FAMILY AGRICULTURE FOOD
PURCHASE PROGRAM
Income for those who produce and food for those in need!
PAA
Programa de Aquisição de Alimentos - PAA
PAA - Food Purchase Program
Income for those who produce and food for those in need!
One of the actions of Fome Zero (Zero Hunger), the Food Purchase Program was created with the purpose of:
• ensuring access to food in the necessary quantity, quality and regularity to the populations facing
nutritional and food insecurity;
• contributing to the formation of strategic stocks;
• allowing family farmers to stock their products to be sold for fairer prices;
• promoting social inclusion in the countryside by strengthening family agriculture;
• supplying the institutional food market, which includes the government food purchases for many
purposes, such as school nutrition.
Who takes part on PAA
The PAA is aimed at two different audiences, through the perspective of the Human Right to Proper
Nutrition – as defined by Law number 11.346/2006 in Brazil:
a) Food producers: family farmers and rural family entrepreneurs as defined by Article 3 of Law 11.326,
July 24th, 2006, which establishes the National Program for the Strengthening of Family Agriculture
3
Programa de Aquisição de Alimentos - PAA
(PRONAF), including fish farmers, fishermen, extractors, Indians, remaining members of maroon
communities (quilombos) and family farmers settled in land reform;
b)Food consumers: people and families under social vulnerability, with imminent risk of nutritional
and food insecurity, assisted by social entities registered in the National Registry of Entities of
the Social Assistance Unified System (CAD-SUAS), national food and nutrition security programs,
Social Assistance Reference Centers (CRAS) and Social Assistance Specialized Reference Centers
(CREAS) or public schools, assisted by the National School Feeding Program (PNAE).
Access to PAA - DAP
In order to take part on the PPA, the family must be identified as family farmers or land reform settlers.
This qualification is certified through the PRONAF Eligibility Declaration (DAP).
4
Programa de Aquisição de Alimentos - PAA
To most family farmers, the DAP may be obtained from previously authorized institutions, among which are
the official entities of Technical Aid and Rural Extension or the Agriculture Federations and Confederations,
through their unions.
To specific populations, DAP may also be granted by other organizations, such as:
•
•
•
•
Indian National Foundation (FUNAI), for native population [Indians];
Palmares Cultural Foundation, for maroon community (quilombo) members;
Ministry of Aquaculture and Fishing or Fishing Federations and its affiliated colonies, to fishermen;
The National Institute for Colonization and Land Reform (INCRA), for land reform campers and settlers.
5
Programa de Aquisição de Alimentos - PAA
History
The Food Purchase Program (PAA) was established by Article 19 of Law 10.696, July 2nd 2003, and further
ruled by Decree in 2009.
Between 2003 and 2005, the PAA was operating exclusively through resources made available by the
Ministry of Social Development and Fight Against Hunger (MDS), and developed through partnerships
between the National Secretariat for Food and Nutrition Security (SESAN), state and local governments, as
well as the National Supply Company (CONAB).
From 2006 onwards, the Ministry of Agrarian Development (MDA) began to participate more in the PAA,
through the Secretariat of Family Agricultures (SAF), with its own budget.
Management Group
The PAA Management Group is coordinated by the Ministry of Social Development and Fight Against
Hunger and formed by members of six Ministries:
• Ministry of Social Development and Fight Against Hunger;
• Ministry of Agrarian Development;
• Ministry of Agriculture, Livestock and Food Supply;
6
• Ministry of Planning, Budget and Management;
• Ministry of Treasury;
• Ministry of Education.
The Management Group’s purpose is to define guidelines to the operation of PAA, including product purchase
processes; prices that consider the regional differences and family agriculture reality; priority areas for the
implementation of the Program; donation conditions for purchased products; stock formation conditions.
The executive managers of the Program are the States, the Cities and the National Supply Company. The
local managers are the organizations formed by family farmers (cooperatives, associations, rural workers
unions, etc) and social assistance network entities.
Programa de Aquisição de Alimentos - PAA
As to social control, the PAA is followed by society and its representatives through already existing groups
in different spheres:
• Federal level - National Council of Food and Nutrition Security (CONSEA) and National Council of Social
Assistance (CNAS);
• State level - State Councils of Food and Nutrition Security;
• Local Level - Municipal Councils of Food and Nutrition Security, Municipal Council of Sustainable Rural
Development, and others alike.
In some states and cities, given the coverage and relevance of PAA, specific Management Committees
were created, to integrate the modalities of the Program, as well as the definition of operational criteria
regarding social control.
8
Programa de Aquisição de Alimentos - PAA
PAA Partners
Many institutions are involved in the implementation of the Food Purchase Program. In addition to the six
Ministries that are part of the Management Group, the PAA leans on partnerships that involve State and
local organs and the organized civil society.
The focus of the Ministry of Agrarian Development’s action is putting together government stocks, sustaining
prices of family agriculture products, as well as supporting family agriculture program participants to
create their own stocks and supporting product sales.
The focus of the Ministry of Social Development’s action is on purchasing food to donate to people facing
food insecurity situations who are assisted by the entities of the social assistance network and the national
programs of food and nutrition security.
9
Programa de Aquisição de Alimentos - PAA
Modalities
Direct Purchase
What is it?
A mechanism designed to the purchase of products from family agriculture when the prices received by
family farmers are below the reference price defined by the Federal Government, through the Management
Group. These purchases are part of a support strategy for commercialization of family agriculture products and
governmental stock formation, adjusting the availability of products to the needs of consumption and thus
performing an important role on price regulation and local supply.
With Ministry of Social Development’s resources, the purchased food is destined to food baskets, within the
Program coordinated by the Ministry, to Indian communities, maroon communities (quilombos), camped rural
workers waiting for land reform, families affected by the construction of dam, cities under emergency or public
calamity states (recognized as such by Civil Defense National Department) which find themselves in a situation
of food and nutritional insecurity, food banks and other situations, as authorized by the Ministry.
With Ministry of Agrarian Development’s resources, the purchased food is directed to commercialization, and
may be donated to social assistance programs of the Federal Government, related to the promotion of food and
nutrition security and coordinated by the Ministry of Social Development and Fight Against Hunger, according
to PAA Management Group’s Resolution number 27, January 18th, 2008.
10
Programa de Aquisição de Alimentos - PAA
How does it work?
This modality is operated by the National Supply Company, that can also open Itinerant Purchase Stands,
in order to approach places where the products are available.
In natura products must be clean, dry, and compliant with the identity and quality standards set by the
Ministry of Agriculture, Livestock and Supply. Processed products must be properly stored meeting the
standards set by the competent bodies and delivered in the Purchase Stands (storing units indicated by
the National Supply Company) or in the Itinerant Purchase Stands.
Each family with a DAP may receive up to R$ 8,000.00 (eight thousand reais) per year in this mode. The
amount of the purchase will not accrue to the Stock Formation modality, as long as this one is financially
liquidated. This means the farmer may have access to a second PAA modality together with the Stock
Formation with financial liquidation.
Products that may be acquired through this modality: • rice • cashew nut • Brazil nut • manioc flour
• beans • corn • sorghum • wheat • dry whole milk • wheat flour.
For further information: [email protected]; [email protected]; [email protected]
11
Programa de Aquisição de Alimentos - PAA
Direct Purchase from Family Farming
Program ensures security and income to family farmers in the state of Tocantins
Fair price, incentive to production and income to the farming families. This is what the Food Purchase
Program means to the family farmer Lourivan Nunes da Silva, who lives in the Pirarucu Settlement Project,
in the city of Formoso do Araguaia, state of Tocantins. He was one of the rural workers in the region
benefited with the commercialization of rice harvest in 2006, through PAA’s Direct Purchase from Family
Farming modality.
The operation was made possible with resources from the Ministry of Agrarian Development and was
executed by the National Supply Company. By then, each family sold the sack of rice to the Program
by R$ 31 (thirty-one reais) while the market was paying between R$ 18 and R$ 22 per sack. “It was
our salvation, for without the PAA we would suffer losses and would not be able to plant the following
harvest”, he stressed. The financial return obtained with the selling was invested in the property,
widening the planted area, in the purchase of calves and in the house reform.
Nearby, in the Lagoa da Onça Settlement Project, farmer José Olímpio Pereira also accessed PAA’s Direct Purchase
to sell his rice: “The prices were compensating. If I had sold it to other buyers I’d face great losses”, he states.
Olímpio explains that, when it is time to sell, without an alternative, the farmers are subject to the price
determined by the middlemen: “They pay little and take a lot”, he affirms. To him, in addition to regulating the
market and giving fair payback to the investment and farm costs, PAA has been allowing the farmers to ensure
their livelihoods with dignity, without the interference of third parties in the productive chain.
12
Programa de Aquisição de Alimentos - PAA
With the obtained income, Olimpio’s family has reformed the house, diversified the parcel production,
bought a vehicle and now they can negotiate the production, without third parties intervening. “I have
the option of selling the production to the buyers, sell the rice through the Program or stock the harvest
in the National Supply Company’s storage until the prices are better”, he states.
Besides providing income to family farmers, the implementation of PAA in this municipality contributed
to the regulation of local market prices. Nowadays, prices paid for a rice sack in the region are equivalent
or superior to Direct Purchase minimum prices. Now, Formoso do Araguaia’s farmers keep on investing in
their rice crops as their main income source, and do not depend on governmental intervention to get fair
prices for their product.
Stock Formation by Family Farmers
What is it?
The Stock Formation modality was created to grant the family agriculture support mechanisms to the
commercialization of its food products. It is operated through family agriculture organizations or family
farmers with DAP. The modality offers financial resources after the issuance of a Rural Product Bill (Cédula
de Produto Rural, CPR), so the organization acquires the production of family farmers (partners or affiliates)
and stock it to future selling, in more favorable conditions, whether by processing and adding value to the
product, or by making the product available for selling when the price is better for commercialization.
The resource limit is of R$ 1.5 million (one and a half million reais) per organization and of R$ 8,000.00
13
Programa de Aquisição de Alimentos - PAA
individually. In this mode, the limit is not accruable, that is, the farmer may access R$ 8,000.00 for Stock
Formation and the resource of other PAA modality, as long as the Stock Formation operation is liquidated
financially.
With Ministry of Social Development’s resources, the stocks created in this modality are destined to
compose food baskets, within the Program coordinated by the Ministry, to the Indian communities, maroon
communities (quilombos), camped rural workers waiting for land reform program, families affected by
the construction of dams, cities under emergency or public calamity states (recognized as such by Civil
Defense National Department) which find themselves in a situation of food and nutritional insecurity, food
banks and other situations as authorized by the Ministry.
How does it work?
The organization of farmers submits a Participation Proposal to the nearer Regional Superintendence of
National Supply Company. This proposal defines which will be the product stocked, the terms for stock
formation, which products will be purchased, its prices and who are the family farmers who will benefit
from it. Once the participation proposal is approved, the organization issues the CPR and the Supply
Company makes financial resources available so the organization may begin the process of purchasing
the food from family farmers. The participation proposal may be submitted through PAANet, an IT tool
developed to make submission, analysis and acceptance processes faster.
CPR has a term of up to 12 months, when the organization shall repay the resources received, plus charges
of 3% per year.
14
Programa de Aquisição de Alimentos - PAA
Products that may be purchased through this modality:
• Storable food products from family farming, proper for human consumption, which cannot be from
harvests prior to the contracting year.
For further information: [email protected]; [email protected]; [email protected].
Stock Formation by Family Farmers
More income for producers in Rio Grande do Norte state
The city of Apodi, western Rio Grande do Norte state,
380 km from Natal (the state capital), is one of the
1,830 municipalities that are part of the Federal
Government’s Citizenship Territories Program. There,
about 160 families producing cashews and honey
created the Potiguar Cooperative of Apiculture and
Sustainable Rural Development (Coopapi).
Mr. Antonio Sobrinho de Souza, honey producer for 6 years and cashew producer
ever since he was born. “Before, we had the production but we didn’t have anyone to
sell it to. Then the middlemen came and took everything almost for free. Today the
production is barely enough given the demand, and we even get a fair price”.
15
Programa de Aquisição de Alimentos - PAA
Created in April 2004, Coopapi is today an important alternative to aggregate value and income for
its associates. Before accessing the PAA, the commercialization of the associates’ products occurred
only in the local fair or through middlemen, who, without competition, paid as much as they wanted
for the production. “When we became aware of the PAA, we knew change was about to begin. All the
money that came with the commercialization was reinvested in the Cooperative itself. That was our
time, and everyone understood it”, recalls Fatima Torres, the Cooperative’s president.
Today the profit obtained with stock commercialization formed through the PAA operation may be invested in
improvements for the cooperative. And the results are visible. Since 2004, when they accessed PAA for the first time,
many improvements have been made: the building of the Cooperative’s headquarters; the purchases of buckets
and containers (necessary for the commercialization in a greater scale, even for exportation), the construction of
Honey and Cashew Nut Processing Units; the acquisition of equipment and the creation of a proper facility for
product commercialization in the cooperative.
The life of the associates has also improved. With honey production, delivered from May to August, and
the cashew production, from September to December, there is cash flow throughout the year and families’
purchase power has grown two-fold, since they receive a fair price for their products.
“The new challenge of the cooperative, which conquers more and more credibility in the market, is
to build a honey harvest post”, tells the Cooperative’s president. In 2008 it has exported almost 40
tons of honey to the United States and Africa.
16
Programa de Aquisição de Alimentos - PAA
Aurineide de Carvalho is
married to a beekeeper and
has a 2-year-old daughter.
Without alternatives, she
worked as a maid in the
city, but did not receive a
good salary. With the new
job at the Honey Processing
Factory, family’s income
has doubled.
Isaac Walace de Souza,
23 years old, used to produce honey with
his father. When the Cooperative was
organized, he started his own production,
and now is a Cooperative associate.
17
Programa de Aquisição de Alimentos - PAA
Purchase from Family Agriculture with Simultaneous Donation
What is it?
A PAA modality whose objective is to ensure the human right to food for people who face social
vulnerability and/or food insecurity; the strengthening of family farming; the creation of jobs and
income generation in the countryside; and the promotion of local development through channeling
the production to local consumption, preferably in the producing region.
In this mode, each family with a DAP may receive the limit of R$ 4.500 (four thousand and five hundred
reais) per year. The purchase mode will not be cumulative with the Stock Formation mode, as long as it is
financially liquidated.
How does it work?
The modality encompasses the purchase of food produced by family farmers as defined by PRONAF
standards and the donation of this food to families or people facing social vulnerability, people who
are assisted by local social assistance network entities, and people assisted by social programs such
as food banks, popular restaurants and community kitchens.
18
Programa de Aquisição de Alimentos - PAA
Two forms of operation
In order to execute the Program in this modality, the Ministry of Social Development and Fight Against
Hunger employs two types of mechanisms:
• Celebrating covenants with direct or indirect public administration in states, municipalities or the
Federal District;
• Formalizing a cooperation term with the National Supply Company.
The financial resources are passed on to the executors, who take the responsibility for making the program
operational.
All the participation proposals must be submitted to the National Council of Food and Nutrition Security
(CONSEA) for approval, or, in its absence, to a local active council, which will take direct part in the execution
of the covenant, from approval to follow-up and social control.
Products that may be acquired through this mode:
• Food produced in family agriculture, proper for human consumption, including perishables and those
typical of local food habits.
Further information: [email protected].
19
Programa de Aquisição de Alimentos - PAA
Purchase from Family Agriculture with Simultaneous Donation
In Cáceres, Mato Grosso, those who produce quality may distribute quality
Since 2007, the Flor do Ipê Family Farmers Association takes part on the PAA, through the Simultaneous
Donation modality. The non-profitable entity is formed by 45 family farmers from the Facão Bom Jardim
Settlement, 10 km from Cáceres, western Mato Grosso state.
The group keeps a community garden where they harvest organic products, aiming at social welfare and
environmental responsibility. The positive results of the PAA covenant, signed by CPR-Donation, led to an
increase in the number of members since the beginning.
In 2008, donations were made to O Bom Samaritano Hospital, to the Association of Parents and Friends of
People with Mental and Physical Disabilities (APAE), to the First of May Cenecista Educational Center, and
to Dom Máximo Vienes and Izabel Campos City Schools.
With market ensured through the PAA, farmers are able to better organize their production. On the other
hand, the benefited entities receive diversified food, motivating change in the food consumption habits of
the assisted people.
Due to the operations of the PAA, farmer Helena Aparecida Martins de Queiroz (Mrs. Lena), her husband
and two young children have been assuring a proper monthly income, apart from the sale of the surplus
at the local fair. “Before, we sold for very low prices to the market. This program has improved the extra
income every month. The money received has been invested in improvements to the farm”, she tells.
20
Programa de Aquisição de Alimentos - PAA
ecida Martin
Helena Apar
de Queiróz
Hilário
on Barbosa,
right – Wils
arecida
From left to Barbosa and Helena Ap
Ana
Hartmann,
eiroz
Martins de Qu
e Pedro
z. In the other sid
Martins de Queiro
Edineuza
Helena Aparecida
reira de Queiroz,
Fer
o
oni
Ant
and
z
Ferreira de Queiro
Mrs. Pedrosa.
Maria Benevides and
Every Monday, a vehicle from the May 1st Cenecista Educational Center, a charitable institution that
attends 107 poor students ages 1 to 9, picks up the food from the Flor do Ipê Association. The entity
receives fruits and vegetables donated by the PAA. “The donation serves every child of the school. It is
very good because the children are learning to eat vegetables and fruits and how to eat properly”, states
the director of the Center.
21
Programa de Aquisição de Alimentos - PAA
Purchase from Family Farming with Simultaneous Donation
In Toledo, Paraná, healthy production brings quality of life and more income to the population
In the city of Toledo, state of Parana, the food purchased from 500 PAA family farmers has two
destinations: the Popular Restaurant, that feeds 1.200 people per day, and social assistance entities,
which attend 2.400 people.
By 4 AM, Marcos Zanatta harvests the vegetables that he produces and delivers to PAA. “Today I
have a proper income. I work a lot, but I can live well”. When food does not go to PAA, it has an
exact destination: the Toledo Producers Fair.
In this fair works Ednei Queiroz, from the Organics team. He sells his products in three places: the
PAA, the downtown fair and another smaller fair. He created, with other eight PAA participants,
the Toledo Family Organic Producers Association, and installed a greenhouse in the middle of the
crops, in order to speed up the harvest and protect the vegetables.
Once a week, Marcos Zanatta and Ednei Queiroz deliver vegetables at the Social Kitchen. The menu
is completed by Augusto Moresco, who delivers 70 kg of mozzarella cheese from 12 colleagues
from his Association. The duo Edson Heiss and Rinaldo Carneiro, from the beekeeper association,
delivers 375 kilos of honey from 38 associates; and Paulo Feiten, wheat producer, delivers 85 kilos
of homemade pasta.
22
Programa de Aquisição de Alimentos - PAA
On the same day, vehicles from 12 social assistance entities, which assist 2.400 people, deliver an
average of 1.6 ton per week of food produced by family farmers assisted by the PAA.
Food does not go to institutions only, but also to the four Popular Restaurants in Toledo, which
serve about 300 meals per day each, for an accessible price. PAA supplies 75% of their demand.
z
Ednei Queiro
Marcos Zana
tta
23
Programa de Aquisição de Alimentos - PAA
Incentive to Milk Production and Consumption (IPCL)
What is it?
It is a PAA modality whose purpose is to promote the consumption of milk among families who face
food and nutrition insecurity, as well as to enhance familiar production. The Milk Program has two main
focuses: vulnerable populations, that receive the milk free of charge, and family farmers.
How does it work?
The program is operated through covenants celebrated by the Federal Government, through the Ministry
of Social Development, and states’ governments. The Ministry is responsible for 80% of the covenant’s
total amount, while the state governments pay 20%. In order to benefit from the Program as a consumer,
a family must have a per capita income up to a half of the minimum wage, and have among its members:
•
•
•
•
•
Kids ages 2 to 7;
Breastfeeding mothers up to 6 months after delivery;
Pregnant women since the register of pregnancy at a public health center;
Elders from 60 years old onwards;
Others, as authorized by the State Council of Food and Nutrition Security and by the Ministry of Social
Development and Fight Against Hunger.
24
Programa de Aquisição de Alimentos - PAA
To the family farmer, who will have the purchase of its product ensured at a fixed price, the demands are:
• Producing up to 150 (one hundred and fifty) liters of milk per day, with priority for those who produce
an average of 50 (fifty) liters per day;
• Observe the financial limit of R$ 4.000,00 per semester, per producer;
• Own a PRONAF Eligibility Declaration (DAP);
• Keep the animals vaccinated.
Nowadays, the Milk Program is present in the nine states of Brazil’s Northeast region and the state of
Minas Gerais (North Minas Gerais, Jequitinhonha and Mucuri valleys).
Further information [email protected].
25
Programa de Aquisição de Alimentos - PAA
Modality: Milk
In Minas Gerais, milk for those in need!
In Senador Modestino Gonçalves, municipality located 380 km from Belo Horizonte (the state
capital), every Monday, Wednesday and Friday morning a representative from each family goes
to the Rural Producers Fair to pick up the milk distributed by PAA Milk. There are 337 families
enrolled in the Food Purchase Program Milk modality, coordinated by the Municipal Management
Committee. Distribution is done in enough quantity so the families have a liter of milk per day in
their homes.
The milk produced by PAA is supplied by a dairy farm from Capelinha, which supplies around 10
other cities in the area. Producer Mauro Rosa da Silva sells all his production to that dairy. He, his
wife and children earn their living with the milk income and feed from the small crop and animal
breeding they keep in their property.
The Municipal Management Committee, which is responsible for the distribution of milk and registry
of benefited families, is formed by volunteers, school workers, from Tutors Councils (municipal
public community councils created to monitor the wellbeing of children and adolescents), from the
City Hall and from the church. The family registry is updated every six months.
Raimundo Barroso lives with his wife, three kids and a grandson, who receives the milk from PAA.
Raimundo works informally, at construction or in his crop, whatever comes up. He tells that before
26
Programa de Aquisição de Alimentos - PAA
he received benefits from the PAA he had hard time buying milk for his grandson. “Sometimes I
didn’t even have enough for the milk. Now things are great. My grandson has this food ensured
daily”.
27
Programa de Aquisição de Alimentos - PAA
PAA Summary
Modality
Origin of
resources
Limits
Direct Purchase from
Family Farming
MDS/MDA1
R$ 8,000
Stock Formation by Family
Farmers
MDS/MDA
R$ 8,000
Cooperative and Association
MDS
R$ 4,500
Individual, Cooperative,
Association and Informal Group
MDS
R$ 4,000 per
semester
Individual, Cooperative, Association
and Informal Group
Purchase from Family
Agriculture with
Simultaneous Donation
*Incentive to Milk
Production and Consumption
– “Fome Zero Milk”
School Meals
Ways of access for
the family farmer
Individual, may be coordinated by
Cooperatives and Associations
Under regulation
FNDE2
* Northeast Region and North Minas Gerais only.
28
Programa de Aquisição de Alimentos - PAA
Forms of Access to the PAA Modalities
The CPR-Stock with a financial liquidation may be accessed together with the other Modalities that are
to be paid in product. Thus, this modality allows the farmer to have access, in the same year, to a second
modality, in a cumulative way.
CPR-Stock financial
liquidation (R$ 8,000)
Purchase with
Simultaneous Donation
(R$4,500)
Total - R$ 12.500,00
Direct Purchase
(R$ 8,000)
Total - R$ 16.000,00
or
CPR-Stock financial
liquidation (R$ 8,000)
29
Programa de Aquisição de Alimentos - PAA
30
Programa de Aquisição de Alimentos - PAA
31
Programa de Aquisição de Alimentos - PAA
More information on PAA
ASCOM/MDS-MDA/May 2010
http://www.mds.gov.br/programas
[email protected]
http://www.md.gov.br/saf
[email protected]
http://www.conab.gov.br
[email protected]
Federal Departments of Agrarian Development
Regional Superintendences of the National Supply Company
Technical Assistance and Rural Extension State Companies
National and State Councils of Food and Nutrition Security
Ministry of
Agriculture, Livestock
and Supply
Ministry of
Agrarian Development
32