From: Subject: Local production of processed complementary food: World Food Programme experience Date: Mon, 28 May 2007 02:55:37 +0100 MIME-Version: 1.0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.micronutrient.org/_idpas/pdf/4053localproductionofprocessed.htm X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3028 Local production of processed complementary food: = World Food Programme experience

Local Production of Processed complementary food: World = Food=20 Programme experience

Summary = of=20 published review

Pieter=20 Dijkhuizen has been a senior programme adviser in public health = and=20 nutrition at WFP headquarters in Rome for a number of years. He = has=20 recently published a review article1 on WFP's = involvement in=20 the production of complementary foods. A summary of the main = findings of=20 the review follows.

WFP=20 distributes approximately 125,000 metric tons of processed = complementary=20 foods or blended foods per year. This kind of food is used in = maternal and=20 child health centres, school feeding, and in refugee and emergency = projects. These foods include corn soya blend as well as locally = produced=20 brands such as Unimix, Indiamix and Lakuni Phala. Initially, the = US agency=20 for International Development (USAID) was the sole source of = blended=20 foods. Currently USAID provides half and local manufacturers = provide the=20 other half of all the blended foods used in WFP programmes and = projects.=20 Local manufacturers use local ingredients with the exception of = the=20 vitamin and mineral pre-mixes which are purchased from the = international=20 suppliers. WFP provides these local manufacturers with the product = specifications and the processing instructions which are = consistent with=20 those in the Codex Alimentarius. WFP allows local producers a 10% = profit.=20

Efforts to = involve local=20 manufacturers started with small-scale community based projects. = But the=20 resulting small scale production was not large enough to permit = the=20 necessary economies of scale. There have also been problems of = quality=20 control and finding and maintaining qualified managers. Since = 1991, WFP=20 has shifted its focus to work with private sector companies in a = number of=20 countries including, Bangladesh, Eritrea, Ethiopia, India and = Kenya. Each=20 company produces in excess of 2000 metric tons per year. WFP = regulations=20 require that foods produced locally be compatible and comparable = with=20 substitutes such as corn soya blend, which can be produced in the = US and=20 imported into a given country for less than 500 dollars per metric = ton.=20
The approach taken = in=20 developing local processing capability starts by assessing = potential=20 processing capacity. Companies are selected through a process of = public=20 tender, which includes price agreements. WFP provides training and = technical assistance to ensure that foods meet all product = specifications.=20 In instances where it is determined that inadequate processing = capacity=20 exists, WFP leases the necessary equipment to a private sector = company and=20 provides training as well as technical assistance. Repayment for = the=20 leased equipment is made as foods are produced and sold to WFP. = This=20 approach has proven feasible in situations where no local capacity = exists=20 since it requires no investment and risk-taking on the part of the = producer and thus guarantees that WFP can negotiate a very low = price for=20 the food.

On average the foods cost US$360 per metric ton, = with=20 70% of the cost going towards the purchase of raw materials. The = remaining=20 costs include interest and the profit margin allowed to local = producers.=20 In this way WFP is able to support the production of processed=20 complementary foods at costs around 15-20 times less than those of = brands=20 on the commercial market.

WFP considers that it has had a = very=20 successful experience working with the private sector.=20



1=20 Dijkhuizen. P (2000): Processed complementary foods in the World = Food=20 Programme. Food and Nutrition Bulletin, vol 21, no 1 pp 62-64=20


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