PRESENTATION ABSTRACT: "Flexible Response to Food Insecurity: Food Aid Programming and Impact in a New Era," by Chris Barrett

Locally and regionally procured (LRP) food aid is receiving increasing attention. In 2007, the World Food Programme (WFP) sourced over $612 million worth of LRP commodities. WFP is also expanding its capacity to source food from smallholders, through its Purchase for Progress (P4P) program by engaging in "soft tendering" practices, purchasing directly from smallholder organizations, contracting for production, and purchasing from small processors. By purchasing food locally and regionally, UN agencies and private voluntary organizations hope to decrease transportation costs, cut delivery times, and deliver locally appropriate foods relative to transoceanic food aid. Cost savings can enable the private voluntary organizations that distribute most US food aid to reach more households, while improved timeliness can protect households sooner against the adverse direct or indirect effects of shocks, which is especially critical during rapid-onset emergencies.

A further benefit of LRP, when done carefully, is that such purchases can potentially support new market institutions or induce investment in them, increase competition, and / or stabilize prices in the source markets. Regular procurement, in particular, may be an effective tool to stimulate market development by predictably increasing market demand and by supporting the emergence of institutional infrastructure necessary to well-functioning markets.

Yet, LRP is not a panacea. Private voluntary organizations engaging in LRP face numerous challenges, including: identifying appropriate price and contract structures, ensuring that contracts are met and discouraging side selling, responding to delayed or missed deliveries, assessing adverse impacts on source markets, and guaranteeing the safety and quality of the sourced food. Understanding which transfer options best address food insecurity in an important next step in effectively responding to food insecurity.