HARNESSING MARKETS FOR IMPROVED NUTRITION: A Case Study of Zomba

Presented by Noora Aberman (IFPRI)

MaSSP Brown Bag Seminar Series, IFPRI-Lilongwe

With co-authors: Aulo Gelli (IFPRI), Jason Donovan (ICRAF), Amy Margolies (JHU)

Based on joint work with Corinna Hawkes, Spencer Henson, Marco Santacroce, and others.

GAIN, 10/11/2016.

Rationale for Value Chains for Nutrition Hunger and undernutrition are intractable problems in Malawi. Can we

harness markets to improve nutrition and food security?

How can we make markets work better in terms of linking producers to consumers and delivering nutrient-dense foods to enhance diets for the poor?

Value chain framework: useful for examining food systems for potential to achieve improved diets Applying the value chain concept to integrating agriculture and nutrition recognizes

need to examine all stages of food chain: production consumption However understanding links between value chains, business environment, and

nutrition among targeted populations is complex and little rigorous evidence exists on these links

The VCN Approach

Value Chains for Nutrition diagnostic study implemented by IFPRI in Malawi, with partners: WFP-Malawi IMMANA-LCIRAH (Leverhulme Centre for

Integrative Research on Agriculture and Health)

USAID-Malawi ICRAF-Peru (World Agroforesry Centre) Save the Children-Malawi

VCN Framework supports the identification and design of interventions: supporting supply and demand of nutritious foods, and enhancing value chain performance with a nutrition lens

Diagnostics involving 4 key steps*:1. Understanding the nutrition problem2. Examining the macro-level food systems context (the

enabling environment )3. Characterizing diet patterns and relative contribution of

different crops/missing foods, contaminated foods, etc.; 4. Identify value chain constraints and opportunities related

to nutrition and food security. * For more details see Gelli, A, Hawkes C and Donovan J. Food value chains and nutrition: Exploring opportunities for improving nutrition. In Pritchard et al. (ed), Routledge Handbook of Food and Nutrition Security. Routledge, 2016.

The VCN Approach

Quadrant BHigh demand & inadequate supply

Quadrant AHigh demand & adequate supply

Quadrant DLow demand & inadequate supply

Quadrant CLow demand & adequate supply

Demand(Consumption

levels in target

population)

Supply(Year-round availability in

markets)

Zomba Case Study

Analyzing new data from ongoing research in Zomba: Household surveys: 1200 households, 7 day recall consumption

module In-depth individual interviews: 56 in-depth interviews and 27

structured direct household observations Market assessment:

Structured interviews with 47 traders located in the 5 main markets in Zombadistrict

Also, semi structured interviews with government agencies, businesses, traders

The nutrition problem

In spite of improvements in recent years, stunting and micronutrient deficiencies are still high

Food crisis the past two years has almost half of Malawians facing food shortages

Environment for Food and Nutrition

Unimodal production cycle leads to highly seasonal prices and food availability, also lumpy incomes affecting food access

Thin markets and maize-heavy food preferences promote farming for subsistence;

Policies that support maize production reinforce subsistence farming and maize-centric diets.

CHARACTERIZING DIET PATTERNS

Food is maize, but others require money

Preferences for diverse foods: pulses, veg, animal protein

However, maize first preferences, budgetary limitations, limited and seasonal availability, hamper diverse diet

- Meat usually eaten at harvest time, and pulses are sold if cash is required

It is in our culture...food is maize, but others require money - Male respondent, Dual-head household, Village 6, Zomba.

Coping with the lean season People eat less, and less preferred foods (sometimes

nutrient dense) Non-maize meals are not considered food, often

used to soothe children Buy-as-you-go approach to filling maize needs

It helps when you have sugar, you can make tea and kids have that with avocado...if there is cassava, you can cook for the kids and they can take it with water and cool down. If they were crying of hunger, they stop crying. - Female respondent, Dual-headed household, Village 5, Zomba.

Household nutrient availabilityEstimated adequacy of nutrient availability of household food consumption across 2 seasons, all households and for households in the lowest expenditure quintile in Malawi

Source: NEEP baseline & Immanafollow-up surveys, Zomba, Malawi. N=1,156 HH.

Early lean seasonEarly lean season

Peak lean seasonPeak lean season

Food consumption patterns across seasons and expenditure quintiles per adult equivalent

Source: NEEP baseline & Immana follow-up surveys, Zomba, Malawi.

All HHs: ~ 1 kg of

food /day

Lowest quintile

only 40%

Contributions of foods to total nutrient intake and sourcing patterns across two seasons

Food Calories Protein Iron Vitamin A ZincShare consumed from production Calories Protein Iron Vitamin A Zinc

Share consumed from production (PH-LS)

Maize 0.73 0.68 0.75 0.02 0.75 0.59 0.80 0.77 0.78 0.06 0.82 0.15 -0.45

Rice 0.01 0.01 0.00 0.00 0.01 0.01 0.00 0.00 0.00 0.00 0.00 0.07 0.06

Other Cereals 0.03 0.03 0.03 0.01 0.03 0.32 0.01 0.01 0.00 0.00 0.01 0.09 -0.23

Cassava 0.01 0.00 0.00 0.00 0.00 0.20 0.00 0.00 0.00 0.00 0.00 0.10 -0.10

Potato 0.00 0.00 0.00 0.00 0.00 0.07 0.00 0.00 0.00 0.00 0.00 0.00 -0.07

Sweet Potato 0.00 0.00 0.00 0.02 0.00 0.18 0.00 0.00 0.00 0.00 0.00 0.12 -0.06

Beans and Soya 0.02 0.03 0.03 0.00 0.03 0.39 0.03 0.06 0.06 0.00 0.05 0.42 0.03

Peas 0.02 0.04 0.03 0.01 0.03 0.68 0.01 0.02 0.02 0.00 0.02 0.41 -0.27

Groundnut 0.02 0.04 0.02 0.00 0.03 0.18 0.01 0.01 0.01 0.00 0.01 0.19 0.01

Tomato 0.02 0.03 0.03 0.20 0.02 0.08 0.00 0.00 0.01 0.05 0.00 0.15 0.08

Pumpkin 0.00 0.00 0.00 0.00 0.00 0.84 0.00 0.00 0.01 0.06 0.01 0.74 -0.11

Leafy Green Vegetables 0.01 0.01 0.02 0.14 0.01 0.60 0.02 0.04 0.05 0.60 0.02 0.93 0.33

Other Vegetables 0.02 0.04 0.05 0.44 0.03 0.17 0.01 0.02 0.04 0.16 0.03 0.45 0.28

Banana 0.00 0.00 0.00 0.00 0.00 0.40 0.00 0.00 0.00 0.01 0.00 0.61 0.21

Mango 0.02 0.01 0.01 0.13 0.00 0.81 0.00 0.00 0.00 0.00 0.00 0.71 -0.10

Other Fruits 0.00 0.00 0.00 0.01 0.00 0.54 0.03 0.02 0.02 0.04 0.02 0.62 0.09

Eggs 0.00 0.00 0.00 0.01 0.00 0.36 0.00 0.00 0.00 0.00 0.00 0.54 0.18

Fish 0.01 0.05 0.01 0.00 0.02 0.03 0.00 0.02 0.00 0.00 0.00 0.03 0.00

Meat 0.00 0.01 0.00 0.01 0.01 0.39 0.00 0.00 0.00 0.00 0.00 0.51 0.12

Dairy 0.00 0.00 0.00 0.00 0.00 0.05 0.00 0.00 0.00 0.00 0.00 0.17 0.12

Fats and Oil 0.04 0.00 0.00 0.00 0.00 0.01 0.02 0.00 0.00 0.00 0.00 0.23 0.22

Sugar and Sweets 0.02 0.00 0.01 0.00 0.00 0.13 0.03 0.01 0.01 0.00 0.00 0.27 0.14

Condiments 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.01 0.00 0.00 0.04 0.04

Lean seasonPost harvest

IDENTIFY VALUE CHAIN CONSTRAINTS AND

OPPORTUNITIES

Farmers understand markets, but are constrained Farmers have a pretty good understanding of markets

Constrained by limited resources and bargaining power Dont like vendors but still use them due to time, cost and risk of going to

markets

Stress sales are prevalent

Seasonality decreases profit

Market analysis Features of the markets for selected nutritious

food products

Bottlenecks and potential risks in production, processing, distribution

We looked at 6 products, chosen based on dietary assessments: leafy greens, avocado, chicken, fish, beans/peas, groundnuts

Overview of markets

Product No. of

traders

Average volume brought

to market for sale unit

Main buyer types

Average price* (US$)

Price variation unit

Market shoppers

Traders, street

venders, restauran

ts

Leafy greens 21 0.7

volume, 50kg bag 19 2 0.04 20-50% heap

Dried fish 7 360 piece 6 1 0.51 25-200% heap Dried beans and peas 12 76.7

weight, kg 6 6 0.31 25-50% tin plate

Avocado 9 115 piece 7 2 0.07 100-300% piece

Chicken (live) 6 18.5 piece 3 3 2.92 75-100% piece

Groundnuts 5 1.5

volume, 50kg bag 3 2 0.74 ~300% tin plate

Product

No. of traders

Average volume brought to market for sale

unit

Main buyer types

Average price* (US$)

Price variation

unit

Market shoppers

Traders, street venders, restaurants

Leafy greens

21

0.7

volume, 50kg bag

19

2

0.04

20-50%

heap

Dried fish

7

360

piece

6

1

0.51

25-200%

heap

Dried beans and peas

12

76.7

weight, kg

6

6

0.31

25-50%

tin plate

Avocado

9

115

piece

7

2

0.07

100-300%

piece

Chicken (live)

6

18.5

piece

3

3

2.92

75-100%

piece

Groundnuts

5

1.5

volume, 50kg bag

3

2

0.74

~300%

tin plate

Overview of selected chains Chain Chain reach Actors involved Inputs, services utilized

by chain actorsLevel of processing

Leafy greens Localized: surrounding villages

Producers, market traders

None None

Dried fish Regional: Shores of Lake Malawi and Lake Chilwa

Fishermen, local and regional traders

None Drying

Beans and peas Regional: sourced from throughout the country

Producers, traders (large and small scale)

Transportation, storage Drying

Avocado Localized: surrounding villages

Producers, market traders

None None

Live chicken Localized: surrounding villages

Producers, market traders

None None

Groundnuts Regional: sourced from throughout the country

Producers, processors (conventional and niche markets), traders (small and large scale)

Storage, marketing, aflatoxin control

High, processed peanut based products for national market

Biggest marketing challenge as reported by sellers (n=47)

Challenge N of sellers reporting as

biggest challengeLow demand/excess supply 20

Lack of regular customers 11

Irregular demand (majority of sales at end of month)*

3

Lack of capital / limited stock 7

Low quality product (e.g. discoloured leaves due to lack of fertilizer & sale in full sun, small fish size)

3

Lack of transportation 2

Other challenges

- Inadequate market infrastructure: lack of clean water and toilets; lack of infrastructure for storage and selling; and weak coordination among sellers/producers.

- Limited evidence of product differentiation based on origin, quality, or other attributes

Greens being sold under full sun not under covered shed

Applying the results into the 4 quadrants

Quadrant BHigh demand & inadequate supply

Quadrant AHigh demand & adequate supply

Quadrant DLow demand & inadequate supply

Quadrant CLow demand & adequate supply

Demand(Consumption

levels in target

population)

Supply(Year-round availability in

markets)

Dietary Change Demand & Supply Characteristics

Consumer-related Issues Main Constraints Implications for Intervention Design

Groundnuts are consumed throughout the year but high levels of aflatoxin contamination is a major health risk

(Quadrant A)Consumers willing and able to purchase, & high availability in markets during all or part of the year

Sorting and grading likely to result in low-income consumers exposed to foods w/ higher levels of aflatoxin

Gaps in regulatory environment and quality assurance; limited capacity & weak incentives for smallholder to invest in improved production

Developing & testing third-party quality assurance; strengthening capacity of processors to minimize food safety concerns

Beans & legumes are consumed in low volumes, increased consumption will improve diet quality

(Quadrant B)Consumers willing to prioritize the purchase of food when funds are available, but limited availability some parts of the year

Willingness to purchase and prioritize over other food (except miaze), consumers with limited purchasing capacity during peak demand periods

Production bottlenecks limit availability during periods over the year; limited incentives for traders to engage in supplying local markets

Innovation in production technologies to expand availability; improved coordination and other measures (e.g. storage) with traders to reduce costs

Animal source foods (esp. dried fish) / Leafy greens: Available but consumption is low; increased consumption will improve diet quality

(Quadrant C)Low consumption, despite generally high degree of availability in local markets / leafy greens only available in lean season

Preferred foods but low willingness to pay due to insufficient budget

Producers and sellers with limited opportunities to expand or add value to production due to limited effective demand

Subsidies/social transfers to facilitate consumption in critical periods (e.g. lean season); support to chain actors to reduce costs to production and trading

Nutritious fruits (e.g. mangoes and avocados) are not consumed in significant amounts throughout the year due to limitations on both supply and demand side; increased consumption will improve diet quality

(Quadrant D) Low consumption; not typically purchased due to budget constraints and not preferred; highly seasonal availability

Low willingness to pay for fruits, with preferences towards consumption of staples, fruits relatively expensive during off-peak seasons, adding further deterrence to year round consumption

Lack of storage and transport facilities for highly perishable products, limited demand increases risk for production developments and other investments; few processors and distributors engaged in sector

Information campaigns to increase acceptability; support to chain actors to process or store to extend shelf life; investments in local marketing infrastructure; Subsidies/social transfers to facilitate consumption when in season (school meals)

POLICY AND PROGRAM IMPLICATIONS

Lean Season Approaches: No buying power Households are highly constrained in the lean season

Little room to maneuver in diets little buying power -> pull BCC wont be highly effective

However, some lean season interventions have potential Promote underutilized foods in large-scale lean season interventions to

address the pull and the push For instance, supply avocado for school meals Or vouchers for purchasing leafy greens, provided along with MVAC These address: low demand, high supply, improved diets and improved

incomes for producers

Outside the lean season: education and enhanced supply Financial constraints are loosened, so some room to influence

demand Promote behavior change to increase acceptability and

consumption of underutilized foods Provision of inputs for nutritious foods that arent typically preferred

(bio-fortified foods, drought tolerant foods, local wild foods) along with education about benefits and preparation

Extend the time period for which leafy greens are available into the months when people can afford them Inputs (seeds) for hearty leafy greens, plus simple irrigation approaches

(in areas where there is a nearby water source)

Evidence from 2 interventions Effects of MVAC Lean Season Food Transfers during the 2016 lean season on food

security, diets and nutrition status of young children in Zomba district in Malawi (quasi-experimental) Food transfers increased calories and nutrient consumption for adults and children Effect on diets driven by consumption of vegetables, milk and dairy, oils and fats Effects concentrated on the very poor

Impact of agricultural training and input provision on diets, food security and production (RCT) Intervention: provision of inputs (seeds/vines) of nutritious foods and training Improved production diversity, driven by increase in planting of legumes (beans) and roots and

tubers (orange fleshed sweet potato) Also small effect of ag-intervention on dietary diversity for children 36-72months (DID

coefficient 0.32 (p

Different seasons call for different support

Results point to the need for a layered approach to interventions: Complementary role of

1) lean season food transfers to smoothen consumption and protect vulnerable households from seasonal price spikes (quadrant C), and of

2) ag-nutrition inputs and training to promote longer term investment shaping supply of (and demand for) nutritious foods (quadrant B)

Thank you! Now we would like your thoughts and inputs

Acknowledgements Research by the International Food Policy Research Institute (IFPRI), Save the Children,

Chancellor College at the U. of Malawi and Wadonda: Aisha Twalibu, Natalie Roschnik, George Chidalengwa, Helen Moestue, Mangani Katundu,

Owen Nkhoma, Ephraim Chirwa, Peter Mvula, Stefan Meyer, Bob Baulch, Dan Gilligan, Shalini Roy, Jef Leroy.

Programs implemented by WFP and Save the Children with local partner NGOs

Research funded by: NEEP IMMANA Gender, Agriculture and Assets Project (GAAP) USAIDMalawi (support for MaSSP) CGIAR Research Program on Agriculture for Nutrition and Health (A4NH) led by IFPRI.

Program and research participants

Harnessing markets for improved nutrition: A Case Study of ZombaRationale for Value Chains for Nutrition The VCN Approach VCN Framework supports the identification and design of interventions: supporting supply and demand of nutritious foods, and enhancing value chain performance with a nutrition lensThe VCN Approach Zomba Case StudyThe nutrition problemEnvironment for Food and Nutrition Characterizing Diet PatternsFood is maize, but others require moneyCoping with the lean seasonHousehold nutrient availabilityFood consumption patterns across seasons and expenditure quintiles per adult equivalent Contributions of foods to total nutrient intake and sourcing patterns across two seasonsIdentify value chain constraints and opportunitiesFarmers understand markets, but are constrained Market analysisOverview of markets Overview of selected chains Biggest marketing challenge as reported by sellers (n=47)Other challenges Applying the results into the 4 quadrantsSlide Number 23Policy and program implicationsLean Season Approaches: No buying powerOutside the lean season: education and enhanced supply Evidence from 2 interventions Different seasons call for different support Thank you! Now we would like your thoughts and inputsAcknowledgements