowered and resilient smallholders operating as competitive actors in food systems, Zero Hunger and other important SDGs are not achievable. 19
Why WFP? smallholder farms, WFP’s procurement footprint in these markets can provide a basis for WFP’s unique and powerful contributions to partnerships with governments and the private smallholder livelihood improvements spring from sector to catalyse demand-driven platforms that several sources: enable smallholders to have sustainable and 1. WFP occupies a unique position and role at the profitable engagement with local markets beyond intersection of short-term humanitarian action WFP (WFP, 2015b). and longer-term hunger reduction and is thus 7. Enhancing the marketing, productivity and keenly aware of the full implications for livelihood opportunities of smallholders (especially smallholders of broken, disrupted, inequitable, women and youth) is a powerful way to improve and flawed food systems. Measures to overcome, food security and nutrition, complementing WFP’s correct, or attenuate the impacts of these food- wide portfolio of ongoing efforts in this area. system problems constitute the bridge between Strengthened capacity for risk management is humanitarian action and hunger reduction. especially important. WFP’s demand-side 2. The food assistance delivered by WFP and programmes for supporting smallholders’ access partners is an inherently public endeavour built on to agricultural markets leverage its procurement many layers of commercial activity. WFP therefore footprint and expertise in agricultural markets – has a deep understanding of both public and and those of other public and private buyers – to private dimensions of the performance problems contribute to building resilient food systems, the affecting smallholders in food systems, and production and processing of nutritionally diverse relevant solutions. foods, pro-smallholder aggregation systems, improved post-harvest management, and 3. In many of the countries in which WFP operates, catalysing sustainable commercial and smallholders loom large in the most vulnerable institutional market development for and food insecure regions and communities. WFP smallholders. has a substantial operational presence in these areas, and routinely supports partners to promote 8. WFP routinely collects and analyses data and smallholder livelihoods and resilience-building information about drivers of food security and linked to food security and nutrition, climate vulnerability, with a focus on conditions in change adaptation, gender equality and women’s markets for key foods, typically employing empowerment, youth employment, risk systematic gender analysis and cutting-edge management, and strengthened sustainability and digital technology. Detailed supply chain food systems. information about the food systems in which WFP operates is also regularly compiled and analysed. 4. WFP’s installed capacity for smallholder-focused When analysed together, market and supply chain activities and investments is significant based on information can yield powerful insights into capacities and innovations in supply chain challenges and opportunities facing smallholders, management and operations, on one hand, and pointing to high-potential institutional innovations programming and policy design and and policy reforms. implementation, on the other. 9. Rapid innovation in WFP’s overall food assistance 5. WFP is committed to sourcing at least 10 percent portfolio generates gains that spill over to its pro- of its food needs from smallholders at favourable smallholder efforts. Digital technology is not only terms.5 This represents approximately US$120 fundamental to WFP’s day-to-day business million per year that would go more directly into processes, it underpins many innovations to save food systems serving and supplied by lives, enhance logistics, reduce exclusion and smallholders. More importantly, as illustrated deliver more efficient and personalized during the P4P pilot, this commitment by WFP can interventions. Especially important benefits for serve as a potential catalytic force for incremental pro-smallholder food assistance are linked to the investment by other actors in value chains serving rapid uptake and application of digital innovations smallholders. in assessment, sampling, targeting, programme 6. Given that in many countries the bulk of food delivery, monitoring and evaluation. available in local markets originates from 5 A strategy for achieving this target is under development. 20
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