International Food Assistance: Local and Regional Procurement Provides Opportunities to Enhance U.S. Food Aid, but Challenges May Constrain Its Implementation

The majority of U.S. food assistance is for U.S.-grown commodities purchased competitively in the United States and shipped to recipient countries. Local and regional procurement (LRP) of food aid has become an increasingly important element in the multilateral response to food crises over the past decade. LRP involves the purchase of food aid by donors in countries affected by disasters or food crises, or in a different country within the same region. LRP can provide opportunities to enhance the efficiency of U.S. food aid, but challenges may constrain its implementation. The cost of LRP food is considerably lower than U.S. in-kind food aid for sub-Saharan Africa, with an average cost 34 percent lower than U.S. in-kind food aid. In contrast, the average cost of LRP food in Latin America was 2 percent higher than U.S. food aid. The delivery time for LRP is also shorter than for international in-kind donation, with a median delivery time of 35 days for LRP in sub-Saharan Africa. The World Food Programme (WFP) data indicates that LRP in sub-Saharan Africa has a shorter delivery time than food aid procured or donated internationally. The median delivery time for LRP in sub-Saharan Africa is 35 days, compared to 147 days for international in-kind donation. The delivery time for LRP in Latin America is also shorter than for international in-kind donation, with a median delivery time of 41 days. The efficiency of LRP can be improved by addressing challenges related to procurement, logistics, and logistics management. The U.S. Agency for International Development (USAID) and the WFP have implemented various initiatives to improve the efficiency of LRP, including the use of electronic procurement systems and the development of logistics management capacity in recipient countries. However, challenges remain, including the need for improved coordination between donors and recipient countries and the need for more effective monitoring and evaluation of LRP. The use of LRP can also improve the efficiency of U.S. food aid by reducing the time and cost associated with shipping food aid from the United States. LRP can also provide opportunities for the U.S. to explore cost-saving opportunities in the region and to improve the flexibility of its food aid response. However, the use of LRP also raises challenges related to procurement, logistics, and logistics management, and requires improved coordination between donors and recipient countries. The U.S. has a significant role to play in responding to emergency food assistance needs and ensuring global food security. The use of LRP can provide opportunities to enhance the efficiency of U.S. food aid, but challenges may constrain its implementation. The U.S. should continue to explore the use of LRP as a means of improving the efficiency of its food aid response, while addressing challenges related to procurement, logistics, and logistics management.