WFPLogan Abassi WFP World Food Programme Food Procurement

©WFP/Logan Abassi ©WFP/ World Food Programme Food Procurement Snjezana Leovac, Procurement Officer Procurement Division World Food Programme, Moscow, 08 October 2013 ©WFP/Martin Specht Presenter:

• THE WORLD FOOD PROGRAMME PROVIDES FOOD ASSISTANCE TO MEET EMERGENCY NEEDS AND SUPPORT ECONOMIC AND SOCIAL DEVELOPMENT WFP provides about 5 million metric tons of food to 100 million people annually 2

Procurement Mission Statement “To ensure that appropriate commodities are available to WFP beneficiaries in a timely and cost-effective manner. ” WFP’s Financial Rules state: “When conditions are equal, preference will be given to purchasing from developing countries. ” 3

How does WFP buy ? • Competitive Bidding (general policy) • Waiver of Competition (direct contracting) (less than 3 suppliers/ urgency/recent contract / from state enterprise etc. ) from • Pre-qualified suppliers 4

Different Procurement Categories • Local/Regional Purchases (through WFP Country/Regional Offices, in countries/regions where the beneficiaries are located) • International Purchases (through WFP Headquarters on international markets ) 5

Control functions in procurement • Bid Opening Committee (ensures integrity of formal bidding process) • Purchase Committee (evaluates & advises procurement authority) • Committee on Commodity, Transport & Insurance (post facto review of purchases) In addition: Internal Auditors, Oversight & Investigation Unit, External Auditors, UNJIU (UN Joint Inspection Unit) 6

Conditions Affecting Food Procurement • Donor country conditions/restrictions (origin/ destination/quality /packing /marking etc. ) • Recipient country requirements (product/origin/packing/import regulations) • Impact on local market/economy (harvest/lean period/surplus) 7

Quality control - Superintendent • Weight/quality/packing certificates to be issued by a first class superintendence company appointed and paid for by WFP. Packing bags will be of a uniform weight, and will be serviceable. • Superintendents to have free access to the cargo at the time and place of production and/or loading and to reject any lot showing discrepancies with any contract terms including those in respect of quality, packing and marking. Such lot to be replaced immediately at Sellers' time and expense. The Seller will inform WFP if unable to replace it. No cargo can be transported to final destination before the superintendence company's final approval. • Superintendents to inspect that packing (bags, cartons, tins, etc. ) are made with new, strong materials. Packing of poor quality will be rejected by the superintendents and will be replaced at the Seller's expense. Superintendents to inspect markings as per WFP's instructions. 8

Total Purchases in 2012 2. 1 million mt US$1. 1 billion 9

Where did we Purchase Food in 2012? North America 15, 449 mt US$12. 7 million Latin America 73, 437 mt US$48. 3 million 93 Countries Europe 309, 910 mt US$238. 5 million Asia 986, 746 mt US$507. 2 million Africa 706, 249 mt US$290. 6 million Oceania 14, 494 mt US$6. 1 million 75 Developing 18 Developed 10

WFP Food Purchases Origin of Goods as per DAC Category By each category DAC Category Quantity mt % mt Value US$ % US$ LDC 683, 625 32. 46% 282, 277, 430 25. 58% LIC 41, 646 1. 98% 16, 057, 595 1. 46% LMIC 781, 009 37. 08% 382, 861, 017 34. 70% UMIC 300, 619 14. 27% 163, 476, 595 14. 82% Developed 299, 386 14. 21% 258, 746, 362 23. 45% 2, 106, 285 100. 00% 1, 103, 418, 998 100. 00% TOTAL By grouped categories DAC Category % mt Value US$ % US$ 725, 271 34. 43% 298, 335, 025 27. 04% LMIC/UMIC 1, 081, 628 51. 35% 546, 337, 611 49. 51% Subtotal 1, 806, 899 85. 79% 844, 672, 636 76. 55% 299, 386 14. 21% 258, 746, 362 23. 45% 2, 106, 285 100. 00% 1, 103, 418, 998 100. 00% LDC/LIC Developed TOTAL DAC: Development Assistance Committee LDC: Least Developed Countries Quantity mt LIC: Other Low-Income Countries (per capita GNI < $1, 005 in 2010) LMIC: Lower Middle-Income Countries (per capita GNI $1, 006 - 3, 975 in 2010) UMIC: Upper Middle-Income Countries (per capita GNI $3, 976 – 12, 275 in 2010) 11

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Focus on Blended Foods Percentage of Quantity (268. 5 thousand mt) Super Cereal includes: Corn Soya Blend, Rice Soya Blend and Wheat Soya Blend Super Cereal Plus includes: Corn Soya Blend++ and Wheat Soya Blend++ Acronyms CSB++ HEB RSB RUSF WSB++ Corn Soya Blend Plus High Energy Biscuits Rice Soya Blend Ready to Use Supplementary Foods Wheat Soya Blend Plus 13

Food Origin – Developing Countries 77% from developing countries* (value in US$ thousand) Country Afghanistan Algeria Argentina Bangladesh Benin Bolivia Brazil Burkina Faso Cambodia Cameroon Central Afr. Rep. China Colombia Côte d'Ivoire Cuba Dem. Rep. Congo Ecuador Egypt El Salvador Quantity (mt) Value (US$) 985 1, 389 8, 170 9, 212 9, 666 15, 971 1, 428 14, 705 11, 673 20, 679 3, 378 396 551 1, 807 3, 399 1, 246 13, 902 331 6, 959 2, 851 3, 767 7, 358 5, 459 7, 250 1, 124 5, 143 6, 577 9, 057 1, 510 268 872 893 1, 551 666 7, 455 479 5, 793 2, 121 Country Ethiopia Ghana Guatemala Haiti Honduras India Indonesia Iran Jordan Kazakhstan Kenya Kyrgyzstan Laos Lebanon Lesotho Liberia Madagascar Malawi Malaysia Quantity (mt) 112, 454 7, 489 8, 028 3, 481 22, 605 318, 275 80, 663 903 4, 033 77, 719 37, 415 1, 026 1, 332 1, 421 5, 670 3, 213 3, 835 35, 374 2, 248 Value (US$) 46, 765 4, 001 4, 879 3, 522 15, 756 104, 014 91, 338 326 4, 063 22, 250 14, 012 523 678 2, 368 2, 038 1, 871 1, 603 15, 001 3, 082 14

Food Origin – Developing Countries (value in US$ thousand) Country Mali Mexico Morocco Mozambique Myanmar Namibia Nepal Nicaragua Nigeria Pakistan Paraguay Philippines Republic of Congo Rwanda Senegal Sierra Leone South Africa South Sudan Quantity (mt) Value (US$) Country 17, 490 1, 531 1, 757 12, 245 52, 373 869 2, 694 2, 299 4, 793 28, 114 152, 601 1, 658 4, 430 9, 091 2, 633 2, 796 5, 069 24, 794 260 2, 082 1, 442 3, 171 9, 053 69, 012 1, 210 2, 585 10 15 22, 938 2, 646 623 74, 419 925 10, 829 448 433 38, 269 397 Sri Lanka Quantity (mt) Value (US$) 2, 152 807 State of Palestine 18, 322 11, 198 Sudan Syria Tajikistan Tanzania Thailand Timor Leste Togo Turkey Uganda Ukraine Uruguay Uzbekistan Viet Nam Yemen Zambia Zimbabwe 65, 336 17, 541 232 77, 119 1, 098 1, 476 24, 477 98, 101 34, 934 54, 441 2, 256 176 42, 433 59, 642 66, 208 2, 048 21, 933 15, 852 27 23, 843 962 2, 034 11, 550 68, 974 13, 776 17, 453 1, 111 163 19, 189 25, 156 19, 136 1, 098 Grand Total 1, 806, 899 844, 673 15

Food Origin - Developed Countries 23% from developed countries* (value in US$ thousand) Country Quantity (mt) Australia Belgium Bulgaria Canada Estonia France Germany Greece Hungary Ireland Italy Japan Netherlands Norway Russian Federation Spain United Arab USA Grand Total Value (US$) 14, 494 68, 168 18 10, 508 299 27, 163 2, 396 1 1, 160 565 80, 538 4, 392 8, 194 108 65, 166 1, 692 9, 582 4, 941 299, 386 258, 746 6, 115 56, 919 338 6, 502 552 53, 203 2, 243 20 1, 865 2, 803 58, 773 12, 574 5, 717 337 36, 991 1, 304 6, 334 6, 157 16

Food Origin - Top 15 countries Ranked by Value (value in US$ thousand) Country Value %* India Indonesia Pakistan Turkey Italy Belgium France Ethiopia South Africa 104, 014 91, 338 69, 012 68, 974 58, 773 56, 919 53, 203 46, 765 38, 269 9. 43 8. 28 6. 25 5. 33 5. 16 4. 82 4. 24 3. 47 Russian Federation Yemen Myanmar Tanzania Kazakhstan Sudan 36, 991 25, 156 24, 794 23, 843 22, 250 21, 933 3. 35 2. 28 2. 25 2. 16 2. 02 1. 99 Grand Total 742, 236 67. 28 17

Food Procurement initiatives • Purchase for Progress (P 4 P) • Forward Purchase Facility (FPF) 18

What is the P 4 P Initiative ? • "Purchase for Progress (P 4 P) uses WFP’s purchasing power to offer smallholder farmers opportunities to access agricultural markets, to become competitive players in those markets and thus to improve their lives“. • P 4 P started in September 2008 and should make up roughly 10% of a country’s local procurement activities. • 21 COs in Africa, Asia and Latin America have P 4 P projects. • Commodities: maize, beans, MML, sorghum, rice, HEB, etc. • From September 2008 to date total quantity purchased is over 195, 000 mt. 19

What is the FPF ? “Demand-driven global approach to purchase food ahead of individual CO call forwards, based on aggregated needs and resources projections. ” Reduce supply lead-times Improve on-time delivery of food OBJECTIVE S Enable procurement at best time/season (including developing countries markets) Shorten response time (emergencies) Cost Savings 21

• Established by the Executive Board in June, 2008 under Special Account (SA) Forward Purchase Facility with an initial fund of US$60 million and a ceiling of US$ 150 million. • Piloted in Horn of Africa from 2008 to end of 2009: • Executive Board authorized in November, 2010 the transfer of US$ 150 Million of the Working Capital Fund to FPF special account, to be used as a revolving fund. Following this an FPF Advisory Group was established to advise the Chief Financial Officer (CFO). • In 2012 more than 785, 000 mt of commodities were purchased using FPF Special Account. 22

Food Procurement Trends 23

Vendor Requirements • Legal capacity to enter into a contract • Specialized in the concerned commodity and has the necessary experience • Has the financial standing to honor a contract • Has proven ability to perform 24

United Nations Global Marketplace • Vendors apply through UNGM (United Nations Global Marketplace www. ungm. org) – United Nations Common Vendor Management System • Document “ How to Do Business with WFP” can be found on www. wfp. org • WFP Vendor Management Committees review applications and inform vendors of the results 25

How to do business with WFP Know WFP’s requirements Register as a WFP vendor Participate in tenders SUBMIT THE BEST OFFER COMPETITIVE TENDERING SUBJECT TO VENDOR REGISTRATION. § International Registration to be completed On-Line through UN Global Market Place, www. ungm. org § Local/Regional Registration through Country Office c/o WFP Representative / Country Director contact details on www. wfp. org

UN World Food Programme Via C. G. Viola 68/70 – 00148 Rome, Italy Corinne Fleischer Director Procurement Division UN World Food Programme Email: corinne. fleischer@wfp. org Tel: +39 06 6513 2293 Mary-Ellen Mc. Groarty Deputy Director Procurement Division UN World Food Programme Email: mary-ellen. mcgroarty@wfp. org Tel: +39 06 6513 3099