World Food Programme's initiative for for food security in Pakistan
The Client
The Provincial Food Departments in Sindh and Balochistan are responsible for maintaining strategic grain reserves, procure wheat from growers on subsidized rates, to ensure supply of wheat on affordable rates to the flour mills, timely release of grains to private millers to maintain, at all times, a favourable alignment between the supply and demand of wheat flour, etc, to ensure food security in the provinces.
Over time, the Provincial Food Departments have made great strides and introduced several systemic measures to improve their supply chain’s efficiency and effectiveness including the storage infrastructure, however, there are areas which require further improvement for better performance and results. These include but not limited to storage infrastructure, non-edible impurities, post-harvest losses, high transaction costs, human resource capacities and use of technology for commodity management, etc.
World Food Program’s (WFP) broad support to the implementation of the Government’s commitment to Sustainable Development Goal 2 (SDG2), is in contributing to the development and strengthening of the Government’s capacities to store wheat grain with optimal standards of storage and minimizing food losses during the supply chain processes. This is being achieved by providing technical assistance in assessing the current supply chain of wheat grain, particularly, existing storage infrastructure and recommend medium term and long-term solutions to avoid any food losses, better accountability, seamless traceability, and supply chain visibility.
The Challenge
Sindh has a total of 29 districts, while Balochistan has 34 districts. The current system of storage and marketing of grains operates inefficiently. Lack of proper warehouse and storage facilities and the inability to maintain the required storage conditions lead to causing damage to the grain that results in wastage. This represents a huge economic loss and saving this loss means providing food to millions of people.
This study will identify the areas that needs to be addressed for improved performance and results. The findings of the studies will guide the Provincial Food Departments in Sindh and Balochistan to further strengthen and/or develop certain areas for improved provincial food systems.
How we helped
The Project Implementation process followed a methodology framework which was designed keeping in view the objectives of the project to be achieved. The framework consisted of four parts as shown below.
- Data Collection
- Data Processing
- Data Analysis
- Reporting
Data Collection:
The starting point for data collection was to develop survey tools. The tools included meeting with relevant positions within the Provincial Food Department, developing a questionnaire and conducting informal interviews. Secondary sources of data were also considered to collect authentic data relevant to this study.
Primary data was collected from the Food Department, Directors, Deputy directors and Assistant Food Controllers of the Provincial Food Department. The main data types collected include production, buying and selling, pricing, input delivery and distribution, constraints and opportunities characteristics of the actors involved in wheat storage in the study area. Secondary information was gathered from published and unpublished materials.
Data Processing:
Large magnitude of data was collected using the tools which was then filtered so that analysis of the data may begin. The data was filtered in the light of the Scope of Work and the objectives to be achieved. It was ensured that only useful data is analysed and reported upon. Systematic review methods were adopted to develop an inclusion and exclusion criteria.
Data Analysis:
Analysis of the data required systematic skills to be engaged for which senior team members and technical experts to be engaged. Analysis of the data began with filtering of data to use germane information to intensify the accuracy of the analysis.
Reporting:
Report has been prepared with accurate data by technical and experienced team members. The Report clearly covers all the objectives of the report with suitable recommendations wherever required or deemed necessary. All areas relating to supply chain and storage facilities have been identified and covered in this report comprehensively.
In addressing the challenges encountered during project implementation, a comprehensive solution was devised encompassing various key areas. The project faced complexities related to data collection, and cost estimates. To overcome these challenges, a structured approach was implemented, utilizing innovative methodologies and tools tailored to the project's requirements.
Data Collection:
Primary data/information was collected using structured surveys, interview sessions with related stakeholders and by visiting the storage sites of Balochistan Food Department. Formal surveys were undertaken with relevant representatives using a pre-tested structured questionnaire. Secondary data relevant for this study was gathered from published and unpublished materials.
Cost Estimates:
To assess the financial viability of the various storage options, a financial cost benefit analysis (CBA) was commissioned to provide WFP and provincial Food Department with a tool to measure the financial feasibility of the proposed modern and traditional storage options. The analysis provides a comparison of the results of initiatives that could be taken. The CBA was conducted by following the ‘strategy into action’ model. Secondary data was reviewed, and primary data was acquired through structured interviews with industry experts, construction engineers, related suppliers of storage facilities and storage experts.
Data and figures used for analysis and calculations were based on information collected through structured interviews of related stakeholders within a storage technology industry and were then triangulated through secondary sources. For this, services of professional engineer and technical expert of storage warehousing were obtained.
The result
The assessment of wheat storage and supply chain systems in Sindh and Balochistan revealed significant challenges and opportunities for improvement. Both provinces predominantly rely on traditional methods of wheat procurement, handling, and storage, primarily using gunny bags. Despite the presence of some bulk storage facilities, the implementation of a comprehensive bulk chain system was lacking, leading to inefficiencies and grain losses throughout the supply chain. In both provinces, the prevailing wheat supply chain system had demonstrated success in maintaining price stability and food security, yet it was characterized by several shortcomings, such as;
- Low pricing policies discouraging farmer inputs
- Financial burdens on public finances
- Logistical inefficiencies
- Overall economic costs.
Furthermore, the evaluation highlighted critical deficiencies in the condition and capacity of existing storage facilities, necessitating major renovation or reconstruction. The lack of proper warehouses and storage locations contributed to significant grain wastage, posing challenges to achieving national self-sufficiency and food security goals. To address these issues, recommendations emphasized the establishment of modern bulk storage facilities, renovation of existing infrastructure, and the adoption of innovative logistics solutions. Moreover, the need for comprehensive wheat procurement policies aligned with food security objectives was paramount, alongside investments in training, capacity building, and the development of supply chain management information systems to enhance efficiency and effectiveness.
