PAT

Market Information for Food Security Analysis

Session 1.3

WFP Markets Learning Programme 1.3. 1Price Analysis Training

Learning Objectives

After this session, participants should be able to:•Identify key market indicators to be integrated in analytical outputs (needs assessments, vulnerability analyses, monitoring and evaluation)

•Explain how market information informs WFP decision-making

WFP Markets Learning Programme 1.3. 2Price Analysis Training

Purpose of Market Analysis in FSA

Estimate national/regional/local food supply capacities against domestic requirements

Gauge HH dependency on markets for food

Gauge HH capabilities to access food through markets

WFP Markets Learning Programme 1.3. 3Price Analysis Training

Purpose of Market Analysis in FSA

Determine market response capacities to cover national food demand gaps

Formulate early warnings if domestic production & markets cannot cover national food demand gaps

Inform policies of governments & of global actors on food security strategies

WFP Markets Learning Programme 1.3. 4Price Analysis Training

Purpose of Market Analysis for WFP Decision-Making

Facilitate:

food assistance intervention planning with assurance that impact on domestic food production and food markets is not negative

decision whether cash or food aid is the best option to address food insecurity

local or regional food purchase planning and ensure these are implemented at optimal best time with maximum effect on producers and markets

WFP Markets Learning Programme 1.3. 5Price Analysis Training

Relevant market issues for WFP

Assessments/Analysis for decision making Emergency needs assessments Non-emergency assessments (baselines,

monitoring, etc.) Minimum level of infrastructure

Assessing impact of assistance Food or cash Timing of food assistance

WFP Markets Learning Programme 1.3. 6Price Analysis Training

Relevant market issues for WFP

Early warning system Monitoring food security system

Determining programmes/response options Food or non-food (voucher/cash) Imports or local/regional purchase Purchase for progress Others (e.g., market support)

WFP Markets Learning Programme 1.3. 7Price Analysis Training

Market analysis and response decisions, Example 1

• Insufficient availability

• Lack of access

• Markets not functioning

General Food

Distribution?WFP Markets Learning Programme 1.3. 8Price Analysis Training

Market analysis and response decisions, Example 2

• Insufficient availability

• Lack of access

• Markets not functioning

• HHs not involved in labour markets this season

Food for

work?WFP Markets Learning Programme 1.3. 9Price Analysis Training

What information to look for in general?(Links with existing analytical outputs)

Supply Demand Market System

See handout

WFP Markets Learning Programme 1.3. 10Price Analysis Training

What to look for at household level?

 Households Access to

MarketsRisk and

Vulnerability

KeyComponents

KeyIndicators

Analysis

See Handout

WFP Markets Learning Programme 1.3. 11Price Analysis Training

Market analysis and response decisions, Example 3

• Food available

• Lack of access (income) Cash/

VoucherCash for

work?WFP Markets Learning Programme 1.3. 12Price Analysis Training

• Markets (of food, labour, financial) functioning

• Price stability and other risks (inflation, collusion, corruption) are low

Exercise 1.3.

The Marketastan File: Assembling the Market Analysis Plan

WFP Markets Learning Programme Price Analysis Training 1.4.13

Small Group Work

Exercise 1.3. Debriefing

Secondary or primary? Why? Likely sources? Data Collection & Analysis Tools & Techniques?

• Appropriate (particularly in relation to proposed source)?

• Feasibility (Critical skills / other resource needs)?

WFP Markets Learning Programme Price Analysis Training 1.4.14