Developmental Food Aid: Alternative Approaches

1. Developmental Food Aid: Alternative Approaches Presented by Paul Macek, Sr. Director pmacek@worldvision.org Integrated Food and Nutrition Presented at the International Food Aid and Development Conference June 29, 2011

2. What works in Monetization Recent events and certain donor trends have resulted in opportunities to pilot new approaches to food assistance. Examples include: Local and Regional Purchase Cash-based transfer mechanisms Development of new food products Renewed focus on food quality and safety Greater food processing capacity in the developing world What works in Monetization does have a beneficial impact The tool box—current and expanded

3. What works in Monetization? • The following are based on a 2010 review by Michigan State University, of the WV monetization program in Mozambique: • Monetization can improve quality standards, increased competition in these markets, and price stability. • With appropriate analysis can be done in a way that there is no disincentives to local production (oil seed or wheat). • When there is enough competition and the timing is right, prices approached import parity prices for the hard wheat varieties. • The development of bidding system and relatively easy payment schedules can aid small, new processors especially for wheat, and the decision to distribute to a range of buyers may have assisted in establishing more competitive markets. (Mozambique went from 2 buyers to 6 in the course of 10 years)

4. Local and Regional Purchase (LRP) • WV has initiated local and regional purchase program under the USDA Pilot Program in Zambia, Uganda, and Kenya • LRP can be an appropriate mechanisms for responding to acute needs in an emergency context • Focus is saving lives • Ensure access to food • LRP can have important impacts on developmental food aid programs, especially when combined with social safety net programs and work with on-going producer groups • Zambia STEP OVC Program • Kenya Drought response in Moyale District

5. Cash based transfer mechanisms • Cash transfers are recognized as an acceptable mechanisms to provide access to life saving food in emergency and development programs: • WFP supported cash voucher program in Zambia • WFP supported cash transfer mechanism in Haiti • USDA supported cash voucher programs in Northern Uganda • The proliferation of cell phone-based technology has allowed for increased efficiencies and automation of transactions

6. Innovation in food products is occurring all over the world Focus on Ready-to-Use Therapeutic Foods (RUTFs) and Ready-to-Use Supplemental Foods (RUSFs) as part of recuperative and preventative approaches to food security The food products are increasingly customized to address specific micronutrient deficiencies of certain populations, such as PLWHAs and school aged children Development of new food products

7. A greater recognition that good nutrition is important to food security. Nutrition is key to good health. Beginning to look at micronutrient quality of food WV with PATH is piloting the use of UltraRice in WFP Burundi Growing concern about food safety, example mycotoxins, including aflatoxin. Renewed focus on food quality and safety

8. Development of greater food processing capacity in the developing world • Local food processing capacity throughout the world is increasing • -linking farmers, especially smallholder and women farmers to markets • -New technologies/packaging for improved food processing are developing and • -a diversification of food products • Some examples include locally made RUTFs • Locally made RUTFs for food by prescription • In Zambia, Land O’Lakes and WV are purchasing High Energy Protein Supplement, a product similar to CSB.