Mapping the Market System: Step 6 in Emergency Market Mapping and Analysis, Exams of Business

Download Mapping the Market System: Step 6 in Emergency Market Mapping and Analysis and more Exams Business in PDF only on Docsity! 6 . M ap pi ng th e sy st em Step 6 brings together the raw quantitative data and qualitative information collected during fi eldwork in order to construct a concise and coherent description of the market system. The emphasis is on producing fi nal versions of market maps, seasonal calendars, and household profi les that will inform the ‘analytical’ steps that follow. Carrying a fi sh to market in Kenya, during the East Africa food crisis. P ho to c re di t: J an e B ee sl ey /O xf am STEP 6 Mapping the market system Before starting Step 6, you will have… prepared preliminary maps of the baseline and emergency-affected o situations; gathered information about how the market system performed before the o crisis; explored how the crisis has affected the market system, and how market o actors are coping; consulted market actors and key informants on possible market-support o actions. 116 THE EMERGENCY MARKET MAPPING AND ANALYSIS TOOLKIT 6.1 Overview of Step 6 Objectives Produce fi nal versions of market maps, comparing baseline and emergency-• affected situations. Produce fi nal versions of seasonal calendars and household economic • profi les for target groups. Write summary explanations of all market-system features that are relevant • to the key analytical questions defi ned in Step 3. Activities Sort and bring together information from your quantitative data sheets.• Compile all the qualitative information in interview records and fi eld notes.• Re-draw fi nal versions of both baseline and emergency market-system maps.• Compile fi nal versions of the market system’s seasonal calendar.• Key outputs A fi nal, seasonally adjusted, • baseline map (or maps) representing the market system as it was before the onset of the emergency Data about numbers of market actors, prices, and volumes of production • and trade in the baseline situation (shown either on the market map, or included in separate tables) Explanatory text describing the baseline market system’s key features that • are most relevant to the crisis-affected situation A fi nal, seasonally adjusted, • emergency-affected map (or maps), representing the market system as it is now Data about numbers of market actors, prices, stocks, and production and • trade volumes in the emergency-affected situation (shown either on the market map, or in separate tables) Explanatory text describing the key aspects of the impact of the crisis on • the market system, including major constraints, bottlenecks, and coping strategies of market actors A seasonal calendar for the market system • 6.2 Baseline market-system map The fi rst main output from Step 6 is your fi nal version of the baseline market-system map. Its purpose is to compare the ‘normal’ and ‘crisis-affected’ situations: it shows the market system as it might have been now, had the crisis not occurred. The fi nal output will be a refi ned version of the preliminary baseline market map which you started in Step 3 and have been revising and developing during the course of the fi eldwork. 119STEP 6. MAPPING THE MARKET SYSTEM 6 . M ap pi ng th e sy st em W E A K F A R M E R O R G A N IS A T IO N O B S T R U C T IV E T R A D E L IC E N C E R U L E S C o lo u r k e y T a rg e t g ro u p s B e a n p ro d u c e rs H IG H IM P O R T T A R IF F S G R O W IN G U N R E L IA B IL IT Y O F R A IN F A L L P O L IC Y O B S T A C L E S T O F O O D T R A D IN G S E A S O N A L E M P L O Y M E N T P A T T E R N S R IS IN G F U E L C O S T S C O R R U P T IO N O F M A R K E T O F F IC IA L S T h e m a rk e t e n v ir o n m e n t: in s ti tu ti o n s , ru le s , n o rm s & tr e n d s T h e m a rk e t c h a in : m a rk e t a c to rs & th e ir li n k a g e s K e y in fr a s tr u c tu re , in p u ts a n d m a rk e t- s u p p o rt s e rv ic e s R U R A L H O U S E H O L D S W IT H L A N D W A R E H O U S IN G S T O R A G E C A S U A L L A B O U R E R S F A R M IN P U T S IN F O R M A L C R E D IT R U R A L R O A D S A N D B R ID G E S L E A S IN G O F T R U C K S B U S IN E S S L O A N S IM P O R T S F R O M U .S .A . IM P O R T S F R O M D O M IN IC . R E P . IM P O R T E R / W H O L E S A L E R V IL L A G E T R A D E R S U R B A N H O U S E H O L D S L A N D L E S S R U R A L H O U S E H O L D S U R B A N R E T A IL E R S H O U S E H O L D S C O N S U M IN G O W N P R O D U C E W O M E N ’S G A R D E N S D IS T R IC T T R A D E R S P R O V IN C IA L T R A D E R S C O M M E R C IA L F A R M E R S B o x 6 .1 E m e rg e n c y- a ff e c te d m a rk e t m a p – ‘b e a n s’ e xa m p le fr o m H a it i R E S T R IC T IO N S O N W O M E N ’S A C C E S S T O M A R K E T S ! ! ! ! ! ! K e y is s u e o r p a r ti a l d is r u p ti o n M a jo r d is r u p ti o n ! F O O D A ID 120 THE EMERGENCY MARKET MAPPING AND ANALYSIS TOOLKIT 6.4 Quantifi cation: putting numbers on the map EMMA results will be more informative and compelling if you can rally some basic numbers to support your analysis and recommendations. This section explains how to make EMMA a quantitative, as well as descriptive, process. The data that you compile here will be used later – in Step 8 especially. In particular, they will help you to draw conclusions about the capacity of the market system to play a role in humanitarian response: for example, by responding to local procurement activities, or reacting to increases in demand when cash-based assistance is given to target groups. Two notes of caution It is often diffi cult and time-consuming to get accurate and reliable data • about baseline market systems in a sudden-onset emergency situation. The results of quantitative analysis may not always justify the effort, skills, and time involved. Unless you have very solid evidence, assume that your data are imprecise • and uncertain (see Box 5.3). If you interviewed only two or three traders, it would be better to give an approximate estimate (e.g. 100–150 tonnes) than to record an apparently accurate but actually very uncertain number (e.g. 137.5 tonnes). Therefore, in practice, EMMA must compromise by focusing on only a few key pieces of data. Do not let the collection and analysis of quantitative data lead to neglect of more useful qualitative information. The most useful quantitative data for EMMA to focus on are the following: numbers• of market actors – at each step in the value / supply chain; prices• of items – at key transaction points; volumes• (quantities) – of goods or services produced and traded. 121STEP 6. MAPPING THE MARKET SYSTEM 6 . M ap pi ng th e sy st em Numbers of market actors It is important to look out for and take note of any signifi cant changes in the numbers of market actors at key points in the system, especially if these changes point to the possibility of severe problems such as lack of physical access to the market system for any target groups;• excessive concentration of market power in the hands of a few remaining • actors (see ‘competition’ issues below); situations where there is a risk of cartels forming or monopolistic behaviour • (poor conduct). Disruption to the market system may involve the death or displacement of market actors and the destruction of their business assets, stocks, and premises. The number of market actors (including different target-group households), and their locations, can often be shown directly on the market-system map, as in Box 6.3. Box 6.2 Types of useful quantitative data in EMMA Data Details Why data are useful or important Actor Number of target households To understand scale of activities. numbers (differentiating between numbers To extrapolate from sample. of women and men if relevant) To fl ag up risks of poor conduct Number of market actors at key (e.g. cartels). points in the chain Price Prices for target households, and To help to diagnose supply or data at key points along supply / value demand failure. chain To help to identify bottlenecks. Volumes Consumption or production by To assess availability. different target groups To evaluate capacity to respond (differentiating between women to procurement needs. and men if appropriate – e.g. for production) Trade volumes in local, provincial, national markets Box 6.3 Showing actor numbers on market maps VILLAGE RETAILERS Galleni = 5 Pau = 8 Andola = 3 124 THE EMERGENCY MARKET MAPPING AND ANALYSIS TOOLKIT Information about production and trade volumes can be included in the market-system map in two ways. If you only have very rough estimates, the relative importance of different linkages or pathways in the system can be illustrated by using different thicknesses of arrows. Alternatively, numerical estimates at key points in the system can be overlaid on the map, as in Box 6.8. 6.5 Availability (stocks and lead times) As well as getting a sense of production and trade volumes in supply market systems, it will be very useful (in Step 9) to have information about availability. These data include the following: the stocks held by different types of market actor along a supply chain, and • the lead-times (between order and delivery) expected at each link in the chain.• This information will come from the interviews with market actors (traders, retailers etc.). When investigating lead-times, treat people’s responses cautiously. Traders may exaggerate how quickly they can obtain supplies, in order to impress you, or because they are unaware of bottlenecks elsewhere. Always check with other market actors in the chain. Information about ‘availability’ can be usefully summarized in a table like Box 6.7. Box 6.6 Estimating volumes from production data Example of Method 2: production plus imports Kandarpur district typically harvests approximately 12,000 tonnes of wheat in September /October, for consumption during the winter (six months). Estimated production = 12,000 ÷ 6 = 2,000 tonnes / month (spread over winter) During this season, the district also normally imports wheat from the southern region. The two main wholesalers (who jointly control 80 per cent of this market) typically bring in approximately 60 tonnes each week. Estimated trade coming into the district = 60 x 4 ÷ 80% = 300 tonnes / month Total production and trade (baseline) = 2,000 + 300 = 2,300 tonnes / month Box 6.7 Analysis of availability along a supply chain Stocks Growers N: 70–100 1,500 tonnes as crops in fields Traders N: 10–15 50 tonnes in transit Millers N: 6 150 tonnes in storage at mills Retailers N: 100–150 30 tonnes in stock in shops Consumers N: ~ 20,000 100 tonnes in household larders Lead-times six weeks (harvest in June) one week (transport) two weeks (milling, bagging) 3 days (home stocks) 125STEP 6. MAPPING THE MARKET SYSTEM 6 . M ap pi ng th e sy st em R U R A L H O U S E H O L D S W IT H L A N D N = 7 0 ,0 0 0 V : 9 0 0 IM P O R T S F R O M U .S .A . V : 4 ,0 0 0 IM P O R T S F R O M D O M . R E P B . R E G IO N A L T R A D E R S N = 8 IM P O R T E R / W H O L E S A L E R N = 3 D IS T R IC T T R A D E R S N = 2 0 C O M M E R C IA L F A R M E R S N = 2 ,0 0 0 ? V : 1 ,0 0 0 – 2 ,0 0 0 V IL L A G E T R A D E R S N ~ 2 0 0 U R B A N H O U S E H O L D S N = 5 0 ,0 0 0 L A N D L E S S R U R A L H O U S E H O L D S N = 2 0 0 ,0 0 0 U R B A N R E T A IL E R S N > 5 0 H O U S E H O L D S C O N S U M IN G O W N P R O D U C E W O M E N ’S G A R D E N S C a p it a l P o rt a u P ri n c e H u rr ic a n e -a ff e c te d c o m m u n e s G o n a iv e s a n d J a c m e l re g io n s O th e r R e g io n s V : 6 ,0 0 0 – 7 ,0 0 0 V : 5 0 0 V : 2 ,0 0 0 V : 1 5 0 0 V : 7 0 0 IN T E R N A T IO N A L F O O D A ID V : 1 ,5 0 0 – 2 ,0 0 0 ? V : 5 0 0 V : 1 ,6 0 0 N = N u m b e r o f a c to rs / h o u s e h o ld s V = V o lu m e in m e tr ic to n n e s p e r m o n th T h e m a rk e t c h a in : m a rk e t a c to rs & th e ir li n k a g e s B o x 6 .8 S h o w in g d a ta a b o u t p ro d u c ti o n a n d tr a d e vo lu m e s o n m a rk e t m a p s – ‘b e a n s’ e xa m p le fr o m H a it i 126 THE EMERGENCY MARKET MAPPING AND ANALYSIS TOOLKIT Checklist for Step 6 Baseline and emergency-affected market maps fi nalized o Appropriate details quantifi ed: actor numbers, prices, and availability o Key features of the system fl agged up and described o Seasonal calendar fi nalized o 6.6 Seasonal calendar for a market system Many market systems have strong seasonal variations in the patterns of production, trade, and prices. These patterns may reveal themselves through seasonal price fl uctuations for inputs and outputs. Or they may involve major seasonal shifts of activity as people move, for example, between farming and wage employment. This is most obvious in agricultural market systems – with shifts in demand for labour for ploughing, weeding, harvesting; and a surge in the supply of produce after harvesting. However, seasonal patterns may also feature in shelter-related markets, and in off-farm activities that are affected by weather or road access, for example. There is often a strong gender-related dimension to these patterns, as the roles and responsibilities of women and men differ. These need to be understood, since emergencies typically have different impacts on women’s and men’s time. It is essential that EMMA users are able to distinguish ‘normal’ seasonal fl uctuations in prices and trade volumes from the disruptions created by an emergency situation. Otherwise, your diagnosis of market-system problems and proposed solutions will be fl awed. The baseline market map should represent a ‘seasonally relevant’ picture. It is a good idea, therefore, to construct a simple seasonal calendar for each market system analysed, to capture the ‘normal’ seasonal patterns of price and trade. This can also be used to describe other important features of the system which may be relevant to the humanitarian response. Box 6.9 Seasonal calendar for a market system – example Market system (e.g. Beans) S O N D J F M A M J J A Volume of trade Prices at market Input purchases Road conditions Risk of crop pests HighLow Floods Low $ Low $ LowHigh High Peak $ $ $ High