Participating in the World Food Program
The World Food Programme (WFP)* is without parallel in delivering humanitarian aid, food assistance in both changing and ultimately saving lives.
Globally, governments have committed to achieve three fundamental imperatives by 2030:
- End Hunger
- Achieve Food Security
- Improve nutrition for everybody
As in today’s age it is a lamentable fact that still one in nine people worldwide remain hungry within insufficient access to foods. In 2019, WFP assisted over 97 million people in over 88 countries and daily operates 5600 truckes, 30 ships and nearly 100 planes – all mobilizing food and assistance to those most in need.
(*Overview | World Food Programme (wfp.org))
KEEPING IT IN THE FAMILY
Participation
We have sought to join that effort in financing and supplying to a number of mills who are regular suppliers to the programme. We originate high quality grains reliably and cost effectively before providing financing support to mills in regions, who are then able to provide the WFP with many of its nutritional needs.
Amman Grand Flour Mills, is one such mill. AGFM is a family owned complex of wheat milling plants, supplying the Jordanian market since 1964, and is located in Marka, Jordan. It is a family business with a long standing presence in the region, aided by a team of highly experienced managers. Our team have a relationship with the company and its owners that dates back over 30 years.
AGFM produces flour, semolina and bran in different grades, and beyond supplying the WFP, caters primarily to bakeries in bulk loads, and to retail markets for example on special holidays (Ramadan, Easter, Christmas). Specifically within the WFP, they are supplying the Syrian refugee camp at Zaatari in Jordan.
STRATEGY BRIEF
Investing made with surgical precision
Wheat products are a cornerstone of food security for Jordan, and a basic food in general. As such, it enjoys constant demand. Jordan’s consumption has been steadily growing. Wheat imports are at 1 million tons, whereas aid programs are estimated at a further 120,000 tons. As the market for wheat products expands, so must a wheat mill to keep ahead of new opportunities.We have worked with AGFM to provide for and support and number of strategic initiatives to continue their ability to provide for local needs, including:
- Developing and actively pursue flour tenders to distressed areas through World Food Programs and others, with the aim of becoming major suppliers in this field. WFP aid to Syria amounted to 124,000 tons of flour in 2020, up from 109,000 tons in 2019, whereas aid to Yemen was 720,000 tons in 2020.
- Purchasing better quality wheat than provided locally, (from our Ukraine office), to produce higher quality specialty products commanding higher premiums.
- Completion of a 3rdmilling line (under construction), as we are already producing at capacity.
- Capitalizing on our bulk loading capabilities by supplying clients with free-flowing flour storage, reducing packing/loading/unloading costs considerably. This frees up premium storage space on-site, and gain/retain clients through better servicing.
- Obtain ISO 9001 and 22000 certifications for quality management and food safety
ARIA and AGFM are building a successful partnership whereby all stakeholders benefit. We are fortunate to have in AGFM, partners who have extensive market and technical expertise, forwards looking management and given how they have placed a premium of investing in the latest technologies, high quality products given their strict process and quality controls.
By providing financial, origination and logistical support, AGFM and ARIA hope to become a major player in the food aid arena, and actively pursue flour tenders. In partnership, we are able to mee the stringent requirements of WFP wheat specifications, which necessitates increased infrastructure for wheat cleaning, flour fortification, storage, handling and deliveryARIA Commodities