P4P procurement update - 1st quarter 2013
The latest P4P consolidated procurement report shows that 229,152 metric tons of commodities have been delivered to WFP as of March 2013. This means US$92 million more directly in the pockets of smallholder farmers. More details on P4P procurement and an analysis of the overall P4P’s performance is provided in the report.
Highlights from the report includes:
- Since the launch of the P4P pilot initiative in September 2008, through 31 March 2013, 310,651 metric tons (mt) of commodities at a value exceeding US$121 million have been contracted from farmers’ organizations, small and medium-scale traders, food processors, Commodity Exchanges and Warehouse Receipt Systems in 20 P4P pilot countries.
- Of this, 229,152 mt (74%) has been delivered to WFP. At the time of this analysis, 19,387 mt (6%) were still to be delivered while 62,112 mt were confirmed defaulted. Defaults decreased to 22% of all completed contracts which amount to a total volume of 279,261 mt.
- Smallholder farmers have not only sold to WFP but also to other buyers. As the overarching objective of P4P is to connect smallholder farmers to markets, this is a positive outcome of the pilot. According to data collected to date in 12 countries, commodities sold to markets beyond WFP total over 150,000 mt.
- The share of P4P purchases as a percentage of total local purchases by WFP in the pilot countries rose from 8% in 2009 to 12% in 2010 and declined to 8% in 2011. Deliveries to date on 2012 contracts indicate a considerable increase of the P4P share to 13%.
- Over the past year, procurement of pulses was doubled relative to 2010 and 2011. This can be linked to the P4P gender strategy, as one means to empower women is to increase procurement of pulses which is considered a “women’s crop” in most traditional settings. During the first quarter of 2013, pulses accounted for 24% of contracted commodities.