USAID Office of Food for Peace Burkina Faso Bellmon ... - CiteSeerX

1. EXECUTIVE SUMMARY
Prepared by Fintrac Inc.
This report presents findings for monetization and distribution of food aid commodities for
making Bellmon determinations in advance of a FY2010 USAID Title II funded Multi-Year
Assistance Program (MYAP) in Burkina Faso. This study is based on a desk study and field
work conducted in June and July 2009. Since monetization is likely to fund at least a portion of
these activities, the Bellmon Estimation Studies for Title II (BEST) team conducted a market
analysis of key commodities. Current food aid programs and proxy indicators of additionality
were investigated to estimate the potential effect of a Title II-funded program on local production
and markets.
1.1 MONETIZATION ANALYSIS – FINDINGS/RECOMMENDATIONS
Overall food aid commodities were considered for monetization based on:
Eligibility for export from the U.S.;
Eligibility for import to Burkina Faso;
Domestic demand;
Domestic supply shortfalls are filled through commercial imports and food aid;
Presence of adequate competition for the food aid commodities; and
Expectations that fair market prices can be obtained.
This Bellmon analysis evaluates the effect monetizing vegetable oil, wheat/wheat flour,
nonfat dried milk and parboiled rice would have on Burkina Faso’s local production and
marketing.
Findings
This Bellmon recommends monetizing up to 22,094 MT of parboiled rice through small lot
sales for FY2010. It is recommended for monetization because: (i) domestic production is not
enough to meet domestic demand for rice; (ii) it has previously been monetized; (iii)
monetization sales occur via small lot sales, and in a competitive sales environment; and (iv) a
sales volume less than 10 percent of estimated import volumes would generate substantial
proceeds to fund program needs estimated at $18,404,184.
This Bellmon does not recommend monetizing wheat or wheat flour because the lack of incountry
bulk buyers/millers would not allow a competitive sales environment. Although there is a
trace amount of local production, and therefore wheat must be imported, there are not enough
bulk buyers to create a competitive environment. There are only three flour mills in Burkina Faso
and two of the mills purchase less than 1,000 MT per month. The third mill can reportedly
purchase larger quantities with credit terms provided by the supplier.
BEST ANALYSIS – BURKINA FASO 1