Humanitarian worker Mike Penrose on the 'Food from Ukraine' programme • FRANCE 24 English

Key Concepts

• Ridney: A Ukrainian food consortium of small-to-medium-sized producers that supplies humanitarian aid.
• Value Chain of Aid: The process of sourcing, purchasing, and distributing food, which the speaker argues should prioritize local producers over large-scale agro-industry.
• Humanitarian Hubs: Regional centers (e.g., in Ghana) designed to aggregate local produce for aid distribution.
• Aid Multiplier Effect: Maximizing the impact of limited funds by ensuring procurement money reaches vulnerable producers rather than large, global traders.
• Abramovich Foundation: A proposed independent foundation intended to manage £2.35 billion from the sale of Chelsea FC for global humanitarian relief.

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1. The Ridney Consortium: A New Humanitarian Model

Ridney was established at the onset of the Russian invasion of Ukraine to support local small-to-medium-sized food producers.

• Scale: The consortium comprises approximately 20 farms and 11 food manufacturing plants.
• Impact: It currently supplies over 80% of all food aid delivered by aid agencies within Ukraine.
• Differentiation: Traditional aid agencies often rely on large global supply contracts, purchasing from major traders in countries like Turkey or Egypt. Ridney disrupts this by sourcing food locally, which supports the Ukrainian economy and ensures that the most vulnerable producers benefit from the aid budget.

2. Global Expansion and Regional Hubs

Mike Penrose explains that the Ridney model is being exported to Africa, starting with a distribution hub in Accra, Ghana.

• Methodology: The goal is to replicate the consortium approach by aggregating small-to-medium-sized African producers, allowing them to access large-scale aid contracts they could not secure individually.
• Complementary Commodities: While local hubs focus on regional produce, they are supplemented by bulk commodities produced at scale in Ukraine (e.g., wheat flour, sunflower oil, and soya) to meet the needs of crisis-stricken areas like Sudan, Somalia, and the DRC.

3. Addressing the Global Aid Crisis

Penrose highlights a critical decline in humanitarian funding, noting that many aid budgets have been slashed by 40% to 50% due to shifting priorities, such as increased defense spending.

• Efficiency Argument: By cutting out "spot traders" and large agro-industrial corporations, the Ridney model ensures that procurement funds go directly to producers.
• Strategic Value: In an era of diminishing resources, this model acts as a "multiplier of impact," ensuring that every dollar spent on food simultaneously supports the local economy of the supplier and the survival of the recipient.

4. The Abramovich Foundation Dispute

A significant portion of the discussion centers on the £2.35 billion frozen from the sale of Chelsea Football Club.

• The Deadlock: The UK government insists the funds be spent exclusively within Ukraine. Penrose, who is slated to oversee the foundation, argues this is a "lack of political courage."
• Humanitarian Perspective: Penrose contends that humanitarian crises are global and interconnected. He argues that limiting the funds to one geographic boundary is inefficient and potentially harmful—for example, if a displaced child crosses a border, the foundation would be legally barred from assisting them.
• Independence: Penrose emphasizes that the foundation would be strictly independent, with no political leanings or connections to the original donor, managed by a board of trustees including former UN officials and human rights experts.

5. Notable Quotes

• "What this does is ensure that the value chain of aid is affecting the or helping the maximum number of people." — Mike Penrose, on the efficiency of the Ridney model.
• "It’s a lack of political courage, to be frank. I think that it’s a complex legal issue, but with the right political will and political courage, I have no doubt it could be solved." — Mike Penrose, regarding the UK government's refusal to release the frozen funds for global use.

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Synthesis and Conclusion

The interview presents a shift in humanitarian strategy: moving away from centralized, large-scale procurement toward localized, cooperative-based supply chains. By empowering small-scale producers in both Ukraine and Africa, the Ridney model aims to maximize the impact of shrinking global aid budgets. Simultaneously, the impasse regarding the Abramovich funds highlights a tension between political objectives and humanitarian pragmatism, with Penrose advocating for a flexible, global approach to aid that prioritizes human need over rigid geographic restrictions.