95. Value (USD) and volume (mt) of smallholder sales through WFP-supported aggregation systems

95. Value (USD ) and volume (mt) of smallholder sales through WFP-supported aggregation systems

VERSION

V1.0 - 2026.03 — NEW

INDICATOR CODE

95

N.B: This indicator is a combination of previous indicators (formerly known in CRF 2022-2025 as 48. Value (USD) and volume (mt) of smallholder sales through WFP-supported aggregation systems and 49. Volume (mt) of smallholder sales through WFP-supported aggregation systems). In CRF 2026-2029 the indicators were combined into one, making previous years’ results incomparable with new results.

TECHNICAL OWNER

PRG-R

INDICATOR TYPE

Country Level Outcome Indicator

INDICATOR CLASSIFICATION

Mandatory

INDICATOR SCOPE

Programme specific

APPLICABILITY

This indicator applies to WFP value chain development work (aka Smallholder Agricultural Market Support – SAMS), combining procurement and programmatic activities along the value chain to promote improved access to stable and remunerative markets for targeted smallholder farmers. Interventions include but are not limited to: support to smallholder capacity to access productive input and equipment; support to post-harvest loss reduction and processing; capacity strengthening of smallholder aggregation systems; promotion of market access; capacity strengthening of value chain actors, including access to finance and digitalization.

The selection of this indicator is mandatory against the following sub-activities in CSPs logframes. Selection of the below sub-activities will trigger in COMET the mandatory selection of this indicator: 

1. Smallholder Agricultural Market Support (SMS)

The selection of this indicator is also recommended against the following sub-activities in CSPs logframes. Selection of the below sub-activities will NOT trigger the mandatory selection of this indicator:

1. Financial services, information services and market access CCS (FIM_CCS)

UNIT OF MEASUREMENT & ANALYSIS

• Value in USD

• Volume in MT

DEFINITION

This indicator refers to the aggregate value and volume of collective sales being conducted by aggregation systems that WFP is supporting in a given country, to WFP, Private sector buyers or Government institutions.

Below are some key terminologies related to the indicator:

Smallholder farmer: There is no unambiguous global definition of a smallholder farmer. But as signaled by the terminology, scale of operation measured in terms of farm size is generally used as a classification criterion. For example, smallholders are often viewed as those farming less than two hectares. But even this farm size is considered “large” in some countries or regions within countries. As a result, other parameters are sometimes used, including the volume of production, the source and amount of available labour, and the value of capital and inputs. For WFP, if a host country has an accepted definition of smallholder farmers under which it collects and reports agricultural and related data, such a definition should be followed whenever adequate.

Smallholder farmer aggregation system (or aggregator)¹: Any organization that aggregates, or has the potential to aggregate, smallholder farmers’ staple commodities to facilitate their sale to formal buyers at favourable conditions.

Aggregation systems encompass a variety of organizations to which smallholder farmers have access at local, district, and national levels. These organizations are either formal (i.e.

legally registered) or informal, and membership should be voluntary. Providing market access to smallholder farmers at favourable conditions should be one of the main objectives of these organizations. In addition, they are likely to provide a range of services to their members, such as facilitating access to inputs, access to credit, improved post-harvest handling, etc.

Two key types of organizations are expected to play a complementary role in linking smallholder farmers to formal markets, and both are considered aggregation systems:

1. Direct outlets to which smallholders contribute their production, including small and medium-sized farmers’ organizations, small traders, agro-dealers handling output aggregation, small-scale certified warehouses and Satellite Collection Points; and

2. Intermediary aggregators, including large farmers’ organizations (unions or federations), medium to large traders, large-scale processors, agro-dealers handling output aggregation and private service providers and larger warehouse certified warehouses.

Sales through WFP-supported aggregation systems: Members of aggregation systems can market their production through different channels, including selling through aggregators under different arrangements. In general, we consider that a farmer has sold through an aggregation system when the commodities are used to fulfil contracts stipulated between the aggregator and a third-party buyer.

Buyer typology: The typology of buyer that purchase from the aggregation system. WFP Smallholder Agricultural Support programmes usually cluster buyers in three main groups:

• WFP

• Private buyers, operating at local, national or international level. They can span from local small-scale retailers, to large enterprises operating on the national market, to multinational companies.

• Institutional buyers, public sector entities with presence in the domestic market that purchases large quantities/volumes of produce. Usually, an institutional buyer refers to public institutions such as food reserve authorities, the military, prisons, hospitals, food aid organizations and relief development agencies. Typically, these buyers do not have a profit motivation and are usually driven by the need to acquire food products for consumption within their own institutions or as food donations.

Additionally, despite schools can be considered institutional buyers, they are considered separately, because of the importance they have in WFP programme portfolio (see Home-grown School Feeding Programmes). Therefore, a separate buyer typology is established for:

• Schools. To be counted under “schools”, the sales by the smallholder aggregation systems have to be part of a decentralized procurement model where the schools procure directly from the aggregation systems. In other instances, for example where traders purchase from aggregation systems and resell to schools, the sales will have to be counted under private buyers.

For the purpose of the indicator calculation, the typology of buyer is determined by the entity that purchases directly from the aggregation systems. Further buyers that may purchase from this entity are excluded from the calculation.

RATIONALE

This indicator is linked to the measurement of WFP’s Strategic Plan Outcome 2: Reduced Needs and enhanced resilience to shocks and to WFP’s Resilience Policy Outcome 2: People and communities have enhanced and diversified livelihoods that enable them to better manage shocks and stressors.

This indicator measures improvements in smallholder livelihoods by tracking the value and volume of production sold, as well as the diversity of buyers.

Increased sales reflect enhanced incomes, while engagement with a wider range of buyers reduces market dependence and strengthens farmers’ ability to manage shocks. WFP supports farmer aggregation systems to improve access to formal markets and diversify market opportunities, enabling smallholders to better sustain their livelihoods when disruptions occur.

DATA COLLECTION TOOL

Copy of sales records kept by aggregators, such as aggregator records.

Guidance notes and templates to develop and implement aggregator records are available here. 

The module of the Aggregator Records Database Template relevant to measure this indicator is module 4: Sales information.

SAMPLING REQUIREMENTS

The 100% of available sales records should be analyzed.

INDICATOR CALCULATION FOR REPORTING

• The total value of sales through WFP-supported aggregation systems for a given calendar year is calculated by summing the monetary value of all the sales of food products (= quantity sold*price of food product) by targeted aggregators to buyers over the course of the considered period.

• The total volume of sales through WFP-supported aggregation systems for a given calendar year is calculated by summing up the quantities of different food products delivered by targeted aggregators to buyers over the course of the considered period.

DATA ENTRY AND DISAGGREGATION IN CORPORATE SYSTEMS

Values are recorded in the logframe. Each value has a reporting combination which is created based on:

• Sub-activity

• Country

• Beneficiary Group

Follow-up value is reported as one number for each category and for each unit of measurement. It is mandatory to report a value for each category and unit of measurement if the indicator was selected in the Logframe. If a buyer type does not apply, the buyer cell should be left empty. N.B.: because the buyer typology disaggregation is mandatory, empty cells will be interpreted as buyer typology(es) not applicable to the country context. The “Total” category will be automatically calculated by the system. The screenshot below illustrates how values are entered in COMET:

BASELINE

Baselines are set only once, at one of the following points:

1. At the beginning of the CSP, or

2. When the indicator is selected for reporting after the commencement of the CSP, or

3. When there is a change in target, location and/or modality that triggers a new reporting combination (target, location and modality) for an existing indicator.

Baseline values remain fixed for the entire CSP period and are not recalculated annually, unless applicable above.

If the indicator was used in the previous CSP cycle, and if conditions allow so (e.g. same targeted aggregation systems, same location etc.), data from the last annual follow up value can be used to define the baseline.

When data is available (e.g., from existing aggregator records), a baseline value for this indicator can be established using the historical of sales conducted by the targeted aggregation systems over the course of the calendar year preceding the start of the programme. Sales history generated through WFP Farmers’ Organization assessment tool (FORMA) can also inform the baseline establishment.

When data is not available (e.g., due to the lack of aggregator records before WFP’s intervention), it will not be possible to establish a baseline for the first year (= no data).

TARGET SETTING

Annual targets:

Annual targets should be based on realistic produce and sales estimations by smallholder farmers and aggregators. Historical sales from existing aggregator records or generated through FORMA, can be used to establish annual targets. Annual purchase projections from WFP and other buyers who are in the network of the aggregators supported by WFP, can also represent a valuable source to define annual targets.

In case of WFP procurement, annual targets should be set in collaboration between programme and procurement functions.

End of CSP target:

Given the high volatility of agricultural markets, setting realistic sales targets for supported aggregators will require adequate levels of information (e.g. production capacity of aggregators’ members, historical sales etc.) and careful planning. Countries that have more sophisticated assessment and estimation methodologies, direct interaction with aggregators and buyers, and efficient procurement planning may be better placed to set realistic long-term goals.

The information collected on the marketing capacity of aggregators during the planning phase, including historical sales from aggregator records, will be crucial in setting realistic and long-term sales targets.

FREQUENCY OF DATA COLLECTION

• Sales are recorded directly by aggregators as part of their internal record keeping on an ongoing basis. The agricultural calendar for different commodities determines when collective sales are conducted throughout the year.

• As a minimum, CO should collect aggregator records and enter data in COMET once a year, in view of the annual reporting exercise.

INTERPRETATION

• Sales of targeted aggregation systems are likely to be sourced from the smallholder farmers targeted by the program. In this sense, the sales will benefit targeted smallholders directly, and contribute to their food security and their income level.

• The ability to conduct collective sales is an indicator of increased organizational/functional capacity of aggregators, demonstrating that they can expand their supply to respond to new or emerging market opportunities.

• Increased interaction with local markets is also a vehicle for enriching the array of goods and services that aggregators can source and provide to its members/supplier base.

• Disaggregation by typology of buyer can give an indication of the capacity of aggregators to differentiate their market outlets and to eventually become, year by year, less dependent on one buyer (e.g., WFP procurement) for their sales of commodities. Both elements are key indications of increased resilience of supported aggregators, in that they diversify their network of buyers and can potentially better absorb and adapt to shocks, and sustainability of WFP intervention.

• Because these changes reflect improved capacities, behaviours, and economic outcomes for both farmers and aggregation systems - rather than the immediate delivery of WFP assistance - the indicator is classified at the outcome level.

REPORTING EXAMPLE(S)

Context

In Ethiopia, WFP supports three aggregators (A, B, and C) to improve access to markets for its smallholder members.

Baseline and targets

At the beginning of the three-year CSP², the aggregators had limited experience in collective marketing. In the rare cases in which aggregators sold on behalf of members, there were no written records (baseline = no data). End of CSP targets and annual targets established by the CO are set out in the table A below.

• During the first season, WFP provided the aggregators with paperback records and training on record keeping. Through the NGOs supporting the organizations, the aggregators’ leadership groups also received training in agribusiness management, with a focus on collective marketing.

• Given the context and scope of activities, targets have been set based on the following key assumptions:

  • Aggregation systems will not necessarily be able to sell collectively during the first year of the programme;

  • WFP is expecting to see an increase of collective marketing starting from year 2;

  • Part of the capacity strengthening activities will be aimed at increasing the diversification of market outlets for supported aggregators.

Results

At the end of each year, WFP staff collects a copy of the sales records from aggregators A, B, C. The data is cleaned and consolidated into a digital database to enable analysis.

In the example below (Table B), the sales records collected from aggregators A, B, and C enable to calculate the total Value (USD) and volume (mt) of smallholder sales through WFP-supported aggregation systems for Year 3, as the sum of all the figures in the columns labelled “Value of sale (USD)” and “Volume of sales (mt)”. It should be noted that in most cases sales records by aggregators will be kept in the local currency. To obtain the final value in USD, COs will have to find the most appropriate conversion rates for their specific context³.

Disaggregated sales by typology of buyer allow to calculate the indicator by the recommended disaggregation, as shown by table C.

Table IV below summarizes the results over the 3 years of the programme against planned targets.

Analysis and reporting

• At the end of the CSP (Year 3), WFP-supported smallholder farmers’ aggregation systems sold assorted commodities to different buyers, for a total value of 120,742 USD and a volume of 4,462 MT.

• The results exceeded the annual and end of CSP targets initially set for the programme by almost threefold, suggesting that targeted aggregation systems responded positively to the capacity strengthening activities provided.

• Looking more closely at the data disaggregated by buyer typology, the results show that over the course of the CSP, the aggregation systems supported by WFP succeeded in diversifying their market outlets. After an initial increase, the share of sales to WFP decreased in Year 3, in favour of a steady increase of the sales to private sector buyers. Furthermore, WFP managed to connect the supply from aggregation systems to the demand coming from local schools. These results show that WFP efforts to promote diversified market connections for supported aggregators are proving effective. Aggregators are less dependent on WFP procurement footprint, a positive result in view of the sustainability of the project, and are better able to absorb and adapt to shocks and stressors, as they have a broader and wider set of potential buyers in their market network.

INDICATORS COLLECTED & ANALYSED AT THE SAME TIME

The following indicators may be reported along with this indicator:

• T.1 Number of people (Tier 1) receiving direct food/cash-based/commodity vouchers/individual capacity strengthening transfers (disaggregated by sex, age group, residence status, modality and activity) (SMS sub-activity)

In addition, as applicable, the following indicators may be reported along with this indicator:

• T.2 Number of people indirectly benefiting (Tier 2) from an asset, knowledge and capacity, commodities or services delivered through WFP programmes (SMS sub-activity)

• F.3 Number of smallholder farmer aggregation systems supported by type of support

• T.7 Quantity, value and capacity of non-food items for WFP facilitated access

• F.5 Number of meetings, workshops, fairs, events organized to facilitate market linkages

• F.6 Number of contracts/ commercial agreements facilitated

• F.7 Number of other value chain actors supported

• 29. Percentage of targeted smallholder farmers selling through WFP-supported farmer aggregation systems

• 108. Average percentage of smallholder post-harvest losses at the storage stage

• 31. Percentage of targeted smallholder farmers reporting increased production of nutritious crops.

COMPLEMENTARY QUALITATIVE RESEARCH

The FORMA qualitative tool available in the Farmer Organization Readiness and Maturity Assessment (FORMA) package can complement the information collected through this indicator.

DECISIONS DATA CAN INFORM

This indicator provides relevant information to monitor the relevance and effectiveness of capacity strengthening interventions targeted at the smallholder farmer aggregation system level to improve smallholder farmers’ access to markets. The indicator can be used to adjust programme design and implementation, to verify the performance of the aggregation systems over time in terms of organizational/ functional capacity and market diversification.

The indicator can also guide WFP pro-smallholder procurement decisions, in that it provides records of volume of sales by supported aggregation systems to WFP.

For additional information see the “rationale” and “interpretation” fields.

VISUALIZATION

LIMITATIONS

This indicator requires targeted aggregators to have in place a record keeping system to be able to capture sale of commodities to different buyers. This will be possible only if targeted aggregators maintain accurate, consistent, and up to date records on sale of commodities to buyers which are accessible and detailed.

Agricultural markets in countries where WFP operate are extremely volatile. External shocks and stressors, including environmental shocks affecting the production or market-related shocks, including trade restricting measures such as those imposed by pandemics, can impact substantially the indicator’s performance.

FURTHER INFORMATION

Implement Aggregator Records for SAMS activities