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

4.1.2 Total Annual Monetization by Donor and by Commodity
Prepared by Fintrac Inc.
In 2009, 2,910 MT of parboiled rice will be monetized through the USAID Title II funded DAPs,
which CRS and Africare are implementing in Burkina Faso. Given that the DAPs are closing out
in FY2009, fewer MT of Title II parboiled rice will be monetized in 2009 as compared to prior
years.
Table 3: Summary of Monetization Food Aid by Donor (MT)
Donor/Program/Commodity 2005 2006 2007 2008 2009
USAID Title II Rice 11,960 6,180 11,840 4,980 2,910
Japan Rice 5,000 5,000 5,000 5,000 5,270
Total 16,960 11,180 16,840 9,980 8,180
Sources: Catholic Relief Services, and Africare documents. JICA July 2009 Bulletin, page 5.
The USAID Title II monetization process is well organized, transparent and ensures competitive
prices through a small lot sales methodology. The Title II monetized parboiled rice differs from
Asian long grain rice and locally produced rice. The process of parboiling involves soaking,
steaming and drying the grains; in the case of rice, it preserves a higher proportion of nutrients
in the grain compared with polished or highly refined rice.
The primary market for the USAID Title II parboiled rice is Ouagadougou, though some buyers
indicated that wholesalers from the central and northern regions also buy the rice. Sankaryaré
market is the largest and most important market in Ouagadougou, supplying other markets
within the country and region. Koudougou is located in one of the most populated areas in the
country, where a majority of households depend on the market for their food needs. Multiple
buyers from each sale allow for the product to be placed in a number of outlets, ensuring a more
balanced supply and a less disruptive release to the market. Small to medium lot auction
monetization sales work well for products such as rice, allowing many small traders to
participate, even those without access to large lines of credit. Commodities such as wheat and
milk require large traders and further processing to add value to the bulk commodity, which
limits participants to those with substantial working capital or access to credit.
In addition to the USAID Title II rice monetization, the Government of Japan provides rice to
Burkina Faso, which is monetized by the state-run Société Nationale de la Gestion du Stock de
la Sécurité Alimentaire (SONAGESS) in support of various government food security-related
activities.
At present, there is no United States Department of Agriculture (USDA) food aid program in
Burkina Faso, although it is on the list of eligible countries for a McGovern-Dole Food for
Education Program.
Overall, monetization is well received by the GOBF and producer groups who understand the
process, the purpose, the use of the proceeds, as well as the amount of rice imported.
BEST ANALYSIS – BURKINA FASO 11