U.S. GRAIN MILLING EXECUTIVES DEBRIEF AMBASSADOR

UNCLAS ROME 005662

SIPDIS


FROM U.S. MISSION IN ROME

USAID ADDIS ABABA FOR AMBASSADOR BRAZEAL AND USAID DIRECTOR


USAID FOR A/AID, AA/DCHA WINTER, DCHA/FFP/D LANDIS, DRUMMOND
AND JTHOMPSON
USDA/FAS FOR U/S PENN, KMILLER, CHAMBLISS/TILSWORTH/GAINOR
USDA/FSA FOR ADMINISTRATOR LITTLE, ALDAYA, MERRICK AND
RANDALL
STATE FOR IO/EDA KOTOK, EB
NAIROBI FOR REDSO ESTES/BACON
BRUSSELS FOR USAID PLERNER AND PRM REP

E.O. 12958: N/A
TAGS: EAID EAGR PREF WFP UN
SUBJECT: U.S. GRAIN MILLING EXECUTIVES DEBRIEF AMBASSADOR
HALL ON FOOD AID-RELATED TRIP TO ETHIOPIA

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Summary
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1. John Gillcrist (Barlett Processing Companies, Kansas
City, Missouri),Guy Shoekmaker (Horizon Milling/Cargill,
Wayzata, Minnesota),and Fred Luckey (Bunge Milling, Saint
Louis, Missouri) met with Ambassador Hall on December 17 to
discuss their just completed trip to review U.S.-supported
food aid operations in Ethiopia. The group was most
impressed with the dedication and professionalism of USAID
field offices and implementing partners including WFP, World
Vision and Catholic Relief Services, whose projects they
visited. The team members expressed anguish and frustration
at commodity pipeline breaks that they attribute to a
"flawed" USG procurement process which bunches development
food aid contracting to the last few months of the USG
fiscal year - which in turn strains milling capacity and
drives up USG costs. They suggested that the USDA/USAID
Export Food Aid Conference VI in Kansas City (April 2004) be
a venue for convening a working group to directly address
this problem. End Summary.

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Background
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2. John Gillcrist (Barlett Processing Companies, Kansas
City, Missouri),Guy Shoekmaker (Horizon Milling/Cargill,
Wayzata, Minnesota),and Fred Luckey (Bunge Milling, Saint
Louis, Missouri) met with Ambassador Hall on December 17 to
discuss their just completed trip to review U.S.-supported
food aid operations in Ethiopia. They were accompanied by
Paul Green, North American Millers Association (NAMA) Export
Consultant, based in Washington, D.C. They were en route
back to the United States after several intense days in
Ethiopia visiting food aid projects being implemented by a
number of USG-funded partners including WFP, World Vision,
and Catholic Relief Services. The group was most impressed
with the dedication and professionalism of our implementing
partners, and gave high marks to USAID's Food Aid Office in
Addis Ababa and REDSO/Nairobi who coordinated their Ethiopia
visit.

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Anguish and frustration - "How can we fix the USG food aid
procurement system?"
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3. The U.S. corporate executives were unanimous in
expressing their anguish and frustration in hearing the
implementing partners in Ethiopia describe how frequent
pipeline breaks were impeding their ability to consistently
deliver commodities (particularly Corn Soy Blend) to
vulnerable populations. They explained how invariably U.S.
milling firms went through the first six months of every USG
fiscal year (Oct.-March) with hardly any orders for
processed food aid. During the last few months of the fiscal
year, they are in turn overwhelmed with orders - which
strains milling capacity and drives up costs to the USG
(i.e., mills are pressed into working overtime, on holidays,
etc). What they seek is a process where processed commodity
orders are placed throughout the fiscal year, in lieu of
being bunched up during the final few months.


4. They suggested that the USDA/USAID-sponsored Export Food
Aid Conference VI (next scheduled for April 2004) might
provide an ideal venue for convening a working group
(USDA/FSA, USDA/FAS, USAID/FFP and procurement officers from
the major NGOs and WFP) to directly address/resolve this
problem. Ambassador Hall concurred with this worthwhile
suggestion.

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Comment
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5. US Mission is grateful to NAMA for arranging the Ethiopia


visit for three key U.S. corporate executives. They bring
back to the United States a highly positive view of both the
dedication and professionalism of our implementing partners,
USAID's Food Aid Office in Addis Ababa and REDSO/Nairobi.
Moreo
ver, the U.S. corporate executives were clearly
impressed (amazed) by the clear and extensive impact of our
food aid programs in Ethiopia and how truly grateful
vulnerable populations were to the American people for this
assistance. They also clearly saw the lethal combination of
hunger and HIV/AIDS in Ethiopia and the vital importance of
good nutrition in addressing this terrible pandemic. Further
visits of this nature are highly encouraged. Hall


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2003ROME05662 - Classification: UNCLASSIFIED