Sudan P4P Country Programme Profile

Size: px
Start display at page:

Download "Sudan P4P Country Programme Profile"

Transcription

1 Sudan P4P Country Programme Profile P4P Strategy Sudan s P4P programme will use WFP s procurement to strengthen farmers organizations that are emerging after the protracted and devastating civil war. Organizations that are better able to access profitable markets and help their members increase production to respond to these markets will contribute to the economic integration and stabilization of significant populations, including refugees and IDP s. WFP s commitment to buy high quality produce from selected organizations complements the work of supply-side partners who are providing the means (i.e., inputs, infrastructure, and technical assistance) necessary for organizations and farmers to respond to the demands of the market with increased production and better marketing skills. Ultimately, WFP expects participating farmers organizations to develop the capacity for competitive tendering on the broader commercial market. To improve prospects for sustainability, WFP will also purchase from small traders to strengthen their marketing capacities as another, private sector, conduit to markets for smallholder farmers. The following sections summarize salient elements of Sudan s strategy as they apply to the four key activity areas of P4P productivity, group marketing, market development, and policy environment. Table 1 concisely summarizes key points of the strategy and extends it into areas of specific procurement strategies, gender, targets for farmers and procurement, alignment with the national agenda, and risks. Smallholder Productivity In spite of fertile soils and growing conditions that permit two growing seasons per year, insecurity in Sudan s Greenbelt Equatoria States (Western, Central, and Eastern) has reduced smallholder productivity to subsistence levels. Cereal production has increased as people have returned to Sudan since the 2005 Comprehensive Peace Agreement but still remains low. The reasons are many. Very poor transportation infrastructure (roads) severely limits smallholder farmers access to markets and the consequent low prices provide little incentive to invest in production. Even if farmers had a motive to invest in increased production, they often lack the means. Limited access to labor, seeds, and tools; limited mechanization and knowledge of agricultural practices; and very limited access to production credit constrain farmers ability to increase yields or cultivate more land. Limited access to storage and knowledge of post harvest handling practices also result in post harvest losses of about 20 percent. Sudan s P4P programme includes a significant capacity building component largely implemented through partnerships which will provide farmers with the necessary inputs and technical skills to increase yields and reduce the post harvest losses. The reliable and functional market provided by P4P (and others as markets develop) will enable farmers to expand land production and employ more advanced farming techniques to reach higher levels of production. Version 1 1 October, 2010

2 Group Marketing (Farmer Organizations) Since 2005, new farming groups have emerged in Southern Sudan to replace those destroyed during the war. Several of the larger farmers cooperatives have the capacity to produce and market commodities. And, while many of the smaller groups do not have the capacity to seek markets, some aggregate commodities when opportunities occur and thus save on transportation costs. Sudan s programme will buy from formal farmer organizations, smallholder farmers working independently or in the traditional nafeer system, and from very small traders. The programme will phase farmers organizations with different capacities in over time using modalities appropriate to individual groups needs. During the first year the programme anticipates forward contracting with five well established organizations in Central and Western Equatoria. Concurrently, it will assess the capacities of smaller groups and buy through forward contracts from those able to aggregate sufficient quantities. The programme will also use direct contracts to buy from organizations with sufficient capacity and small tenders with small traders. After two years of learning, the programme expects to be able to expand into new areas and partnerships. WFP s procurement will provide farmers with the market signal to invest in production thus catalyzing the activities of supply side partners to provide the means (i.e., inputs, infrastructure, and technical assistance) necessary for organizations and farmers to respond to the demands of the market with increased production and higher quality. Market Development The war left South Sudan with relatively disorganized markets in rural areas. Furthermore, limited production and high marketing costs make local commodities uncompetitive in Sudan s urban markets. Because of the poor transportation infrastructure, few traders come to the farm gate. Instead, farmers must often transport their produce from the field to trading centers to sell. Supply, demand, and cost of transport largely determine price. Sudan s P4P programme will work with organizations, Ministry of Agriculture, and partners FAO) to collect and disseminate market information in order to help farmers understand basic market mechanisms. The programme will also rely on developing the marketing capacity of small traders thereby increasing market access for the smallholder farmers from whom the traders buy. This private sector linkage represents an important element of the programmes strategy for sustainability. Policy Environment The government does not intervene significantly in agricultural markets and recently removed a tax on essential foods. While the upcoming elections make the long-term policy environment uncertain, the current government of South Sudan has pledged to support organized farmers in the region as part of its focus on the agricultural sector and has expressed an interest in establishing a strategic food reserve which could be linked to P4P. Version 1 2 October, 2010

3 Table 1. Strategy Summary 1. Describe the current situation in your country with regard to each of the following. 2. What is required to improve the current situation? 3. How will your P4P programme address these issues (i.e., which partners will you work with on each issue and what impact do you expect from these activities)? Smallholder productivity Productivity is increasing but still low due to: limited access to labor, seeds, and tools; limited mechanization and knowledge of agricultural practices; very limited access to production credit; limited access to storage and knowledge of post harvest handling practices and high post harvest losses. Improved access to production credit. seeds and tools. Training in production practices. Improved access to storage and knowledge of post harvest handling practices. Capacity building; provision of seeds, tools, and fertilizers (BRAC, WFP). Profitable market access Group marketing (farmer organizations) Market development Policy environment The upcoming elections Farmers organizations Smallholder farmers face make the long-term (formal and informal) are many constraints in accessing policy environment emerging after the war. markets. These include: uncertain. However: Few have much capacity poor or nonexistent road Government does not (financial, infrastructure, infrastructure; intervene in commodity or skills) to aggregate and lack of adequate storage markets and recently market members facilities; removed a tax on commodities. absence of markets in rural essential food items. The few higher capacity areas; The government s ag organizations still face poor market information; policy supports organized limited access to markets and farmers. due to poor transportation low quality products The government is infrastructure and limited competing with highquality interested in a strategic markets. imported ones. food reserve which could be linked to P4P. Training in organizational management and business skills. storage facilities. marketing credit. Training trainers in agricultural extension, farming as a business, and post-harvest handling (NGOs/GoSS). Construct/rehabilitate storage facilities to improve quality and provide storage near region of need (World Vision, MLI). Improved transportation infrastructure. Improved knowledge/ skills/infrastructure for value addition and quality enhancement. Facilitate collection and dissemination of market information (WFP, FAO, Ministry of Agriculture). Better communication at the field level between the MoA, the few active INGOs, the local NGOs, and the FOs. Encourage the State Ministries of Agriculture to liaise more frequently with the NGO s involved in the agricultural sector and with FOs.. Version 1 3 October, 2010

4 4. Who will you buy from and why have you chosen to buy from them? 5. How will you buy (i.e., modalities) and why have you chosen to buy in this way? 6. How does your programme address the specific needs of female smallholder farmers? 7. What are your targets for farmers and tonnage, are they consistent with your strategy, and are they realistic within your country context? Elaborate. 8. How would you describe your P4P programme strategy for supporting sustainable smallholder access to profitable markets? How does your approach to procurement and partnerships contribute to supporting sustainable and profitable engagement in markets for smallholders beyond P4P? 9. How is your strategy aligned with the national agenda? 10. What are the main risks and challenges your programme faces in achieving its objectives and how do you expect to address them? Buy from structured farmers organizations because these organizations have the capacity to supply WFP. Buy from smallholder farmers working independently or in the traditional nafeer systems in order to strengthen these their ability to increase production and improve market access. Buy from small traders in order to strengthen the relationship between traders and smallholder farmers and thus improve farmers market access. Forward contracting with low capacity FOs and high capacity FOs in regions with good production potential but poorly developed markets. The security of a forward contract will increase access to credit and facilitate investments in increased production (e.g., seeds, tools cultivating more land). Direct contracting with FOs with the capacity to reliably provide substantial quantities of quality commodities. Small tenders with small traders in regions with surplus production and good transportation infrastructure with the aim of developing working relationships between small traders and producers in order to extend the value chain. The patriarchal society of Southern Sudan makes empowering women important challenging. The programme will: encourage participating organizations to include women as members, leaders, and beneficiaries of training, make at least 25% of all purchases directly from women by the end of the pilot stage, ensure that women collect the money when they do sell, and conduct a study on the impact of local purchases on the role of women and household food security. In the first two years, Sudan s P4P programme conservatively expects to buy up to 1,490 metric tonnes of maize and sorghum from 4,100 farming households implying a level of procurement from each household of about 0.36 mt. The targets articulated in the CIP imply that the programme will buy from different farmers each year. Sudan s P4P programme will use WFP s procurement to strengthen farmers organizations that are emerging after the protracted and devastating civil war. Organizations that are better able to access profitable markets and help their members increase production to respond to these markets will contribute to the economic integration and stabilization of significant populations, including refugees and IDP s. WFP s commitment to buy high quality produce from selected organizations complements the work of supply-side partners who are providing the means (i.e., inputs, infrastructure, and technical assistance) necessary for organizations and farmers to respond to the demands of the market with increased production and better marketing skills. Ultimately, WFP expects participating farmers organizations to develop the capacity for competitive tendering on the broader commercial market. To improve prospects for sustainability, WFP will also purchase from small traders to strengthen their marketing capacities as another, private sector, conduit to markets for smallholder farmers. The P4P initiative addresses the Millennium Development Goal 1 and is also fully aligned with the government s Agricultural Policy Framework which aims to increase smallholder agricultural production. Capacity building schemes under P4P will contribute to the the Ministry of Agriculture s objectives under the Food and Agricultural Policy Framework and capacity building programmes implemented with FAO. Organizations grains do not meet WFP quality standards WFP will mitigate this risk by hiring an independent superintendence firm to test the quality and viability of grains for sale in each pick-up location. Poor road conditions inhibit movement of food partners are working to improve roads and manage travel logistics. Unpredictable harvests WFP will include into its contracts a clause for non-delivery of goods on the basis of natural disasters such as climatic variables and insecurity. Insecurity when insecurity hinders the movement for UN staff, WFP will consider using traders to meet demands. Market distortion the introduction of an effective price discovery mechanism, supported by the implementation of a market information system, will help WFP avoid distorting markets with its procurement. Version 1 4 October, 2010

5 Version 1 5 October, 2010