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<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong><br />

<strong>Assessment</strong> <strong>and</strong><br />

<strong>Analysis</strong><br />

Workshop Report<br />

Rome, 29 - 31 July 2008


<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong> <strong>and</strong> <strong>Analysis</strong><br />

-Workshop Report-<br />

Rome, 29 - 31 July 2008<br />

Table of Content<br />

Executive Summary 2<br />

1. Background 3<br />

2. Objectives, Achievements <strong>and</strong> Process of the Workshop 3<br />

2.1 Objectives 3<br />

2.2 Achievements of the workshop 4<br />

2.3 Process of the workshop 4<br />

3. Overview – Setting the Context 4<br />

3.1 Introduction <strong>and</strong> relevance for programming 5<br />

3.2 Overview of <strong>WFP</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong>s 5<br />

3.3 Overview of global trends <strong>and</strong> programming responses 6<br />

4. Cross-Cutting Issues <strong>and</strong> Recommendations Emerging from <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong>s 6<br />

4.1 Issues <strong>and</strong> recommendations around the use of secondary data analysis <strong>and</strong> monitoring systems (Day 1) 8<br />

4.2 Issues <strong>and</strong> reccommendations around assessments based on primary data analysis (Day 2) 9<br />

5. Recommendations –What Needs to be Followed Up? 11<br />

6. Planned Activities <strong>and</strong> Implementation of Recommendations 12<br />

7. Next Steps 15<br />

Annex 1: Workshop Agenda 16<br />

Annex 2: Participants List 19<br />

Annex 3: Workhop Evaluation Sheet 21<br />

Annex 4: Note for the Record: Follow up meeting after the <strong>High</strong> <strong>Price</strong> <strong>Assessment</strong> Workshop 22<br />

Annex 5: Workshop Presentations 23<br />

1


Executive Summary<br />

Since the price crisis, <strong>WFP</strong> has been undertaking extensive consultations with partners to set up mitigation responses<br />

based on analyses findings. <strong>WFP</strong> has been joining with a range of partners, including among others, Governments,<br />

FEWS NET, Oxfam, SCF-UK, FAO, the World Bank, IFAD to conduct field missions or more in-depth local<br />

analysis of the impact of price rises on local populations.<br />

The stock-taking workshop on the impacts of high prices, the fifth of a series of consultative meetings undertaken by<br />

<strong>WFP</strong> since the beginning of 2008, focused on ways to improve price impact analysis for programming decisions. It<br />

was funded by a DFID institutional strenghening grant. The meeting was attended by 27 staff from partners<br />

(Governments, UN Agencies <strong>and</strong> NGOs) <strong>and</strong> 27 from <strong>WFP</strong> (Headquarters <strong>and</strong> Field Offices). The specific objectives<br />

of the workshop were to:<br />

• Share analyses findings <strong>and</strong> key lessons learned<br />

• Identify minimum set of information to meet information needs under different settings (rapid versus in-depth<br />

analyses)<br />

• Strengthen the interface between assessment findings <strong>and</strong> programming responses.<br />

A series of presentations made on the first two days, focussed on the use of existing monitoring systems, secondary<br />

information sets <strong>and</strong> primary data collection <strong>and</strong> analysis to inform on the impacts of the food price crisis on<br />

households’ food security. Discussions of issues that emerged from these presentations were prioritized during plenary<br />

sessions <strong>and</strong> recommendations on how to address these issues are summarized in sections 4, 5 <strong>and</strong> 6. A number of<br />

urgent <strong>and</strong> important recommendations that need to be followed-up were identified (section 5). Each agency or<br />

organisation briefly presented its ongoing or planned activities <strong>and</strong> suggested where they could undertake to<br />

implement or address some of these recommendations (section 6).<br />

In conclusion, it was suggested that organisations look for areas where they can work in bilateral / multilateral<br />

partnerships to implement recommendations. In order to carry the work forward, a small committee composed of<br />

SCUK, OXFAM, OCHA, ANLP, FAO <strong>and</strong> <strong>WFP</strong> was set up to start discussions to identify an approach by which<br />

lessons learnt can be shared.<br />

2


1 Background<br />

Recent high food <strong>and</strong> fuel prices are cause of major concerns among governments <strong>and</strong> the humanitarian community<br />

because of their potential negative effects on vulnerable households <strong>and</strong> their nutritional <strong>and</strong> health status.<br />

Notwithst<strong>and</strong>ing the potential positive impacts on agricultural production, the negative impacts of high food <strong>and</strong> fuel<br />

prices may jeopardize the prospects for the achievement of the Millennium Development through their impacts on<br />

hunger <strong>and</strong> poverty across the world. Recent unrests across the world, particularly in developing countries (e.g.<br />

Indonesia, Burkina Faso, Cameroon, Senegal, Mauritania, Cote d’Ivoire…) against the high cost of living suggest that<br />

countries are under the pressure of food insecurity.<br />

Since the crisis, <strong>WFP</strong> has been undertaking extensive consultations with partners to set up mitigation responses based<br />

on analyses findings. This stock-taking workshop of July 29-31 is held as a follow-up of the informal consultation with<br />

partners on February 13, the technical consultation with partners on May 12, the NGO <strong>and</strong> regional programme<br />

advisors programming consultation on June 23, the in-house consultation with <strong>WFP</strong> Country Directors on July 10 <strong>and</strong><br />

several external meetings in Brussels, London <strong>and</strong> Washington between April <strong>and</strong> May. This workshop was triggered<br />

by these consultations which recommended continued information sharing, possible joint analysis <strong>and</strong> monitoring;<br />

open communication <strong>and</strong> dialogue with <strong>WFP</strong>’s major operational partners on implications of <strong>and</strong> responses to rising<br />

food prices.<br />

2 Objectives, Achievements <strong>and</strong> Process of the Workshop<br />

The two-<strong>and</strong>-half-day meeting was conveined by <strong>WFP</strong>’s <strong>Food</strong> Security <strong>Analysis</strong> Service (OMXF) to discuss, with<br />

partners, assessments of the impact of higher food (<strong>and</strong> fuel) prices on households’ food security.<br />

2.1 Objectives<br />

The main objective was to gauge the extent to which assessments, analyses <strong>and</strong> monitoring systems are<br />

providing adequate information on the impacts of price rises for programming decisions. See annex 1 for<br />

the original agenda.<br />

The sub-objectives were the following:<br />

• Share analyses findings <strong>and</strong> key lessons learned<br />

• Identify minimum set of information to meet information needs under different settings (rapid versus in-depth<br />

analyses)<br />

• Strengthen the interface between assessment findings <strong>and</strong> programming responses.<br />

Participants: The workshop was attended by 54 representatives from governments, NGO partners <strong>and</strong><br />

donor Agencies: Action contre La Faim, Care, CILSS, FAO, Fewsnet, OCHA, Oxfam, Save the Children,<br />

ECHO, USAID, ALNAP, the Mozambique Government, the Lesotho Government, <strong>WFP</strong> VAM <strong>and</strong><br />

regional VAM officers, <strong>WFP</strong> staff members from the Policy, Planning <strong>and</strong> Strategy Division (OEDP) <strong>and</strong><br />

from the Programme Design Service (OMXD). See annex 2 for the full list of participants.<br />

2.2 Achievements of the workshop<br />

In responding to the end of workshop evaluation, the workshop was considered satisfactory by the<br />

majority of the participants (annex 3). The workshop was rated as good by 50% of the participants <strong>and</strong><br />

very good by 20% of them. A minority of participants (20%) felt that the meeting had achieved the<br />

objectives given above. However, 69% of participants felt that the workshop contributed to their own<br />

work. The achievements of the sub-objectives can be summarized as follows:<br />

• The findings <strong>and</strong> key lessons learned from the assessments were found very informative <strong>and</strong> led to useful<br />

discussions according to 96% of the participants. In particular, the findings help identify what is different about<br />

the current price increases at country-level, compared to previous country contexts. They also point out few<br />

challenging:<br />

3


- Getting a rigorous answer to the impact of prices without a comprehensive set of new information is difficult.<br />

- Building scenarios to capture the future impacts of prices on household food security is difficult, given the<br />

increased volatility of prices.<br />

• Identifying a minimum set of information to meet information needs under different settings proved to be of high<br />

interest for the workshop participants. Two working groups addressed this issue, involving a third of<br />

participants. However, the working groups found it difficult <strong>and</strong> challenging to identify a minimum set<br />

of information. A tiered approach was therefore recommended (see section 4, key issue #2 for details).<br />

• The agenda was adjusted. Instead of discussing a pre-identified topic such as the third sub-objective, i.e. strengthen<br />

the interface between assessment findings <strong>and</strong> programming responses, the approach of defining important issues based on<br />

presentations was largely adopted by participants. As a result, the 2.5 day discussions produced the following<br />

outputs:<br />

- Identification of 28 issues emerging from recent experience <strong>and</strong> current work related to the collection,<br />

analysis <strong>and</strong> use of information in the current context.<br />

- Identification of 9 Key issues from among this set of 28: 4 issues identified on day 1 <strong>and</strong> 5 issues on day 2.<br />

- A description of the current situation with regard to each of these 9 key issues.<br />

- A set of recommendations as to how each of these 9 key issues should be addressed.<br />

- A list of current activities, by agency, where these recommendations can be put to use, <strong>and</strong> where<br />

collaboration between agencies may be possible.<br />

The details of these outputs are presented in the rest of the report.<br />

2.3 Process of the workshop<br />

On day 1, the presentations focussed on the use of existing monitoring systems <strong>and</strong> secondary<br />

information sets in addressing the food price crisis. Day-2 presentations focussed on assessments based<br />

mainly on primary data collection <strong>and</strong> analysis to inform on the impacts of the food price crisis on<br />

households’ food security. Day-3 focussed on the prioritisation of issues <strong>and</strong> recommendations <strong>and</strong> the<br />

way forward.<br />

The following process guided the workshop:<br />

• Overview – setting the context<br />

• Inputs – presentations on ongoing work, highlighting successes, challenges, <strong>and</strong> what is being learnt<br />

• Identification of common themes <strong>and</strong> challenges emerging from the presentations<br />

• Identification of key issues from among these common themes <strong>and</strong> challenges<br />

• Establishing recommendations as to how these key issues might be addressed.<br />

• Prioritisation <strong>and</strong> re-grouping of issues <strong>and</strong> recommendations<br />

• Identification of programmes where recommendations can be integrated <strong>and</strong> tested<br />

• Plans for sharing information between programmes on the results of integrating recommendations.<br />

3 Overview – Setting the Context<br />

3.1 Introduction <strong>and</strong> relevance for programming<br />

(by Valerie Guarnieri, Director <strong>WFP</strong> Progamme Design <strong>and</strong> Support Division - OMX)<br />

• <strong>High</strong> food prices are exacerbating structural <strong>and</strong> acute vulnerability, leading to i) a deterioration of<br />

the situation of people who already receive <strong>WFP</strong>’s assistance, ii) an increase in the number of<br />

people at risk of food insecurity, iii) a real challenge for <strong>WFP</strong>’s responses as costs are increasing<br />

<strong>and</strong> less food is available on the markets, iv) governments’ policy measures that may not be<br />

sufficient to mitigate the impacts of price rises.<br />

4


• <strong>WFP</strong>’s new strategic plan re-affirms the importance of assessments <strong>and</strong> analysis. Hence, <strong>WFP</strong> is<br />

conducting country-level analyses in countries flagged as high risk from rising food <strong>and</strong> fuel prices, to<br />

determine impacts on communities/households.<br />

• <strong>Assessment</strong>s need to provide timely information to design programmes. However often assessments will also<br />

help adjust the first interventions that have been already implemented to answer urgent needs.<br />

• In collaboration with FAO, IFAD <strong>and</strong> the World Bank, rapid project identification missions are conducted to<br />

provide an indicative overview of needs, <strong>and</strong> to identify most appropriate programmes. On the basis of<br />

needs assessments <strong>and</strong> project identification missions, a strategic action plan has been established,<br />

in line with national processes.<br />

• <strong>High</strong> food prices are likely to be long lasting. Therefore, food security monitoring needs to<br />

continue to guide the response <strong>and</strong> adapt programmes to changing situations.<br />

3.2 Overview of <strong>WFP</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong>s<br />

(by Joyce Luma, Chief <strong>WFP</strong> <strong>Food</strong> Security <strong>Analysis</strong> Service -OMXF)<br />

• <strong>WFP</strong>’s analysis of the impact of higher food prices is based on a two step approach. The first step was to<br />

identify the high risk countries, ranking the most vulnerable <strong>and</strong> estimating the total population affected<br />

globally. In parrallel, country-level analysis is being conducted using three approaches:<br />

• Secondary data analysis – e.g. Ug<strong>and</strong>a, Pakistan, Guatemala, El Salvador, Nicaragua,<br />

Honduras<br />

• <strong>Food</strong> security monitoring systems data analysis -e.g. Niger, Haiti, Guinea-Bissau,<br />

Burundi, Nepal, Southern Africa<br />

• Primary data collection <strong>and</strong> analysis through household <strong>and</strong> trader surveys e.g. Nepal,<br />

Liberia, Ethiopia, Burkina Faso, Guinea, Tajikistan.<br />

• Objectives of the analyses are to: determine the magnitude <strong>and</strong> future outlook of food price<br />

increases, assess the impact of higher prices on household food security, determine the proportion<br />

of the population affected, recommend immediate, medium <strong>and</strong> long-term response - in rural <strong>and</strong><br />

urban settings.<br />

3.3 Overview of global trends <strong>and</strong> programming responses<br />

(by Henk Jan Brinkman, Chief, <strong>WFP</strong> <strong>Food</strong> Security Policy & Markets -OEDP)<br />

• <strong>Food</strong> prices are higher <strong>and</strong> more volatile. They will peak, but stay high;<br />

• There is an agreement on the causes of higher food prices but not on their relative weight. The list<br />

is the following:<br />

• On the dem<strong>and</strong> side: emerging markets, changing dem<strong>and</strong> patterns, oil-exporting<br />

countries, biofuels, depreciating dollar, institutional investors.<br />

• On the supply side: weather-related shocks, slowing productivity growth, oil price leading<br />

to high cost inputs such as fertilizers, transport costs, export restrictions.<br />

• The transmission from international prices to national markets is not a one-for-one relation. The<br />

transmission depends on government policy <strong>and</strong> is larger if food imports represent a significant percentage of<br />

domestic supplies, if transportation costs <strong>and</strong> trade barriers are lower, exchange rate is depreciating, food<br />

taxes <strong>and</strong> subsidies are reduced <strong>and</strong> markets are competitive.<br />

• The most at risk are: rural l<strong>and</strong>less, pastoralists, agro-pastoralists, small-scale farmers, urban poor, children<br />

under 2 <strong>and</strong> under 5, pregnant <strong>and</strong> lactating mothers, the sickly.<br />

• The risk of severe <strong>and</strong> potentially lifelong negative consequences is high, even if prices come<br />

down.<br />

• There is a need for a broad response with: i) emergency interventions such as vouchers <strong>and</strong> cash, mother<strong>and</strong><br />

child nutrition programmes, school feeding, food or cash-for-work interventions, ii) agricultural supply<br />

response, iii) social protection systems.<br />

5


4 Cross-Cutting Issues <strong>and</strong> Recommendations Emerging from <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong>s<br />

On the basis of presentations made the participants worked on establishing the cross cutting issues<br />

emerging from the <strong>Price</strong> <strong>Impact</strong> assessments conducted so far. A copy of the presentations is attached in annex<br />

5.<br />

The work was organised in two phases:<br />

- Analyses using existing systems (monitoring systems <strong>and</strong> modelling based on secondary data)<br />

to generate <strong>and</strong> analyse information in response to the food crisis (day 1).<br />

- <strong>Assessment</strong>s triggered by the food price crisis <strong>and</strong> based mainly on primary data collection<br />

<strong>and</strong> analysis(day 2).<br />

4.1 Issues <strong>and</strong> recommendations around the use of secondary data analysis <strong>and</strong> monitoring systems (Day 1)<br />

The group discussions were based on the following presentations:<br />

o FAO <strong>Price</strong> impact analyses using household income <strong>and</strong> expenditure surveys, <strong>and</strong> the Rural Income<br />

Generating Activities (RIGA) datasets<br />

o FAO Cross-Country <strong>Analysis</strong> of the Effects of Soaring <strong>Food</strong> <strong>Price</strong>s on Undernourishment<br />

o <strong>WFP</strong> <strong>Food</strong> Security Systems in Afghanistan, Haiti, Niger<br />

o <strong>WFP</strong> Community <strong>and</strong> Household Surveillance (CHS) in Southern Africa / Potential applications for<br />

monitoring prices at country level, <strong>and</strong><br />

o Points presented by Fewsnet on price monitoring <strong>and</strong> household food security.<br />

Through working group discussions around these presentations the following 19 issues were identifed<br />

(here grouped under 5 headings).<br />

Collaboration / partnerships / linkages between assessment exercises<br />

- There is a proliferation of information available, often available on different websites. At the<br />

same time, datasets are often difficult to access or obtain.<br />

- Available data should be used more.<br />

- There is a lack or inadequate linkage between the national sample surveys (HIES/ LSMS,<br />

MICS, DHS, census, CPI, CVSVAs).<br />

- <strong>Food</strong> security question modules are missing in national sample surveys.<br />

- Coordination / partnerships need to be strengthened.<br />

- Partners should join their analyses <strong>and</strong> develop a more comprehensive underst<strong>and</strong>ing of the<br />

situation.<br />

- Better linkages are needed between secondary data analysis <strong>and</strong> process of primary data<br />

collection.<br />

- The integration across information systems <strong>and</strong> linkages between early warning <strong>and</strong><br />

monitoring systems, vulnerability <strong>and</strong> need assessments should be strengthened.<br />

Indicators, analysis <strong>and</strong> reporting<br />

- Information on food security would be needed to identify useful proxy indicators for rapid /<br />

emergency assessment (calibration / validation).<br />

- Supply <strong>and</strong> Dem<strong>and</strong> <strong>Analysis</strong> should be used to develop context specific indicators.<br />

- There is a need to validate models for assessing the consequences of changes in food prices<br />

on households; more analytical tools are needed to link high food prices <strong>and</strong> households.<br />

- <strong>Analysis</strong> available doesn’t always answer the question of who <strong>and</strong> where the people affected<br />

are?<br />

- A better balance between quantitative <strong>and</strong> qualitative information is necessary.<br />

- Reports provide a breadth of data <strong>and</strong> observations, but need to report more on the<br />

“meaning”.<br />

<strong>Food</strong> Security Monitoring Systems<br />

- The ability of existing food security information systems to timely detect <strong>and</strong> analyse the<br />

impact of shocks such as price increases should be strengthened.<br />

6


- <strong>Food</strong> security monitoring systems should look beyond food security indicators.<br />

- The regularity of monitoring is limited <strong>and</strong> systems within one country often incompatible.<br />

Urban assessments<br />

- Appropriate tools for urban analysis are missing, <strong>and</strong> data on urban situations is limited.<br />

- There may be a rural bias in primary data collection for urban areas.<br />

The group merged some of these issues, <strong>and</strong> in doing so created four key issues that they felt needed to be addressed.<br />

Four working groups were established, each one covering a specific key issue. Each group had to establish<br />

what the current situation is <strong>and</strong> make recommendations to improve the situation.<br />

Key issue#1: Distinguising between urban <strong>and</strong> rural situations<br />

The current situation: Urban vulnerability is still very unknown. There is an acknowledgment that it is<br />

different from rural vulnerability. Urban vulnerability is more difficult to apprehend because the<br />

environment is much more heterogenous <strong>and</strong> specific livelihoods are not specifically understood. There is<br />

a lot of data on markets <strong>and</strong> prices available, however it is not always understood clearly. In an urban<br />

environment the difference between poor <strong>and</strong> food insecure is often a fine line. There is a lack of<br />

partners <strong>and</strong> entry points to help underst<strong>and</strong> vulnerability in urban areas <strong>and</strong> implement interventions.<br />

Recommendations:<br />

1) The situation analysis, the indicators to be monitored <strong>and</strong> the programme planning need to be<br />

strengthened for urban assessments.<br />

2) The analysis of price data needs to be improved.<br />

3) There is a need to start building up networks <strong>and</strong> explore potential partners, in particular churches,<br />

<strong>and</strong> social groups.<br />

4) Programmes need to include a strategy to build government capacity <strong>and</strong> phase out.<br />

5) Complementary strategies are needed to avoid creating more disparities between urban groups.<br />

Questions raised <strong>and</strong> points made:<br />

• It is assumed that there is more heterogeneity in urban areas than in rural ones: is it really the case?<br />

• It is sometimes difficult to define urban areas.<br />

• There is a need to better underst<strong>and</strong> the dynamics of secondary markets.<br />

Key issue #2: Establishing a minimum set of indicators to assess the impact of high food prices<br />

Situation: Establishing a minimum set of indicators is difficult <strong>and</strong> remains a key challenge. Two working groups<br />

discussed this issue:<br />

On day 2, the group considered the minimum set of indicators required to assess the impact of high food prices. This<br />

group suggested two possible indicators for early warning, namely dietary diversity <strong>and</strong> coping<br />

strategies. The group did not recommend that this should be the maximum number of indicators. For<br />

instance, the group discussion indicated that it is also important to track data on prices <strong>and</strong> food<br />

expenditures. Less than the number of indicators in itself, the group felt that the ease of the data<br />

collection <strong>and</strong> relevance for decision-making is more important.<br />

On day 3, a group addressed the issue of information required in order to determine (<strong>and</strong> potentially plan)<br />

adequate programmatic responses. The group proposed a long list of indicators required for action. While<br />

recommending that it was important to achieve response analysis, the group advised that clarity about the<br />

assessment objectives should preceed the identification of a list of relevant indicators to meet the needs.<br />

Plenary discussions suggested that the difficulties in identifying a minimum information set could have<br />

been the result of the following factors:<br />

• The wide variety of uses for which information is required: from forecasting, through situation<br />

analysis, to targeting <strong>and</strong> response analysis. Minimum information sets would be different in each<br />

case.<br />

7


• Extreme variety in the availability of information from one context to another.<br />

• The inevitable difficulty in reconciling the approaches of the different disciplines that need to<br />

collaborate to fully underst<strong>and</strong> the impact of the current economic situation: economics; nutrition;<br />

sociology; anthropology, etc.<br />

• The complexity <strong>and</strong> scope of the situation, <strong>and</strong> so of information required to fully underst<strong>and</strong> the<br />

current problem (<strong>and</strong> opportunities). In the current context, participants identified greatly enhanced<br />

requirements for information on, inter alia: types of food consumed; non-food expenditures; regional /<br />

cross border food flows <strong>and</strong> trade; Differences in urban/rural livelihoods <strong>and</strong> food prices <strong>and</strong><br />

relationships between urban <strong>and</strong> rural markets. While many of the analyses which were presented at<br />

the workshop were addressing some of these areas, very few could look at them all.<br />

Recommendations:<br />

1) A tiered approach is necessary with: i) an early warning mechanism, based on a small number of indicators that<br />

enable monitoring household food security, ii) rapid assessments, <strong>and</strong> more in-depth analyses when time <strong>and</strong><br />

resource permit.<br />

2) Identify <strong>and</strong> agree on a small number of key indicators for use in an early warning system.<br />

Key Issue #3: Analytical methods: how to establish the link between prices <strong>and</strong> households?<br />

Situation: Different methods exist <strong>and</strong> have different implications. Hypothesis for the global analysis <strong>and</strong><br />

estimates conducted are often not clear <strong>and</strong> need to be tested. At country level, several methods are used<br />

such as the FAO modelling <strong>and</strong> simulation, the food security monitoring tools <strong>and</strong> other methods such as<br />

primary data analysis tools. Often the impact of higher food prices is not necessarily measurable.<br />

Recommendations:<br />

1) Global risk or vulnerability analysis needs to be validated <strong>and</strong> should be informed by country level<br />

analysis.<br />

2) Country level methods need validation to verify the modelled impacts;<br />

3) Outcome indicators (such as nutrition <strong>and</strong> dietary diversity <strong>and</strong> frequency) should be looked at for<br />

validation;<br />

4) There is a need to better use qualitative information to underst<strong>and</strong> the likely impacts of the food price<br />

increases.<br />

Questions raised <strong>and</strong> points made: The hypotheses are not yet validated. There is a need to further<br />

elaborate <strong>and</strong> test them. It was noted that it is difficult to build up a conceptual framework to assess the<br />

impact of high food prices, as this phenomena is difficult to isolate from other causes of food insecurity.<br />

This is particularly difficult in urban areas.<br />

Key issue #4: Compatibility <strong>and</strong> integration of secondary data<br />

Situation: there is a proliferation of information available. However the challenge is the discrepancy of<br />

data sets at national levels. Data is rarely compatible <strong>and</strong> comparable. It is often a challenge to establish<br />

links between all surveys <strong>and</strong> analysis done. The willingness to share data is often missing. This is an<br />

institutional problem.<br />

Recommendations:<br />

1) National sampling frameworks need to be developed.<br />

2) Partners should coordinate the timing of assessments to facilitate comparisons.<br />

3) Publications <strong>and</strong> reports should clearly document the process, the methology <strong>and</strong> constraints.<br />

4) Previous surveys should be updated <strong>and</strong> modified when administrative boundaries change to facilitate<br />

comparison over time.<br />

5) Partners should seek to collect data together.<br />

6) Data sharing between organisations should be encouraged.<br />

8


4.2 Issues <strong>and</strong> reccommendations around assessments based on primary data analysis (Day 2)<br />

Inputs - the presentations<br />

The following presentations, attached in annex 4, were made:<br />

o Initiative on Soaring <strong>Food</strong> <strong>Price</strong>s, Inter-agency project identification missions<br />

o Nepal urban <strong>and</strong> rural case study<br />

o Liberia urban case study<br />

o Ug<strong>and</strong>a case study<br />

o Pakistan case study<br />

Outputs - the issues<br />

Through discussions after the presentations, the following 8 issues emerged:<br />

- How to best model future outlooks?<br />

- How to estimate caseloads?<br />

- What is the best way to target identified caseloads?<br />

- What are the programming implications from assessments?<br />

Are new responses coming from assessments?<br />

Are assessments giving the information required?<br />

- How should we separate price effects from other shocks?<br />

- Multi-agency partnerships: who to include, how to make it work?<br />

- How to capture cross border trade issues?<br />

- Capturing national price variations.<br />

The group decided to concentrate on five of these as key issues.<br />

Outputs – key issues <strong>and</strong> recommendations<br />

Key issue #5: How do we best model future outlook?<br />

Situation: the group looked at the assessment conducted in Pakistan. In this specific case, the assessment<br />

team built senarios for the next 6 to 12 months, using the current data as the projection basis.<br />

Recommendations:<br />

1) There is a need for continuous ground thruthing (using MUAC, dietary intake) <strong>and</strong> reajustment of the<br />

models’ parameters.<br />

2) The assessment team should not only focus on diet diversity <strong>and</strong> food consumption, but should look<br />

at other sectors, such as education (school’s attendance rate), health, etc.<br />

3) Exclusion errors should be explored.<br />

4) Team should work with scenario building when modeling.<br />

5) The following indicators should be watched: inflation, incomes, nutrition, labour markets, livelihoods<br />

groups <strong>and</strong> expenditure, availability of food supplies <strong>and</strong> access to food.<br />

Questions raised or points made: Donors have been asking for a better <strong>and</strong> continuing adjustment of<br />

programmes for years. However some participants mentioned the fact that donors are sometimes not<br />

comfortable with estimates <strong>and</strong> changes of number of beneficiaries.<br />

Key issue #6: What is the best way to target in urban settings?<br />

Situation: the group discussed how urban targeting was done in the <strong>WFP</strong> assessment in Ethiopia. A<br />

multi-tiered approach was used: i) mapping out existing programmes, ii) using the survey to measure the<br />

problems, iii) using focus groups. These sources were then used to identify the vulnerable groups.<br />

Inclusion <strong>and</strong> exclusion errors were established. It was decided then to scale up existing programmes,<br />

target traditional vulnerable groups, <strong>and</strong> target newly affected groups (which are not amongst the<br />

traditionally affected). Targeting criteria vary according to programmes.<br />

9


Recommendations:<br />

1) Use institutional <strong>and</strong> self targeting.<br />

2) There is a need to look at the targeting of existing programmes <strong>and</strong> who benefits from what already.<br />

3) Caution is needed to avoid attracting rural populations into cities.<br />

4) There is a need to use both formal <strong>and</strong> informal sources.<br />

Key issue #7: How should the price increase be separated from other shocks in assessments?<br />

Situation: It is a challenge to attribute causality specifically to the price increase. The quantification of<br />

the impact is often impossible. Rapid assessments can only give a general sense of the situation. However<br />

it is important to underst<strong>and</strong> the impacts of higher prices to formulate the responses. It is important to<br />

have some information on the initial situation <strong>and</strong> the percentage of insecure food <strong>and</strong> work on the basis<br />

of scenarios.<br />

Recommendations:<br />

1) It is important to use contextual information, in particular i) qualitative <strong>and</strong> descriptive information<br />

<strong>and</strong> ii) information on macro-economy, trade <strong>and</strong> policy measures.<br />

2) For comprehensive <strong>and</strong> in-depth surveys, the sample size should be big enough to allow for<br />

multivaritae analysis (detailed expenditure models, food consumption, shock, coping strategies,<br />

nutrition data <strong>and</strong> changes in income <strong>and</strong> sources of food).<br />

Question raised: the complexity of comprehensive surveys, time <strong>and</strong> resource requirements were raised<br />

as a challenge for timely mitigation responses.<br />

Key issue #8: Recommending responses as a result of assessments<br />

Situation: The group looked at the Nepal assessments <strong>and</strong> concluded that the recommendations were<br />

broad <strong>and</strong> mainly at macro-level.<br />

Recommendations: generally there is a need for more detailed information for decision-making <strong>and</strong><br />

operational roll out (area specific)<br />

1) There is a need to conduct proper <strong>and</strong> detailed response analysis.<br />

2) More information on existing institutional (UN agencies, NGOs, Governments) capacity is needed.<br />

3) It is important to include information on partners’ ongoing or planned interventions.<br />

Question raised: the question of how many functions an assessment needs to fulfill <strong>and</strong> the question of<br />

whether a <strong>Price</strong> <strong>Impact</strong> assessment should, in addition to the analysis of the situation, also provide a full<br />

range of information on responses <strong>and</strong> capacity to implement interventions were raised.<br />

Key issue # 9: Multi-agency partnerships: who to include, how to make it work?<br />

Situation: A comprehensive framework for action (CFA) exists. However it covers the macro / global<br />

levels <strong>and</strong> now needs to go into country specifics. The CFA needs to cover the short term, medium term<br />

<strong>and</strong> long term solutions <strong>and</strong> the approach of various agencies. The CFA is about providing information to<br />

allow for the wider underst<strong>and</strong>ing, it is a stock taking exercise, that won’t replace the assessments that<br />

each agency needs to carry. Participation is not inclusive enough <strong>and</strong> the private sector, new ministry<br />

players, farmers associations, regional organisations are not necessarily participating.<br />

Recommendations:<br />

1) Additional Governmental focal points responsible for economic crisis are needed.<br />

2) The link between Governments <strong>and</strong> the international humanitarian community (not UN specific or<br />

NGO specific) needs to be strengthened.<br />

3) There is a need to map out existing monitoring.<br />

4) There is a need to build the ownership of the CFA (design, process <strong>and</strong> outcomes).<br />

5) The FS working groups should be used <strong>and</strong> their inclusion reviewed (farmers organisations, nutrition<br />

groups, etc).<br />

6) The <strong>Food</strong> security group should organise regular briefing for decision-makers.<br />

10


7) An “objective” partner should organise <strong>and</strong> communicate outcomes <strong>and</strong> underst<strong>and</strong>ing.<br />

8) One coordinator should be appointed for all international agencies, with the responsibility to<br />

coordinate also with non international community partners, <strong>and</strong> regional entities.<br />

9) There is a need for more transparency <strong>and</strong> information sharing.<br />

Point made: The issue of setting up a coordination mechanism was disucssed but participants raised<br />

concern about having a ‘central comm<strong>and</strong>’ type of mechanism. Instead, it was suggested that partnership<br />

can be envisaged in areas in which partners can work together, acknowledging the fact that there are areas<br />

where agreement to disagree without being disagreable do exist.<br />

5 Recommendations –What Needs to be Followed Up?<br />

The participants prioritized the recommendations as discussed <strong>and</strong> presented by the working groups.<br />

The most important <strong>and</strong> urgent recommendations are the following:<br />

Strengthen analytical tools<br />

o Modelling future outlook: food security analysis needs to provide for an outlook of the situation.<br />

- Scenarios should be built on the basis of a model.<br />

- The model should be readjusted on the basis of ground-truthing, through monitoring systems <strong>and</strong><br />

assessments.<br />

- Indicators to watch are: inflation, income, nutrition, labour market, livelihood groups, expenditure, food<br />

availability <strong>and</strong> access to food.<br />

o<br />

Separation of the price effect from other shocks: use contextual information in particular qualitative <strong>and</strong><br />

descriptive information <strong>and</strong> information on macro-economy, trade <strong>and</strong> policy.<br />

Minimum set of indicators: Further work is needed to develop a core <strong>and</strong> minimum set of indicators.<br />

o A tiered approach is necessary with: i) an early warning mechanism, based on a small number of indicators<br />

that enable monitoring household food security, ii) rapid assessments, <strong>and</strong> more in-depth analyses when time<br />

<strong>and</strong> resource permit.<br />

o There is a need to look at other sectors, in particular health <strong>and</strong> education.<br />

Information sharing <strong>and</strong> multi-agency partnerships<br />

o Organisations <strong>and</strong> institutions need to be more transparent <strong>and</strong> share information.<br />

o The food security groups should regularly brief key decision makers.<br />

o The link between Governments <strong>and</strong> the international humanitarian community (not UN specific<br />

or NGO specific) needs to be strengthened.<br />

o An “objective” partner should organise <strong>and</strong> communicate outcomes.<br />

Urban analysis<br />

o <strong>Assessment</strong>s should explore urban-rural linkages.<br />

o Urban assessments have to include a situation analysis, indicators to monitor <strong>and</strong> programming responses<br />

(including targeting <strong>and</strong> numbers of people affected).<br />

o There is a need to rationalise urban programmes currently implemented.<br />

o Programme design should include a h<strong>and</strong>over strategy upfront <strong>and</strong> complementary strategies to avoid<br />

imbalances.<br />

o Existing networks <strong>and</strong> potential partnerships in urban settings need to be explored.<br />

Improve linkages <strong>and</strong> integration of existing data<br />

o Timing of assessments should be better coordinated to facilitate comparison.<br />

o Partners should seek to collect information jointly to ensure compatibility <strong>and</strong> integration of data sets.<br />

o National sampling frames should be set up.<br />

o There is a need to increase the willingness to share data <strong>and</strong> analysis.<br />

o Older surveys should be updated with new administrative boundaries information.<br />

11


o<br />

Reports <strong>and</strong> data available need to be made widely available, methods <strong>and</strong> constraints should be clearly<br />

documented.<br />

Response analysis<br />

o It needs to be more detailed <strong>and</strong> inform the operational roll out. It should include information on other<br />

actors’ interventions <strong>and</strong> on institutional capacity.<br />

Targeting<br />

o A multi tiered approach is recommended looking at people already targeted through existing programmes, the<br />

traditionally vulnerable <strong>and</strong> the newly affected.<br />

The important but less urgent recommendations are:<br />

Strengthen analytical tools<br />

o Linking prices to households:<br />

- Global risk or vulnerability analysis needs to be validated <strong>and</strong> should be learned by country level analysis.<br />

- Country level methods need validation to verify the modelled impacts.<br />

- Outcome indicators should be looked at for validation.<br />

- There is a need to better use qualitative information to underst<strong>and</strong> the likely impacts.<br />

o Separation of the price effect from other shocks: The sample should be big enough to allow multivariate<br />

analysis ( expenditure, nutrition, food consumption, shock, coping strategies, changing income)<br />

o Modelling future outlook<br />

- Exclusion errors should be explored.<br />

Design <strong>and</strong> implementation of responses<br />

o Targeting in urban environment:<br />

- Inclusion / exclusion criteria should be used.<br />

- Look at traditional vulnerable groups.<br />

- Self targeting / institutional targeting should be used.<br />

- Both formal <strong>and</strong> informal information sources can be used.<br />

- Caution should apply to avoid attracting rural populations to cities.<br />

Information sharing <strong>and</strong> multi-agency partnerships<br />

o The comprehensive framework for action needs to be rolled out to the field.<br />

Appointing a coordinator for all international agencies was considered a less urgent <strong>and</strong> less important<br />

recommendation.<br />

6 Planned Activities <strong>and</strong> Implementation of Recommendations<br />

Each agency or organisation briefly presented its ongoing or planned activities <strong>and</strong> explained where they could<br />

undertake to implement or address some of the recommendations.<br />

OCHA<br />

Under the leadership of the UN Secretary General, the Comprehensive Framework for Action (CFA) has been<br />

adopted by all UN organisations <strong>and</strong> Bretton Woods’s institutions. OCHA provides support to the process <strong>and</strong> will<br />

work with Country teams to take stocks of what is happening in terms of assessments, analysis <strong>and</strong> programming.<br />

OCHA will continue its advocacy work with countries <strong>and</strong> regional organisations. OCHA will:<br />

- Support partnerships at country level.<br />

- Work on exp<strong>and</strong>ing the country team beyond strictly a UN membership.<br />

- Work on linking beyond humanitarian issues to development issues.<br />

- Work on linking food <strong>and</strong> non food sectors, <strong>and</strong> indicators in particular.<br />

CILSS<br />

In the coming months, CILLS will provide technical support to its member countries. Support will aim towards:<br />

- Timely publication of information, in particular of the results of a survey in Banjul <strong>and</strong> Ouagadougou<br />

12


- Widening the focus on urban areas<br />

- Assisting countries to adapt their agricultural policy, <strong>and</strong> agricultural investments policy.<br />

European Commission<br />

- The European executive has recently published a Communication on Soaring <strong>Food</strong> <strong>Price</strong>s, which is largely<br />

converging with the UN Common Framework for Action. The Communication covers the short term<br />

emergency responses (food aid <strong>and</strong> help for agricultural regions) <strong>and</strong> the medium term interventions<br />

(boosting agricultural productivity <strong>and</strong> safety nets).<br />

- Possible funding for development interventions is being discussed with the Development Directorate General<br />

<strong>and</strong> partners.<br />

- Joint Research Centre: Results of the Ethiopia cereal availability study will be presented at a workshop with<br />

IFPRI in September. The model used, which is 15 years old, will also be adjusted.<br />

Government of Mozambique<br />

- The next round of the <strong>Food</strong> Security Monitoring System, done with <strong>WFP</strong> will take place in October. It<br />

monitors 25 markets covering prices, transport costs, <strong>and</strong> products flows.<br />

- A market survey is planned for October to exp<strong>and</strong> beyond the 25 markets already monitored.<br />

- A household survey (with income <strong>and</strong> expenditure indicators) will take place this year.<br />

Government of Lesotho<br />

- Monthly monitoring of vulnerability <strong>and</strong> prices takes place.<br />

- Training on the IPC is taking place in August. Scenarios will be built in August.<br />

- An urban vulnerability survey is planned, the tools are being developed.<br />

- Community <strong>and</strong> Households Surveillance <strong>and</strong> nutritional surveillance systems are in place.<br />

Save the Children (SC-UK)<br />

- An urban assessment was recently conducted with <strong>WFP</strong> in Burkina Faso; it is likely that a voucher<br />

programme will be implemented as a response to the situation.<br />

- On the IPC, Save will help better link situation <strong>and</strong> response analysis.<br />

- Scenario modelling is being done for the last 15 years though the Household Economy Approach.<br />

- Save will build a hunger safety net with Care <strong>and</strong> Oxfam in Northern Kenya.<br />

ACF<br />

- A number of assessments are ongoing (Haiti, Liberia, Central African Rep, Chad, Nepal)<br />

- ACF is developing guidance on urban assessments, which are now being tested in Burkina Faso.<br />

FAO<br />

- In the framework of the Initiative on Soaring <strong>Food</strong> prices, about 10 missions to identify a plan for response<br />

are taking place.<br />

- The IPC east Africa Group is using the IPC to analyse the impact of high food prices.<br />

- FAO will make additional efforts to model the impact of high food prices.<br />

- In Sudan, Somalia <strong>and</strong> Bangladesh, teams are conducting <strong>Impact</strong> assessments.<br />

<strong>WFP</strong><br />

- <strong>WFP</strong> conducted or is conducting assessments (including through CFSVAs <strong>and</strong> FSMS) in about 20 countries.<br />

Upcoming are primary data collection exercises in Madagascar, Cote d’Ivoire, Cameroon, Central African<br />

Republic, Lesotho, Senegal, Haiti, Benin <strong>and</strong> Malawi. CFSVA, which will include HFP impact are planned in<br />

Zambia, Burundi (urban), DRC (urban) <strong>and</strong> Swazil<strong>and</strong> (urban). <strong>WFP</strong> propose to implement<br />

recommendations made on urban targeting.<br />

- Urban assessment guidelines have been developed <strong>and</strong> will be further refined. The Technical Guidance Sheet<br />

(TGS) on Urban <strong>Assessment</strong>s is posted on <strong>WFP</strong> website at:<br />

http://documents.wfp.org/stellent/groups/public/documents/ena/wfp185842.pdf<br />

- Urban programming tools are being developed. <strong>WFP</strong> will share them.<br />

- Existing monitoring systems will be strengthened to make them more price sensitive (Afghanistan, Niger,<br />

Ug<strong>and</strong>a, Opt, Sudan, Southern Africa, Nepal, Burundi, Liberia <strong>and</strong> Haiti).<br />

- <strong>WFP</strong> will add future outlook in its analysis.<br />

13


- <strong>WFP</strong> will further share information, in particular the tools it developed for price impact assessment. It was<br />

initially shared with FAO.<br />

- All ongoing or planned assessments are done in partnership.<br />

OXFAM<br />

- The emergency market analysis tools are being finalised <strong>and</strong> piloted in Myanmar.<br />

- Oxfam will make a clear distinction between situation <strong>and</strong> response analysis<br />

- A series of assessments is planned: Afghanistan (mainly rural), build on the <strong>WFP</strong> Nepal assessment, Ug<strong>and</strong>a<br />

(Karamoja) <strong>and</strong> Kenya.<br />

FEWSNET / USAID<br />

- FEWSNET is monitoring the situation through the publication of a price watch bulletin.<br />

- Two market monitoring trainings will take place (Mauritania <strong>and</strong> Nigeria)<br />

- Additional market guidance is being prepared.<br />

- A scenario building workshop will take place in South Africa. A guidance note will be developed.<br />

<strong>Food</strong> for Peace (FFP/USAID)<br />

- A set of guidance on urban programming (food aid) is being prepared.<br />

- Financial support is being provided for assessments <strong>and</strong> country planning process.<br />

ALNAP<br />

- Lessons paper for relief managers <strong>and</strong> planners facing rising food prices being prepared (September 2008).<br />

- Lessons paper on urban disasters being prepared (November 2008).<br />

- ODI HPG meeting bringing together researchers, practitioners <strong>and</strong> policy makers in preparation for<br />

September or October (tbc).<br />

CARE<br />

- Second version of the Decision Tree Framework for response analysis to be rolled-out (December 2008).<br />

- Collaborating with Cornell University on food security research.<br />

- Working with Fintrac on a new approach to USAID Bellmon Determinations.<br />

- Revising tools for response analysis to better assess the needs of pastoral communities.<br />

Ongoing activities <strong>and</strong> implementation of recommendations per theme<br />

Urban analysis /<br />

urban programming<br />

Operational rollout/response<br />

Modelling future<br />

outlook<br />

<strong>WFP</strong> - Analyses ongoing or planned in Ethiopia, DRC, Swazil<strong>and</strong>, Burundi, Haiti, Senegal<br />

- Developing <strong>and</strong> refining urban assessments guidance <strong>and</strong> generic tools for price<br />

impact assessments.<br />

SC-UK - Implementing a voucher based programmes for response in Burkina Faso<br />

FFP - Developing guidance on urban programming<br />

ALNAP/APG - Urbanization & disasters. With urbanization experts<br />

CILSS – will increase focus on urban areas<br />

ACF - testing guidance on urban assessments in Burkina Faso.<br />

Lesotho Govt. – planning urban vulnerability survey, tools being developed.<br />

SC-UK – Implementing hunger safety net with Care <strong>and</strong> Oxfam in Northern Kenya.<br />

CILSS – Providing technical support on policy<br />

CARE – Developing a decision tree for response<br />

ALNAP – Preparing lessons for operational managers<br />

ACF – Learning from assessments<br />

FAO – 10 identification missions to develop plan for joint responses<br />

OXFAM – Separating situation <strong>and</strong> response analysis<br />

SC-UK – Scenario modelling through the Household Economy Approach<br />

FEWS - Scenario building workshop, guidance to be developed<br />

FAO - project analysis – 10 countries + <strong>WFP</strong><br />

<strong>WFP</strong> – Will include future outlook in its analyses,<br />

Govt. Lesotho - Scenario building (August)<br />

14


Analytical tools<br />

Minimum indicators<br />

Information sharing /<br />

partnerships<br />

OXFAM - MHM analysis<br />

- Piloting Emergency market tools in Myanmar<br />

Fewsnet - Developing additional guidance on markets<br />

CARE - Developing tools to better underst<strong>and</strong> pastoralists/agro pastoralists<br />

JRC - Adjusting model further to the cereal availability survey in Ethiopia<br />

FAO - Continuing work to model the impact of HFP<br />

<strong>WFP</strong> – Strengthening existing FSMS to make them more sensitive to prices<br />

OCHA/CFA - Linking food & non-food indicators<br />

CILSS - Timely publication of survey results<br />

ODI/ALNAP - 2-day conference in the autumn<br />

<strong>WFP</strong> – will share data, reports, guidance <strong>and</strong> tools<br />

OCHA (CFA) - Providing support to partnership at country level, <strong>and</strong> will work on<br />

exp<strong>and</strong>ing UNCTs<br />

7 Next Steps<br />

The next steps are for:<br />

- Organisations to implement these recommendations in their individual programmes.<br />

- Organisations to look for areas where they can work in bilateral / multilateral partnerships to<br />

implement recommendations.<br />

Discussions took place on how to carry the work forward <strong>and</strong> ensure that organisations can learn from<br />

each others on the implementation of the recommendations, progress made <strong>and</strong> progress on<br />

methodologies <strong>and</strong> processes.<br />

A small committee composed of SCUK, OXFAM, OCHA, ANLP, FAO <strong>and</strong> <strong>WFP</strong> was set up to start<br />

discussions to identify an approach by which lessons learnt can be shared. The following tasks have been<br />

suggested:<br />

• Identify <strong>and</strong> set up groups by thematic areas.<br />

• Prepare Terms of Reference for the convenor on each thematic area.<br />

• Terms of reference to include:<br />

- Identification if networks already exist for each thematic area<br />

- Identification of members<br />

- Identification of relevant technological support to share information if needed (but<br />

note that the groups should not be ‘tool driven’)<br />

- Consideration of what might motivate people to contribute to, <strong>and</strong> use, groups.<br />

<strong>WFP</strong> agreed to act as the ‘convenor of last resort’ if no other agency stepped forward.<br />

The committee met in the week following the workshop. The NFR of the first conference call is attached in<br />

annex 4.<br />

15


Annex 1: Workshop Agenda<br />

Facilitator: Paul Clarke<br />

Rapporteur: Caroline Chaumont<br />

Day Sessions Topics Lead /<br />

Presenter<br />

Objectives<br />

Day 0: Monday 28/07/08: Arrival of External Participants<br />

Outcomes<br />

Session 1 Introduction, Setting the Stage,<br />

Secondary Data <strong>and</strong> Monitoring<br />

Systems<br />

Session 1.1 08:30 – 09:30 • Welcome remarks<br />

• Relevance of the meeting for<br />

programming<br />

• Objectives, Expected Outputs,<br />

Agenda review,<br />

Session 1.2 09:30 – 10:00 Overview of global trends <strong>and</strong><br />

programming responses<br />

Day 1: Tuesday 29/07/08<br />

• V. Guarnieri<br />

• J. Luma<br />

Seek agreement <strong>and</strong> common<br />

underst<strong>and</strong>ing on the expected<br />

outputs of the meeting<br />

‣ Complementarities with primary data<br />

‣ Challenges<br />

‣ Gaps<br />

‣ Use for programming<br />

Clarity on scope, utility <strong>and</strong> process of the<br />

meeting<br />

H-J. Brinkman Setting the stage • Overview of global price patterns<br />

• Why is country-based analysis needed<br />

• Possible programming responses <strong>and</strong><br />

information required<br />

All Possible programming response options<br />

<strong>and</strong> required information identified<br />

Session 1.3 10:00 – 10:45 Plenary session on programming<br />

responses <strong>and</strong> information needs<br />

10:45 – 11:00 Coffee/Tea Break<br />

Session 1.4 11:00 – 11:30 Secondary Data <strong>Analysis</strong><br />

B. Davis/L. Alinovi <strong>Price</strong> impact analyses using household Key findings, challenges, gaps <strong>and</strong> use for<br />

(HIES/LSMS)<br />

income <strong>and</strong> expenditure surveys programming<br />

Session 1.5 11:30 – 12:00 FSMS (Niger, Haiti, Afghanistan, L. Subran/ E. Monitoring of household food security Key findings, Challenges <strong>and</strong> Gaps in<br />

Nepal, Burundi) <strong>and</strong> CHS in Kenefick<br />

indicators<br />

informing impacts of prices on households’<br />

Southern Africa<br />

food security<br />

Session 1.6 12:00 – 12:15 <strong>Price</strong> monitoring <strong>and</strong> household P. Bonnard Monitoring prices <strong>and</strong> food security Suggested information requirements<br />

food security<br />

Session 1.7 12:15 – 13:15 Round table discussions All Key emerging issues Identification of common key<br />

themes/issues <strong>and</strong> presented in plenary<br />

13:15 – 14:30 Lunch Break<br />

Session 1.8 14:30 – 16:00 Working group sessions All Emerging common themes addressed<br />

in working groups<br />

Suggested working groups (WG):<br />

• Minimum set of information needed<br />

for the variety of programming<br />

16


16:00 – 16:20 Coffee Break<br />

Session 1.9 16:20 – 17:20 Plenary: feedback from working<br />

groups (10’ each)<br />

18:00 – 19:00 Welcome Cocktail All<br />

responses (food <strong>and</strong> non-food in<br />

short, medium <strong>and</strong> long-terms)<br />

• Minimum set of monitoring<br />

information<br />

• Optimizing the use of secondary data<br />

<strong>and</strong> ground truthing to meet info<br />

needs<br />

Other groups, to be added depending on<br />

themes<br />

All Main recommendations presented<br />

Session 2 Stock-taking of country<br />

assessments<br />

Day 2: Wednesday 30/07/08<br />

Session 2.1 09:00 – 09:30 Agenda review Facilitator Wrap-up of WG feedback, agenda of<br />

day 2, miscellaneous <strong>and</strong> pending<br />

issues<br />

Session 2.2 09:30 – 09:45 ISFP programme identification<br />

assessments<br />

Session 2.3 09:45 – 10:00 Nepal Urban/Rural Case Study S. Hollema Draw lessons from primary data<br />

collection <strong>and</strong> analysis<br />

Session 2.4 10:00 – 10:15 Liberia Urban Case Study C. AhPoe Draw lessons from primary data<br />

‣ Achievements<br />

‣ Challenges<br />

‣ Gaps<br />

‣ Use for programming<br />

C. Amaral/G. Diriba ISFP joint assessment missions UN Inter-Agency programme<br />

reconnaissance missions<br />

Key findings, challenges, gaps <strong>and</strong> use for<br />

programming<br />

Key findings, challenges, gaps <strong>and</strong> use for<br />

collection <strong>and</strong> analysis<br />

programming<br />

Session 2.5 10:15 – 10:30 Ug<strong>and</strong>a Case Study T. Benson/D. Ground-truthing of secondary data Key findings, challenges, gaps <strong>and</strong> use for<br />

Bhattacharyya analysis findings<br />

programming<br />

10:30 – 10:45 Coffee/Tea Break<br />

Session 2.6 10:45 – 11:00 Pakistan Case Study W. Herbinger/L. Ground-truthing of secondary data Key findings, challenges, gaps <strong>and</strong> use for<br />

Balbi, C. Feng analysis findings<br />

programming<br />

Session 2.7 11:00 – 12:00 Panel discussion on presentations All<br />

Session 2.8 12:00 – 13:00 Round table discussions All Key emerging issues Identification of common key<br />

themes/issues from country assessments<br />

<strong>and</strong> presented in plenary<br />

13:00 – 14:30 Lunch Break<br />

Session 2.9 14:30 – 16:00 Working group sessions All Emerging common themes addressed<br />

in working groups<br />

Suggested working groups (WG):<br />

• Minimum set of information for<br />

country assessments<br />

17


16:00 – 16:15 Coffee Break<br />

Session 2.10 16:15 – 17:15 Plenary: feedback from Day 2<br />

working groups (10’ each)<br />

19:00- Group Diner (optional)<br />

• Refining information needs for<br />

programming responses (Rolling<br />

review)<br />

• Partnerships arrangements <strong>and</strong><br />

countries of focus for future<br />

assessments<br />

Other groups, to be added depending on<br />

themes<br />

All Main recommendations presented<br />

Day 3: Thursday 31/01/08<br />

Session 3 Way forward <strong>and</strong> Closing<br />

sessions<br />

Session 3.1 09:00 – 09:30 Agenda review Facilitator Wrap-up of WG feedback, agenda of<br />

day 2, miscellaneous <strong>and</strong> pending<br />

issues<br />

Session 3.2 09:30 – 10:30 Plenary: Action planning All Work out an action plan based on<br />

working groups’ recommendations<br />

10:30 – 10:45 Coffee/Tea<br />

Session 3.2 10:45 – 12:00 Plenary: Action planning All Continuation of action planning<br />

(Cont’d)<br />

Session 3.3 12:00 – 12:30 Main conclusions/achievements of Facilitator/Rapporteu Wrap-up<br />

Action plan based on main<br />

recommendations<br />

the meeting <strong>and</strong> outst<strong>and</strong>ing issues r<br />

Session 3.4 12:30 – 12:45 Way forward J. Luma How recommendations <strong>and</strong> pending<br />

issues will be h<strong>and</strong>led?<br />

Session 3.5 12:45 – 13:00 Concluding remarks V. Guarnieri<br />

13:00 – 14:30 Lunch Break/Closure Departure of participants<br />

Note: It is worth noting that this agenda was adjusted following discussions with participants.<br />

18


Annex 2: Participants List<br />

Name Organization Contact<br />

GOVERNMENT AND PARTNER ORGANIZATIONS' PARTICIPANTS<br />

Antonio Paulo Mozambique Govt. antmpaulo@yahoo.com<br />

Matseliso Mojaki DMA Lesotho Govt. mojakim@dma.gov.ls/dce@dma.gov.ls<br />

Hanna Mattinen Action contre la faim hmattinen@actioncontrelafaim.org<br />

Ben Ramalingam ALNAP B.Ramalingam@alnap.org<br />

Erin Coniker Lentz CARE/Cornel ecl4@cornell.edu<br />

Catherine Chazaly CLSS/IRD catherine.chazaly@cilss.bf<br />

Nanna Skau ECHO nanna.skau@ec.europa.eu<br />

Nick Maunder ECHO nick.maunder@ec.europa.eu<br />

Thierry Negre EC Thierry.Negre@ec.europa.eu<br />

Henri Josser<strong>and</strong> FAO/ESTG henri.josser<strong>and</strong>@fao.org<br />

Liliana Balbi/Feng Chang FAO/ESTG Liliana.Balbi@fao.org, cheng.fang@fao.org<br />

Luca Alinovi FAO/ESAF Luca.Alinovi@fao.org<br />

Benjamin Davis FAO/ESAE Benjamin.Davis@fao.org<br />

Alberto Zezza FAO alberto.zezza@fao.org<br />

Gustavo Anriquez FAO gustavo.anriquez@fao,org<br />

Jacques de Graaf FAO/ES jacques.degraaf@fao.org?<br />

Katia Covarrubias FAO/ES katia.covarrubias@fao.org<br />

Mtendere Mphatso FAO Sudan Mtendere.Mphatso@fao.org<br />

Patricia Bonnard FEWSNET pbonnard@fews.net<br />

Aimee Wielechowski OCHA wielechowski@un.org<br />

Camilla Knox Peebles OXFAM CKnox-Peebles@oxfam.org.uk<br />

Alex Rees Save the Children A.Rees@savethechildren.org.uk<br />

Gary Eilerts USAID GEilerts@usaid.gov<br />

Hope Sukin USAID HSukin@usaid..gov<br />

Michelle Snow (observer) USAID SnowMS@state.gov<br />

Paul Clarke Facilitator paulclarke.consulting@gmail.com<br />

<strong>WFP</strong> COUNTRY OFFICE AND REGIONAL BUREAU PARTICIPANTS<br />

Claudia AhPoe Liberia claudia.ahpoe@wfp.org<br />

Dipayan Bhattacharyya Ug<strong>and</strong>a dipayan.bhattacharyya@wfp.org<br />

Caterina Galluzzi <strong>WFP</strong>/OPT caterina.galluzi@wfp.org<br />

Wolfgang Herbinger Pakistan wolfgang.herbinger@wfp.org<br />

Siemon Hollema Nepal siemon.hollema@wfp.org<br />

Eric Kenefick <strong>WFP</strong>/OMJ eric.kenefick@wfp.org<br />

Naouar Labidi <strong>WFP</strong>/OMD naouar.labidi@wfp.org<br />

Hebert Lopez El Salvador hebert.lopez@wfp.org<br />

Daniel Molla Sudan daniel.molla@wfp.org<br />

Robinah Mulenga Swazil<strong>and</strong> robinah.mulenga@wfp.org<br />

Michael Sheinkman <strong>WFP</strong>/OMB michael.sheinkman@wfp.org<br />

Elliot Vhurumuku Ethiopia elliot.vhurumuku@wfp.org<br />

<strong>WFP</strong> HQ STAFF<br />

Henk-Jan Brinkman <strong>WFP</strong>/OEDP henk-jan.brinkman@wfp.org<br />

Ludovic Subran <strong>WFP</strong>/OEDP ludovic.subran@wfp.org<br />

Ugo Gentilini <strong>WFP</strong>/OEDP ugo.gentilini@wfp.org<br />

Vallerie Guarnieri <strong>WFP</strong>/OMX valerie.guarnieri@wfp.org<br />

19


Volli Carucci <strong>WFP</strong>/OMXD volli.carucci@wfp.org<br />

Guillaume Foliot/Kate Newton <strong>WFP</strong>/OMXD guillaume.foliot@wfp.org/kate.newton@wfp.org<br />

Tina van den Briel/Acharya Pushpa <strong>WFP</strong>/OMXD tina.v<strong>and</strong>enbriel@wfp.org/acharya.pushpa@wfp.org<br />

Ram Saravanamuttu <strong>WFP</strong>/OMXD ram.saravanamuttu@wfp.org<br />

Caroline Chaumont <strong>WFP</strong>/OMXF caroline.chaumont@wfp.org<br />

Agnes Dhur/Kathryn Ogden <strong>WFP</strong>/OMXF agnes.dhur@wfp.org, kathryn.ogden@wfp.org<br />

Arf Husain <strong>WFP</strong>/OMXF arif.husain@wfp.org<br />

Wanja Kaaria <strong>WFP</strong>/OMXF wanja.kaaria@wfp.org<br />

Getachew Diriba <strong>WFP</strong>/OMX getachew.diriba@wfp.org<br />

Joyce Luma <strong>WFP</strong>/OMXF joyce.luma@wfp.org<br />

Issa Sanogo <strong>WFP</strong>/OMXF issa.sanogo@wfp.org<br />

20


Annex 3: Workhop Evaluation Sheet<br />

Question Question/Issue Strongly agree Agree<br />

Neither agree nor<br />

disagree<br />

Disagree Strongly disagree No answer Total<br />

1 The Agenda was well planned 0.0 25.0 25.0 45.8 4.2 0.0 100<br />

2<br />

The Level of technical discussion was suitable<br />

for my background <strong>and</strong> experience<br />

11.1 74.1 3.7 11.1 0.0 0.0 100<br />

3 The meeting was well-paced 14.8 40.7 18.5 22.2 3.7 0.0 100<br />

4<br />

The presentations were informative <strong>and</strong> led to<br />

useful discussions<br />

33.3 63.0 3.7 0.0 0.0 0.0 100<br />

5<br />

Participants were encouraged to take an active<br />

part<br />

55.6 29.6 7.4 7.4 0.0 0.0 100<br />

6 The meeting met my individual expectations 0.0 25.9 44.4 25.9 3.7 0.0 100<br />

7 The meeting contributed to my own work 15.4 53.8 23.1 7.7 0.0 0.0 100<br />

8 The meeting achieved the desired outputs 0.0 18.5 40.7 33.3 7.4 0.0 100<br />

9 Facilitation team was excellent 22.2 40.7 22.2 11.1 3.7 0.0 100<br />

10 The meeting space was adequate 18.5 44.4 11.1 22.2 3.7 0.0 100<br />

11 Meals/refreshments were satisfactory 59.3 37.0 3.7 0.0 0.0 0.0 100<br />

12 The overall organization was efficient 25.9 63.0 3.7 7.4 0.0 0.0 100<br />

Correct Too short Too long No answer<br />

13 Was the meeting length? 76.9 15.4 0.0 0.0 0.0 7.7 100<br />

Just enough Too few Too many No answer<br />

14 Was the number of participants? 64.0 0.0 36.0 0.0 0.0 0.0 100<br />

Excellent Very good Good Fair Poor No answer<br />

15 What is your overall rating of this workshop? 0.0 19.2 50.0 23.1 7.7 0.0 100<br />

21


Annex 4: Note for the Record: Follow up meeting after the <strong>High</strong> <strong>Price</strong> <strong>Assessment</strong> Workshop<br />

(Friday 08/08/2008)<br />

Participants<br />

1. Ben Ramalingam (ALNAP)<br />

2. Camilla Knox-Peebles (OXFAM)<br />

3. Joyce Luma (<strong>WFP</strong>)<br />

4. Arif Husain (<strong>WFP</strong>)<br />

Aimee Wielechowski (OCHA) <strong>and</strong> Alex Rees (SCUK) apologized for missing the conference call due to colliding schedules. Luca<br />

Alinovi (FAO), on leave could not make it.<br />

The purpose of the meeting was to discuss setting up a mechanism for the follow-up on the workshop recommendations. It was<br />

agreed that:<br />

1) Explore the possibility of using the "<strong>Food</strong> <strong>and</strong> Nutrition Security Coordination Mechanism" an NGO led initiative, with<br />

CARE International <strong>and</strong> OXFAM leading the process.<br />

Action Points:<br />

a) Check the implementation time-frame for the mechanism<br />

b) See if its ToRs meet our specific requirements<br />

c) See what would be the financial implications--explore possibilities of pooled funding.<br />

2) In the mean time continue to use the informal communication channels--mailing lists, e-mails etc.<br />

3) Check the status of Community of Practitioners<br />

Specific action points:<br />

1. Complete the workshop report <strong>and</strong> share with partners<br />

2. Contact "<strong>Food</strong> <strong>and</strong> Nutrition Security Coordination Mechanism" leaders<br />

3. Check the status of Community of Practitioners (<strong>WFP</strong>)<br />

Arrange another meeting early next month when most people are back from the summer break.<br />

22


Annex 5: Workhop Presentations<br />

DAY 1<br />

Objectives <strong>and</strong> Agenda<br />

<strong>Price</strong> <strong>Impact</strong> <strong>Analysis</strong> Workshop<br />

29-31 July 2008<br />

Rome<br />

Joyce Luma<br />

<strong>WFP</strong>/OMXF<br />

<strong>Price</strong> <strong>Analysis</strong> Consultations<br />

• Partners Consultative meeting in Feb 2008<br />

Coordinated information sharing <strong>and</strong> advocacy<br />

• ED consultative meeting on March 13<br />

• Consultative meetings with EC, DFID, WB<br />

FEWSNET/USAID,IFPRI, FAO Save <strong>and</strong><br />

OXFAM April/May<br />

<strong>Assessment</strong>s in priority countries<br />

Stock-taking for lessons learning in June/July<br />

Additional <strong>Analysis</strong>/Monitoring – July/Dec<br />

• Response Options Workshop - June<br />

Overview of Analyses at <strong>WFP</strong><br />

• Two-Step Approach:<br />

‣ First Step: Global data analysis to identify high risk countries – ranking<br />

of the most vulnerable <strong>and</strong> estimate of total affected population globally.<br />

‣ Second Step: Country-level analysis using three approaches:<br />

• Secondary Data analysis – e.g. Ug<strong>and</strong>a, Pakistan, Guatemala, El<br />

Salvador, Nicaragua, Honduras<br />

<strong>Food</strong> security monitoring systems data analysis -e.g. Niger, Haiti,<br />

Guinea-Bissau, Burundi, Nepal, Southern Africa<br />

• Primary data collection <strong>and</strong> analysis through household <strong>and</strong> trader<br />

surveys e.g. Nepal, Liberia, Ethiopia, Burkina Faso, Guinea, Tajikistan<br />

23


• Objectives of the analyses:<br />

‣ Determine the magnitude <strong>and</strong> future outlook of food price increases<br />

‣ Assess the impact of higher prices on household food security<br />

‣ Determine the proportion of the population affected<br />

‣ Recommend immediate, medium <strong>and</strong> long-term response - in rural<br />

<strong>and</strong> urban settings.<br />

Completed or Preliminary Results Ongoing<br />

Planned<br />

Nepal (Rural/Urban)<br />

Lesotho<br />

Senegal (Urban)<br />

Tajikistan (Rural)<br />

Tajikistan (Urban)<br />

Haiti (Urban)<br />

OPT (Urban/Rural)<br />

Ethiopia (Urban)<br />

Madagascar<br />

Guinea (Rapid Urban)<br />

Bangladesh**<br />

Cote d’Ivoire<br />

Ug<strong>and</strong>a (Urban/Rural)*<br />

Yemen<br />

Cameroon<br />

El Salvador*<br />

Niger (Urban/Rural)<br />

Malawi<br />

Guatemala*<br />

Senegal (Rural)<br />

Mozambique (Urban)<br />

Honduras*<br />

Sierra Leone<br />

Nicaragua*<br />

Swazil<strong>and</strong>**<br />

Zimbabwe**<br />

Pakistan (Urban/Rural)<br />

Liberia (Urban)<br />

Cambodia (Urban/Rural)<br />

Kenya<br />

Burundi (Urban)<br />

Burkina Faso (Urban)<br />

*Completed through secondary data analysis; **Through CFSAM<br />

Why are we here?<br />

• Determine the extent to which the assessments<br />

<strong>and</strong> monitoring systems are providing adequate<br />

information for programming decisions.<br />

• key lessons learned emerging from the analyses<br />

• Identify a core set of information for programming<br />

response options<br />

• Recommendations to feed into future analyses,<br />

countries of focus <strong>and</strong> partnership arrangements<br />

All these assessments have used primary or secondary data or both<br />

What will we talk about?<br />

• What information is required for programming a range of<br />

response options?<br />

• Lessons learned but less on methods<br />

• How to strengthen links between secondary <strong>and</strong> primary<br />

data?<br />

• How to strengthen monitoring<br />

• Planning for the next set of analyses<br />

How can it be done to maintain a broad number of agencies<br />

What can be done together?<br />

what need not be done together<br />

How have we organised the two<br />

<strong>and</strong> half days?<br />

Day One: Secondary Data <strong>and</strong> Monitoring<br />

What are we learning from these analysis?<br />

How to ground truth the secondary data analysis?<br />

How to strengthen monitoring<br />

Day Two: Country <strong>Assessment</strong><br />

Minimum set of information for programming options<br />

Partnership arrangements<br />

Day Three<br />

Way forward<br />

24


Overview<br />

Key messages<br />

I. International prices<br />

o <strong>Food</strong> prices will peak, but stay high<br />

<strong>High</strong> food prices<br />

Henk-Jan Brinkman<br />

<strong>WFP</strong>/OEDP<br />

Stock-taking workshop<br />

29-31 July 2008<br />

II. Transmission to domestic prices<br />

III. <strong>Impact</strong> on households<br />

IV. Responses<br />

2<br />

o Risk of severe <strong>and</strong> potentially lifelong<br />

negative consequences is high, even<br />

if prices come down<br />

o Risk is not the same as impact<br />

o Need for broad response<br />

3<br />

I. <strong>High</strong>er & more volatile food prices<br />

Index 1998-2000=100<br />

350<br />

300<br />

MEAT<br />

DAIRY<br />

CEREALS<br />

250<br />

OILS<br />

SUGAR<br />

200<br />

150<br />

100<br />

50<br />

0<br />

1990<br />

1991<br />

1992<br />

Source: FAO<br />

1993<br />

1994<br />

1995<br />

1996<br />

1997<br />

1998<br />

1999<br />

2000<br />

2001<br />

2002<br />

2003<br />

2004<br />

2005<br />

2006<br />

2007<br />

2008<br />

4<br />

Causes: Agreement on list, but<br />

not on relative weight<br />

o Dem<strong>and</strong><br />

• Emerging markets, changing dem<strong>and</strong> patterns<br />

• Oil-exporting countries<br />

•Biofuels ( link between output <strong>and</strong> oil price)<br />

• Depreciating dollar<br />

• Institutional investors<br />

o Supply<br />

• Weather-related shocks<br />

• Slowing productivity growth<br />

• Oil price ( inputs: fertilizer, transport costs)<br />

<strong>Price</strong>s will peak, but remain high<br />

Average of forecasts of EIU (2008), FAPRI (2008), IFPRI (2008),<br />

OECD/FAO (2008), USDA (2008) <strong>and</strong> World Bank (2008) (2000=100)<br />

80<br />

• Export restrictions 5<br />

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017<br />

6<br />

Maize Wheat Rice Soybean Sorghum Soybean oil<br />

260<br />

240<br />

220<br />

200<br />

180<br />

160<br />

140<br />

120<br />

100<br />

Forecasts<br />

25


II.<br />

From int’l to domestic food prices<br />

Transmission is larger if:<br />

Risk = hazard x vulnerability<br />

o Not one-for-one relation<br />

o Relationship depends on policies<br />

o <strong>Food</strong> imports as % of domestic supplies<br />

are larger<br />

o Transportation costs are lower<br />

o Trade barriers are lower<br />

o Exchange rate is depreciating<br />

o <strong>Food</strong> taxes & subsidies are reduced<br />

o Hazard = <strong>Price</strong> increase<br />

o Vulnerability:<br />

• Government response capacity<br />

• Imports as % of consumption<br />

• Foreign exchange reserves<br />

• Existing socio-economic conditions<br />

7<br />

o Markets are more competitive 8<br />

9<br />

Vulnerable countries<br />

III. From int’l to national to household<br />

Vulnerability at household level:<br />

o <strong>High</strong> % of income spend on food<br />

o Buy more food than sell (net-buyer)<br />

o Few coping mechanisms<br />

<strong>High</strong><br />

vulnerability<br />

Low<br />

vulnerability<br />

10<br />

11<br />

12<br />

26


People most at risk<br />

Rapid deterioration of nutritional<br />

status<br />

<strong>Impact</strong> of child nutrition is life long<br />

oRural l<strong>and</strong>less<br />

o Pastoralists, agro-pastoralists<br />

o Small-scale farmers<br />

oUrban poor<br />

o Children under 2 <strong>and</strong> under 5<br />

o Pregnant <strong>and</strong> lactating mothers<br />

oSickly<br />

Livelihood<br />

<strong>Food</strong>/Nutrtion<br />

Diversify<br />

incomes<br />

Cheaper<br />

food<br />

Spend<br />

less on<br />

nonessentials<br />

Selling<br />

some<br />

assets<br />

Less<br />

nutritious<br />

food<br />

Source: <strong>WFP</strong>/Chiara Brunelli<br />

Drop out<br />

of school<br />

Child<br />

labor<br />

Migration Borrow<br />

Reduce<br />

size /<br />

number<br />

of meals<br />

Consume<br />

wild<br />

foods,<br />

seeds<br />

Selling<br />

of<br />

productive<br />

assets<br />

Begging<br />

for food<br />

Selling<br />

of all<br />

assets<br />

Entire<br />

day<br />

without<br />

eating<br />

Spend<br />

less on<br />

essential<br />

items<br />

Eat ab<br />

normal<br />

items<br />

(e.g.<br />

plants<br />

<strong>and</strong><br />

insects)<br />

Health<br />

threatening<br />

activities<br />

Child<br />

malnutrition<br />

1. <strong>High</strong>er productivity<br />

2. Cognitive development & education<br />

3. Better health & lower health costs,<br />

including of next generation<br />

13<br />

14<br />

15<br />

Risk analysis vs <strong>Impact</strong> assessment<br />

Risk analysis in Liberia<br />

Rice price nutritional status<br />

Risk analysis<br />

oEx ante<br />

oSecondary data<br />

o Isolate price effect<br />

oNo coping<br />

<strong>Impact</strong> assessment<br />

oEx post<br />

oPrimary data<br />

oAll factors<br />

o Incorporate coping<br />

o Monitor!<br />

16<br />

% of rice % rice in food Rice price<br />

bought consumption increase (%)<br />

Percentage change 100<br />

<strong>Food</strong> crop farmers 64.1 16.4 -4.2<br />

Palm oil seller/producer 81.7 14.0 -4.6<br />

Petty traders 85.7 16.0 -5.5<br />

Hunters 77.4 13.6 -4.2<br />

Contract labourers 81.6 16.1 -5.3<br />

Rubber tappers 84.0 17.6 -5.9<br />

Charcoal producers 85.5 15.9 -5.4<br />

Fisher folk 90.7 14.2 -5.2<br />

Employees 90.3 16.4 -5.9<br />

Skilled labourers 78.3 15.6 -4.9<br />

Cash <strong>and</strong> food crop producers 64.0 16.4 -4.2<br />

Palm oil <strong>and</strong> food crop produce 66.1 16.4 -4.3<br />

Other activity 85.7 16.6 -5.7<br />

Total 78.0 15.8 -4.9<br />

Source: Liberia, CFSVA Elasticity of dem<strong>and</strong> for rice -0.4<br />

17<br />

Underweight children<br />

(% )<br />

Underweight children <strong>and</strong> rice expenditure in rural<br />

Bangladesh (1992-2000)<br />

76<br />

71<br />

66<br />

61<br />

56<br />

1992 1993 1994 1995 1996 1997 1998 1999 2000<br />

Underweight Children (%)<br />

Rice Expenditure<br />

0.6<br />

0.5<br />

0.4<br />

0.3<br />

0.2<br />

Weekly expenditure<br />

on rice (per capita in<br />

$)<br />

18<br />

27


IV. Response: 6 A’s<br />

A broad-based response<br />

a coherent global response<br />

o<br />

o<br />

o<br />

o<br />

o<br />

Assess <strong>and</strong> analyse<br />

Adjust existing programmes (nutrition)<br />

Add activities (monitor) + programmes<br />

Advise Governments on policies<br />

Assist Governments<br />

1. Emergency<br />

• Vouchers <strong>and</strong> cash<br />

• Mother- <strong>and</strong> child nutrition<br />

• School feeding<br />

• <strong>Food</strong> or cash-for-work<br />

2. Agricultural supply response<br />

3. Social protection systems<br />

o Advocate for funding <strong>and</strong> response 19<br />

20<br />

policy<br />

reform<br />

increased<br />

agriculture<br />

production<br />

12 months +<br />

(Long term)<br />

agricultural inputs<br />

(seeds, fertilizer)<br />

cash & vouchers<br />

community works<br />

programmes<br />

6 – 12 months<br />

(Medium term)<br />

Balance of payments/financial support<br />

emergency<br />

food<br />

& safety nets<br />

(child nutrition,<br />

school feeding)<br />

urgent agriculture inputs<br />

0 – 6 months<br />

(Immediate)<br />

21<br />

<strong>WFP</strong>’s Strategic Plan 2008-11<br />

o From food aid to food assistance<br />

o Broader, flexible <strong>and</strong> nuanced toolkit<br />

o Tools not new, but exp<strong>and</strong> to new<br />

scale:<br />

• Cash <strong>and</strong> vouchers<br />

• Purchase for Progress<br />

• Policy dialogue <strong>and</strong> advocacy<br />

• No one-size fits all school feeding<br />

• New nutrition <strong>and</strong> food products<br />

Thank you<br />

22<br />

28


Household level impact of high<br />

food prices<br />

Insights from multitopic household surveys<br />

Agricultural Development Economics Division<br />

FAO<br />

Alberto Zezza<br />

Main messages<br />

• Importance of expenditure, assets, inputs,<br />

livelihoods in characterizing welfare<br />

gains/losses<br />

• Multitopic surveys offer a unique tool to do<br />

that<br />

• Can they be better linked to other data<br />

sources to improve analysis for response<br />

<strong>and</strong> action?<br />

Outline<br />

• Data <strong>and</strong> methodology<br />

• Cross-country analysis<br />

• Elements of a country profile: Nepal<br />

Rome, 29 July 2008<br />

Data <strong>and</strong> methodology<br />

Some formulas...<br />

2<br />

Expendtiture quintiles<br />

Cross-country analysis<br />

Poorest 2 3 4 Richest<br />

• Data: Rural Income Generating Activities<br />

(RIGA) dataset<br />

• Methods<br />

– Measure of immediate impact (compensating<br />

variation)<br />

– Bivariate analysis over hh characteristics<br />

– Multivariate analysis – correlates<br />

Three effects: <strong>Price</strong>, labour, supply response:<br />

F dw ∂Q<br />

dA dpx<br />

F dpz<br />

g ≡[ Q−q]<br />

+ [ L−L<br />

] + p −X<br />

+ [ Z−Z<br />

]<br />

dp ∂A<br />

dp dp dp<br />

∆w<br />

x<br />

∆p<br />

∆p<br />

p<br />

c<br />

i r<br />

r<br />

= PR<br />

p ir<br />

−<br />

c<br />

0i<br />

∆p<br />

0r<br />

∆p<br />

0r<br />

CR<br />

We just focus on the first, which depends on the share of<br />

the staple in the hh production <strong>and</strong> consumption<br />

ir<br />

% chang e in welfare<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

Bangladesh<br />

Pakistan<br />

Rural<br />

Nepa l<br />

Nepal<br />

Tajikistan<br />

Vietnam<br />

G uatemala<br />

Nicaragua<br />

Panama<br />

Ghana<br />

% chang e in w elfare<br />

2<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

Malawi<br />

Albania<br />

Bangladesh<br />

Pakistan<br />

Nepal<br />

Nepal<br />

Tajikista n<br />

Vietnam<br />

Urban<br />

Guatemala<br />

Nicaragua<br />

Panama<br />

Urban<br />

Ghana<br />

Malawi<br />

Albania<br />

29


A country profile: Nepal<br />

Expenditure quintiles<br />

Expendtiture quintiles Poorest 2 3 4 Richest<br />

2<br />

L<strong>and</strong><br />

A country profile: Nepal<br />

Livelihoods<br />

A country profile: Nepal<br />

% chang e in w elfare<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

Rural<br />

Nepal<br />

% change in welfare<br />

2<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

Nepal<br />

Urban<br />

% change in welfare<br />

Nepal<br />

4<br />

3<br />

2<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

-5<br />

L<strong>and</strong>owners<br />

0 1 2 3 4 5 6<br />

Expenditure quintiles<br />

L<strong>and</strong>less<br />

% chang e in w elfare<br />

Nepal<br />

4<br />

3<br />

2<br />

1<br />

0<br />

-1<br />

-2<br />

-3<br />

-4<br />

-5<br />

Other<br />

0 1 2 3 4 5 Specialized 6<br />

Expenditure quintiles<br />

in agriculture<br />

A country profile: Nepal<br />

A country profile: Nepal<br />

A country profile: Nepal<br />

Large welfare losses by region<br />

35%<br />

30%<br />

25%<br />

20%<br />

15%<br />

10%<br />

5%<br />

0%<br />

Mountain Hill Tarai<br />

Incidence<br />

Mountain,<br />

8.5%<br />

Tarai,<br />

59.8%<br />

Concentration<br />

Hill,<br />

31.7%<br />

Assets typologies (combining l<strong>and</strong>, education<br />

<strong>and</strong> infrastructure)<br />

• 2 winners in 3 are ‘high l<strong>and</strong>’ types<br />

• Most large losers (70%) have little l<strong>and</strong> AND<br />

education<br />

4. Assets typologies (L<strong>and</strong>, Educ., Infrastruc.)<br />

Household<br />

grouping by<br />

asset<br />

combination<br />

Average Welfare<br />

Change<br />

Group Share of<br />

Winners<br />

Group Share of Group Share of<br />

Moderate Losers Extreme Losers<br />

WITH 1 E, L, I 0.72 26.02 14.42 3.36<br />

LAND 2 NE, L, I 0.54 12.12 7.36 4.48<br />

3 E, NL, I -0.27 8.15 13.75 5.45<br />

4 E, NL, NI -0.55 3.66 5.81 3.64<br />

5 E, L, NI 0.81 11.39 6.87 2.52<br />

6 NE, NL, I -0.65 7.63 10.45 13.99<br />

7 NE, L, NI 0.29 15.99 11.52 6.57<br />

8 NE, NL, NI -1.10 10.03 17.33 26.85<br />

NO 9 E,I -1.02 1.25 5.32 3.08<br />

LAND 10 NE, I -2.30 1.36 3.39 12.73<br />

11 E, NI -1.09 0.42 0.97 1.40<br />

12 NE, NI -2.38 1.99 2.81 15.94<br />

Total<br />

-0.39 100.00 100.00 100.00<br />

30


A country profile: Nepal<br />

Descriptives by welfare gain/loss category<br />

variable Gainer Mod. Los. Ext. Los.<br />

hhlabor 3.2 2.6 2.4<br />

flaborshare 55.2% 56.4% 58.0%<br />

femhead 15.1% 21.4% 23.6%<br />

agehead 47.3 44.9 44.4<br />

Non Hindu 15.4% 17.3% 26.9%<br />

Education (head) 2.9 2.8 1.2<br />

L<strong>and</strong> 1.0 0.6 0.3<br />

% Irrigated 47.3% 28.5% 17.0%<br />

Livestock (TLU's) 2.1 1.6 1.0<br />

ag wealth 0.457 -0.104 -0.602<br />

fertilizers 81.8 57.1 30.9<br />

pesticides 22.9 12.3 3.7<br />

distroad 509.4 768.8 657.9<br />

A country profile: Nepal<br />

RURAL<br />

changew Coef. Std. Err.<br />

hhsize -0.07 0.02 ***<br />

dependency 0.67 0.19 ***<br />

flaborshare -0.64 0.16 ***<br />

femhead 0.01 0.11<br />

agehead -0.03 0.02<br />

emphead -0.39 0.08 ***<br />

nonhindu -0.17 0.09<br />

educhead 0.05 0.03<br />

educhead2 0.00 0.00<br />

l<strong>and</strong>own 0.53 0.09 ***<br />

l<strong>and</strong>own2 -0.05 0.01 ***<br />

irrigated 0.86 0.12 ***<br />

TLU_total 0.17 0.05 ***<br />

agwealth 0.40 0.08 ***<br />

fertil 0.01 0.00 ***<br />

R2 0.3186<br />

N 2705<br />

Multivariate: OLS<br />

of welfare gain<br />

over correlates<br />

Conclusions <strong>and</strong> discussion<br />

• Importance of ag assets/inputs, livelihoods<br />

(<strong>and</strong> demographics)<br />

• Asset typologies powerful in identifying<br />

likely losers<br />

• Multitopic data can give depth to analysis<br />

• Opportunities for integrating with other<br />

sources<br />

31


Outline<br />

Nutritional <strong>Impact</strong>: Methodology<br />

A Cross‐Country <strong>Analysis</strong> of the<br />

Effects of Soaring <strong>Food</strong> <strong>Price</strong>s on<br />

Undernourishment<br />

Gustavo Anríquez<br />

FAO –ESA<br />

(Agricultural <strong>and</strong> Development<br />

Economic Division)<br />

• Methodology to asses the effects of soaring<br />

food prices on undernourishment.<br />

• Cross country results.<br />

• Malawi country case study.<br />

Cross‐Country Sample<br />

<strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> on Caloric Intake<br />

<strong>Impact</strong> on Undernourishment<br />

• Bangladesh 2000<br />

• Guatemala 2000<br />

• Kenya 2005<br />

• Malawi 2004<br />

• Nepal 2003<br />

• Peru 2003<br />

• Tajikistan 2003<br />

• Vietnam 2002<br />

• Sample designed to<br />

cover heterogeneity in<br />

diets (food staples, <strong>and</strong><br />

their relative<br />

importance), income,<br />

<strong>and</strong> agricultural<br />

production profiles.<br />

% Change in Average Caloric Intake<br />

-3 -2.5 -2 -1.5 -1 -.5 0<br />

Bangladesh Guatemala Kenya Malawi Nepal Peru Tajikistan Vietnam<br />

Poorest<br />

2nd Quintile<br />

3rd Quintile<br />

4th Quintile<br />

Wealthiest<br />

Change in Undernourishment<br />

0 2 4 6<br />

Bangladesh Guatemala Kenya Malawi Nepal Peru Tajikistan Vietnam<br />

Poorest<br />

2nd Quintile<br />

3rd Quintile<br />

4th Quintile<br />

Wealthiest<br />

32


Results not correlated with income.<br />

Importance of diversification of diets.<br />

Results country‐specific<br />

Determinants: 1) share of staple in diet<br />

2) distribution of farm income 3)<br />

Preferences 4) Distribution of food<br />

calories<br />

Malawi Case Study<br />

Who are the Undernourished<br />

Prevalence of<br />

Undernourishment<br />

No<br />

Yes<br />

Rural 22.0 31.4<br />

Southern Region 27.3 33.9<br />

Head >8 yrs Education 32.4 19.6<br />

Female Head 29.9 32.0<br />

Own L<strong>and</strong> 23.4 31.4<br />

Diversified Income HH 28.8 32.7<br />

Where are the<br />

Undernourished<br />

Located<br />

Prevalence of<br />

Undernourishment<br />

Change in<br />

Undernourishment<br />

(% points)<br />

33


Probability of Being Undernourished<br />

Elasticity<br />

Expenditures -0.77<br />

HH Size 0.48<br />

% HH Members < 15 yrs 0.15<br />

Farm Specializers -0.08<br />

Diversified -0.05<br />

Significant 99%<br />

79% of observations predicted correctly.<br />

Probability of Being Vulnerable<br />

Elasticity<br />

Expenditures -1.00<br />

HH Size 0.76<br />

L<strong>and</strong> Owned -0.14<br />

Farm Specializers -0.15<br />

Urban 0.09<br />

Definition Vulnerable: Among the initially not<br />

undernourished, falls into hunger as a result of soaring<br />

food prices.<br />

Significant 99%<br />

66% of observations predicted correctly.<br />

Conclusions<br />

• It is not straightforward to determine ex ante<br />

who are the most vulnerable groups to food<br />

price hikes.<br />

• Relevance of country case‐studies.<br />

• In Malawi, for example, farmers <strong>and</strong> l<strong>and</strong><br />

owners are better equipped than urban<br />

households to deal with the costs of soaring<br />

food prices.<br />

<strong>Price</strong> impact analyses using household<br />

income <strong>and</strong> expenditure surveys –<br />

taking advantage of the RIGA dataset<br />

Benjamin DAVIS<br />

FAO-ESA<br />

<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong> <strong>and</strong> <strong>Analysis</strong> Workshop<br />

Rome<br />

29-31 July 2008<br />

RIGA<br />

Rural Income Generating Activities<br />

The RIGA dataset<br />

<br />

<br />

19 countries, 35 datasets<br />

Objectives: consistency & comparability across countries<br />

• Focus on income aggregates<br />

• household/individual level variables<br />

Africa<br />

• Ghana (1992, 1998)<br />

• Madagascar (1993, 2001**)<br />

• Malawi (2004)<br />

• Nigeria (2004)<br />

• Kenya (2005*)<br />

Asia<br />

• Bangladesh (2000, 2005*)<br />

• Indonesia (1993, 2000)<br />

• Nepal (1996, 2003)<br />

• Pakistan (1991, 2001)<br />

• Vietnam (1992, 1998, 2002*)<br />

• Cambodia (2004*)<br />

Eastern Europe<br />

• Albania (2002, 2005)<br />

• Bulgaria (1995, 2001)<br />

• Tajikistan (2003, 2007*)<br />

Latin America<br />

• Ecuador (1995, 1998)<br />

• Guatemala (2000, 2005**)<br />

• Nicaragua (1998, 2001, 2005**)<br />

• Panama (1997, 2003)<br />

• Bolivia (2005*)<br />

Income Aggregates: Sources of Income<br />

Crop<br />

Livestock<br />

On-Farm<br />

Wages<br />

• agricultural<br />

Off-Farm<br />

• non-agricultural<br />

Self Employment<br />

Transfers<br />

• public<br />

• private<br />

Other<br />

34


Bread<br />

Cereals<br />

Roots<br />

Dairy<br />

Pulses<br />

Meat & Eggs<br />

Other <strong>Food</strong><br />

Oil <strong>and</strong> Fat<br />

Veg. & Fruits<br />

Sugar<br />

<strong>Food</strong><br />

Transport<br />

Tobacco<br />

Soap<br />

Taxes<br />

Debts<br />

Medical<br />

Celebrations<br />

Education<br />

Non <strong>Food</strong><br />

Other Non <strong>Food</strong><br />

House<br />

Clothing<br />

Total<br />

Cereals<br />

Roots<br />

Bread<br />

Dairy<br />

Pulses<br />

Meat & Eggs<br />

Oil <strong>and</strong> Fat<br />

Ve g. & F ruits<br />

Other <strong>Food</strong><br />

Sugar<br />

<strong>Food</strong><br />

Transport<br />

Tobacco<br />

Soap<br />

Taxes<br />

Clothing<br />

House<br />

Medical Debts<br />

Non <strong>Food</strong><br />

Celebrations<br />

Education<br />

Other Non F ood<br />

Total<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

Rounds<br />

1 2 3 4 5 6 7<br />

1 2 3 4 5 6 7<br />

Riz Maize Wheat Bread Sugar Milk Noodles Oil Potato Banana Chicken FCS<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

Three examples of linking<br />

household food security<br />

<strong>and</strong> high food prices<br />

<strong>Food</strong> Security Monitoring Systems<br />

<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong> <strong>and</strong> <strong>Analysis</strong><br />

Workshop, 29-31 July, 2008<br />

Ludovic Subran, <strong>WFP</strong>/OEDP<br />

Afghanistan: Urban<br />

programming in response to<br />

high food prices<br />

<br />

2.5mn extra caseload, TFD<br />

• Steep increase in wheat<br />

prices <strong>and</strong> particularly harsh<br />

winter entailed deteriorated<br />

‘tot’ for unskilled labourer<br />

• Seasonally-adjusted<br />

difference needed<br />

• Confronting primary data<br />

<strong>and</strong> monitoring system:<br />

methodology,<br />

responsiveness of FSMS are<br />

at stakeExpenditures Breakdown in 2006<br />

Afs<br />

50<br />

45<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

<strong>Price</strong>s are up, Terms of Trade are down<br />

Kabul Retail <strong>Price</strong>s, <strong>WFP</strong>/AFG<br />

Jan-05<br />

Mar-05<br />

May-05<br />

Jul-05<br />

Sep-05<br />

Nov-05<br />

Jan-06<br />

Mar-06<br />

May-06<br />

Jul-06<br />

Sep-06<br />

Nov-06<br />

Jan-07<br />

Mar-07<br />

May-07<br />

Jul-07<br />

Sep-07<br />

Nov-07<br />

Bread (1kg) Fuel (1L) ToT Casual Labour/Wheat Flour (Right axis)<br />

Expenditures Breakdown in 2007<br />

16<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Haiti: Riots or in-depth analysis,<br />

what drives programming?<br />

<br />

1.5 mn extra<br />

caseload, TFD<br />

• Northeast of Haiti<br />

SAPSAP (Jan06-<br />

Feb08)<br />

• Lack of evidence of<br />

impact either on food<br />

budget share, or on<br />

FCS/CSI: volatility?<br />

• No econometric<br />

evidence controlling<br />

for idiosyncratic<br />

shocks<br />

Prix (gourdes)<br />

Grisom Garde<br />

FCS<br />

Niger: Sustainability <strong>and</strong>…<br />

Catchment areas!<br />

<br />

Backdrop<br />

• Panel data: 4,376<br />

households in 357<br />

Nigerien villages; usual<br />

food security indicators<br />

(DD, anthropometric<br />

measures e.g.)<br />

• Rounds: monthly from<br />

June to December ’07<br />

because of a lack of<br />

funding<br />

• Finding matching markets<br />

as sentinel sites data are<br />

gathered separately<br />

<strong>Food</strong> for thought<br />

Framework?<br />

• <strong>Price</strong> determinants intrinsically play a role in the strength of the<br />

impact (persistence of the shock e.g.), what to really expect from<br />

monitored indicators<br />

<strong>Analysis</strong>?<br />

• In-depth econometric analysis not possible; different needs to<br />

inform targeting e.g.; New monitoring tools: cost of a food basket<br />

approach? Triggers?<br />

Reconciliation?<br />

• Proved hard to link prices to household level data, tap into other<br />

monitoring indicators <strong>and</strong> fields (education,…)<br />

Innovations?<br />

• New set of indicators might be used in the monitoring systems<br />

when covering other livelihoods (urban settings e.g.); coping<br />

without a proper baseline<br />

Sharing?<br />

• Hard access to data<br />

Community <strong>and</strong><br />

Household Surveillance<br />

(CHS) in Southern Africa<br />

Potential applications for monitoring prices at<br />

country level<br />

<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong> <strong>and</strong> <strong>Analysis</strong><br />

Workshop, 29-31 July, 2008<br />

Eric Kenefick, <strong>WFP</strong>/OMJ<br />

35


Background<br />

Where?<br />

• Seven southern African countries: Mozambique, Zambia,<br />

Zimbabwe, Lesotho, Malawi, Swazil<strong>and</strong> (10 Rounds);<br />

Namibia (2 rounds)<br />

Who?<br />

• Data collected from <strong>WFP</strong> beneficiaries <strong>and</strong> non-beneficiaries<br />

(non beneficiaries as control group)<br />

When?<br />

• Twice-year (Feb/Mar & Sept/Oct) approach allows accounting<br />

seasonality issues <strong>and</strong> variations in food assistance<br />

How?<br />

• Teams composed of <strong>WFP</strong> staff <strong>and</strong> partners (including<br />

government), using PDAs. For nutrition, we partner with<br />

National nutrition bodies within Government plus UNICEF<br />

CHS for Monitoring HP Issues<br />

<br />

Three countries have used the CHS to<br />

cover the entire country:<br />

• Lesotho: With DMA, covers all 10 districts in<br />

March/Oct 2007 <strong>and</strong> March 2008<br />

• Swazil<strong>and</strong>: All four regions covered for last 3<br />

rounds<br />

• Mozambique: The GAV used the CHS tool<br />

for their annual assessment to cover all 10<br />

provinces<br />

• Main limitation: Only used in rural areas<br />

CHS – Monitoring food expenditures<br />

share m onthly expenditure<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Trends in monthly food expenditures - Lesotho<br />

Oct 06 Mar 07 Oct 07 Mar 08<br />

Share food<br />

Per capita food<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

p/c m o nthly expenditure -<br />

Maluti<br />

Monitoring Transport Expenditures<br />

share m onthly expenditure<br />

12%<br />

10%<br />

8%<br />

6%<br />

4%<br />

2%<br />

0%<br />

Trends in monthly transport expenditures - Lesotho<br />

Oct 06 Mar 07 Oct 07 Mar 08<br />

Share t ransport<br />

Per capit a t ransport<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

p/c m onthly expenditure -<br />

Maluti<br />

Types of Markets - Mozambique<br />

<br />

<br />

<br />

The markets were then assessed for various items<br />

including: whole maize, maize meal, rice, beans,<br />

groundnuts, oil, sugar salt <strong>and</strong> soap.<br />

From this information households were grouped<br />

together using statistical analyses to create 5 market<br />

access groups, including those without any market<br />

access.<br />

The five types of household access include:<br />

1. Markets with all items (22%)<br />

2. Markets with oil, sugar, salt <strong>and</strong> soap; sometimes, whole<br />

maize, beans <strong>and</strong> groundnuts (18%)<br />

3. Markets with rice, oil, sugar, salt, soap <strong>and</strong> sometimes milled<br />

maize (18%)<br />

4. Markets with a mix of these items but not all (6%)<br />

5. No market access (36%)<br />

Types of Market Access by Province<br />

All items<br />

Basics plus whole maize, beans <strong>and</strong> gnuts<br />

Basics plus rice <strong>and</strong> milled maize<br />

Mix of everything but not all<br />

No market<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Niassa Cabo Nampula Zambezia Tete Manica Sofala Inhambane Gaza Maputo<br />

Delgado<br />

36


Coping, Consumption <strong>and</strong> Markets<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

0<br />

23.5<br />

47.7<br />

All items<br />

FCS significantly<br />

higher than the<br />

other groups<br />

28.1<br />

41.7<br />

CSI<br />

25.2<br />

FCS<br />

44.3 43.5 43.8<br />

30.5<br />

Oil, sugar, salt, soap; Rice, oil, sugar, salt, Mix of different items<br />

some whole maize, soap <strong>and</strong> some maize but not all<br />

beans <strong>and</strong> gnuts<br />

meal<br />

25.7<br />

No market<br />

Source of Consumption <strong>and</strong> Markets<br />

production gifts purchase food assistance hunt/gather other<br />

100%<br />

90%<br />

80%<br />

35%<br />

31%<br />

70%<br />

47%<br />

49%<br />

39%<br />

60%<br />

6%<br />

7%<br />

5%<br />

50%<br />

6%<br />

5%<br />

40%<br />

30%<br />

56%<br />

57%<br />

51%<br />

20% 43%<br />

43%<br />

10%<br />

0%<br />

All items Oil, sugar, salt, soap; Rice, oil, sugar, salt, Mix of different items No market<br />

some whole maize,<br />

beans <strong>and</strong> gnuts<br />

soap <strong>and</strong> some maize<br />

meal<br />

but not all<br />

Mozambique Stock Taking<br />

Systems<br />

SIMA -<br />

Agricultural<br />

Market<br />

Information<br />

System<br />

INFOCOM -<br />

Ministry of<br />

Commerce <strong>and</strong><br />

Industry<br />

VAC -<br />

Vulnerability<br />

<strong>Analysis</strong><br />

Committee<br />

CHS –<br />

Community &<br />

Household<br />

Surveillance<br />

Frequency<br />

weekly<br />

weekly<br />

twice a year<br />

(April/October)<br />

twice a year<br />

(April/October)<br />

Tool<br />

Quantitative<br />

Quantitative<br />

Quantitative <strong>and</strong><br />

Qualitative<br />

Quantitative <strong>and</strong><br />

Qualitative<br />

Process<br />

Questionnaire to<br />

traders (retail<br />

<strong>and</strong> wholesales)<br />

Questionnaire to<br />

Supermarkets<br />

Questionnaire to<br />

households <strong>and</strong><br />

focus group<br />

(using PDA)<br />

Questionnaire to<br />

households <strong>and</strong><br />

focus group<br />

(using PDA)<br />

25 markets, including provincial<br />

capitals <strong>and</strong> at least 1 district with<br />

high potential in production <strong>and</strong> trade<br />

66 Supermarkets in all provincial<br />

capitals<br />

rural areas<br />

Place<br />

Areas with <strong>WFP</strong> activities<br />

Combined with VAC in April 2008<br />

Mozambique<br />

System<br />

SIMA - Agricultural<br />

Market Information<br />

System<br />

INFOCOM - Ministry<br />

of Commerce <strong>and</strong><br />

Industry<br />

VAC - Vulnerability<br />

<strong>Analysis</strong> Committee<br />

CHS – Community<br />

& Household<br />

Surveillance<br />

Questions related<br />

to markets<br />

prices, availability,<br />

flows <strong>and</strong> transport<br />

cost of commodities<br />

prices of maize meal,<br />

rice, sugar, eggs <strong>and</strong><br />

fish<br />

<strong>Food</strong> availability in<br />

communities, selling<br />

prices of agricultural<br />

products <strong>and</strong><br />

livestock, <strong>High</strong> price<br />

shock <strong>and</strong> coping<br />

Same as VAC<br />

Analyses<br />

price <strong>and</strong> food<br />

availability dynamic,<br />

products flows <strong>and</strong><br />

transport cost<br />

price dynamic<br />

Analyses of food<br />

availability <strong>and</strong> prices<br />

in communities, <strong>and</strong><br />

access to markets by<br />

producers<br />

<strong>Analysis</strong> of food<br />

availability <strong>and</strong> prices<br />

<strong>and</strong> comparisons of<br />

food <strong>and</strong> livestock<br />

prices across places<br />

Missing Tools<br />

Quest. to millers<br />

Questionnaire to<br />

traders <strong>and</strong> millers<br />

Trader questionnaire<br />

Missing Analyses<br />

a) food price impact<br />

on households<br />

income, b) price<br />

transmission, c) food<br />

price policy<br />

a) food price impact<br />

on households<br />

income, b) price<br />

transmission, c)<br />

customs regulation<br />

impact on food price<br />

a) Deeper income<br />

<strong>and</strong> expenditure<br />

analysis; b)<br />

elasticity/substitution<br />

of foods<br />

Discussion points<br />

<br />

<br />

<br />

Successes<br />

• Widely accepted in most countries<br />

• Full coverage in 3 countries<br />

• Some seasonal aspects covered<br />

• Southern Africa has fluid borders<br />

Challenges<br />

• No urban coverage; Rural coverage can be limited<br />

• Costs <strong>and</strong> Time<br />

• Linking with other systems/identifying complementarities<br />

Urban opportunities<br />

• Churches <strong>and</strong> outreach programmes<br />

• Government safety nets<br />

• Health/nutrition centres (surveillance)<br />

Thank you!<br />

37


DAY 2<br />

Inter Agency <strong>Assessment</strong> Missions in the<br />

context of Soaring <strong>Food</strong> <strong>Price</strong>s<br />

Jacques de Graaf<br />

FAO/ES<br />

Brief Background<br />

Under CAADP Framework, the AU <strong>and</strong> NEPAD<br />

launched an Initiative to assist countries to<br />

address SFP through acceleration of CAADP<br />

country roundtable process.<br />

Workshop held in Pretoria (20-23 23 May)<br />

19 countries, including key institutions (CILLS,(<br />

CILLS,<br />

UKZN, REC, other CAADP Pillar Lead Institutions,<br />

CGIAR,WB,<strong>WFP</strong>,IFAD,FAO,USAID,DFID, GTZ, NORAD)<br />

Workshop led to draft country action plans<br />

<strong>and</strong> roadmaps for short, medium <strong>and</strong> long<br />

term<br />

As part of this process some inter-agency<br />

assessment missions were foreseen<br />

38


Objectives<br />

Overall Objective is to develop a Country<br />

Action Plan that will include a<br />

Government/UN Appeal for short term<br />

assistance though consultative process<br />

with all involved (AU.....etc.)<br />

Country Action Plans<br />

Several dimension included in Plans:<br />

1) Humanitarian assistance: social safety<br />

nets<br />

2) Boost agricultural production (short term<br />

leading to longer term solutions)<br />

3) Policies to respond to high food prices<br />

4) Budget adjustment (assist countries)<br />

African countries: Burkina Faso,<br />

Mauritania, Sierra Leone, Madagascar<br />

(completed)<br />

(Ongoing), Somalia, Gambia<br />

others completed: Pakistan, Cambodia,<br />

Haiti, DPRKorea)<br />

Some under discussion<br />

Some lessons learned<br />

Very important to have presence of members of<br />

all partners to ensure maximum synergy<br />

Government commitment crucial<br />

Share information with all partners of findings of<br />

missions<br />

Challenge: how to merge CAADP process with<br />

ongoing actions of e.g. IFI ?<br />

Follow up in country essential<br />

Flexible <strong>and</strong> integrated in on-going<br />

programmes<br />

Thank you!<br />

39


NEPAL<br />

Market <strong>and</strong> <strong>Price</strong><br />

<strong>Impact</strong> <strong>Assessment</strong><br />

Siemon Hollema<br />

Nepal facts<br />

• Political perspective:<br />

- Emerging after a 10 yr conflict<br />

- Weak <strong>and</strong> ineffective government structures<br />

- Serious law <strong>and</strong> order problems<br />

- UNMIN mission<br />

• Economic <strong>and</strong> Development perspective<br />

- Heavily reliance on food <strong>and</strong> oil imports<br />

- Export restrictions imposed by India<br />

- <strong>High</strong> level of chronic food insecurity (41% undernourished) <strong>and</strong><br />

poverty (31%)<br />

- <strong>High</strong> share of expenditure on food (average 59%, poorest 73%)<br />

- Recurrent national disasters<br />

- Constraints in agricultural (accessibility, underinvestment,<br />

mechanization, seed <strong>and</strong> fertilizer use, irrigation)<br />

Objectives of the analysis<br />

Market <strong>and</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Analysis</strong><br />

• To quantify the magnitude of the<br />

recent increase in food prices.<br />

• To assess the future outlook in<br />

different parts of the country<br />

• To underst<strong>and</strong> the likely impact<br />

on household food security.<br />

• To make recommendations for<br />

government <strong>and</strong> humanitarian<br />

interventions.<br />

Methodology<br />

• Primary data:<br />

- FSMAS field monitors <strong>and</strong> NDRI enumerators<br />

- Market survey: 406 retailers <strong>and</strong> 193 wholesalers<br />

- Household survey: 611 households in market catchment areas<br />

- Rapid urban survey (216 households - 10 slum households <strong>and</strong> 2 relative<br />

better off households, 90 urban traders)<br />

• Secondary data:<br />

- Department of Agriculture, FNCCI, Nepal Rastra Bank <strong>and</strong> Ministry of<br />

Finance<br />

• Geographical coverage<br />

- 40 districts<br />

- 6 urban cities (Biratnagar, Birgunj, Nepalgunj, Dhangadhi, Kathm<strong>and</strong>u <strong>and</strong><br />

Pokhara)<br />

• 6 month recall<br />

- Prior to October 2007, food price increases were marginal<br />

- Pre-harvest period for paddy (highest prices of key commodities)<br />

- India introduced the export ban<br />

Findings<br />

• Seasonal price variation normally show a 11% <strong>and</strong> 5% drop in the<br />

price of rice <strong>and</strong> wheat flour during this time of year.<br />

• More substantial increase in wholesale prices.<br />

• Change on farm gate prices between 13 to 24% for paddy.<br />

• Immediately following the survey, fuel prices were increased by 25% or<br />

more.<br />

• Indian ban has pushed up prices in Nepal.<br />

‣ Substantial further price rise expectations,<br />

especially in urban areas.<br />

Wheat flour<br />

Lentil<br />

Coarse rice<br />

Cooking oil<br />

6 % 17 % 19 % 26 %<br />

Change in real (1995/96) retail prices<br />

<strong>Impact</strong> on household food security<br />

• Household food purchasing power has declined (term of trade ↓).<br />

• Shift in consumer purchasing behaviour.<br />

• Negative relationship between consumption intake, coping intensity<br />

<strong>and</strong> price increase.<br />

• Development of a food price vulnerability index:<br />

- L<strong>and</strong> access index<br />

- <strong>Food</strong> expenditure index<br />

- Income source index<br />

• Those with already unacceptable low consumption intake were<br />

identified for immediate support (2.5 million rural <strong>and</strong> 67,000 urban)<br />

Nepal: Rural urban<br />

Significant losers 42.2 % 9.7 million 525,000<br />

Marginal losers 41.2 % 9.5 million<br />

Marginal winners 14.3 % 3.3 million<br />

Significant winners 2.3 % 0.5 million<br />

40


Rural populations most at risk<br />

Recommendations <strong>and</strong> next steps<br />

• Set-up of joint market monitoring<br />

system (MoAC, <strong>WFP</strong>, FNCCI <strong>and</strong> CIPF)<br />

• <strong>Food</strong> security phase classification at<br />

district level<br />

• Targeted food assistance to 2.5<br />

million rural poor<br />

• Introduction of emergency nutrition<br />

programme in collaboration with<br />

UNICEF<br />

• Ensuring regular petroleum supply,<br />

address road obstructions <strong>and</strong><br />

resolve transportation syndicate<br />

dispute.<br />

• Address constraints in improving<br />

agricultural production, particularly in<br />

remote areas.<br />

‘Real-time’ programming<br />

• B/R for ongoing PRRO (<strong>Food</strong> Assistance to <strong>Food</strong> Insecure <strong>and</strong><br />

Conflict Affected Populations)<br />

- Budget increases from $54 million to $104 million<br />

- Caseload from 1.25 million to 2.5 million (CP <strong>and</strong> PRRO)<br />

- Expansion of area coverage<br />

• MoAC/<strong>WFP</strong> assessment <strong>and</strong> response in drought affected areas in<br />

Far- <strong>and</strong> Mid-West (caseload 286,000)<br />

• Pilot study on the implementation of a cash/voucher system in the<br />

Terai.<br />

• Provision of improved seeds through partnership with FAO<br />

• Targeted nutrition interventions with UNICEF (plumpy nut for acute<br />

malnutrition <strong>and</strong> supplementary feeding)<br />

• Addition of pulses into the food basket<br />

Lessons learned<br />

• Review of methodologies for<br />

impact of food prices on<br />

household food security <strong>and</strong><br />

estimation of caseload.<br />

• Guidance required on<br />

geographic targeting for food<br />

price hike responses (which<br />

areas? <strong>and</strong> who?)<br />

• FSMAS invaluable for<br />

preparedness <strong>and</strong> monitoring<br />

the ongoing situation.<br />

41


Liberia Joint <strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Assessment</strong><br />

Key Findings <strong>and</strong> Lessons Learnt<br />

<strong>High</strong> <strong>Food</strong> <strong>Price</strong>s <strong>Impact</strong> <strong>Analysis</strong> Workshop,<br />

Rome, 29-31 July 2008<br />

Claudia AHPOE<br />

Background<br />

• Liberia is in a recovery phase <strong>and</strong> still<br />

volatile to political instability<br />

• <strong>Food</strong>-deficit country national<br />

production only meets about one third<br />

of the consumption requirements<br />

• 49% of imports are for food <strong>and</strong> fuel<br />

• Rice is the number one staple food,<br />

followed by cassava<br />

• 66% of rural <strong>and</strong> 52% of urban<br />

incomes are spent on food<br />

• 25% of rural <strong>and</strong> 17% of urban<br />

incomes are spent on rice<br />

• Poverty rate: 63.6% (2007) If the<br />

rice price increases by 20%, rate<br />

increases to 67.9%<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Locally produced versus imported rice<br />

58%<br />

42%<br />

44%<br />

56%<br />

92%<br />

8%<br />

99%<br />

1%<br />

National<br />

Rural<br />

Urban<br />

Monrovia<br />

Imported<br />

Locally<br />

produced<br />

• Objectives<br />

<strong>Assessment</strong> methodology<br />

– Analyze food price trends <strong>and</strong><br />

assess impact on HH food security<br />

– Identify response options<br />

• Focus of the analysis<br />

– Poor neighbourhoods in Greater<br />

Monrovia<br />

– Specific rural livelihood groups<br />

across Liberia<br />

• Timeframe<br />

– Mid June to mid July 2008<br />

• Stakeholders<br />

– Ministries of Commerce <strong>and</strong><br />

Agriculture, LISGIS, FAO, UNICEF,<br />

UNDP, <strong>WFP</strong>, ACF, Concern, DRC,<br />

GAA, SC UK<br />

• Team composition<br />

– Market specialist, VAM Officer,<br />

<strong>Food</strong>/cash/voucher expert<br />

– Representatives from MOA, LISGIS,<br />

FAO, DRC, SC UK<br />

• Methodology:<br />

– Secondary data analysis<br />

– Rapid HH survey in Greater Monrovia<br />

– Focus group discussions<br />

– Key informant interviews/group<br />

discussions<br />

– Trader interviews<br />

Key findings – Macro-level 1<br />

• Inflation is high <strong>and</strong> increasing: 13.4%<br />

in 2008<br />

• Trade balance is highly vulnerable to<br />

the price shock: It will deteriorate by<br />

16% of GDP Liberia is the single<br />

most affected economy in sub-Saharan<br />

Africa<br />

• The price for a 50 KG bag of ‘butter’<br />

rice has increased by 36% from May<br />

2007 to May 2008<br />

• Rice purchased by cup is 32% more<br />

expensive than by bag<br />

• Rice is 56% more expensive in the<br />

South-East due to high transport costs<br />

• At Nzerekoré, a 50 KG bag costs US$47<br />

compared to US$31 in Greater<br />

Monrovia (May 2008)<br />

• World market prices have not yet fully<br />

passed through to the consumer<br />

Key findings – Macro-level 2<br />

• An estimated 50,000 MT of butter<br />

rice is in stock bought at 490<br />

US$/MT FOB able to supply the<br />

market until mid Sep 2008<br />

• The current FOB price for the main<br />

used exporter is 800 – 825<br />

US$/MT FOB<br />

• 80,000MT of Chinese butter rice<br />

has been earmarked by the<br />

Chinese Government for Liberia at<br />

a reduced rate of 615 US$/MT<br />

FOB<br />

60.00<br />

50.00<br />

40.00<br />

30.00<br />

20.00<br />

10.00<br />

0.00<br />

26.05<br />

Nominal price development <strong>and</strong> projections<br />

(US$ per 50KG bag in Monrovia)<br />

28.31<br />

27.42 28.23 27.42<br />

31.61<br />

38.70<br />

Dec'07<br />

Jan'08<br />

Feb'08<br />

Mar'08<br />

Apr'08<br />

May'08<br />

Chinese negotiated price<br />

50.90<br />

Global market price<br />

Key findings – Micro-level 1<br />

• Absolute per capita<br />

cash expenditures<br />

have increased by<br />

about one-third<br />

compared to<br />

December 2006<br />

• Almost all<br />

households reported<br />

an increase in<br />

expenditure – mainly<br />

on food <strong>and</strong> fuel<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

6% 2%<br />

91% 96%<br />

Total<br />

Expenditure 2008 compared to 2007<br />

<strong>Food</strong><br />

8%<br />

90%<br />

Transport<br />

9% 12% 9%<br />

23%<br />

25%<br />

59%<br />

68%<br />

Education<br />

Expenditure<br />

64%<br />

Health<br />

31%<br />

Housing<br />

Decrease<br />

No<br />

change<br />

Increase<br />

42


Key findings – Micro-level 2<br />

• Households spend more on transport <strong>and</strong> basic<br />

food commodities <strong>and</strong> less on higher quality food<br />

commodities, health, education <strong>and</strong> housing<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

-60%<br />

86%<br />

% Change in Key <strong>Food</strong> Expenditure (2007-2008)<br />

75%<br />

59%<br />

54%<br />

50%<br />

Fish Oil Rice Pulses Cassava Eggs Veg &<br />

fruit<br />

-16%<br />

-29%<br />

Other<br />

meat<br />

-40%<br />

Bush<br />

meat<br />

-55%<br />

140%<br />

120%<br />

100%<br />

80%<br />

60%<br />

40%<br />

20%<br />

0%<br />

-20%<br />

-40%<br />

-60%<br />

% Change in Key Non-<strong>Food</strong> Expenditure (2007-2008)<br />

113%<br />

Transport Education Health Housing<br />

-11%<br />

-18%<br />

-33%<br />

Key findings – Micro-level 3<br />

• Based on a food<br />

consumption/dietary<br />

diversity analysis, the<br />

proportion of households<br />

with poor or borderline<br />

consumption has increased<br />

• Households consume<br />

slightly more staple<br />

commodities but less<br />

protein sources, fruits,<br />

vegetables <strong>and</strong> oil<br />

0.5<br />

0.3<br />

0.1<br />

-0.1<br />

-0.3<br />

-0.5<br />

-0.7<br />

-0.9<br />

-1.1<br />

-1.3<br />

-1.5<br />

Greens<br />

Rice<br />

Bulgur<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

<strong>Food</strong> consumption groups<br />

64%<br />

20%<br />

13%<br />

4%<br />

40%<br />

30%<br />

23%<br />

8%<br />

Dec 2006 Jun 2008<br />

Change (number of days eaten)<br />

Cassava/tubers<br />

Vegetables<br />

Beans, peas, lentils<br />

Fish<br />

Fruits<br />

Oil, fats<br />

White flour/bread<br />

Sugar<br />

Bush meat<br />

Good<br />

Fairly good<br />

Borderline<br />

Poor<br />

Other meat<br />

Eggs<br />

Key findings – Micro-level 4<br />

• Households with fewer<br />

sources of income<br />

• Households with<br />

debts/loans<br />

• Households with low<br />

asset ownership<br />

• Consume fewer meals<br />

per day<br />

• Skip days without eating<br />

• Purchase food on credit<br />

Lessons, gaps <strong>and</strong> recommendations<br />

Data collection, tools, expertise, coordination<br />

• Good baseline very important, ideal is a functioning FSMS<br />

• For “quantification” of impact, HH survey using r<strong>and</strong>om sampling most appropriate<br />

• Focus group discussion useful to assess general trends, perceptions <strong>and</strong><br />

mitigation strategies<br />

• Combination of VAM, market specialist <strong>and</strong> programme expert was successful<br />

• Partnership with Gov, UN <strong>and</strong> NGO partners key for coordinated response<br />

Response analysis<br />

• SWOT analysis <strong>and</strong> stakeholder validation workshop highly recommended<br />

• More guidance on intra-urban targeting<br />

• Chronically food insecure versus population more vulnerable to price shocks<br />

More/different analytical tools<br />

• Tools identified/st<strong>and</strong>ardized to “project” likely future impact of increasing prices<br />

• ToT analysis to be improved (“contextualization”)<br />

• Focus group discussion guide to be improved based on lessons learned<br />

43


Likely impact on Ug<strong>and</strong>an<br />

households of rising global food<br />

prices<br />

Dipayan Bhattacharyya<br />

1<br />

Total Population<br />

Population Growth<br />

rate<br />

Poverty Headcount<br />

P(1): Country Fact sheet<br />

3.4%<br />

Per capita GDP at<br />

Market <strong>Price</strong>s<br />

GDP growth rate at 9%<br />

current market<br />

prices<br />

Per capita GDP 5.5%<br />

growth rate at<br />

current market<br />

prices<br />

Contribution of 21%<br />

agriculture to GDP<br />

at market prices<br />

Inflation rate<br />

29.6 million<br />

Rural–32.4%<br />

Urban–13.7%<br />

UGX 21,000<br />

(USD 13)<br />

12.4% (food<br />

15 4%)<br />

• Surplus producer of maize; primary importer of<br />

rice <strong>and</strong> wheat; exporter of maize in the region<br />

• Main staples – Matoke (plantains), maize,<br />

cassava, sorghum <strong>and</strong> beans<br />

• Rice <strong>and</strong> breads are mainly consumed in urban<br />

areas<br />

LIVELIHOOD ZONES OF UGANDA<br />

N<br />

0 50 Kilometers<br />

LEGEND<br />

Fishing<br />

Maize-Pineapple<br />

Fishing-Tourism Maize-Gnuts<br />

Fishing-Salt Extraction Tea-Livestock<br />

Tea-Annual Crops<br />

Fishing Cassava<br />

Livestock<br />

Tobacco-Coffee<br />

Sorghum-Livestock Tobacco-Sugarcane<br />

Cassava-Livestock Tobacco-Cassava<br />

Maize-Livestock Horticultural<br />

Millet-Livestock Sugarcane<br />

Livestock-Rice Crop Production<br />

Livestock-Banana Mixed Farming<br />

Pastoral<br />

Arabica-Coffee<br />

Banana-Coffee<br />

Cotton-Simsim<br />

Banana-Annuals<br />

Banana-Maize The <strong>High</strong>l<strong>and</strong> Plateau<br />

Cassava-Coffee<br />

Protected Areas<br />

Cassava-Livestock-Cereal<br />

Pulses-Cassava Urban/Peri-urban<br />

Root Crop<br />

Rice-Millet<br />

Rice-Tobacco<br />

Rice-cotton<br />

2<br />

Sorghum-Pigeon peas<br />

Potato-sorghum<br />

P(2): Objectives of the analysis<br />

• Triggers - reports in the media, traders defaulting <strong>WFP</strong> tenders <strong>and</strong><br />

asking for higher prices An interagency team was formed that<br />

recommended that expressed the need for an assessment.<br />

The assessment has three objectives<br />

• Analyze current food prices in Ug<strong>and</strong>a <strong>and</strong> the future outlook<br />

• Assess the current <strong>and</strong> foreseen impact of high market prices on<br />

food security <strong>and</strong> welfare at the household level<br />

• Consider immediate, mid-term, <strong>and</strong> long-term response options to<br />

any negative impacts of rising global food prices on household<br />

welfare <strong>and</strong> food security<br />

The study was mainly national analysis of secondary<br />

data with some ground-truthing from HH <strong>and</strong> market<br />

surveys<br />

Time period – 1.5 months; Budget – USD25,000<br />

3<br />

P(3): Overview of the analysis<br />

• IFPRI led the study with support from <strong>WFP</strong>, FAO<br />

<strong>and</strong> UNICEF.<br />

• Governments participation was limited to one<br />

formal meeting, key informant interviews, data<br />

analysis (PMA secretariat worked with IFPRI)<br />

• Core research team was led by <strong>Food</strong> Security<br />

Analyst, with support from market specialist <strong>and</strong><br />

statistical analyst.<br />

• Data used – Ug<strong>and</strong>a National Household Survey<br />

2006, price data (Monthly-2000-08; weekly<br />

2007-08); Market Survey (traders interviews at 7<br />

regional markets); HH survey (in Northern<br />

Ug<strong>and</strong>a IDP areas)<br />

4<br />

EF(1): Determinants of high food<br />

prices, food availability<br />

• Rising global food prices should not directly affect<br />

access of Ug<strong>and</strong>an households to most important<br />

staples or significantly alter consumption<br />

patterns.<br />

– Should not see sustained, general significant food<br />

price rises in Ug<strong>and</strong>a.<br />

– However since January 2008, there has been a sharp<br />

upturn in prices, most notably for bean <strong>and</strong> maize<br />

– Ug<strong>and</strong>a is isolated from most global food markets.<br />

• Regional market more important than global market.<br />

• Several key staples for Ug<strong>and</strong>a are only traded locally.<br />

– Government does not need to act now to enhance<br />

access to food for Ug<strong>and</strong>an households.<br />

5<br />

• Karamoja <strong>and</strong> IDP population are important exceptions.<br />

• Adopt an alert wait <strong>and</strong> see stance<br />

EF(1): Why rising food prices in<br />

Ug<strong>and</strong>a<br />

• Rising fuel costs.<br />

– <strong>Food</strong> transport <strong>and</strong> processing costs have risen.<br />

• Kenya’s post-election turmoil.<br />

– Sharp reduction in planted area for long rains in<br />

Kenya.<br />

– Significant dem<strong>and</strong> now <strong>and</strong> expected for coming<br />

year.<br />

– Maize, in particular.<br />

• Southern Sudan <strong>and</strong> DR Congo are new<br />

sources of dem<strong>and</strong> for food from Ug<strong>and</strong>a.<br />

• Localized production problems.<br />

– Sequence of poor cropping seasons in Karamoja;<br />

6<br />

44


EF(2): Household Data <strong>Analysis</strong>:<br />

Net-buyers <strong>and</strong> net-sellers of food<br />

• Conceptually, food price rises benefit net-sellers<br />

of food; net-buyers are harmed.<br />

• Considering all foods:<br />

– Net-sellers: 16.2%<br />

– Net-buyers: 82.9%<br />

• Staples only:<br />

– Net-sellers: 29.9%<br />

– Net-buyers: 62.5%<br />

• These figures comparable to those found in other<br />

sub-Saharan African countries.<br />

7<br />

– However, need to be clear on definitional <strong>and</strong> data<br />

issues arising<br />

EF(2): Household Data <strong>Analysis</strong>: Sources of<br />

calories consumed – market or home<br />

production<br />

• Provides a different viewpoint from considering market transactions<br />

for food.<br />

– Less pessimistic with regards to food price rises.<br />

• For rural Ug<strong>and</strong>an households, access to calories primarily is<br />

through own production.<br />

– Urban households will see access to calories decline with higher prices.<br />

• Poor receive important amounts of food as in-kind transfers.<br />

Household Home<br />

grouping production<br />

National 49.2<br />

Rural 56.1<br />

Urban 11.4<br />

Poor 50.9<br />

Non-poor 48.7<br />

Purchased,<br />

consumed<br />

at home<br />

43.4<br />

37.0<br />

78.8<br />

37.7<br />

45.0<br />

Purchased,<br />

consumed<br />

elsewhere<br />

1.4<br />

0.8<br />

4.7<br />

0.3<br />

1.7<br />

Received Inkind,<br />

free<br />

6.0<br />

6.1<br />

5.1<br />

11.0<br />

4.6<br />

8<br />

EF(2): Household Data <strong>Analysis</strong>:<br />

Maize-consumers are vulnerable<br />

• Dem<strong>and</strong> from Kenya for<br />

Calories<br />

Prop. maize<br />

maize has depleted Ug<strong>and</strong>a’s<br />

from<br />

calories<br />

maize stocks.<br />

maize as<br />

from home<br />

– Stocks may recover with Population prop. all<br />

production<br />

coming harvest.<br />

group calories<br />

– However, Kenya dem<strong>and</strong> will National 16.1 36.2<br />

persist until 2009.<br />

Rural 16.3 41.0<br />

• Maize provides significant<br />

Urban 15.0 7.5<br />

share of calories for three<br />

Northern rural<br />

groups.<br />

(not IDP)<br />

8.4 42.5<br />

– <strong>WFP</strong> clients.<br />

IDP camp<br />

– Institutional populations.<br />

residents<br />

41.3 2.3<br />

• Schools, military, prisons,<br />

hospitals, etc.<br />

Karamoja 31.1 17.6<br />

– Urban poor.<br />

Poor 19.7 30.8<br />

• These groups require<br />

Urban poor 26.1 11.0 9<br />

continued & exp<strong>and</strong>ed Non-poor 15 1 38 0<br />

EF(2): EFSA Data <strong>Analysis</strong>: Net buyers <strong>and</strong><br />

net sellers of food among vulnerable HH’s<br />

• Vulnerable households<br />

surveyed in May 2008.<br />

– <strong>WFP</strong> client populations.<br />

– Asked to compare value<br />

(UShs) of food produced (not<br />

food aid) <strong>and</strong> sold in the<br />

market to value of food<br />

purchased in market, from<br />

traders, or in shops.<br />

• Largest proportion by far are<br />

net buyers.<br />

• However, higher proportion of<br />

net food sellers than seen in<br />

the general Ug<strong>and</strong>an<br />

population in 2006 Ug<strong>and</strong>a<br />

National Household Survey.<br />

– Puzzling finding.<br />

60%<br />

1%<br />

20%<br />

19%<br />

Significant net food sellers<br />

Similar levels of food sales & purchases<br />

Significant net food buyers<br />

10<br />

Did not sell or purchase<br />

EF(2): EFSA Data <strong>Analysis</strong>: Comparing food<br />

sales between 2008 <strong>and</strong> 2007<br />

• Respondents asked:<br />

– “Compared to last year at this<br />

time (March to May 2007), is<br />

the amount of food you<br />

produced (not food aid) <strong>and</strong><br />

sold this year:”<br />

• Lower sales, in spite of higher<br />

market prices for food.<br />

– May reflect poor harvest in<br />

some areas.<br />

– Or poor productivity as<br />

formerly Internally Displaced<br />

households restart their<br />

farming activities. Little<br />

marketable surplus.<br />

percent of households<br />

40<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

Much less<br />

Somewhat less<br />

About the same<br />

Somewhat more<br />

Much more<br />

11<br />

EF(2): EFSA Data <strong>Analysis</strong>: Disaggregated<br />

net-buyers & net-sellers<br />

Kitgum - food secure<br />

Kitgum - borderline<br />

Kitgum - food insecure<br />

Kitgum - Transit<br />

Kitgum - Mother<br />

Kitgum - all<br />

Gulu - food secure<br />

Gulu - borderline<br />

Gulu - food insecure<br />

Gulu - Transit<br />

Gulu - Mother<br />

Gulu - All<br />

Pader - food secure<br />

Pader - borderline<br />

Pader - food insecure<br />

Pader - Transit<br />

Pader - Mother<br />

Pader - A ll<br />

National<br />

0% 20% 40% 60% 80% 100%<br />

Significant sellers<br />

Similar levels sales & 12<br />

net food of food purchases<br />

Significant net food buyers Did not sell or purchase<br />

45


EF(3): Recommendations<br />

• Be alert. Monitor for effects on households due to secondary price rise<br />

due to high regional dem<strong>and</strong> for Ug<strong>and</strong>a’s food crops.<br />

– Exp<strong>and</strong> vulnerability monitoring to poor urban <strong>and</strong> other marketdependent<br />

households.<br />

• But no restrictions on trade in food.<br />

– Producers can realize substantial benefits by supplying regional markets.<br />

– <strong>Food</strong> security of Ug<strong>and</strong>a’s neighbors dependent to some degree on trade<br />

in food from Ug<strong>and</strong>a.<br />

– Ug<strong>and</strong>a’s provision of part of its neighbors’ food requirements unlikely to<br />

significantly affect food security of most Ug<strong>and</strong>an households.<br />

• Address key data deficiencies:<br />

– Detailed agricultural production estimates. Critical for assessment,<br />

planning. Ug<strong>and</strong>a must collect this data.<br />

– Exp<strong>and</strong> trade monitoring to more closely consider DR Congo & southern<br />

Sudan trade flows.<br />

13<br />

• Possibility of adverse effects from rising food prices highlights lack of<br />

broad social protection systems in Ug<strong>and</strong>a.<br />

R(1): Lessons <strong>and</strong><br />

recommendations for future<br />

analyses <strong>and</strong> follow-ups<br />

• More time needed for the study a primary<br />

survey should be integral part of the assessment<br />

• Ug<strong>and</strong>a EFSA tool needs improvement<br />

• For P4P need to exp<strong>and</strong> FSMS to areas<br />

beyond <strong>WFP</strong> operations<br />

• Need to sit with other agencies doing similar<br />

study (possibly with smaller geographic focus)<br />

<strong>and</strong> undertake joint response analysis<br />

• Enhancing government’s capacity to collect,<br />

analyze, predict <strong>and</strong> respond to emerging crises<br />

because of rising prices<br />

16<br />

M(1): ‘Real-time’ programming<br />

• The study partially fulfilled the<br />

expectations of the programme staff.<br />

• While contextualizing the overall situation,<br />

the report fell short of highlighting the<br />

geographic <strong>and</strong> economic priorities <strong>and</strong><br />

number of people at risk of hunger due to<br />

rising prices.<br />

• Based on the recommendation of the<br />

study the CO proposes to pilot a social<br />

protection project, targeting low-income<br />

M(2): What worked <strong>and</strong> what<br />

didn’t?<br />

• The main need was to do a rapid national analysis <strong>and</strong><br />

underst<strong>and</strong>ing the linkages of the rising prices in Ug<strong>and</strong>a<br />

with that of the global trend <strong>and</strong> also to underst<strong>and</strong> the<br />

possible impacts on households the study adequately<br />

addressed these queries<br />

• A national primary survey could not be taken up, given<br />

time constraint possibly urban vulnerability is not well<br />

captured.<br />

• EFSA complimented the study with findings from the<br />

North (only IDP areas)<br />

• The study was presented in several forum <strong>and</strong> many<br />

agencies using the report (e.g., World Bank)<br />

• <strong>Food</strong> Security <strong>and</strong> Agricultural Livelihood Cluster is<br />

mobilizing a team from agencies <strong>and</strong> government to set<br />

a minimum st<strong>and</strong>ard for price/market monitoring for<br />

14<br />

15<br />

small holder farmers. information integration.<br />

THANK YOU!<br />

17<br />

46


<strong>High</strong> <strong>Food</strong> <strong>Price</strong> <strong>Impact</strong> <strong>Analysis</strong> Workshop<br />

Rome, 29-31 July 2008<br />

Pakistan Country Facts<br />

<strong>Food</strong> Insecurity <strong>and</strong> <strong>Food</strong> <strong>Price</strong> Hikes by Province<br />

Pakistan Country Facts<br />

<strong>Food</strong> Availability<br />

UN inter-agency food crisis<br />

assessment in Pakistan<br />

Methodology, Findings, Recommendations,<br />

Lessons Learned<br />

Presented by<br />

Cheng Feng, Liliana Balbi, Wolfgang Herbinger<br />

• Increasing wheat import gap (national balance sheet)<br />

– Biggest factors: informal flows across border, substitution effect<br />

– Government underestimated import gap<br />

• Declining capacity to import<br />

• Drastic increase in inter-provincial disparities<br />

– Supply problems in western provinces<br />

Pakistan Country Facts<br />

<strong>Food</strong> Access<br />

• Increasing food poverty levels - from 23% to 28%<br />

• <strong>Food</strong> price hikes perceived as shock, particular urban areas,<br />

however most vulnerable are rural poor<br />

• Increasing regional disparities in terms of trade (wheat/wage)<br />

Pakistan Country Facts<br />

<strong>Food</strong> Utilization <strong>and</strong> Non <strong>Food</strong> Expenditures<br />

• Declining diet diversity<br />

• Declining access to health<br />

• Pressure on education<br />

= Squeezing of non-food<br />

expenditures<br />

70.0<br />

2.8 4.1 7.4<br />

5.3<br />

4.6<br />

3.0<br />

3.4<br />

Energy for cooking<br />

Electricity<br />

Health<br />

Education<br />

Transport<br />

Clothing <strong>and</strong> shoes<br />

Other non-food expenses<br />

<strong>Food</strong> Expenditure<br />

• Inter-agency:<br />

<strong>Assessment</strong> approach<br />

<strong>WFP</strong> (lead), FAO, UNICEF, WHO, UNDP, UNESCO<br />

• Objective:<br />

Assess impact of food price hikes on food security, nutrition <strong>and</strong> health<br />

<strong>and</strong> recommend response for affected population, agriculture <strong>and</strong> trade<br />

• Data collection <strong>and</strong> analysis:<br />

– Rapid survey (18 districts, 322 households, 39 traders, markets …)<br />

– Key informants, mission briefing meetings with stakeholders<br />

– Modeling of secondary data<br />

• SEE DETAILED FAO PRESENTATION<br />

47


Determinants of high food prices<br />

<strong>Impact</strong> on Household <strong>Food</strong> Access<br />

Recommended responses<br />

• Wheat prices up by 53-98 percent compared to 2007<br />

• Global market pass-through effect initially mitigated (heavy<br />

Government role in wheat market)<br />

• However policy of low domestic prices not sustainable<br />

(need to move from general subsidies to targeted safety nets)<br />

• <strong>Price</strong> shock made worse by inter-provincial export bans<br />

• Wheat price expected to rise further<br />

• Regional disparities likely to stay high<br />

(until supply situation in Afghanistan improves)<br />

• Increasing population share =28% below lowest food<br />

security poverty line 1,700kcal/day<br />

• Poor households cope by reducing food<br />

intake/diversity, less expenditure on health<br />

• <strong>Food</strong> sales <strong>and</strong> credit for retail traders fell while<br />

wholesale trade/millers profit margins increased<br />

• Most affected by price hikes are agricultural workers,<br />

petty traders <strong>and</strong> service sector employees<br />

• Protect livelihoods of most food insecure households<br />

(approx. seven million)<br />

• Cash transfers, emergency food assistance,<br />

peoples work programme<br />

• Prevent deterioration of nutritional situation <strong>and</strong><br />

educational gains<br />

• Targeted input subsidies for small farmers<br />

• Wheat procurement at competitive market prices<br />

<strong>and</strong> domestically non-restricted movement of wheat<br />

“Real-time” programming<br />

– Main findings <strong>and</strong> recommendations accepted by<br />

Government <strong>and</strong> will contribute to shape national<br />

food crisis response (wheat import plans, wheat price policy,<br />

targeting of safety net)<br />

– <strong>Assessment</strong> process triggered response planning<br />

of UN agencies <strong>and</strong> one donor<br />

ASSESSMENT – PROGRAMME RELATIONSHIP<br />

IS NOT LINEAR BUT INTER-ACTIVE AND MESSY!!!<br />

– Based on assessment findings <strong>and</strong> recommendations<br />

one major donor earkmarked funds for <strong>WFP</strong> safety<br />

net intervention<br />

What worked? What didn’t?<br />

• Methodology:<br />

– Inter-Agency <strong>Assessment</strong> enhanced credibility <strong>and</strong> attention<br />

– Mix of rapid household/market survey <strong>and</strong> modeling secondary<br />

data gave more robust <strong>and</strong> representative results<br />

– <strong>Analysis</strong> enables district level but not household targeting<br />

• Support/Partners:<br />

– HQs support providing competent mission leader was critical<br />

– Partnership with FAO allowed modeling of secondary data<br />

– Partnership with six agencies was painful but still worthwhile<br />

Lessons <strong>and</strong> recommendations for future<br />

• Data sources, sampling, collection, analysis, partners:<br />

– Access to/use of national statistics (HIES, prices) critical for<br />

secondary analysis <strong>and</strong> modeling<br />

– Trained team of enumerators enhances speed <strong>and</strong> data quality<br />

– Sensitization/engagement of stakeholders critical for ownership<br />

<strong>and</strong> acceptance of assessment … (process important!)<br />

– Still missing: tool for household targeting other than means test<br />

• Response analysis:<br />

– Most essential: Magnitude <strong>and</strong> cause of need, forecast next 6-12<br />

months, geographic area, demographic/livelihood status<br />

– Response options: take stock <strong>and</strong> evaluate existing plans,<br />

review responses nobody thought of (rare), attention to power <strong>and</strong><br />

institutional dynamics (efficiency not only criterion)<br />

• <strong>Price</strong> impact analysis:<br />

– Modeling essential for representative findings <strong>and</strong> forecasting<br />

– Rapid survey for groundtruthing/assessment of coping behaviour<br />

48


Follow-up<br />

• Monitoring:<br />

– Quarterly sentinel site based monitoring of food security/<br />

nutrition/ health/ school retention (inter-agency)<br />

– Enhanced market analysis through monitoring of rural market<br />

prices <strong>and</strong> cross-border trade (Afghanistan)<br />

– Output monitoring of planned <strong>WFP</strong>/UN agencies interventions<br />

• Next steps:<br />

– <strong>Assessment</strong> of medium- to long-term response needs with<br />

major focus on agricultural <strong>and</strong> trade policies (lead FAO)<br />

– Refinement <strong>and</strong> testing of price impact model (inclusion of a<br />

non-cereal food items, non-food expenditure?)<br />

49

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