January January -- DecemberDecember

20062006

Food Procurement Food Procurement Annual ReportAnnual Report

WFP Food Procurement

January – December 2006

Procurement Mission Procurement Mission StatementStatement

WFP’s general policy is to purchase from pre-qualified suppliers through a competitive bidding process. Competitive bidding guarantees that the best possible prices are obtained and that the purchase is carried out in a transparent manner. This process entails an analysis of the cost of the commodity as well as the costs of transport and handling up to the delivery point.Before issuing a tender, careful consideration is given to the location of the most advantageous place to buy, relative to the area of need. Factors such as the acceptability of the commodity on offer to the tastes of the receiving beneficiaries and the delivery time to destination play an important part in this evaluation.Donor or recipient countries’ conditions and restrictions on origin, destination, quality, packing and marking often limit the flexibility of the purchase and impact on this procurement planning.

“To ensure that appropriate commodities are available to WFP beneficiaries (operations) in

a timely and cost-effective manner.”

Further to the procurement mission statement, the WFP’s Financial Rules state:

“When conditions are equal, preference will be given to purchasing from developing

countries.”

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MaizeMaize

SorghumSorghum

WheatWheatMungMung BeansBeans

SoybeansSoybeansBlack BeansBlack Beans

KEY FIGURESKEY FIGURES

Total PurchasesTotal Purchases

US$US$600,965,102600,965,102

2,015,388 mt2,015,388 mt

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What did we purchase?What did we purchase?% of Total Quantity (2,015,388 % of Total Quantity (2,015,388 mtmt))

Rice 250,499 mt12.43%

Sorghum 49,652 mt2.46%

Sugar 40,771 mt2.02%

Vegetable Oil 78,194 mt3.88%

Wheat Flour 188,707 mt 9.36%

Maize Meal 54,872 mt2.72%

Other 33,136 mt1.64%

Pulses 172,280 mt8.55%

Wheat 302,862 mt15.03%

Blended Food 228,093 mt11.32%

Maize 616,323 mt30.58%

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Where did we purchase ?Where did we purchase ?

North AmericaNorth America

177,916 mt177,916 mt

Latin America

159,777 mt

Europe

241,193 mt

Asia

652,763 mt

Oceania

4,106 mt

Africa

779,634 mt

84 Countries: 70 Developing 14 Developed

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WFP Food PurchasesWFP Food PurchasesOrigin of Goods as per DAC CategoryOrigin of Goods as per DAC Category

By each category

DAC Category Quantity mt % mt Value US$ % US$

LDC 618,313 30.68% 161,655,333 26.90%

LIC 394,543 19.58% 89,465,832 14.89%

LMIC 245,800 12.20% 117,874,012 19.61%

UMIC 293,206 14.55% 91,272,729 15.19%

Developed 463,526 23.00% 140,697,196 23.41%

TOTAL 2,015,388 100.00% 600,965,102 100.00%

DAC Category Quantity mt % mt Value US$ % US$

LDC/LIC 1,012,856 50.26% 251,121,164 41.79%

LMIC/UMIC 539,006 26.74% 209,146,741 34.80%

SUB TOTAL 1,551,862 77.00% 460,267,906 76.59%

Developed 463,526 23.00% 140,697,196 23.41%

TOTAL 2,015,388 100.00% 600,965,102 100.00%

By grouped categories

LDC: Least Developed CountriesLIC: Other Low-Income Countries (per capita GNI < $825 in 2004) LMIC: Lower Middle-Income Countries (per capita GNI $826 - 3,255 in 2004)UMIC: Upper Middle-Income Countries (per capita GNI $3,255 - 10,065 in 2004)

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Food OriginFood Origin

Country Quantity mt Value US$

Afghanistan 2,400 569,960

Argentina 15,767 10,449,187

Armenia 5,595 1,382,065

Azerbaijan 1,930 689,140

Bangladesh 1,671 781,972

Belize 200 62,278

Benin 6,101 1,708,353

Bhutan 2,239 565,248

Bolivia 9,968 4,167,714

Brazil 17,607 3,480,044

Burkina Faso 19,506 5,648,425

Cambodia 21,617 5,389,383

Cameroon 4,442 1,676,503

Botswana 40 12,400

Central Afr. Rep. 150 58,188

Chad 366 322,792

Country Quantity mt Value US$

China 9,843 4,365,536

Colombia 12,815 6,674,032

Côte d'Ivoire 3,556 1,619,044

Cuba 1,735 1,274,002

Dem.Rep.Congo 2,300 925,042

Ecuador 26,399 28,006,026

Egypt 10,556 2,927,298

El Salvador 183 87,516

Ethiopia 158,214 37,011,737

Ghana 5,324 1,733,919

Guatemala 14,013 5,621,513

Honduras 18,114 7,951,504

India 103,527 15,721,528

Gambia 96 7,838

Indonesia 24,466 22,511,962

Kazakhstan 6,948 1,421,219

77% from developing countries* (in value terms US$)

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Country Quantity mt Value US$

Pakistan 147,979 34,733,974

Palestinian Terr. 51,139 15,741,841

Peru 243 68,947

Philippines 470 160,961

Rwanda 10,675 4,095,722

Senegal 1,594 217,355

Somalia 25 15,550

South Africa 109,217 28,580,576

Sri Lanka 9,666 3,233,263

Syria 935 549,698

Tajikistan 255 14,167

Tanzania 30,298 8,583,806

Thailand 5,223 2,154,072

Sudan 33,187 8,693,784

Togo 129 49,252

Turkey 98,040 27,872,926

77% from developing countries* (in value terms US$)

Food OriginFood Origin

Country Quantity mt Value US$

Kenya 113,959 29,661,206

Laos 471 189,643

Lebanon 1,634 455,296

Lesotho 5,334 1,256,434

Malawi 37,272 9,446,430

Malaysia 27,824 17,061,399

Mali 8,543 2,448,406

Mauritania 59 6,186

Mexico 39,573 6,479,531

Mozambique 31,143 7,439,410

Myanmar 13,324 3,287,539

Namibia 5,969 1,868,993

Nepal 49,189 16,475,059

Morocco 658 555,892

Nicaragua 2,249 663,319

Niger 217 154,624

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Country Quantity mt Value US$

Uganda 162,281 41,202,876

Ukraine 11,326 2,980,775

Uruguay 912 299,136

Vietnam 13,254 3,642,172

Yemen 1,488 385,031

Zambia 18,425 4,719,288

TOTAL 1,551,862 460,267,906

77% from developing countries*

(in value terms US$)

•Country income classification based on

2005-2007 DAC list

Food OriginFood Origin

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Country Quantity mt Value US$

Australia 4,106 1,350,056

Austria 344 173,720

Belgium 49,451 21,975,276

Bulgaria 6,170 995,504

Canada 134,186 32,532,091

Denmark 14,345 8,083,846

France 29,628 11,746,925

Germany 16,214 4,228,336

Italy 49,054 13,306,150

Japan 51,638 14,425,222

Russian Fed. 54,175 14,930,206

United Kingdom 3,300 983,439

USA 43,730 11,819,956

Netherlands 7,186 4,146,471

TOTAL 463,526 140,697,196

23% from developed countries

(in value terms US$)

Food OriginFood Origin

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Country Value US$ % Uganda 41,202,876 6.86Ethiopia 37,011,737 6.16Pakistan 34,733,974 5.78Canada 32,532,091 5.41

Kenya 29,661,206 4.94South Africa 28,580,576 4.76Ecuador 28,006,026 4.66Turkey 27,872,926 4.64Indonesia 22,511,962 3.75

Malaysia 17,061,399 2.84Nepal 16,475,059 2.74Palestinian Terr. 15,741,841 2.62India 15,721,528 2.62Russian Fed. 14,930,206 2.48

TOTAL 384,018,683 63.90

Belgium 21,975,276 3.66

(in value terms US$)(in value terms US$)Food OriginFood Origin

TOP 15 CountriesTOP 15 Countries

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2003 includes 518,000 2003 includes 518,000 mtmt worth US$ 182 million for Iraqworth US$ 182 million for Iraq

2004 includes 1,562,000 2004 includes 1,562,000 mtmt worth US$ 540 million for Iraqworth US$ 540 million for Iraq

Food Procurement TrendsFood Procurement Trends

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0

200

400

600

800

1,000

1,200

90 92 94 96 98 00 02 04 060.00.51.01.52.02.53.03.54.0

Value (US$ million) Value - without Iraq (US$ million)Qty (million mt) Qty - without Iraq (million mt)

million million mtmtUS$ millionUS$ million

Competitive Tendering subject to Vendor Registration.

International Registration to be completed On-Line through UN Global Market Place, www.ungm.org

Local/Regional Registration through Country Officec/o WFP Representative / Country Director contact details on

www.wfp.org

Know WFP’s requirements

Register as a WFP vendor

Participate in tenders

SUBMIT THE BEST OFFER

How to do business with WFPHow to do business with WFP

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UN World Food Programme Food Procurement Service

Via C.G. Viola, 68/70 - 00148 Rome, ItalyE-mail: food.procurement@wfp.org

Fax: +39 066513 2339