Cost Recovery in Monetization

Presented by: Matthew H. Smith, Commodity and Monetization Manager, Land O’Lakes International Development

The session focused on experience on scaling up a small initiative implemented at Land O'Lakes to reduce freight costs, increase cost recovery and ensure program funds are not lost due to high fuel prices. Although somewhat more time is required for the process and coordination post shipping, the estimate for two consolidation efforts for Madagascar/Kenya wheat sales and Mozambique/Madagascar CDSO sales in 2011/12 have saved $1,722,950 and $1,091,250 respectively. The wheat sale consolidation occurred between agencies with monetization for Kenya/Madagascar and prepositioned cargo for Mombasa and Durban on the same vessel.