Pro-Smallholder Food Assistance - A Background Paper for WFP's Strategy for Boosting Smallholder Resilience and Market Access Worldwide
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Fighting Hunger Worldwide
Pro-Smallholder Food Assistance
A Background Paper for WFP’s Strategy for Boosting
Smallholder Resilience and Market Access Worldwide
October 2017
Front cover: Adamu Alidu, Balchisu Iddrisu, Amishetu Salifu, and Samata Dawuda winnow rice at a P4P project site in Nyankpala, Northern Region, Ghana. WFP/Nyani Quarmyne Grace Mukamana, Vice President of KOREMU farmer organization, shows a hermetic storage bag in the KOREMU warehouse in Rukiri village, Rwanda. WFP/Rein Skullerud 2
Pro-Smallholder Food Assistance
A Background Paper for WFP’s Strategy for
Boosting Smallholder Resilience and
Market Access Worldwide
3
FFA participants construct half- moons from soil to improve water conservation in Koumari village, Dosso, Niger. WFP/Rein Skullerud 4
Table of Contents
Summary ..................................................................................................... 6
Background and Objectives ......................................................................... 8
Smallholders in WFP’s Strategic Plan 2017-2021 ...................................... 11
Key Concepts and Principles ..................................................................... 12
Food Assistance ................................................................................. 12
Food Systems .................................................................................... 13
Resilience .......................................................................................... 13
Smallholder Farmers ........................................................................... 14
Farmer Organizations.......................................................................... 14
Aggregators and Aggregation Systems .................................................. 16
Pro-Smallholder Procurement............................................................... 17
Gender Equality and Women’s Empowerment ........................................ 18
Strategic Positioning ................................................................................. 19
Why Smallholders? ............................................................................. 19
Why WFP? ......................................................................................... 20
Strategic Framework ................................................................................. 22
Purchase-Driven Support ...................................................................... 23
Theme-Based Support ......................................................................... 26
Integrated Support .............................................................................. 30
Alignment with Strategic Results 3 and 4 ............................................... 31
Partnerships.............................................................................................. 32
Key Risks and Mitigation Measures ........................................................... 33
References ................................................................................................ 36
Acronyms .................................................................................................. 38
List of Figures and Tables ......................................................................... 39
Annex 1: Examples of activities for purchase-driven support to smallholders ......... 40
Annex 2: Examples of activities for theme-based support to smallholders.............. 41
Annex 3: Illustrations of integrated pro-smallholder food assistance activities........ 42
5
Summary
WFP’s Food Assistance for Assets programmes
directly and indirectly benefited 23.7 million people
in 53 countries, most of them smallholders.
Sustainable Development Goal Target 2.3 to Purchase for Progress initiatives in 35 countries
double smallholder productivity and incomes by supported more than 1.5 million members of 1,000
2030 presents major challenges for national smallholder farmer organizations, generating
authorities. All actors with relevant strengths, benefits for up to 7.5 million people. Home Grown
knowledge, and capacities must take deliberate School Meals programmes were supported in 45
steps to more effectively support pro-smallholder countries. 93,000 smallholders in Uganda received
national efforts and investments. Due to their support under the Post-Harvest Loss initiative. The
physical, economic, social, and political Rural Resilience Initiative reached 40,000 farmers
marginalization, millions of smallholders are in four African countries, with benefits for 200,000
chronically food insecure and vulnerable to shocks. people. And the recently-launched Farm to Market
Smallholders produce much of the world’s food, Alliance reached over 70,000 farmers with training
but face major challenges in profitable market and other forms of support in three pilot countries.
engagement. Smallholders are therefore strongly
represented in the World Food Programme’s Pro-smallholder food assistance draws on
(WFP’s) food assistance initiatives, either as direct principles and priorities set out in a number of
or indirect beneficiaries, or as sources of locally corporate policies that address issues vital to
procured food. WFP is fully committed to Agenda smallholders. These include policies on Food
2030 and especially to leaving no one behind, Procurement in Developing Countries (2006),
including smallholders. At issue for WFP is how to Safety Nets (2012), School Feeding (2013),
leverage its strengths, knowledge, and capacities Building Resilience for Food Security and Nutrition
to most effectively support national efforts to boost (2015), South-South Cooperation (2015), Gender
productivity, resilience, and market access for (2017), Environment (2017), Climate Change
smallholders in a range of contexts. (2017), and Nutrition (2017).
This document presents the background analysis In addition to this comprehensive normative
for WFP’s strategy for food-assistance based framework, guidance materials have been
support to smallholders across the globe. A major developed for most smallholder-facing initiatives.
aim of this strategy is therefore to overcome the These include Food Assistance for Assets,
simplistic perception of WFP’s role in rural areas as Smallholder Agricultural Market Support, Home
a mere deliverer of food handouts to passive Grown School Meals, Food Procurement, Nutrition,
recipients. The message is that, working closely Food Quality and Safety, and Systemic Food
with partners, WFP possesses a wide array of Assistance.
capacities to develop context-specific solutions to
fundamental challenges facing smallholders. These Despite these supportive policies and guidance
solutions entail innovations that build resilience, documents, a framework that provides an
increase market access, and bridge emergency integrated view of WFP’s pro-smallholder portfolio
relief, recovery, and long-term development and establishes a unified rationale for its
contexts. component thrusts does not yet exist. This
strategy fills that gap, but not as an operational
WFP’s portfolio of smallholder-facing food guide. Rather, it aims to support leaders and
assistance initiatives has been developed relevant staff at country and regional level as they
progressively over many years. It is now wide and advocate for and develop food assistance
deep, covering the bulk of WFP’s countries of initiatives that address the challenges and
operation. The current scale and reach of is the opportunities facing smallholder farmers in their
portfolio are significant, with food assistance countries and regions. It also targets counterparts
defined not as old-style “food aid” handouts of in host country government and partner agencies
physical food commodities, but rather as a charged with overseeing policies and investments
comprehensive range of instruments, activities and related to food assistance, as well as agricultural
platforms that together empower vulnerable and and broader rural development, aiming to clarify
food-insecure people and communities to access the rationale, principles, and content of WFP’s
nutritious food in different contexts. In 2016, worldwide efforts to support smallholders.
6
Key concepts and standards underpinning pro- which WFP typically operates). Direct intervention
smallholder food assistance are defined: food by WFP is not essential.
assistance, food systems, resilience, smallholder
farmers, farmer organizations, aggregators and Each of WFP’s purchase-driven and theme-based
aggregation systems, pro-smallholder procurement, interventions can stand on its own and generate
and gender equality and women’s empowerment. significant benefits for targeted smallholders. Much
Together these concepts and standards establish greater value can be generated through integrated
the motivation for and potential of pro-smallholder measures. A number of successful examples of
food assistance. integration exist or are being actively explored.
Explicit efforts to develop guidance for some
To articulate the case for pro-smallholder food integrated activities have commenced. In all cases,
assistance as a multi-faceted platform for delivering careful targeting, geographical coordination and
support to smallholder farmers, two questions are proper sequencing of activities are vital, aiming for
posed and answered: (1) Why does WFP care about context-specific trajectories to enhanced
smallholder farmers? WFP cares because productivity and resilience. Given the highly
smallholders need to become competitive actors in dispersed nature of smallholder agriculture, the
food systems, yet they live in rural areas where private sector features prominently in many
poverty and hunger are concentrated, making them interventions, as does collective action among
and their families the most vulnerable and food- smallholders. Gender equality in access to inputs,
insecure groups; (2) What does WFP have to technologies, finance, and knowledge is critical.
contribute to smallholder-led agricultural Improved nutrition is a cross-cutting objective.
development, and to the broader rural and
structural transformations within which that Smallholders face massive challenges that extend
development is embedded? WFP occupies a unique well beyond the capacity of WFP to address on its
position at the intersection of short-term own. The 500 partnerships developed with public,
humanitarian action and longer-term hunger private, and civil society organizations under the
reduction and thus is able to work with a wide P4P initiative signal the profound partnership
range of partners to apply numerous innovations to imperative of pro-smallholder food assistance. The
the many causes of food insecurity. private sector is the engine of sustainable change.
Government leadership and civil society
The strategic framework for pro-smallholder food engagement are fundamental to ensure inclusive
assistance builds directly on the perspective on outcomes. Complementary strengths and capacities
smallholders signalled in WFP’s Strategic Plan 2017- of WFP and the other two Rome-based United
2021, which seeks to leverage WFP’s core Nations agencies (RBA), the Food and Agriculture
capacities and accumulated experience in ways that Organization of the United Nations and the
support national efforts to achieve the Sustainable International Fund for Agricultural Development,
Development Goals. The framework derives open considerable scope for enhanced partnership
principally from corporate Strategic Objective 2 to to boost national efforts to enhance smallholder
Achieve Food Security. Under this Strategic resilience and market engagement and inclusive
Objective, smallholders are the focus of Strategic rural transformation more broadly.
Result 3, which is Sustainable Development Goal
Target 2.3 to boost their productivity and incomes. Practical considerations based on local experience
Smallholders are also strongly implicated in and analysis should define country-level
Strategic Result 4 (Sustainable Development Goal approaches. Several risks arise for WFP Country
Target 2.4) that aims to ensure sustainable food Offices pursuing pro-smallholder food assistance
systems. initiatives and partnerships, falling within eight
categories: smallholder production and productivity,
Two strategic thrusts are identified, depending on smallholder storage and aggregation, smallholder
whether support to smallholders is driven by food and farmers’ organization marketing, farmers’
purchases (aiming to help smallholders able to organization capacity, gender equality and women’s
produce marketable surpluses overcome challenges empowerment, buyer behaviour, enabling
in accessing markets) or rests on theme-based environment, WFP staffing, programme design and
interventions (aiming to address the myriad factors implementation. Mitigation measures are proposed.
that undermine resilience in the fragile contexts in
7
Nsuma Amoa, a member of an FFA-
supported women’s collective in
Walewale, Northern Ghana.
WFP/Nyani Quarmyne
Background and
dominates employment, yet generates low
incomes (IFAD, 2016a). Not surprisingly,
therefore, Sustainable Development Goal (SDG)
Objectives Target 2.3 seeks to double smallholder
productivity and incomes by 2030. The challenge
Smallholder farmers account for 80 percent of facing national authorities seeking to achieve this
food produced in Asia and Africa. Smallholder target is immense. All actors with relevant
agriculture supports the livelihoods of up to 2.5 strengths, knowledge, and capacities must take
billion people worldwide (IFAD, 2015). But these deliberate steps to more effectively support
livelihoods are constrained by a range of factors national pro-smallholder efforts and investments.
that limit smallholders’ access to technology,
finance, knowledge, and markets.1 Many This document presents the background analysis
smallholder regions are rendered increasingly for the World Food Programme’s (WFP’s) strategy
vulnerable to shocks by climate change to support smallholders. The rationale for the
interacting with population growth, seasonal strategy springs from WFP’s strong commitment
volatility in prices of key goods (especially to Agenda 2030, and especially to the objective
staples), and physical displacement and of leaving no one behind. Due to their physical,
commercial disruption due to conflict and civil economic, social, and political isolation, millions
strife (WFP, 2017g). Smallholders are prominent of smallholders are chronically food insecure and
among households likely to be strongly impacted vulnerable to shocks. They are strongly
by structural challenges that will intensify in the represented in WFP’s food assistance
coming years – e.g., climate change, water programmes. Given that in many countries in
scarcity, and natural resource degradation (FAO, which WFP operates, the bulk of food available in
2016). In many contexts, sustainable growth and local markets originates from smallholder
inclusive structural transformation cannot be farmers, WFP’s procurement footprint in these
achieved without significant productivity growth markets can provide a basis for partnership with
in smallholder agriculture. This is especially true governments and the private sector to catalyse
where agriculture looms large in GDP and demand-driven platforms that enable
1
This document uses the terms “smallholders” and “smallholder farmers” interchangeably. The intended meaning is that found in Agenda 2030 in
which smallholders include small-scale farmers, fishers, foresters, and pastoralists.
8
smallholders to have sustainable and profitable uptake of new technologies linked to access to
engagement with local markets beyond WFP crop insurance, savings, and credit.
(WFP, 2016).
The Post-Harvest Loss (PHL) initiative
promotes affordable post-harvest
The principal audience for the strategy are
management technologies and practices that
leaders and relevant staff in WFP Country Offices
cut post-harvest losses significantly.
(COs) and Regional Bureaux (RBs) as they
advocate for and develop food assistance The Farm to Market Alliance (FtMA,
initiatives that address the challenges and formerly known as the Patient
opportunities facing smallholder farmers in their Procurement Platform) is based on a global
countries and regions. In particular, the strategy partnership with large private companies. It
serves as input into CO and RB efforts to seeks to boost smallholder incomes through
conceptualize and develop smallholder-related formal long-term contracts backed by
food assistance outcomes, outputs and activities facilitation of key value chain services.
in Country Strategic Plans, Interim Country The Virtual Farmers’ Market (VFM) pilot
Strategic Plans and Transitional Interim Country initiative deploys an app-based digital market
Strategic Plans. Also targeted are counterparts in place approach to connect farmers and
host country government and partner agencies buyers, enabling them to more easily and
charged with overseeing policies and investments transparently negotiate prices and complete
related to food assistance, as well as agricultural transactions.
and broader rural development. For partners, the
document clarifies the rationale, principles, and
A comprehensive accounting of the scale and
content of WFP’s worldwide efforts to support
reach of the portfolio is underway, but has yet to
smallholders.
be completed. Available data reveal significant
coverage. In 2016, WFP implemented FFA
WFP’s portfolio of smallholder-facing food
activities in 53 countries, benefiting 10.5 million
assistance initiatives has been developed steadily
people directly, and an additional 13.2 million
over many years. It is now wide and deep,
indirectly. P4P initiatives in 35 countries
covering the bulk of the organization’s countries
supported more than 1.5 million members of
of operation. The current scale and reach of the
1,000 farmer organizations, generating benefits
portfolio are significant.
for up to 7.5 million people. HGSM programmes
Long-standing Food Assistance for Assets
were supported in 45 countries. In Uganda alone,
(FFA) programmes deploying the Three-
93,000 farmers received support under the PHL
Pronged Approach (3PA) to context
initiative. R4 reached 40,000 farmers (benefiting
analysis and livelihood programming seek to
200,000 people) in four African countries. FtMA
enhance the resilience of smallholder
reached over 70,000 farmers with training and
livelihoods.
other forms of support in three pilot countries
The Purchase for Progress (P4P) (WFP, 2016b).
programme leverages demand for food from
WFP and other institutional buyers in support In addition to these measures that deliberately
of smallholders. target smallholders, WFP’s food assistance
Home Grown School Meals (HGSM) activities address a range of structural and
initiatives connect smallholder farmers to institutional drivers of food and nutrition
school meals programmes. These are highly insecurity in smallholder communities, generating
prized by governments and regional bodies such benefits as improved nutrition, enhanced
worldwide. resilience, gender equality and women’s
empowerment, and improved food safety,
The Rural Resilience Initiative (R4)
alongside important technical and organizational
enables vulnerable rural households to
capacity development, policy reform, and
increase their food and income security in the
institutional innovation.
face of increasing climate risks through
comprehensive risk management, featuring
9
Table 1: WFP policies relevant to pro-smallholder food assistance
Policy Principles and Objectives
Food Procurement WFP has both procurement and programmatic objectives in food procurement, which must be
in Developing balanced. The organization should ensure timely, cost-efficient and appropriate food
Countries (WFP, procurement while also emphasizing market development, particularly by working with
2006) farmers’ organizations and small-scale traders.
School meals programmes can be a platform to link to other interventions to achieve additional
School Feeding
developmental outcomes, for example through local procurement of food in order to augment
(WFP, 2009)
local economies, what is now widely known as HGSM.
WFP has a key role in helping governments and partners enhance the coordination and
Safety Nets (WFP,
flexibility of safety nets. WFP’s experience in nutrition, education and agriculture-related issues
2012)
may help foster institutional synergies among safety nets and other sectoral initiatives.
Building Resilience
for Food Security WFP can help build the resilience of vulnerable farmers through enhanced market access and
and Nutrition (WFP, increased availability of financial services.
2015a)
South-South WFP supports South-South cooperation around a variety of thematic areas, including
Cooperation (WFP, agriculture, through knowledge-sharing, technical cooperation, policy support, joint advocacy,
2015c) in-kind support, and regional initiatives.
Gender (WFP, All WFP’s efforts should be tailored to the diverse needs of men and women, ensure equal
2017h) participation, improve decision-making by women and girls, and ensure protection.
Local procurement and post-harvest loss reduction can support environmental protection by
Environment (WFP,
reducing transport needs and increasing worldwide food availability without putting additional
2017i)
strain on natural resources.
WFP has a role to play in increasing capacity to respond to and recover from climate shocks at
Climate Change
various levels. This includes risk management, finance and insurance options, community
(WFP, 2017j)
resilience-building, livelihoods and disaster risk reduction programmes.
No single WFP policy could address the full range Third, guidance for strategic positioning is offered,
and depth of challenges facing smallholders addressing two questions: “Why smallholders?”
worldwide. However, several corporate policies and “Why WFP?” Fourth, a pragmatic but
provide principles and objectives that have been comprehensive strategic framework for pro-
integrated into WFP’s various smallholder-facing smallholder food assistance initiatives is
initiatives (Table 1). presented, including purchase-driven, theme-
based, and integrated options. Principles for
Guidance documents have been developed for the alignment with two key corporate Strategic
majority of WFP’s smallholder-facing initiatives Results (SR) – SR3 on smallholder productivity
(WFP, 2017b; WFP, 2017c; WFP, 2017d; WFP, and incomes and SR4 on food systems – are
2017e). However, a framework that provides an established. Fifth, the partnership imperatives
integrated view of WFP’s pro-smallholder portfolio associated with pro-smallholder food assistance
and establishes a unified rationale for its are set out. Finally, key risks and mitigating
component thrusts does not yet exist. This actions are identified.
document addresses that gap.
The term “pro-smallholder food assistance” is
First, the role and importance of smallholders in chosen very deliberately. For WFP, “food
the Strategic Plan 2017-2021 are outlined. assistance” refers not to old-style “food aid”
Second, key concepts and principles are defined handouts of physical food commodities, but rather
and articulated: food assistance, food systems, to a comprehensive range of instruments,
resilience, smallholder farmers, farmer activities and platforms that together empower
organizations, aggregators and aggregation vulnerable and food-insecure people and
systems, pro-smallholder procurement, and communities to access nutritious food in different
gender equality and women’s empowerment. contexts (WFP, 2017g). WFP’s activities to support
2
Pro-smallholder food assistance can also be viewed as an illustration of “systemic food assistance”, which is defined as food assistance that
addresses deeply rooted and widespread systemic problems in food systems (WFP, 2017f).
10smallholders are prime examples of food implementation of the SDGs. This focus reflects
assistance defined in this comprehensive way, WFP’s dual mandate and its strengths and
illustrating how WFP is leveraging its core capacities as demonstrated in its programme of
strengths, capacities, and knowledge to support work and the demand for its technical,
national efforts toward Zero Hunger.2 operational, and common services.
SR 3 of the Strategic Plan is directly linked to SDG
Smallholders in Target 2.3 to Increase Productivity and Incomes of
Smallholder Farmers. Through SR3, therefore,
WFP’s Strategic increasing smallholder productivity and incomes is
one of WFP’s primary aims. Because smallholders
Plan 2017-2021 are strongly represented in many of the food
systems in which WFP operates, they also feature
The Strategic Plan 2017–2021 aligns WFP with the prominently in SR4 to Enhance Food System
2030 Agenda for Sustainable Development (WFP, Sustainability. The Strategic Plan points to other
2016). It focuses on ending hunger and less direct impact pathways related to
contributing to revitalized global partnerships to smallholders. Increases in smallholder productivity
implement the SDGs. It provides a conceptual and incomes should also improve access to food
framework for a new planning and operational (SR1) and reduce malnutrition (SR2) for large
structure that will enhance WFP’s contribution to numbers of people. Enhanced national capacity
country efforts to achieve the 2030 Agenda. (SR5) and greater policy coherence (SR6) should
Recognizing that all 17 SDGs are interconnected, boost smallholder productivity and incomes
WFP prioritizes SDG 2 on achieving zero hunger (Figure 1).
and SDG 17 on partnering to support
Figure 1: Smallholders in WFP’s Strategic Plan
Source: WFP (2016)
11Key Concepts
given quantity, quality, or value. Focused food
procurement is a powerful demand-side tool.
These instruments are applied in specific
and Principles programmes to pursue a range of objectives for
targeted populations, such as nutrition
WFP’s approach to supporting smallholders improvement, increased agricultural productivity,
reflects its mandate to save lives in emergencies gender equality, education expansion, or disaster
while addressing long-term drivers of vulnerability risk reduction. Several supporting activities and
and food insecurity. A number of concepts and institutional platforms such as early warning and
principles relevant to smallholders underpin and preparedness systems, vulnerability analyses,
reflect that dual mandate. needs assessments, supply-chain arrangements,
information and communication technology, and
Food Assistance capacity development of national agencies, safety
nets and social-protection systems define the
Food assistance refers to multi-faceted efforts to effectiveness and sustainability of these
empower vulnerable and food-insecure people and instruments relative to the objectives. Food
communities to access nutritious food (see Table assistance thus extends beyond the traditional
2). It seeks not only to save lives and livelihoods view of “food aid” as transfers of food
in the short term, but also to combat the root commodities to hungry people to include
causes of hunger over the medium to long term. development and implementation of interventions
Food assistance thus includes instruments such as to prevent hunger and address its myriad drivers
in-kind food, vouchers, or cash transfers, which and implications.
are used to assure recipients’ access to food of a
Table 2: Food assistance defined
Food Assistance
Supportive Activities and
Instruments Objectives and Programmes
Platforms
In-kind food Improved nutrition Early warning and
transfers General food distribution preparedness systems
Commodity Targeted supplementary feeding Vulnerability analyses and
vouchers mapping
Increased resilience
Cash transfers – Needs assessments
Food and cash for assets, skills and public
physical and Impact assessments
works
digital
Increased agricultural productivity Supply chain arrangements
Cash (value)
Pro-smallholder food procurement Information and
vouchers –
communication technology
physical and Post-harvest management
digital Capacity development of
Increased school enrolment
national agencies, safety
Food purchases School meals nets and social protection
Take-home rations systems
Gender equality
Food and cash for training and education
Disaster risk reduction
Food and cash for assets and public works
Source: WFP (2017g)
12Food Systems food assistance. The resilience and overall
performance of food systems thus hinge on how
Food systems are interlocking networks of effectively these problems are handled.
relationships that encompass the entire range of
functions and activities involved in the
production, processing, marketing, consumption,
Resilience
and disposal of goods that originate from Resilience is the ability of a system, community
agriculture, forestry, or fisheries. This includes or society exposed to hazards to resist, absorb,
inputs required and outputs generated at each accommodate to, and recover from the effects of
step (FAO, 2013b). The scope of food systems a hazard in a timely and efficient manner,
thus extends beyond physical food commodities, including through the preservation and
to cover the goods and services required for food restoration of its essential basic structures and
production, transformation, and consumption – functions (FAO/IFAD/WFP, 2015b). It is therefore
i.e., agronomy, farm input provision, product a vital focus of humanitarian assistance, food
harvesting, transport, storage and handling, assistance, and broader development
processing, finance, wholesaling and retailing. investments. With increasing climate risks driving
Security, political, policy, and climatic factors food insecurity and vulnerability, food assistance
impact the cost and efficacy of these functions expertise can be put to use to help populations to
and activities. In the long run, the food system is recover from shocks, prevent them from
a key element of structural transformation, which destroying livelihoods and minimize the use of
historically has been the only sustainable negative coping mechanisms. At household and
pathway out of poverty. community levels, the core drivers of enhanced
resilience are diversification of production
In the short run, the food system is the arena in systems, diversification in income sources,
which many of the poor make their living, and improvements in education, increased borrowing
also where they face risks to their livelihoods – and savings, increased remittances from urban
such as those linked to volatile food prices areas, improved management of natural
(Timmer, 2014). Food systems everywhere are resources and more effective public institutions
changing rapidly and deeply as a result of such (USAID, 2013). Also vital are gender equality and
forces as urbanization, income growth, and women’s empowerment. At system and sector
shifting consumer diets brought on by broader levels, effective early warning and preparedness
structural transformation of economies (Reardon platforms are key. Food assistance initiatives that
and Timmer, 2012; Timmer, 2014). Supply chain promote these outcomes enhance resilience
integration, capital-intensive technology change, (USAID, 2017).
expanded use of digital devices and internet
access, and emergence and enforcement of For WFP, efforts to strengthen resilience should
private standards of quality and safety are primarily target those who are food insecure or at
spurring and accentuating the upheavals risk of becoming so. In most cases, this means
(Reardon, 2015; Reardon and Timmer, 2012 and individuals and groups living in extreme poverty
2014; Tschirley et al., 2015a and 2015b). or close to the poverty line in rural areas. It also
includes people living in fragile environments
WFP’s experience and analysis point to three where conflict, natural disasters or other major
deeply-rooted and related systemic problems in events can disrupt food systems or impede
food systems in which millions of livelihoods are access to adequate and nutritious food for at
embedded: (1) the bad year or lean season least part of the population. The type of
problem; (2) the last mile problem; and (3) population group, its livelihood strategies and
the good year problem (WFP, 2017f). When asset base, the institutional environment and the
ignored or inadequately addressed the three type of shock or stressor all inform the practical
systemic problems contribute to risks and definition of “resilience” that applies in each
vulnerabilities that generate chronic hunger. By context.3
weakening food systems they also increase the
risk that these systems will collapse under
shocks, leading to food emergencies that call for
3
These principles also inform the strategies of the other two RBAs (FAO/IFAD/WFPa, 2016).
13Smallholder Farmers volume and infrequent trade in small quantities
of bulky and relatively low value products; and
There is no unambiguous global definition of a spatially thin input markets. As a result,
smallholder farmer.4 But as signalled by the smallholders are difficult to serve individually,
terminology, scale of operation in terms of land either as sellers of their produce or as buyers of
holding size is generally used as a classification inputs and services. Farmer organizations (FOs)
criterion. For example, smallholders are often are the principal mechanisms through which this
viewed as those farming less than two hectares. challenge is addressed. FOs encompass a variety
However, even this farm size is considered of voluntary and self-governing farmer
“large” in some countries or regions within collectives formed at local, district, and national
countries. And where hunting, forestry, and levels. They allow members to develop skills and
fishing are important in livelihoods, land size capacities that help them to: more effectively
may be inadequate as a criterion. As a result, engage in collective contracting and brokering;
other parameters are sometimes used, including access and disseminate market information;
the volume of production, the source and access and link members with financial services;
amount of available labour, and the value of negotiate and manage win-win partnerships with
capital and inputs. other operators along agricultural commodity
value chains; articulate a shared vision of a
For WFP, if a host country has an accepted common and attractive future; and build
definition of smallholder farmers under which it networks for cooperating on common objectives
collects and reports agricultural and related data, and challenges (IFAD, 2016).
such a definition should be followed whenever
adequate. In countries where there is no clear Experience under the P4P pilot highlighted the
definition, the two-hectare criterion may be importance of understanding the nature of FOs in
employed, taking into account other livelihood terms of formality and core capacities. Three
options as appropriate. Where explicit types of FOs were identified (Table 3):
recognition of the importance of women among
1. Tier 1 FOs are typically informal. They tend
smallholders is lacking, this must be
to be small in size, with between 30 and 250
incorporated. For example, women may struggle
members. They are often made up of small
to own land and therefore be excluded from
groups at the village level, and may not be
definitions of smallholder farmers based upon
officially registered with relevant authorities.
land size. Because SDG Target 2.3 aims to boost
They generally have low technical and
smallholder productivity and incomes, these two
organizational capacity. Tier 1 FOs are likely
outcomes therefore represent the overarching
able to aggregate and sell up to 50 mt of
objectives of pro-smallholder food assistance.
agricultural produce in a single sale. Women
Even where smallholders are not direct
smallholders tend to be members of this
beneficiaries or participants, improvements in
category of FO, suggesting that gender
their productivity and incomes remain the
equality may be most strongly advanced at
motivation of food assistance-based investment
this level.
and capacity development in food systems.
2. Tier 2 FOs are umbrella organizations which
typically operate at district or regional level.
Farmer Organizations These umbrella organizations are collections
of Tier 1 FOs, and can have more than 1,000
The vulnerability and food insecurity prevalent in members. Tier 2 FOs tend to be officially
smallholder areas reflects several physical and registered with relevant regional or national
institutional realities. These include: gender authorities. They ordinarily have moderate to
inequalities; wide spatial dispersion of high technical and organizational capacity.
production; low on-farm storage capacity; low- Activities may cover a number of products in
4
Other commonly used terms include small family farms and small-scale farmers.
14a given area. FOs with medium technical and incomplete or inaccurate. Nevertheless, the
organizational capacity would be able to consensus is that most smallholders are not
handle up to 1,000 mt in a single sale. members of FOs (AGRA, 2010). For those who
Those with high capacity would be able to are members, positive outcomes are not
accommodate more than 1,000 mt in a automatic. Men and better-off members often
single sale. derive more services from FOs than do women
3. Tier 3 FOs are typically national-level and poorer members. Inclusively beneficial
umbrella organizations, which include a collective action that advances equality in all
number of Tier 2 FOs, and can have well dimensions must be deliberately articulated and
over 10,000 members. They frequently meticulously sustained. Local authorities must
include other relevant industry stakeholders be on guard against opportunistic registration
in their focus value chain. If dealing in as FOs by small-scale traders.
agricultural products, these relatively high-
capacity FOs can handle well over 1,000 mt Despite these challenges and difficulties, the
in a single sale. evidence on viable alternatives to using FOs as
links to smallholders is thin. Possibilities include
private entrepreneurs providing key market
At all levels, FOs are fraught with challenges
engagement services at a fee, or large off-
and difficulties linked to governance,
takers using local agents to provide
operations, financing, strategy, and policy
complementary productivity-enhancing services
engagement. This is especially true of Tier 1
to smallholders as they purchase their produce.
organizations. Most countries do not possess
Out-grower schemes are another option. In all
comprehensive databases on FOs. Where such
cases, effective aggregation is fundamental.
data have been collected, they are often
Table 3: Types of farmer organizations
Aggregation
Tier Level Registration Membership Overall capacity
capacity
Informal, and may Able to aggregate
Composed of small
not be officially Low technical and and sell up to 50
Village or groups at village
Tier 1 registered with organizational mt of agricultural
local level, with 30 to
relevant capacity produce in a
250 members
authorities single sale
Moderate to high Medium capacity:
Officially technical and up to 1000 mt
registered with Collection of Tier 1 organizational in a single sale
District or relevant regional FOs, with more capacity, with
Tier 2
regional or national than 1,000 activities often High capacity:
authorities members covering a number more than 1000
of products in a mt in a single
given area sale
Cover a number of
Tier 2 FOs, often
Officially exceeding 10,000
registered with members, and High technical and Well over 1,000
Tier 3 National relevant regional frequently including organizational mt in a single
or national other relevant capacity sale
authorities industry
stakeholders in their
focus value chain
15Members of a P4P-supported
farmers’ organization undergo
training in Mozambique.
WFP/Charlie Barnwell
Aggregators and Efforts to strengthen inclusive aggregation
systems empower farmers to work together to
Aggregation Systems build collective businesses, increasing their
An aggregator is any organization that actually bargaining power and access to markets.
or potentially assembles farmers’ outputs in Effective and inclusive pro-smallholder
order to facilitate sale to buyers at favourable aggregation systems allow farmers to engage
terms and conditions. Aggregation systems only with intermediaries that add value along the
encompass a variety of organizations to which supply chain. This will enable smallholders to sell
smallholder farmers have access at local, district more quality crops while earning a larger share
and national levels. These organizations are of the market price.
either formal (i.e., legally registered) or informal.
Membership is typically voluntary. Providing Building aggregator capacity enables more
market access to smallholder farmers at effective and efficient procurement from
favourable conditions is often one of the main smallholder farmers. Farmer organizations, for
objectives of these organizations. In addition, example, often offer an option for higher-quality
they frequently seek to provide a range of products that are subject to better traceability
services to their members, such as facilitating and standards protocols than farm-gate trader
access to inputs, credit, financial services, and products, as farm-gate traders rarely hold
improved post-harvest handling technologies. smallholder farmers to quality or packaging
Examples include: small, medium, and large standards. Selling through traders can also
farmers’ organizations; small, medium, and large result in volatile prices, high credit costs, and
traders; certified warehouses; satellite collection trader measurement error. Furthermore, lessons
points; agro-processors; agro dealers; and other learned at the group aggregator level can trickle
service providers that also assemble farm down into households. Building aggregator
outputs. capacity can help individual members understand
key lessons about budgeting, gender equality,
and production practices that improve household
well-being.
16Pro-Smallholder minimum percentages of purchases from
smallholders, again backed by a traceability
Procurement system.
Pro-smallholder procurement refers to a
deliberate strategy or approach from a public COs have tested not only different contract
or private buyer to procure from smallholder types but also different mechanisms for
farmers with the objective of improving their aggregation. In addition to FOs, COs have also
access to formal markets. This should thereby worked with small and medium scale traders
boost incentives for adoption and application of and structured trading platforms such as
productivity-enhancing technologies and warehouse receipt systems and commodity
practices. Demand can be from private or exchanges, along with linking smallholders to
public sources. Three elements are identified: processors. A number of COs have bought
(1) consistent demand for quality food; (2) processed food such as high-energy biscuits
targeted gender-specific capacity strengthening and fortified flour from processors using raw
of smallholders, typically through FOs but not materials sourced from WFP-supported FOs.
exclusively so; and (3) coordination and
linkage support for providers of key supply Together, these contracting and aggregation
chain services from private, public, and NGO modalities provide COs with the flexibility and
actors. guidance required for pro-smallholder
procurement strategies suited to their
During the P4P pilot, WFP tested different ways particular contexts.
of procuring staple foods (primarily cereals and
pulses) from smallholders, aiming to identify Analysis and experience indicate that the
models that could sustainably promote following conditions should be included in any
smallholder agricultural development and pro-smallholder procurement strategy:
access to public and private sector markets. 1. A guaranteed minimum volume of demand
WFP’s procurement from smallholders and targeted at smallholder farmers;
small/medium traders (the demand pillar) was
2. Use of contracts that allow fair and open
intended to provide the inducement and
negotiation between the farmers and buyers
motivation for action around the P4P
using commonly agreed price information
development hypothesis. WFP designed the
sources; and
new procurement modalities specifically to deal
with the difficulties that smallholder farmers 3. Whenever possible, pro-smallholder buyers
face in selling to WFP. The pro-smallholder should also provide or deliberately facilitate
procurement modalities fell into four general the provision of supply-side services
categories: (1) pro-smallholder competitive (training, access to inputs, access to credit,
(“soft”) tendering; (2) direct contracting; (3) market information, and gender
forward contracting; and (4) processing sensitization) which define first-order
options. barriers and opportunities for market-led
productivity and income growth.
New contracting modalities currently being
piloted with COs include: (1) mandate
contracting in which traders enter into
contracts with farmers on WFP’s behalf, backed
by a traceability system; (2) direct non-
committal food supply agreements featuring
pre-marketing season contracts with FOs based
on estimated production and demand, and
price call-offs according to market conditions;
and (3) conditional contracting featuring
17Gender Equality and exists in multiple domains, WFP food assistance
focuses activities at the micro (household) and
Women’s Empowerment the meso (community) level, including farmer
Gender equality is the state in which women and organizations. Priorities include: mainstreaming
men enjoy equal rights, opportunities, and gender in policies/programmes, making gender
entitlements. For WFP, promoting gender analysis systematic, identifying challenges,
equality means providing food assistance in ways targeting relevant strategies, actions, monitoring
that assign equal value to women and men while and evaluation of results and capacity
respecting their differences (WFP, 2017h). The strengthening of staff and partners on gender
treatment of women and men should be issues.
impartial and relevant to their respective needs.
Women’s empowerment is the process through Application of the gender-transformative
which women achieve choice, power, options, approach to food security and nutrition applies
control, and agency in their own lives. It is a goal fully to smallholder-related food assistance
in its own right. To be empowered, women must interventions. For example, under P4P, HGSM,
have not only equal capabilities and equal access and FtMA, women smallholders’ economic
to resources and opportunities to those of men, empowerment is pursued through three major
but also the ability to use these rights and channels: (1) women’s participation in sales to
opportunities to make choices and decisions as WFP and other formal markets; (2) women’s
full and equal members of society. Rights to participation and leadership in FOs; and (3)
own, control, and use land, water, and other women’s influence over decisions at the
productive resources are especially important. household and FO level related to agricultural
production, marketing, and profits from sales.
For WFP, this means that food assistance policies More broadly, since adopting the IASC Gender
and programmes must create conditions that Marker that tracks whether a project fully
facilitate, and do not undermine, the possibilities addresses the particular needs, vulnerabilities
for women’s empowerment. The emphasis is not and priorities of women, men, girls, and boys the
only on economic empowerment, but also the percentage of WFP projects with a potential to
social, political, and personal empowerment on contribute significantly to gender equality have
which economic empowerment is based. increased from 24 percent in 2012 to 100
Recognizing that power is multi-locational and percent in 2016 (WFP, 2017g).
A farmer participating in the joint UN project
Accelerating Progress towards the Economic
Empowerment of Rural Women shows the results of
her harvest in Bhagwanpur, Nepal.
WFP/Santosh Shahi
18Strategic
3. The three systemic problems in food
systems – bad year or lean season, last
mile, and good year – converge more
Positioning directly on smallholder farmers than on any
other single group on the planet, with
The case for food assistance as a platform for women being especially hard-hit;
delivering support to smallholders is not always
intuitively obvious to all stakeholders. 4. Numbering over 500 million worldwide,
Especially challenging to overcome in some smallholders reside in the rural last mile,
contexts are perceptions of WFP as an are exposed to weather-induced bad years,
organization concerned only with delivering and suffer through good-year outcomes
“food aid” commodities in emergencies. WFP’s every harvest. The physically and
identity as an innovative actor and partner in economically remote, low-productivity,
transition and development contexts is not subsistence-oriented production systems
always recognized. As a result, WFP’s pursued by smallholders combine with poor
comparative advantage in the pro-smallholder on-farm storage and post-harvest
development agenda is seldom fully management technologies and practices to
appreciated. generate meagre incomes that can support
equally meagre and unhealthy diets. Such
The P4P pilot helped to change the narrative. diets – typically featuring heavy
As noted in the final evaluation of the P4P pilot, consumption of relatively cheap starchy
P4P has transformed WFP’s relationship with staples – cannot support healthy lives. Not
governments and other national and surprisingly, smallholders are chronically
international stakeholders concerned with vulnerable and food insecure and thus
smallholder-led agricultural development. strongly represented in WFP’s food
Especially powerful and clearly appreciated by assistance programmes.
governments is the model of smallholder- 5. Due to gender inequalities, many vulnerable
oriented, market-based, micro-level and food insecure women are smallholders,
interventions in staple food sectors. who therefore feature prominently as
beneficiaries and participants in WFP’s food
But important gaps remain. COs must have assistance initiatives.
crystal clear answers to two questions: (1)
6. For these and several related reasons set
Why does WFP care about smallholder
out in the Strategic Plan, improving
farmers? (2) What does WFP have to
smallholder livelihoods is captured in SDG
contribute to smallholder-led rural
Target 2.3, which is WFP’s Strategic Result
development, and to the broader rural and
3. WFP has an obligation to support host
structural transformations within which rural
country and global efforts to meet these
development is embedded?
targets.
Why Smallholders? 7. The Strategic Plan also notes that, as
captured in SDG Target 2.4 (WFP’s SR4),
WFP is concerned about the plight of
improved smallholder livelihoods also
smallholders because:
impact on food system functioning in the
1. Despite growing urbanization, poverty and many contexts and countries in which WFP
hunger are concentrated in rural areas, is called to operate. Again, WFP has an
where smallholders and their families obligation to support host country and
comprise the most vulnerable and food- global efforts to strengthen these food
insecure groups. systems via SR4 on enhanced food systems.
2. Without empowered and resilient
smallholders operating as competitive
actors in food systems, Zero Hunger and
other important SDGs are not achievable.
19Why WFP? smallholder farms, WFP’s procurement footprint in
these markets can provide a basis for
WFP’s unique and powerful contributions to
partnerships with governments and the private
smallholder livelihood improvements spring from
sector to catalyse demand-driven platforms that
several sources:
enable smallholders to have sustainable and
1. WFP occupies a unique position and role at the profitable engagement with local markets beyond
intersection of short-term humanitarian action WFP (WFP, 2015b).
and longer-term hunger reduction and is thus
7. Enhancing the marketing, productivity and
keenly aware of the full implications for
livelihood opportunities of smallholders (especially
smallholders of broken, disrupted, inequitable,
women and youth) is a powerful way to improve
and flawed food systems. Measures to overcome,
food security and nutrition, complementing WFP’s
correct, or attenuate the impacts of these food-
wide portfolio of ongoing efforts in this area.
system problems constitute the bridge between
Strengthened capacity for risk management is
humanitarian action and hunger reduction.
especially important. WFP’s demand-side
2. The food assistance delivered by WFP and programmes for supporting smallholders’ access
partners is an inherently public endeavour built on to agricultural markets leverage its procurement
many layers of commercial activity. WFP therefore footprint and expertise in agricultural markets –
has a deep understanding of both public and and those of other public and private buyers – to
private dimensions of the performance problems contribute to building resilient food systems, the
affecting smallholders in food systems, and production and processing of nutritionally diverse
relevant solutions. foods, pro-smallholder aggregation systems,
improved post-harvest management, and
3. In many of the countries in which WFP operates,
catalysing sustainable commercial and
smallholders loom large in the most vulnerable
institutional market development for
and food insecure regions and communities. WFP
smallholders.
has a substantial operational presence in these
areas, and routinely supports partners to promote 8. WFP routinely collects and analyses data and
smallholder livelihoods and resilience-building information about drivers of food security and
linked to food security and nutrition, climate vulnerability, with a focus on conditions in
change adaptation, gender equality and women’s markets for key foods, typically employing
empowerment, youth employment, risk systematic gender analysis and cutting-edge
management, and strengthened sustainability and digital technology. Detailed supply chain
food systems. information about the food systems in which WFP
operates is also regularly compiled and analysed.
4. WFP’s installed capacity for smallholder-focused
When analysed together, market and supply chain
activities and investments is significant based on
information can yield powerful insights into
capacities and innovations in supply chain
challenges and opportunities facing smallholders,
management and operations, on one hand, and
pointing to high-potential institutional innovations
programming and policy design and
and policy reforms.
implementation, on the other.
9. Rapid innovation in WFP’s overall food assistance
5. WFP is committed to sourcing at least 10 percent
portfolio generates gains that spill over to its pro-
of its food needs from smallholders at favourable
smallholder efforts. Digital technology is not only
terms.5 This represents approximately US$120
fundamental to WFP’s day-to-day business
million per year that would go more directly into
processes, it underpins many innovations to save
food systems serving and supplied by
lives, enhance logistics, reduce exclusion and
smallholders. More importantly, as illustrated
deliver more efficient and personalized
during the P4P pilot, this commitment by WFP can
interventions. Especially important benefits for
serve as a potential catalytic force for incremental
pro-smallholder food assistance are linked to the
investment by other actors in value chains serving
rapid uptake and application of digital innovations
smallholders.
in assessment, sampling, targeting, programme
6. Given that in many countries the bulk of food delivery, monitoring and evaluation.
available in local markets originates from
5
A strategy for achieving this target is under development.
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