THE POLITICAL ECONOMY OF FOOD FORTIFICATION IN PAKISTAN CONTRASTS BETWEEN OIL AND WHEAT INDUSTRIES Diane Northway
International Health Team, Mott MacDonald, UK
BACKGROUND
OBJECTIVES
• The Food Fortification Programme, funded by FCDO, UK was implemented from 2016- 2021. The scope of the included: improving political commitment and public sector management of food fortification programmes; supporting industry to provide a sustainable supply of fortified wheat flour and edible oil/ghee; raising public awareness and demand of fortified food and their nutritional benefits, and targeted scoping studies.
The objective of the programme was to contribute to improved nutritional status for people in Pakistan, particularly women of child bearing age and children. This was to be achieved through sustainably improving access and consumption of fortified wheat flour with iron, folic acid, zinc and vitamin B12 and edible oil/ghee with vitamins A and D.
APPROACH & METHODOLOGY There are about 100 edible oil/ghee producers and more than 1,000 commercial flour mills in Pakistan. Both industries were operated by private companies and individuals under standards laid down by the provincial governments. The marked difference in the enabling environment at the start of the programme was that legislation was already in place for mandatory fortification of edible oil/ghee with vitamin A, while mandatory legislation for flour fortification was yet to be developed. The implementing team developed a plan of action that would involve working simultaneously with the public sector agencies on legislation and enforcement and supporting the private sector to be able to respond. Consumer awareness and demand creation was to wait until the supply of fortified product was available in the market. Government support: to add mandatory fortification of edible oil/ghee with vitamin D to existing legislation and develop legislation for wheat flour fortification. • Technical support for drafting legislation • Provide manuals and training for government inspectors. • Supply rapid test kits Industry support: to facilitate introduction wheat flour fortification and to assist oil producers to meet agreed standards • provide microfeeder equipment to flour mills, (cost-sharing scheme mill owner paid for installation & maintenance) • create a sustainable supply chain for premix including provision of a subsidy based on output of fortified product • training for QA/QC including provision of rapid test kits
RESULTS Key enabling environmental differences prevailing at the start of the programme led to variations in implementation success and the role of the programme team in providing technical support to the industries.
Key enabling environmental differences for programmme interventions FFP support to industries
Legal status
Equipment needs
Premix subsidies
Government monitoring
Consumer awareness and demand creation
Wheat flour
• • • • • • • •
Equipment provided under cost-sharing arrangement Premix represents additional cost to industry FFP attendance not welcomed by resistant mills No mandatory legislation for fortification of wheat flour No voluntary fortification at start Fragmented government monitoring among agencies Specialist equipment supplied by project with some cost sharing Mills needed to provide some in-house works ahead of microfeeder installation
• Subsidy seen as insufficient incentive as mill expected to contribute to cost • Reluctant to procure ahead of mandatory fortification – concern over cost disadvantage with competitors • Raised concerns over price and quality • Government introduced a shift from Food Department to Food Authority – resisted by industry • Project team seen as siding with government monitors – resulting in misunderstandings and poor relationships • Demanded by industry ahead of fortified production to create a demand for product • Industry sees advertising as way of distinguishing their product from majority chakki providers
Edible oil/ghee
• • • • • • • •
No specialist equipment required FFP premix chain resulted in initial cost savings Training and mentoring by FFP welcomed Legislation for Vitamin A since 1960s Incomplete compliance to legislation at start of programme Nominated government agencies for monitoring compliance No specialist equipment required Team able to provide direct assistance to improve premix additive through suggested enhancement to existing equipment • Industry was purchasing direct from suppliers before programme • Negotiated price reductions seen as benefit to industry
• Existing relationship with Provincial Food Authorities has meant FFP support was able to focus on how to avoid adverse test results – mentoring role for project • Mandatory fortification means less emphasis on creating market demand for fortified foods • Product branding already sophisticated in market
By the end of the programme period there was partial wheat flour fortification with some millers voluntarily fortifying some of their output and distinguishing it as fortified in the marketplace. Mandatory legislation was introduced shortly after the end of the programme by Sindh and Balochistan provinces. However, there was an impressive improvement in the edible oil/ghee industry with fortification standards vastly improved and government monitors better equipped to conduct their business. At the start of the programme studies had shown only 17% of tested production had met standards compared with virtually all output meeting standards by the end of the programme.
CONCLUSION Political and economy analysis before the programme got underway could have improved the success for wheat flour fortification. The programme design assumed early legislation and underestimated the power and resistance of the wheat flour industry to begin to fortify their production under voluntary conditions even though subsidies were available. While working simultaneously with the public and private sector worked well for the edible oil/ghee industry it was less successful for the wheat flour industry where a greater push for early legislation ahead of provision of support to the private sector may have been more effective.