Chapter 6


 Figure 6.2:
 Conventional food aid supplies versus local purchases:
 Main differences in concepts and lines of impact

r county Recipient country


 Allocation of funds -
 budgetary resources



Budgetary resources allocated
for agricultural sector policies
and objectives in donor country

 ,/


Public market interventions to
stabilise agricultural producer
 prices and incomes


 Volume of public purchases
 exceeds final demand
 (domestic demand and
 commercial food exports)
 I


 Commercially not disposable
 food surpluses



 Surplus disposal:
 conventional food aid deliveries
 (likely additional to other
 forms of development aid)


 I Commodity transfer





Linkages between conceptual elements
and major lines of impact:
 -> = Conventional food aid supplies
 --- = Local purchases


adapted from: M. Metz, Food Aid: Transfer of
Countries, Economics Vol. 24, Tiubingen 1981


Financial resource transfer




 Funds allocated specifically for
 food security/food aid purposes
 (possibly in substitution of other
 forms of development aid)


 Institutional market interventions in
 compensation for lacking effective
 demand of target group


Increase of effective market demand
 by institutional purchases
 (see also Figure 5.7, Module 4)

 \V
Stimulation of local food production.
increase of agricultural employment
and income in the recipient country


 Local procurement of food
 commodities for relief or
 development purposes



 Distribution of food
 to beneficiaries



 SIncreded food entitlement /
 alleviation of
 transitory food insecurity


 Thiprovement of
 supply and demand factors
 determining food security
 on national and household levels


Food Surpluses Versus Local Purchases in Developing


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