Unlocking The Value Chain For Smallholder Farmers

The Patient Procurement Platform, a new initiative by WFP and a consortium of end to end value chain actors, facilitates smallholder farmer participation across the entire value chain to raise their marketable surplus and hence livelihoods.

Farmer engagement is driven by multi-year commitments catalyzed through 'patient' buyer contracts. The pre-planting contracts specify minimum floor prices, timelines and quality standards so that farmers can plan beyond the farm gate.

Increasing food security

The platform will make it possible for farmers to plant, harvest and sell enough high-quality crops to boost their income and increase food security by facilitating their access to fair harvest contracts before planting begins, obtaining agricultural inputs to increase yields, and offering other forms of support from consortium members or other providers.

This systemic change in markets will broaden the global supply base to meet increasing demand. WFP is leveraging its market knowledge, past experiences, global footprint and catalytic demand to help the platform reach its goal.

The platform was introduced at the end of 2015 in three African markets. In Rwanda, 20,000 farmers have obtained contracts to sell a combined 8,000 metric tons (MT) of maize to a local buyer. In Tanzania, six local and regional buyers joined WFP to contract 40,000 MT of maize and 5,000 MT of pigeon peas from 40,000 farmers who now have access to loans from local consortium member banks to expand production. In Zambia, three regional buyers joined WFP to contract 52,000 MT of five different commodity crops from family farmers. In 2016, the platform will potentially expand to Uganda, Kenya, Mozambique, Cote d'Ivoire, Malawi, Nicaragua and Honduras.

Engaging with over a million farmers

Over the next three years, the platform aims to engage 1.5 million farmers across 25 countries with US$750 million worth of contracts through a wide array of local, regional and international buyers.

The platform builds on WFP's previous work through Purchase for Progress (P4P), which supported small-scale farmers to include the private sector, which provides extra demand, financing and inputs needed to bring efforts to scale and make the largest impact. Increasing food production and income opportunities is vital to building resilience and food security for the future.

Source: WFP


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