LRP Market Monitoring Training

Local and Regional Procurement

2. Global Framework Overview

Motivation for Framework Develop a common analytical framework, with

universal indicators, to enable comparisons across USDA LRP pilot projects (CRS and other NGOs; different modalities)

Develop analytical framework to enable comparisons with other forms of food aid assistance (e.g. transoceanic food aid)

Create common database to manage data across projects

Provide an in-depth and robust evaluation of USDA pilot projects to advocate for continued (and increased) resources for LRP, if appropriate

Influence US policy on food aid and local procurement

NGO LRP Learning AllianceCRS, World Vision, ACDI/VOCA, Mercy Corps and

Land O’ Lakes  Technical lead by Cornell University (USA) to develop

the common analytical framework for data collection and management and to lead the policy analysis component of the process

Contract with Esoko (Ghana) to develop common database for LRP Learning Alliance members

Regional training in Burkina Faso for Benin, Burkina Faso, Mali and Niger, 25-29th October (CRS)

Regional training in Istanbul, 8-10 November (Mercy Corps, ACDI/VOCA)

Regional training in Uganda, 15-18 November (World Vision, ACDI/VOCA)

Global Workshop in Haiti on development impact of LRP in July 2011 (ACDI/VOCA) - tbc

Evaluation TopicsHistoric supply, demand and price

movementsDo no harmReasonable market rateTimelinessProduct quality and safetyCost Recipient food security statusGovernment interferenceProducer price stimulusSupplier behavioral changeVolumesSustainabilityFood production shocksTopics in bold are required by USDA; additional topics are added for in-depth analysis

in certain countries

IndicatorsAll USDA required indicators are covered in the

FrameworkAdditional indicators are added for in-depth

analysis in select projectsNot all indicators are appropriate for each

modality; the Framework specifies which indicators need to be collected for each modality

Indicators are collected at different frequencies:Monthly, biweekly, or weekly (prices)Pre-procurementPost-procurementPost-distributionAs needed

Indicators –Price MonitoringHistoric prices (secondary data)Retail prices (secondary and primary data)

Global markets (CU)National marketsRegional marketsSource marketsRecipient marketsCounterfactual markets

Wholesale prices (secondary and primary data)

Global markets (CU)National marketsRegional marketsSource marketsRecipient marketsCounterfactual markets

Market Types for analysis

Market Type Limited competitive procurement

Competitive procurement, noncompetitive procurement, vouchers and cash

National or central markets in source country

5 5

National or central markets in recipient country

5 5

Sample of source markets

≤ 5 None

Sample of recipient markets

≤ 5 ≤ 5

Counterfactuals for source markets

≤ 5 None

Counterfactuals for recipient markets

≤ 5 ≤ 5

Indicators – One-off, Pre-procurement

Approximate volumes traded in source markets (can be taken from food balance sheets for source regions)

Planned volumes (as reported in proposal)Planned costs (as reported in proposal)

Indicators – Post-procurementProcurement priceNumber of competitive bidsActual volumes procuredVolume of lots rejectedDollar value of procurement from

smallholdersMetric tonnage of procurement from

smallholdersCertification of product quality and safetyNutritional standardsNutrient specific composition tables (with

CU)

Indicators – Post-distributionFinal actual costs (all costs related to

procurement, commodities, transport, storage, treatment)

Actual ground transport costsChange in food security of targeted

populationActual number of vouchers distributedVoucher useNumber of beneficiaries targetedNumber of beneficiaries reached

Indicators – Commodity trackingTime from agreement with donor to

tenderTime from tender to procurementTime from procurement to possession

by NGO in-countryTime from possession of commodities to

beneficiary distributionTime from agreement with donor to

possession (vouchers)Time from possession to beneficiary

distribution (vouchers)

Indicators – Transoceanic food aidFinal actual costs (all costs related to

procurement, commodities, transport, storage, treatment)

Time from donor to call forwardTime from call forward to possession by

granteeTime from possession to beneficiary

distribution

Indicators – Collected as neededGovernment interference in markets (may

include):Import restrictionsPrice ceilings on food itemsGrain reservesTaxes along the market chainExport bansExport ban in neighboring countryImport ban in neighboring countrySupport prices for producersSubsidies to input imports

Indicators – In-depth analysis (CU)Recipient acceptance/quality perceptionProduct quality and safety standardsTrader experience:

Access to/ need for commercial financeCapital equipment investmentsUse of modern inputsEmployment effectsTrader satisfaction/ ease of participation