Public procurement is one of the fundamental mechanisms applied by the states globally to strengthen small and medium enterprises (SME). Part of what is procured by the state is food. Food and Agriculture Organisation (FAO) has developed policy guideline on public food procurement. The guidelines emphasized that public food procurement can be an instrument to foster agricultural development by directing government or state food demand to domestic suppliers, particularly smallholder farmers.  By expanding smallholder market access, through public food procurement can assist in poverty alleviation and food security as agriculture still represents the most important source of income.

In South Africa, facilitating and structuring access to state food procurement opportunities is an area that has not been fully assessed and prepared for. The focus has predominantly been on export markets with insufficient attention to the institutionalized food  procurement by the state. The value of state food procurement is estimated in billions per annum in certain departments (e.g. Basic Education, Social Development) and hundreds of millions in others (e.g. South African Defense Force). Thus, opportunities for equity and access to state procurement needs to be urgently and thoroughly explored.

Preparation and innovative models for delivery, looking at a sample of state departments, especially at provincial or regional level equipment, shared services, facilities, bulk /cooperative buying practice, aspirations and opportunities need be explored. In addition, a sample or at least one of food processing corporate companies which have an interest in and preference of domestic supply than imports may need to be studied and make recommendations of methods to be employed or learn from.  One of the variables to be explored in analysis is socially acceptable net income in relation to competition and household or enterprise income.

The purpose of this assignment is to provide technical support in institutional markets analysis (commodity types, quantities, location and opportunities for access) in relation to key state departments that procure food and corporate company(ies) in food processing.