How local procurement can benefit Small Holder Farmers...

Small Holder Farmers, Mchinji, Malawi

Food aid is essential in certain contexts. However, it is widely acknowledged that food aid programmes can have a negative impact on the economies of developing countries. Food aid can create disincentives for local agricultural production¹, depress prices² and act as a disincentive for labour supply. It is therefore vital that food aid programmes take into account the potential damage that they may cause to the local economy³ while exploring mechanisms for benefitting the local population. For example, FOOD AID can be positive if it is LOCALLY PROCURED⁴ since local raw materials are easier to procure, store and transport and are less likely to be stolen (less corruption). Also, local farmers are paid for the local ingredients, which has a positive effect upon farmers' income source....

If you want to know more about ChEcK.... Impact of local RUTF manufacture on farmers’ incomes in Malawi
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¹Oxfam, (2005). Food Aid or Hidden Dumping?, Oxfam briefing paper, Oxfam. Available at http://www.oxfam.org/sites/www.oxfam.org/files/bp71_food_aid.pdf
²FAO, (2006). The State of Food and Agriculture: Food aid for food security? Food and Agriculture Organization of the United Nations: Rome.
³Clay, E.J., Dhiri, S. and Benson, C., (1996), Joint Evaluation of European Union Programme Food Aid, London: Overseas Development Institute
⁴Awokuse, T.O, (2006). Assessing the Impact of Food Aid on Recipient Countries: A Survey, Working Papers 06-11, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).