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Introduction
Home
- List of Acronyms
- List of Cooperating Sponsors
- Conversion Tables
Part One
Section I:
Commodities
- Commodity Availability
- Commodity Characteristics
- References
Section II:
Food Commodity
Fact Sheets
- Beans, Black
- Beans, Great Northern
- Beans, Kidney (Light Red, Dark Red, All types)
- Beans, Navy (Pea Beans)
- Beans, Pink
- Beans, Pinto
- Beans, Small Red
- Bulgur (BW)
- Bulgur, Soy Fortified (SFBW)
- Corn (bagged, bulk)
- Cornmeal
- Cornmeal, Soy-Fortified (CMSF)
- Corn Soy Blend (CSB)
- Corn Soy Milk (CSM)
- Corn Soy Milk, Instant (ICSM)
- Lentils
- Non Fat Dry Milk (NFDM)
- Peas
- Rice
- Rice (Parboiled)
- Sorghum
- Sorghum Grits, Soy-Fortified (SFSG)
- Fortified Refined Vegetable Oil
- Wheat
- Wheat Flour
- Wheat Soy Blend (WSB)
- Wheat Soy Milk (WSM)
Section III:
Storage/Shelflife
Specifications
- Storage Specifications
- Storage Inspection Checklist
- Shelf Life of Agricultural Commodities
- References
Section IV:
Controlling
Damage to Food
Commodities
- Cleaning and Inspecting
- Insect Control
- Rodent Control
- Reference Chart for Controlling Damage to Food Commodities
- References
Part Two
An Overview
Part Three
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Part II: Module 3: Food for Education |
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Updated
January 2006
I.
INTRODUCTION
USAID's
Office of Food for Peace
(FFP) administers PL 480, Title II food aid commodities. FFP provides
Title II resources to Cooperating Sponsors (CSs) to implement
sustainable development programs targeted to improve the food security
of needy people, either by the direct distribution of agricultural
commodities or the use of local currencies generated by the sale of
these commodities.
USAID
supports education efforts
and often uses food aid to help improve education opportunities and
educational progress by providing school lunches and take-home
incentive rations. School lunches are used to encourage school
enrollment, attendance, and to improve students'
attentiveness-especially for those without breakfast at home. Food to
schools may be referred to as Food for Education program only if school
feeding is integrated with other activities aimed at improving the
quality of the education at the school, e.g., teacher training,
curriculum development, development and provision of academic
materials, infrastructural improvements, or provision of school
supplies. The non-food resources for these activities cannot be
included in an activity funded by Title II Food for Education
resources. Some can be supported with Title II commodities, but the
food must be requested in a separate proposal, e.g., a Food for Work
proposal. Normally, the government, Cooperating Sponsor, or other
agencies should provide the non-food resources. School feeding that is
not integrated with other activities must be referred to simply as
"school feeding", not as Food for Education. The USAID/FFP office has
made it clear that the FFE is the preferred approach.
Food
insecure communities with
poor school attendance are usually selected as targets. Within
communities, some programs specifically target girls. This Module
provides principles and examples of ration selection for FFE programs.
II.
GUIDELINES FOR COMMODITY SELECTION FOR EDUCATION PROGRAMS
This
module, following the
general five step framework of Part Two of the CRG (Box 1). It includes
key points of consideration for FFE programming under each step. This
guidance is meant to be flexible enough to allow FFE Program Managers
to select food aid rations appropriate for the situation. Box 1 lists
the five steps.
Box 1: Five Steps for Commodity Selection
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STEP 1: PROGRAM DESIGN
Program
design considerations
are those program attributes that affect appropriate commodity
selection. Key program design considerations discussed in this chapter
include: (1) carrying out a needs assessment; (2) developing program
activity objectives; (3) determining the appropriate use of food; (4)
identifying the target population's characteristics; and (5)
determining the distribution mode and frequency.
1.
Needs Assessment
As
programs with a food aid
component are being designed, it is important to articulate why food
aid is needed and how it will be used to meet program goals. A needs
assessment or problem analysis will help to identify the nature,
extent, severity, and distribution of the food needs. It should also
include an assessment of food availability, an analysis of the main
causes of malnutrition, identify the technical and geographical areas
in which the program will work, and summarize the resources and
institutional capacity for action. Attention should be given to the
extent which problems in these priority technical and geographic areas
are already being addressed.
Information
about the target
population's demographic profile, nutritional status, food consumption
patterns, health statistics, socio-economic statistics, and other basic
information needs for program design can be attained from primary
sources, such as qualitative research, food consumption surveys, and
nutritional status surveys. A useful publication on how to use these
methods is USAID/CDIE's Performance
Monitoring and Evaluation Tips.
Other resources are listed in the Reference List. Useful information
can also be obtained through secondary data reviews followed up with
local key informant interviews. Other sources of secondary information
include:
- USAID
reports and/or Demographic Health Surveys (DHS)
- Ministry
of Health and other in-country institutional statistics
- National
surveys or governmental action plans
- International
and bilateral donor agency situation analyses and reports
- Other
cooperating sponsors working in country
- Internet
databanks (such as UNICEF, WHO, World Bank, WFP, etc.)
Please
refer to the current USAID/BHR's Title II
Guidelines for Development Programs for further guidance on
developing a needs analysis. Also refer to the Food Aid Management
website for
additional information.
2.
Program Activity Objectives
No
matter how the
food will be used, the desired result of the food assistance
intervention should be stated in terms of objectives. Once these have
been defined, then, food commodities and rations should be selected to
be consistent with these objectives. Each CS has its way of expressing
objectives. However, using USAID's Managing for Results terminology
will facilitate reporting to USAID (for definitions of terms, see Annex
1 in Part Three of the CRG). Objectives for USAID-funded programs
should be result statements, that is, they should clearly describe the
desired end result of the intervention. For example, "Improved
attendance rates among school age children" is a result-oriented
objective.
USAID
recommends that each
objective/result statement have at least one indicator to track
progress of its achievement. Performance indicators are variables with
a particular characteristic or dimension that can measure progress
toward achievement of the desired result. Performance indicators should
be direct, measurable, and sensitive to capture small changes over
short time intervals. For example, an indicator for the result
statement mentioned (Improved attendance rates among school age
children) could be "attendance rates in target schools". USAID/CDIE's Performance
Monitoring and
Evaluation Tips
provides general guidance on how to develop objectives and indicators.
FANTA project's "Food for Education Indicator Guide" proposes a set of
indicators to measure the performance of FFE programs plus guidelines
for computing these indicators and can be found at www.fantaproject.org.
Whenever possible, programs should include input as well as impact
indicators for measuring progress of food aid programs. CSs should also
provide baseline data for selected indicators or a plan for collecting
these data. Baseline studies of the target population, that incorporate
the selected indicators should be part of the needs assessment, but may
be accomplished immediately after activity approval. CSs should also
articulate an evaluation and monitoring plan that outlines the how
indicators will be tracked and progress evaluated.
3.
Food Use
In
the past, school feeding (SF)
programs used food primarily as an incentive to children and their
families to improve attendance. Based on new findings that show that
short-term hunger has a negative effect on attentiveness and learning,
the role of food in FFE programs has been extended and refined to
additionally focus on improving learning, attention, and retention of
material. The consumption of food early in the school day is important,
but it is often logistically difficult to prepare a breakfast at
school. Therefore, the trend is towards mid-morning meals or snacks.
Provision of the food only near or at the end of the school day will
reduce the effectiveness of the ration in achieving the learning
objectives, but FFE programs does help students' families offset the
costs of sending the child to school.
4.
Target Population
The
target group for FFE
programs is school age children in food insecure communities.
Generally, all children in selected schools benefit, although the girls
may be selected for extra benefits or may be the only beneficiaries.
Feeding may also be restricted to only certain grades within the
school. Targeting of individual children is not done on the basis of
nutritional criteria, but nutritional status at the community or
population level could be a basis for selecting schools or districts.
Examples of other criteria that may be used for school and district
selection are: adequacy of food production, indicators of
socio-economic status, rates of student enrolment or attendance, or
student achievement. To assure that educational benefits can be
achieved, only schools that meet basic minimum standards of quality (to
be determined in conjunction with the governing body and parents)
should be targeted.
5.
Distribution Mode and Frequency
The
major mode of distribution
for FFE programs is on-site feeding. However, take-home rations are
sometimes provided. A description of both modes of distribution is
provided below:
On-site
school feeding:
School feeding programs usually provide ready-to-eat meals or snacks on
site. The food should be provided to the students early in the day to
maximize the learning gains. Obviously, food is provided only the days
that the child is actually in school (e.g. five or six days a week).
Take-home
rations:
Sometimes students are given a take-home ration in compensate the lost
time they would normally have spent working at home during school
hours. This is a common incentive to promote enrolment of girls.
Back to Steps for Selecting Commodity Rations
STEP 2: SUITABILITY OF COMMODITIES
Suitability
of the ration is
defined by assessing those attributes of the individual ration
recipient, target household, or community that will most affect
utilization of the food aid commodities. Determining suitability must
take into account nutritional needs, physiological appropriateness,
food consumption preferences and patterns of the food aid recipient(s),
locally available foods, food processing storage capacities, and local
market prices. These factors all affect the selection and appropriate
allocation of food aid rations. Below is a checklist for use in
considering food aid rations for an intended target group(s). A
detailed description of these factors can be found in Annex III.
Nutritional
content is
the nutritive content of the food commodity. Major nutrient
considerations should include energy (calories), protein, and
micronutrients (vitamins and minerals). Populations deficient in
micronutrients would benefit from fortified food commodities. It is
always important to consider the nutritional content of the commodities
when designing ration packages. The age, sex, and activity level (e.g.,
depending on distance to walk to school), of the target school group
are primary determinants of their nutritional needs. The ambient
temperature during the school year must also be considered in cold
climates. Special considerations of the disease burden affecting the
school child may influence the amount of food provided. For example,
HIV/AIDS affected people require additional energy. Refer to the FANTA
publication HIV/AIDS:
A Guide for Nutritional Care and Support (2004) [http://www.fantaproject.org/downloads/pdfs/HIVAIDS_Guide02.pdf].
Physiological
appropriateness
relates to the physical characteristics of the food commodity that
affect its use by the target group. Consult local nutrition experts
wherever available. Anything that could decrease utilization of the
ration, such as food allergies and lactose intolerance, should be
identified and taken into consideration.
Cultural
suitability:
Consider the cultural acceptability, including taste preferences,
traditional taboos, and local practices of the target population or
group that will affect food use and consumption. For example, most
Brazilians prefer black beans while Nicaraguans prefer small red beans.
Another important consideration is whether the commodities are
culturally suitable for the particular role they are to play in the
project. It is key to identify major constraints to using particular
commodities.
Availability
of processing and/or storage facilities:
Food preparation, processing, and storage facilities need to be
considered when designing food supplements for FFE programs. Important
questions to ask are: (1) are mills available to process whole grains;
(2) are school facilities adequate for storing the food supplement; (3)
what fuel, preparation equipment or cooling facilities are available;
and (4) what other locally available foods are available to improve
taste, acceptability and nutrient diversity.
Characteristics
of local food production
are factors that provide an understanding of which local foods are
relatively available and affordable to the target group. Often parents
are asked to contribute fresh foods or condiments to add to the food
aid commodities to add micronutrients or increase the palatability of
the school meals. If take-home rations are provided it would be wise to
look at the production cycle helps to identify how food harvests
correspond to the school year. Commodities for take-home could be
selected to help fill those gaps. Also, care should be taken in the
commodity selection to assure that there is no disincentive to local
production.
Cost
will, in part, determine which food ration will be used.
Using
this list, exclude
commodities which do not meet the physiological criteria, are not
culturally acceptable, are difficult to store or process, and/or will
compete with local food production from the list of potential
commodities. Making these decisions will aid in creating a short list
of commodities from which to chose. Annex III provides a detailed
description of the factors mentioned above.
Back to Steps for Selecting Commodity Rations
STEP 3: RATION SPECIFICATIONS
The
size of the ration should be
based on specified nutritional needs and/or income values, costs or
ration standards that other agencies are currently using. Past program
ration specifications for size and type of ration, the approval of the
USAID mission, and commodities that have been already ordered and are
in the pipeline (up to several months in advance of the start of a
program) are also key considerations.
To
determine ration size, first
determine the nutritional or income value that a ration must have to
achieve the project objectives and impact. Then list suitability
criteria and key characteristics that are important to the full
utilization and consumption of the ration as described in Step 2. Below
are suggestions on how to best determine the nutritional or income
value of FFE food rations.
1.
Determining Nutritional Values
The
nutritional value of the
ration is described in terms of its energy (calories), protein, fat and
micronutrient content. Establishing the beneficiaries' minimum energy
and protein needs, which depend on the child's age and sex, provides a
basis for defining a supplement package appropriate to meet project
requirements. These requirements are described in terms of the average
number of kilocalories and grams of protein needed per person per day
before selecting the commodities. In addition, the fat in the rations
should provide 10-20% of the total energy.
FFE
programs generally provide
only a snack or a meal, which would not be expected to fill the
nutrition deficit completely. There are no fixed guidelines for
calculating the nutritional value of supplementary food rations for a
FFE program, since the food supplement is not based on the nutrient
deficit of the target group. Past experience with food aid programs may
be the best way to determine the nutritional value of the food ration.
However, it can be assumed that the meal provided will substitute for
at least one meal normally provided at home. Thus, the following
general steps could be used for calculating the nutritional value of
the meal.
- Determine
which meal the food supplement would replace-breakfast or lunch.
- Determine
the
percentage of energy that meal represents. For example, if the
breakfast is usually light, it may represent 10-15% of a child's total
intake per day. If the meal is served as a lunch, the percentage of
energy may be higher given that lunch is usually the bigger meal in
most countries.
- Multiply
the
percentage times the Recommended Energy and protein allowances. The CRG
uses Annex III and IV, however, CSs may use their own dietary
standards.
Box
2
provides an example of
calculating the nutritional value of a FFE meal ration for 7 to 10 year
old children based on percentage of recommended dietary allowances.
BOX 2 - EXAMPLE OF HOW TO CALCULATE A MEAL RATION FOR
7-10 YEAR OLD CHILD
Assumptions:
The mid-day meal represents approximately 45% of the target group's
diet.
1)
Determine recommended energy allowance (REA) for 7-10 year olds = 2,000
kcal (from Annex III)
2) Multiply 2,000 (kcal) x .45 = 900 kcal per child per day
3) Determine recommended protein allowance (RPA) for 7-10 year olds =
28 grams (from Annex IV)
4) Multiply 28 grams x .45 = 12.6, rounded to 13 grams protein per
child per day
Thus
the nutritional value of the food supplement is 900 kilocalories and 13
grams protein.
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General
guidance provided by WFP/UNESCO/WHO for full day primary schools is to
provide a:
- mid-morning
snack containing 400-600 kilocalories per child and a
- full
lunch of 700-900 kilocalories,
- for
a total of
1200-1500 kilocalories per child (or 60-75% of REA), with 28-36 g
protein (70-90% of RPA) and 13-17g fat. (Refer to WFP/UNESCO/WHO. Rome
1999. School Feeding Handbook.)
For half
day primary schools,
depending on the frequency of feeding and whether or not the school
feeding is intended to provide a full lunch, the guidance provided is:
- A
mid-morning snack only: 500 kcal (or 25% of REA); about 13g protein
(33% of RPA); about 6 g fat.
- Two
snacks (before school and mid-morning): 600-900 kilocalories (or 30-45%
of REA); 16-24 g protein (40-50% of RPA); 7-11g fat.
- A
mid-morning snack and lunch: 1200-1500 kilocalories; 28-36 g protein;
13-17 g fat (i.e., like full day schools).
Micronutrient
deficiencies are
widespread in developing countries where Title II food aid is
distributed. All processed food cereals under Title II programs, with
the exception of parbroiled rice, are fortified with B vitamins
(thiamin, riboflavin, folic acid, and niacin), vitamin A, calcium, and
iron. Blended cereals (corn-soy blend and wheat-soy blend) are further
fortified with zinc, B12, pantothenic acid, iodine, magnesium, vitamin
C, vitamin D, and vitamin E. Vegetable oil is fortified with vitamin A.
If micronutrient deficiencies are known, the contribution from
fortified commodities can be estimated by from the Commodity Fact Sheets
in Section II of the CRG. Check with school authorities to ensure that
children are not already been supplemented with multi-vitamins or
specific vitamins such as vitamin A.
2.
Income Transfer Value
Income
transfer value is the
value of the ration in monetary terms to the household receiving the
food aid. If a FFE program uses food rations mainly for their income
transfer (monetary) value, Program Managers will need to determine the
ration package's target level and the minimum level of acceptable
income transfer value. The cash value of rations is determined by the
price (market or selling) of the local commodity that is most similar
to the food aid commodity in the household diet. When used as an
incentive to families to offset the costs of sending their children to
school, past program experience, conversations with community leaders,
tests of different income transfer value levels, and discussions with
the USAID mission may be necessary before agreeing upon a minimum
level. Commodities that substitute for highly valued and expensive food
items, such as oil, may have a substantial income mediating effect,
freeing up income typically used for purchasing these expensive items
to buy additional local foods or goods.
Back to Steps for Selecting Commodity Rations
STEP 4: RATION CALCULATION
When
designing ration packages
program managers need to (1) choose the ration package based on the
nutritive or income transfer values, (2) calculate the total amount of
commodities needed for the program, and (3) determine commodity
cost-effectiveness. The large number of commodities on the eligibility
list makes it possible to design a variety of ration packages. It is
useful to develop several alternative ration packages so that they can
be compared for cost and other trade-offs. Programs may wish to
consider alternative rations in the initial planning steps as
contingency plans for when a commodity is not available, is delayed in
transport, or when changes in commodity availability, prices, and
packaging alter the relative cost effectiveness of ration packages.
Ration
calculators that compute the quantity
of foods necessary to provide a population all micronutrients at the
lowest cost can help in the design of appropriate diets given locally
available and affordable commodities. There are a number of calculators
in existence or in development, including NutriSurvey
(www.nutrisurvey.de/lp/lp.htm).
These tools can be helpful in
determining an appropriate population-level ration, but are not
appropriate for therapeutic feeding, replacement feeding, or individual
ration calculation.
1.
Calculating the ration package
For
logistical and management reasons, a ration package that meets
nutritional values should use no more than three commodities per
ration
unless strong reasons exit. Because vegetable oil is a dense source of
energy for food deficient populations, it should almost always be
included in a ration package. While there is an element of trial and
error, the following checklist helps provide a systematic approach for
calculating the ration package and selecting the commodities to meet
nutritional values. For the sake of calculation, commodity 1 will be
fortified vegetable oil, commodity 2 will be a cereal or cereal blend,
and commodity 3 will be a legume.
- Consider
the caloric and protein nutritional values of the proposed food ration,
which have been calculated using Step 3.
- Calculate
the oil
ration. Around 10 to 20% of the food ration's energy should come from
oil. Multiply the total caloric value of the ration package by 10 to
20%. Then divide this amount by 9 (number of kcal per 1 gram of
vegetable oil).
- Subtract
the caloric contribution of oil from the total caloric value of the
proposed food package.
- Select
a cereal or
cereal blend from the list of commodities in Section I of the CRG to
make up the balance of kilocalories. At present, Title II cereals
include wheat, sorghum, bulgur, corn, and rice. Blended cereals include
corn-soy blends (CSB) and wheat-soy blends (WSB). Projects targeting a
protein deficit population utilizing a two-commodity ration should
first consider soy-fortified cereals. While blended, fortified, or
value added foods should be considered first, Program Managers should
also consider cost, energy and protein content, acceptability, ease of
storage and processing attributes of commodities.
- Calculate
the
number of kilocalories per 1 gram of cereal/cereal blend by dividing
the number of kilocalories per 100 grams of commodity (from Commodity Fact Sheets
in Section II of the CRG) by 100.
- Divide
the balance of kilocalories by the number of kilocalories per 1 gram of
cereal/cereal blend.
- Calculate
the
number of grams of protein per 1 gram of cereal/cereal blend by
dividing the number of grams of protein per 100 grams of commodity
(from Commodity Fact Sheets) by 100.
- Multiply
the amount
of protein per 1 gram of cereal/cereal blend times the total grams of
cereal/cereal blend in the ration package.
- Subtract
the
protein contribution of the cereal/cereal blend from total protein
value of the proposed ration package. If more protein is needed, either
increase the amount of cereal/cereal blend or use a three-commodity
ration.
- For
a
three-commodity ration package, the third commodity should be dry
beans, peas, lentils, and soy to increase the protein value of the
package.
- Determine
the grams
of protein needed to make up the difference between the protein
contribution of the cereal (soy-cereal blends are generally not used in
3-commodity rations). See Box 6 for specific instructions. Do not
forget to take into account the caloric value of the protein source
and, if necessary, adjust your cereal ration accordingly.
- Assess
suitability and physiological appropriateness of the commodities (see
Step 2 and Annex IV).
Box
3
provides a detailed example of how to calculate ration package with two
commodities.
BOX 3: EXAMPLE OF HOW TO CALCULATE A TWO-COMMODITY RATION
1) The
caloric and protein values for this
example are 900 kcal and 13 grams (g) of protein per person per day,
respectively. (from Box 2).
2)
Multiply the total number of kcal times 10-20% to determine kcal from
oil ration. 900 kcal x 0.20 = 180 kcal
3) Divide
the number of kcal of oil by 9 (1 gram oil = 9 kcal).
270 kcal / 9 kcal = 30 g of fortified vegetable oil per child per
day
4)
Subtract the caloric contribution of oil from the total caloric value
of the ration package.
900 kcal - 180 kcal fat = 720 kcal balance
5) Select
a cereal or cereal blend to make up the balance of kilocalories. Using
the Commodity Fact
Sheets
calculate the number of kilocalories per 1 gram of cereal/cereal blend
by dividing the number of kilocalories of 100 grams of cereal/cereal
blend by 100. This example uses cornmeal.
366 kcal / 100 g = 3.66 kcal per 1 gram of cornmeal.
6) Divide
the balance of kilocalories by the number of kilocalories per 1 gram of
cornmeal. 720 kcal / 3.66 kcal = 196 g of cornmeal per person per
day
7)
Calculate whether 196 grams of cornmeal
provides enough protein. To do this, first determine the amount of
protein per 1 gram of corn-soy blend by dividing the grams of protein
per 100 g commodity (from Commodity Fact Sheets) by 100. 8.5 g / 100 g
= 0.085 g
8) Then
multiply the protein amount per 1 gram of corn soy blend times the
total grams of corn-soy blend.
196 g x 0.085 g = 16.6 g of protein per child per day. This amount is
slightly more than the 13 grams proposed.
Thus,
a two-commodity ration package of
30 grams fortified vegetable oil and 196 grams cornmeal provides 900
kilocalories and 16.6 grams of protein per child per day.
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2.
Calculate the Total Amount of Food Commodities Needed
Once
the ration package is
determined, Program Managers will need to calculate how much of the
commodities (usually in metric tons) will be needed to feed the total
number of students or household per year or project period. To
calculate the number of metric tons needed for each commodity
(vegetable oil, cereal, cereal blend, or legume) use the following
steps.
- Multiply
the number of grams of the commodity per person per day times the total
number of persons to receive the commodity.
- Multiple
the total
number of grams of the commodity needed to feed the target group times
the total number of days the program will provide the ration package.
- Determine
the
number of metric tons of commodity needed by dividing the total number
of grams of commodity needed per program period by 1,000,000 (number of
grams in a metric ton).
- Complete
the same calculation for each commodity (vegetable oil, cereal, cereal
blend, or legume) that comprises the ration.
Box
4
provides an example of how
to calculate the total amount of commodities needed to provide the
two-commodity ration package from Box 3 to 15,300 children for one
school year of 180 school days.
BOX 4: CALCULATING AMOUNT OF COMMODITIES NEEDED FOR
15,300 STUDENTS FOR 180 SCHOOL DAYS.
1)
Multiply grams of oil per person per day times 15,300 persons times 180
days. 30 g oil (Box 3) x 15,300 persons = 459,000 g per day x 180 days
= 82.620,000 g per year
2) Divide
the total number of grams of vegetable oil per year by 1,000,000
(number of grams per metric ton)
82,620,000 g / 1,000,000 = 83 metric tons of fortified vegetable
oil per school year
3)
Multiply grams of cornmeal per person per day times 15,300 persons
times 180 days. 195 g cornmeal (Box 3) x 15,300 persons = 2,983,000 g
per day x 180 days = 537,030,000 g per school year.
4) Divide
the total number of grams of cornmeal by 1,000,000 537,030,000 g /
1,000,000 = 437 metric tons of cornmeal per school year
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3.
Determine Cost Effectiveness of ration package
Cost
is often not the primary
factor for selecting the commodities. Food preferences, availability,
and potential disincentive effects often outweigh cost considerations.
However, the cost-effectiveness of the commodity, i.e., the ratio of
its cost to its nutritive or income value, may help in determining
whether it is cost-effective and/or appropriate for the food aid
component of a development assistance or emergency program. CSs should
determine the primary purpose of the food aid program (nutritional
benefit or income transfer) and conduct the appropriate
cost-effectiveness analysis.
Calculating
the
cost-effectiveness of desired commodities in terms of cost per unit of
nutritional value (one kilocalorie or one gram of protein) or income
transfer value (in USD to the recipient) provides information about
which commodities provide the most nutritional benefits or highest
income at the lowest cost to the project. It is important to note that
cost per calorie of fortified foods will always be higher than bulk
grains, but in that fortified foods are rich in micronutrients, they
add key nutritional value to many program situations.
Cost
Effectiveness per Nutritional Value:
To determine the cost effectiveness value of a commodity per its
nutritive value, calculate the cost per one kilocalorie and one gram of
protein. Two pieces of information are needed for the calculation: 1) A
price estimate for the commodity of interest (sources for obtaining
commodity prices are listed in Annex V); and 2) The nutritional value
of the commodity (refer to the Commodity Fact Sheets in Part I, Section
II of the CRG). Once these pieces of information are obtained, the
cost-effectiveness of a ration package per its nutritional value can be
calculated in the following way.
a)
Per Energy value:
- To
calculate the cost of the
commodity per 100 grams, divide the cost per metric ton by 10,000 (a MT
is equal to 10,000 units of 100 grams).
- Divide
the cost per
100 grams of commodity by the number of kilocalories per 100 grams of
commodity. This will give the dollar cost per one kilocalorie of
commodity.
b)
Per protein value:
- To
calculate the cost of a
commodity per 100 grams, divide the cost per metric ton by 10,000 (a MT
is equal to 10,000 units of 100 grams)
- Divide
the cost per
100 grams of commodity by the number of grams of protein per 100 grams
of commodity. This will give the dollar cost per one gram of protein
provided by the commodity.
Box 5
gives an example of how to calculate the cost effectiveness of both the
caloric and protein nutritive values for cornmeal.
BOX 5: EXAMPLE OF COST PER NUTRITIVE VALUE OF CORNMEAL
Per caloric content of cornmeal:
$
(per MT) Cornmeal18 /
10,000 = $ (per 100 g) Cornmeal
$ (per 100 g) Cornmeal / 366.0 kcal
(per 100 g) Cornmeal = $ (per 1 kcal) Cornmeal
Per protein content of cornmeal:
$ (per MT) Cornmeal / 10,000 = $ (per 100 g)
Cornmeal
$ (per 100 g) Cornmeal / 8.5 g
protein (per 100 g) Cornmeal = $ (per 1 g protein) Cornmeal
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This
type of analysis would be
used to compare different commodities that are suitable for meeting the
same nutritional objectives in order to determine which ration package
is most cost-effective. Decisions about cost-effectiveness of a
commodity should be made in tandem with the objectives of the program.
If the objective of the program is to improve nutritional status of a
target group, a commodity with a high protein and micronutrient value
might be considered. However, if the main objective is to provide
energy to maintain the nutritional status of the target group, a
commodity with a less expensive source of energy may be the most
cost-effective.
Cost
per Income Value:
Another analysis that could be done for when CSs use food aid
commodities to provide a given value or an incentive or wage. In this
context, cost effectiveness is the cost of a commodity per $5.00 of
income value. For each commodity under consideration, use commodity
price estimates to calculate the income value of 1 kg of that
commodity. Then calculate the amount of the ration that is required to
yield $5.00 income value. Box 6 provides an example.
BOX 6 - EXAMPLE OF INCENTIVE VALUE CALCULATION
1)
Calculate the cost of one kg of cornmeal to the household if purchased
in the local market:
$ (per 1
kg) cornmeal in local market
2)
Next,
divide the cost of one kg of cornmeal into $5.00:
$5.00
÷ $ (per 1 kg) cornmeal in local market = kg cornmeal (per
$5.00)
*See Part II Overview
for a cost effectiveness method comparing this cost to the cost to the
program of delivering the cornmeal to the school.
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Changes
in commodity
availability, prices, and packaging can alter the relative cost
effectiveness of ration packages. It is useful to develop at least one
alternative ration packages so that it can be compared for cost and
other trade-offs.
Take
into consideration the following when designing an alternative ration
package:
- Design
rations that meet specifications using no more than three commodities
per ration.
- Use
commodities, which provide the maximum gain to recipients at lowest
cost to the project.
- Based
on the cost
per unit of nutritional and/or income transfer value provided to the
recipient, use the most cost-effective commodities and design at least
one alternative package if a new project is being planned.
- Compare
the
nutritional and/or income transfer values of currently used rations
with specifications and key suitability criteria.
- Alter
the ration
packages according to how they will meet nutritional or income transfer
objectives as well as their cost-effectiveness.
Back to Steps for Selecting Commodity Rations
STEP 5: RANKING AND SELECTION
It is
important to rank your
ration packages and commodities in order to select the most
cost-effective and appropriate rations to meet program objectives. Cost
plays a vital role in the size and effectiveness of projects, and
budgetary requirements can be affected by the inclusion of certain
commodities, especially when ordered in large quantities. Costs of the
individual commodities are vital in obtaining a total ration cost.
Calculating the costs of commodities involves decisions about which
cost elements to consider. At a minimum, Commodity Credit Corporation
(CCC) values and various in-country transportation and
storage costs can be used. Other factors to consider are:
- Market
disruptions:
The Bellmon determination must ensure that the local market is not
disrupted. Market considerations in local areas where programs are
targeted might also come into play. For example, it may be less
disruptive to provide certain foods in the lean season rather than the
harvest season. Guidance on conducting the Bellmon analysis may be
found online at www.usaid.gov/hum_response/ffp/bellmon.htm
- Logistics
and management:
Some commodities may impose undue management or cost burdens due to
unusual local conditions (transportation, storage, handling, pilferage,
accounting costs, etc.) or unsuitable packaging for the shelf life of
the commodity.
The
usual sources of these data
for considering secondary purposes, potential market disruptions, and
logistical problems include past evaluations of the same or similar
programs; interviews with local personnel, Ministries of Agriculture or
Finance; USAID mission agricultural offices, and USDA representatives
at U.S. Embassies.
Thus,
ration packages can be
ranked by nutritional value, income transfer value, total cost, and
other factors, such as, secondary purposes of the ration, market
disruptions, and logistical problems. Alternative rations should meet
all the minimum standards of nutritional and/or income transfer value
as well as other critical specifications. Decisions to change ration
packages can be made easily and less arbitrarily when alternative
rations and their main attributes have been worked out in advance.
Back to Steps for Selecting Commodity Rations
III.
REFERENCE LIST
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For Education Indicator Guide. Joy Miller del Rosso and Gilles
Bergeron
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of Children 6 through 23 months from the KPC 2000+. Mary Arimond
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Swindale and Paula Bilinsky.
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Programs. Serena Rajabiun, Beatrice Rogers, Margarita Safdie, Anne
Swindale
- Measuring
Household Food Consumption: A Technical Guide. Anne Swindale and
Punam Ohri-Vachaspati
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WHO. Nutrient Requirements for
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