US embassy cable - 03ROME5662

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