Understanding the role of value chains in enhancing diets in low income setting- Diagnostic to...
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Understanding the role of value chains in enhancing diets in low-income settings
Diagnostics to support the identification, design and evaluation of interventions
Aulo Gelli and, IFPRI and Jason Donovan, ICRAF.
Based on ongoing work with Noora Aberman, Amy Margolies, Marco Santacroce.
Improving Food Security, Diets and Nutrition through Multi-sectoral Action, Lilongwe, May 2017.
Value chains and nutrition
• How to leverage market-based interventions to improve diets of low-income populations?
• Value chain (VC) framework can provide a useful lens to examine role of markets in food systems and potential to improve diets (Hawkes & Ruel, 2011, Gelli et al. 2015)
• Recognizes need to examine all stages of food chain from production to consumption
Value chains and nutrition
• However…‐ A VC is by nature commodity specific
‐ Focus in VCs to date has been on efficiency and economic returns, with little explicit focus on consumers and “nutrition”
‐ Understanding links between VCs, overall business environment, and “nutrition” is complex, very little rigorous evidence exists on these links
How can VC interventions improve nutrition?
• 3 generalised pathways through which VC interventions can influence nutrition outcomes, based on leveraging (i) demand, and (ii) supply of nutritious foods, and (iii) enhancing value chain performance
‐ Recognise that food-related nutritional impacts derive from changes in quality of overall diet, not just nutrient content of an individual food
‐ Provide a basis on which to theorize impact pathways of specific interventions in specific contexts and to collect evidence of impact
‐ Also used as a basis of a typology of value chain interventions appropriate for different contexts of supply and demand
Supply and Demand Typology
Quadrant BHigh demand & inadequate supply
Quadrant AHigh demand & adequate supply
Quadrant DLow demand & inadequate supply
Quadrant CLow demand & adequate supply
Demand(Consumption levels in target
population)
Supply(Year-round availability in
markets)
Improving the sustainability of WFP operations• WFP is seeking strategic and operational linkages between smallholder
agricultural production, private sector processors, social protection and nutrition across its programme portfolio
• In Malawi, WFP transfers targets beneficiaries across lifecycle (“demand side”): - PLW, infants and young children: Stunting prevention project (RUTFs, BCC, strengthened
health services), targeted supplementary feeding
- School age children: School meals and take-home rations
- Households: General food distribution, cash/vouchers, food for assets
• In addition, WFP provides “supply side” programming through P4P- Technical skills and inputs to selected FOs to improve farming practices and increase
production output, through supply side partners
• Programmes like HGSF link supply and demand side of WFP operations- Can these linkages be strengthened to improve the sustainability of WFP activities?
Diagnostics
• Aim: Link a set of nutrition problems of target populations to possible constraints in the supply and demand of specific foods, that can then be addressed by interventions
• 5 key objectives/steps: (building on (Timmer & Falcon., 1983) and more recently (WHO, 2013)
1. Understanding the nutrition problem2. Examining macro-level food systems context (& enabling environment )3. Characterizing diet patterns and relative contribution of different
crops/missing foods, contaminated foods, etc.4. Identify value chain constraints and opportunities related to nutrition and
food security5. Prioritising intervention options
Study setting
• Data was collected from 60 communities randomly selected among a set of food-insecure villages in Zomba district in southern Malawi
• Ongoing RCT (NEEP-IE)
Seasonality and prices
Source: WFP.
Source: FEWSNET
Baseline Follow-up
Methods
• Mixed-methods descriptive study based on two rounds of data collection
- Panel of 1200 households, including 7-day recall food consumption module
- In-depth individual interviews: 56 in-depth interviews and 27 structured direct household observations
- Market surveys in 5 main markets in Zomba district
• In-depth market study: - Structured interviews with 47 traders located in the 5 main markets, semi-
structured interviews with government agencies, businesses and traders
- Lean season only
Findings: Household nutrient availability
• Data from 7-day recall of household consumption and expenditure suggests that low-income households face important deficits in nutrient intake
Estimated nutrient availability of household food consumption (AE) / EAR, across 2 seasons, all households and for households in the lowest expenditure quintile in Malawi
Source: NEEP baseline & Immana follow-up surveys, Zomba, Malawi. (n=1,156).
0.00
0.50
1.00
1.50
2.00
2.50
Iron Zinc Vitamin A
Poorest quintile, post-harvest
All HH, post-harvest
Poorest quintile, lean season
All HH, lean season
• Food intake dominated by maize
• Food consumption per adult equivalent (AE) ~ 1 kg of food/day and to only 40% of that amount in households from the lowest expenditure quintile
Findings: Food consumption patterns across seasons
Source: NEEP baseline & Immana follow-up surveys, Zomba, Malawi. (n=1,156).
“Food is maize, but others require money”• Preferences for diverse foods: pulses, veg,
animal protein
• However, “maize first” preferences, budgetary limitations, limited and seasonal availability, hamper diverse diet
- Meat usually eaten at harvest time, and pulses are sold if cash is required
“It is in our culture...food is maize, but others require money” - Male respondent, Dual-head household, Village 6, Zomba.
Coping with the lean season• People eat less, and less preferred foods (sometimes
nutrient dense)
• Non-maize meals are not considered “food”, often used to soothe children
• Buy-as-you-go approach to filling maize needs
“It helps when you have sugar, you can make tea and kids have that with avocado...if there is cassava, you can cook for the kids and they can take it with water and cool down. If they were crying of hunger, they stop crying.” - Female respondent, Dual-headed household, Village 5, Zomba.
Contributions of foods to nutrient intake and sourcing patterns across seasons
• Although food consumption is dominated by maize, a range of more nutritious foods are being consumed, including leafy greens, fruits (avocado, mango), chicken, dried fish, dried beans and peas, and groundnuts
• Role of markets varies considerably by food and by season
Source: NEEP baseline & Immana follow-up surveys, Zomba, Malawi. (n=1,156).
Market analysis• Aim: identify the potential of markets to supply
year-round access to a selected basket of foods - Actors involved: who, products and services
provided
- Prices and availability
- Bottlenecks for increased sales and safety
• Selection of 6 chains based on analysis of food consumption patterns
• Semi-structured interviews with traders in the 5 markets in ZombaDistrict
Availability and affordability: Leafy greensAvailable during most of year, but with marked fluctuations in price
- Demand low during early months, as consumers have leafy greens growing in their garden
- Demand picks up mid-year as income improves following maize harvest and own stocks dwindle
- Demand is highest towards end of the year, with price 25-50% price increases
- Grown mainly be local farmers; those without irrigation w/ short period for for sales (Jan-April)
- Sold under full sun; limited access to fresh water for hydrating greens; no storage options
0=no sales; 1=low volume sales; 2=high volume sales; 3=lowest prices during year; 4=highest prices during year
Availability and affordability: Avocado Short window of availability, with very strong price fluctuations
- Avocados begin to appear just before the major maize harvest, when rural household would have limited resources to purchase
- Sales peak in April-May, and then collapse. Small amounts of avocado may appear after May sold by traders with access to fruits from other regions
- Prices vary from 100%-300% during the short production season
- Most sellers source from own production and from nearby farmers – highly localized
- Sellers with high transport costs; intensive competition during season; no options for storage
Availability and affordability: Live chicken
Consumption limited during most year
- Available throughout the year
- Consumers purchase more chicken following the maize harvest, from April to July
- Demand peaks in December, as households purchase chicken for end-of-year festivities
- Price roughly 75-100% greater during peak season compared to off-season
- Farmers rush to sell chickens during dry season
- Sellers constrained to increase volumes: limited supply (farmers only sale 1-2 chickens/month), high transport costs, no credit
Availability and affordability: Dried fish
Year round available, considerable price fluctuation, but low quality puts nutritional benefits at risk
- Most fish purchased from intermediaries or directly from fisherman
- Demand is lowest Feb-March, reflecting abundant fish stocks and lack of income by households.
- Following maize harvest (April) demand picks up, June - July being the peak selling period
- Prices vary markedly by season, fish type, size, availability, other factors, with prices fluctuating between 25% to 200% during the year
- High transport costs (by bike from Lake Chilwsa); traditional preservation methods (rancidity, microbial attacks); improper storage and transportation
Availability and affordability: Groundnut
Available year round, but relatively expensive, and safety concerns
- Demand grows during final quarter, as rural households have consumed most of own production and seek to purchase seed for the next year’s production
- Price varies considerably between peak and off-season (roughly 300%)
- Aflatoxin in peanuts sold in local markets and consumed by farmers (from their own production)
- Lack of knowledge and controls for addressing aflatoxin in groundnuts sold directly to consumers or consumed as own production by farmers
Biggest marketing challenge as reported by sellers (n=47)
ChallengeSellers reporting as
biggest challenge (n)
Low demand/excess supply 20
Lack of regular customers 11
Irregular demand (majority of sales at end of month)*
3
Lack of capital / limited stock 7
Low quality product (e.g. discoloured leaves due to lack of fertilizer & sale in full sun, small fish size)
3
Lack of transportation 2
Some opportunities to improve rural-urban links in food systems
• Build basic market infrastructure (H2O, shade)
• Learning platforms to enhance sale of nutritious & safe locally produced foods
• Long-term challenge of building more informed demand by consumers
• Support services for local farmers to increase production, increase safety, and extend growing season
• Support services for traders to address high costs, low volumes, and limited storage
• Implies major rethink of how agriculture interventions are designed and assessed
B) High demand and inadequate supply A) High demand and adequate supply
D) Low demand and inadequate supply C) Low demand and adequate supply
-
Demand(Consumption levels by targetPopulation)
Supply(Year-round availability in markets)
+
- +
Bean and legumes: Consumed in low volumes, increased consumption will improve diet quality.
Constraints: Production bottlenecks limit availability during periods of the year; limited incentives for traders to engage in supplying local markets
Intervention options:• Innovation in production
technologies to expand availability
• Improved coordination and other measures (e.g. storage) with traders to reduce costs
Groundnuts: Consumed throughout the year but high levels of aflatoxin contamination is a major health risk.
Constraints: Gaps in regulatory environment and quality assurance; limited capacity & weak incentives for smallholder to invest in improved production
Intervention options:• Developing & testing third-
party quality assurance• Strengthening capacity of
processors to minimize food safety concerns
Animal source foods (esp. dried fish) & leafy green vegetables : Available but consumption is low; increased consumption will improve diet quality.
Constraints: Producers and sellers with limited opportunities to expand or add value to production due to limited effective demand
Interventions options:• Subsidies/transfers for
consumption (lean season)• Support to chain actors to
reduce costs to production and trading
• Information campaigns to stimulate demand
Nutritious tree fruits: not consumed in significant amounts due to limitations on supply and demand; increased consumption will improve diet quality.
Constraints: Lack of storage and transport for perishable products, limited demand increases risk for production developments and other investments; few processors and distributors engaged in sector
Intervention options:• Information campaigns to
increase acceptability;
• Support to chain actors to
process/store to extend shelf
life
• Investments in marketing
infrastructure
• Subsidies/social transfers to
facilitate consumption when
in season (school meals)
Implications from Malawi Case Study
• Results indicate a need for a layered approach to improving diets- Food stores and spending power are highly limited in Malawi in the lean
season, so improving diets during this time should largely focus on subsidies and social transfers (for large, immediate, short term improvements)
- In harvest season, emphasis on nutrition education while in planting season, production support
- Information to optimize decision-making related to food and nutrition (short-and medium-term improvements in diets)
• Longer term interventions like improving capacity for product differentiation, processing and storage, and market infrastructure can simultaneously be addressed.
Key Take-Aways
• This diagnostic tools supports a strategic view- Find interventions that can simultaneously address various
challenges, and complementary interventions that can address different challenges depending on season, target group, etc.
• Multi-faceted descriptive work is key for determining synergies and trade-offs
• However, food systems and preferences may be highly localized, may need to repeat descriptive work in multiple areas of a particular country
Acknowledgements
• Research by the International Food Policy Research Institute (IFPRI), WFP, Save the Children, Chancellor College at the U. of Malawi and Wadonda:
• Programs implemented by WFP and Save the Children with local partner NGOs
• Research funded by:- NEEP, IMMANA
- USAID
- Gender, Agriculture and Assets Project (GAAP)
- CGIAR Research Program on Agriculture for Nutrition and Health (A4NH) led by IFPRI.
• Program and research participants
Thank you!
Dietary Change Demand & Supply
Characteristics
Consumer-related Issues Main Constraints Implications for Intervention Design
Groundnuts are consumed
throughout the year but high
levels of aflatoxin contamination is
a major health risk
(Quadrant A)
Consumers willing and able to
purchase, & high availability in
markets during all or part of
the year
Sorting and grading likely to
result in low-income
consumers exposed to foods
w/ higher levels of aflatoxin
Gaps in regulatory
environment and quality
assurance; limited capacity &
weak incentives for
smallholder to invest in
improved production
Developing & testing third-party
quality assurance; strengthening
capacity of processors to minimize
food safety concerns
Beans & legumes are consumed in
low volumes, increased
consumption will improve diet
quality
(Quadrant B)
Consumers willing to prioritize
the purchase of food when
funds are available, but
limited availability some parts
of the year
Willingness to purchase and
prioritize over other food
(except maize), consumers
with limited purchasing
capacity during peak demand
periods
Production bottlenecks limit
availability during periods of
the year; limited incentives for
traders to engage in supplying
local markets
Innovation in production
technologies to expand availability;
improved coordination and other
measures (e.g. storage) with traders
to reduce costs
Animal source foods (esp. dried
fish) / Leafy greens: Available but
consumption is low; increased
consumption will improve diet
quality
(Quadrant C)
Low consumption, despite
generally high degree of
availability in local markets
Preferred foods but low
willingness to pay due to
insufficient budget /
nutritious wild foods, seen as
coping foods, not preferred
Producers and sellers with
limited opportunities to
expand or add value to
production due to limited
effective demand
Subsidies/social transfers to
facilitate consumption in critical
periods (e.g. lean season); support
to chain actors to reduce costs to
production and trading; Information
campaigns to increase acceptability
Nutritious fruits (e.g. mangoes and
avocados) are not consumed in
significant amounts throughout
the year due to limitations on both
supply and demand side; increased
consumption will improve diet
quality
(Quadrant D)
Low consumption; not
typically purchased due to
budget constraints and not
preferred; highly seasonal
availability
Low willingness to pay for
fruits, with preferences
towards consumption of
staples, fruits relatively
expensive during off-peak
seasons, adding further
deterrence to year round
consumption
Lack of storage and transport
facilities for highly perishable
products, limited demand
increases risk for production
developments and other
investments; few processors
and distributors engaged in
sector
Information campaigns to increase
acceptability; support to chain
actors to process or store to extend
shelf life; investments in local
marketing infrastructure;
Subsidies/social transfers to
facilitate consumption when in
season (school meals)