Memorandum submitted by the UK Forum on
Agricultural Research for Development (UKFARD)
(Submission of Written Evidence prepared by
Dr R.J. Hodges of the Natural Resources Institute (NRI) of the
University of Greenwich on behalf of the UK Forum on Agricultural
Research for Development (UKFARD) to the parliamentary International
Development Committee), with some inputs from other UKFARD members.
RELEVANCE
1. This submission relates to the Issue
of "the effectiveness of WFP's development food aid activities".
Specifically, it addresses the role that increased local and regional
procurement of food aid could have in stimulating market development,
which a key but yet underexploited development impact of food
aid. Expanded local and regional procurement also offers an approach
to buying cheaper food and so relates to the Issue of "WFP's
strategy to meet increased needs in the context of higher food
prices". It also implies the role of greater investment in
agricultural research and development to enhance sustainable production
of food locally and regionally.
IMPACT OF
LOCAL AND
REGIONAL PROCUREMENT
OF FOOD
AID ON
DEVELOPMENT
Background
2. A number of UK institutions including
the Natural Resources Institute (NRI) of the University of Greenwich,
Reading University, and Rothamsted Research, have a long history
of working with food aid agencies and donors supporting sustainable
food production, eg World Food Programme (WFP), USAID, EC, DFID,
Trusts and Foundations and NGOs dating back to the 1970s and before.
Activities have included the preparation of staff handbooks on
food aid commodity management for WFP, practical training in the
field, and continued technical backstopping in agricultural R&D
and advice on food aid commodity and supply chain management on
a day-to-day basis.
3. Many food aid consignments are in the
form of tied aid, ie donated in-kind, the food aid being produced
in the donor country. Where the aid is not tied, but provided
simply as funding, the food aid agency has options to procure
locally in surplus areas within the recipient country or regionally
in neighbouring countries where there is a surplus.
4. EC Council Regulation No. 1292/96, dealing
with food aid policy, food aid management, and special operations
in support of food security, endorses the growing practice of
food aid procurement within the benefiting country or from a neighbouring
country. This practice is widely believed to assist in the development
of local agriculture and livelihoods in the source countries,
and is thus also linked with agricultural research and development.
It can also be expected to contribute to the development of more
transparent and efficient domestic and regional grain marketing
systems in the countries concerned, with positive impacts on rural
incomes. This will be increasingly important given concerns about
future global food shortages.
5. The question has been posed as to whether
the expected development benefits of local and regional procurement
can be demonstrated and evaluated. A preliminary study undertaken
by NRI in Sudan in 2003 on behalf of EuronAid (an operational
NGO food security network, www.euronaid.net) revealed that whilst
the sourcing of food aid from third world countries certainly
could be expected to have development benefits for the agri-business
systems of the supplying economies, there was very little hard
evidence to support the rationale behind this significant pillar
of EC policy.
6. A further NRI study in Ethiopia and Uganda
funded by DFID's EC-PREP Programme (2004-05), and extensive reviews
of published and grey literature, confirmed the earlier indications
that this was an under-researched and under-documented subject.
Although WFP and food aid NGOs typically undertake impact assessments
in areas where food aid is distributed, they very rarely examine
the impact resulting from the sourcing of food aid in third world
agricultural systems in neighbouring countries or within the recipient
country, and in particular how this impacts on the sustainability
of local and regional agricultural production. The reports generated
from this project can be found on the EC-PREP web site http://www.ec-prep.org
(under "Research Projects", "Policy implications
arising from the development impact of local and regional procurement
of food aid"). A further policy document developed from these
NRI studies, entitled "Local and Regional Procurement of
Food Aid in Africa: Impact and Policy Issues" can be found
on line at the Journal of Humanitarian Assistance (http://jha.ac).
7. Nevertheless, it was clear from the limited
information available from the two studies that local and regional
procurement of food aid can have a range of positive impacts on
the development of the agricultural and agri-business systems
in the source economies, and that the EC policy is justified.
Positive development impacts identified include:
— Promoting agricultural food production.
— Encouraging new entrants to the grain
trade.
— Improving food quality.
— Stimulating regional trade.
— Promoting agro-industry and food
processing.
— Promoting rural employment.
These development benefits do not accrue from
inter-continental shipments of food aid from northern producing
countries. However, it is important to highlight that to achieve
this, technical support will be required to overcome the many
barriers to local production that currently exist.
Issues
8. Food aid takes place in a highly politicised
environment. The USA has strongly favoured shipping US-grown food
aid commodities. DFID is understood to favour local and regional
procurement, in common with most northern European countries,
France being the main exception because it still supplies French-grown
food aid commodities.
9. The World Food Programme, for which the
USA is the most substantial donor, favours local and regional
procurement on grounds of cost effectiveness and faster delivery
over commodities shipped inter-continentally. For these reasons
it welcomes receipt of untied donor funding that it can use for
this purpose. However, it does not normally give a high priority
to the potential developmental contributions accruing to the local
and regional supplying economies.
10. There is a growing perception among
the public and international donors that provision of food is
a never ending process. Signs of food aid fatigue are apparent.
However, procurement in local and regional agricultural economies
will give more food for the same investment by reducing international
transport and handling costs, would provide substantial investment
into those economies, would strengthen market development, and
would put more money into rural economies.
11. If it is procured locally or regionally,
"food aid should be regarded as an investment tool for rural
development rather than only as a relief tool to meet the short-term
needs of hungry people".
Requests to the International Development Committee
12. That the Government take advantage of
the UK's lead in this internationally important aspect of food
aid policy to actively promote the significance of the development
benefits expected to arise from the provision of untied aid for
the local and regional procurement of food aid, which is in turn
underpinned by appropriate investment in agricultural research
and development for increased food production locally and regionally.
13. That the Government uses its influence
in Brussels to ensure that the provisions of EC Council Regulation
No.1292/96 relating to local and regional procurement of food
aid are continued and possibly strengthened.
14. That the Government specifically uses
its influence with WFP, to create a greater awareness of the development
aspects that can be expected to accrue from local and regional
procurement, and to request that WFP gives this aspect of food
aid greater priority. Where local circumstances are favourable
and food aid is expected to continue at significant levels over
several years, WFP should support the development of local market
institutions, financing systems such as warehouse receipt systems
and commodity exchanges, as well as recognising the importance
of agricultural research and development for increased food production
that is sustainable. As the leading food aid agency, WFP should
be much more proactive in this area.
15. That the Government funds, or encourages
other donors to fund, further research and evaluation of existing
development impacts. A greater understanding of the impacts could
offer management opportunities for optimising the positive contributions
to the rural communities. Support will be required in the areas
of research and extension, post harvest agricultural technology,
technology transfer, and financing instruments. In addition, there
is a requirement for greater investment in food production initiatives
and education in schools to support food security.
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