RAPID MARKET ANALYSIS TOOL KIT FOR FRUIT, VEGETABLES … 2008/Nutraion/FAO... · RAPID MARKET...

RAPID MARKET ANALYSIS

TOOL KIT FOR FRUIT, VEGETABLES AND FOOD PROCESSING (RMAFVP) IN LOCAL AND REGIONAL

MARKETS IN AFGHANISTAN

FIELD LEVEL GUIDE / ENGLISH (Draft / Revised Sept 08)

Holly A Ritchie

2

Contents

Introduction and Overview of Tool Kit .............................................................................. 3

Stage 1 Preparation Phase: Planning for the RMAFVP .............................................. 7

Stage 2 Research Phase: Information and Data Gathering ................................... 15

TOOL 1: Key informant interviews for RMAFVP....................................................... 16

TOOL 2: Market Observation for RMAFVP................................................................ 23

TOOL 3: Focus Groups for RMAFVP ......................................................................... 27

TOOL 4: Group Ranking for RMAFVP....................................................................... 31

Stage 3 Consolidation Phase: Summarising the Research ........................................ 33

Next Steps…!.................................................................................................................... 38

Useful Resources .............................................................................................................. 39

Appendix 1: Comparison between Market Research Approaches ........................... 40

Appendix 2: Local Consumer Survey....................................................................... 41

Rapid Market Analysis / Guide for Using Tools 3

RAPID MARKET ANALYSIS TOOL FOR FRUIT, VEGETABLES AND FOOD PROCESSING:

Introduction and Overview of Tool Kit Why carry out market research Markets are critical to rural producers. Factors that influence how markets operate, including access to information, supply / demand, market institutions, support markets1 and linkages have a powerful influence on the participation and earnings of rural producers. Market research can provide insights into all of these areas, which then can be integrated into appropriate project design. Improving producer participation in markets can contribute to:

• Poverty reduction – as producers have increased access to markets and improved prices.

• Empowerment and self-reliance – as producer incomes are increased leading to less dependence on external assistance.

• Pro-poor economic growth – as significant numbers of small-scale producers increase their incomes.

Information that can be collected The following types of information can be collected:

• Product-specific information e.g. production, quality, post harvest handling and processing, seasonality

• Local market information e.g. prices, supply, demand • Relationships between market players e.g. between different producers, and

between producers and traders • Business support services available e.g. technical support, credit, transport • NGO / government services • Enabling environment e.g. institutions,

Overall research goal for RMAFVP To inform the design of sustainable and appropriate fruit / vegetable production, processing and marketing projects that can raise incomes, and improve livelihoods.

1 Support markets: The providers and users of inputs, technology, finance and business services for a particular value chain. ‘Support Service Providers’ include a firm or institution that provides support services to enterprises / value chain players.


Research objective for RMAFVP To identify appropriate fruit, vegetable and food processing products that can be produced locally by small-scale producers, and sold on local and regional markets. Research outputs for RMAFVP Outputs from RMAFVP include:

• Production and marketing information on pre-selected products • Local services available (NGO and business e.g. credit) • Indicators of market constraints for pre-selected products • Indicators of market opportunities for pre-selected products • Potential sectors / areas for further research

Background on tool kit / limitations This ‘simple’ rapid market analysis tool kit is designed to collect basic information on pre-selected fruit, vegetables and food processing commodities produced by small-scale producers that can be marketed locally / regionally in rural and urban areas in Afghanistan. The research generated should be considered ‘entry point market research’ only for fruit, vegetable and food processing products. It is not a comprehensive assessment of all marketing constraints and opportunities for these commodities. The research may identify the need for additional and in-depth follow-up sectoral studies such as value chain analyses, that can take account of local, regional and national / international markets, and broader constraints and opportunities. This RMA toolkit builds off various approaches to market research, and does not seek to replace more comprehensive guides. Instead it provides a simple set of techniques that can generate a basic picture of local production, markets, constraints and opportunities. Appendix 1 provides an overview of different market research approaches. Methodology / process This simple set of tools has been designed for flexible use by local NGO field staff at a district level. It mainly comprises four different qualitative techniques that complement one another and ensure triangulation of results (information obtained from different sources can improve accuracy of overall research). The aim of this ‘step by step’ toolkit is that the research (preparation, research and write up) can be completed fairly quickly - within approximately 6 days - with a maximum of 4 staff involved. It is assumed that the NGO staff implementing the research will be familiar with the local area and have on-going relationships with communities.


Approach: Step by step The research process includes three main phases: (1) Preparational Phase, (2) Research / Information Gathering Phase, and (3) Consolidation Phase. I Preparational Phase Duration= Minimum 1 day Minimum staff required = Team leader, researcher pairs(s), senior management as necessary Location = Office meeting room Tasks: In this phase, the research team will complete the ⇒ Preparation Worksheet • Select research team members • Introduce objective • Select communities • Pre-select products • Pre-select participants • Assign research days • Understand and practice using research tools II Research / Information Gathering Phase Duration = Minimum 4 days Minimum staff required = Team leader, researcher pairs(s) Location = Communities, market place, office meeting room Tasks: In this phase, the research team will complete at least: • 3 Key Informant Group Interviews (producers) • 2 Key Informant Group Interviews (shopkeepers) • 2 Market Observations • 2 Focus Groups • 1 Ranking Group Exercise NB These may be adjusted at the local level, as appropriate. At the end of each technique, the team should endeavour to ‘summarise’ the findings: ⇒ 1 Summary Key Informant Group Interview sheet for Producers ⇒ 1 Summary Key Informant Group Interview sheet for Shopkeepers ⇒ 1 Summary Market Observation Sheet and Food Processing Cost Calculations ⇒ 1 Summary Focus Group Sheet ⇒ 1 Ranking Group Exercise Sheet N.B. The Summary Sheets are the same format as the information collection sheets for each technique, but they should include the information collected from all sources. III Consolidation Phase Duration = Minimum 1 day Minimum staff required = Team leader, researcher pairs(s), senior management as necessary Location = Office meeting room Tasks: In this phase, the research team will use the summarized technique sheets to complete: ⇒ Research Consolidation Sheet


Summary of Research: Information Required, Tools, Respondents

What do we need to know Who do we speak to / observe How Toolkit Reference

Product-specific information e.g. production / supply, quality, production costs, post harvest handling and processing, seasonality, marketing

Farmers Shopkeepers

Key Local Individuals

Key informant interview A Key informant interview B

Market observation Food Processing Costs

Focus Group Group Ranking

Tool 1 A and B Tool 2 Tool 3 Tool 4

Local market information e.g. prices, supply, demand, opportunities

Farmers Shopkeepers


Key informant interview B Market observation

Focus Groups Group Ranking

Tool 1 B Tool 2 Tool 3 Tool 4

Linkages between market players e.g. between different producers, and between producers and traders

Farmers Shopkeepers


Key informant interview A Market Observation

Focus Groups

Tool 1 A Tool 2 Tool 3

Business support services available e.g. technical support (e.g. extension), credit, transport

Farmers Shopkeepers


Key informant interview B Market Observation

Tool 1 B Tool 2

NGO / government services

Farmers Shopkeepers


Key informant interview A Key informant interview B

Tool 1 A and B

Rapid Market Analysis / Preparational Phase 7

Stage 1 Preparation Phase:

Planning for the RMAFVP


Preparational Phase for RMAFVP

Worksheet Guide

Objective To prepare the research team for the research phase including understanding research objectives and tasks, drafting schedule, identifying respondents and practicing techniques. Duration Minimum 1 day Staff required Team leader, researcher pairs(s), senior management as necessary Tasks In this phase, the team will complete the Preparation Phase Worksheet, which covers the following: • Selection of research team members • Introduction to research objective • Pre-selection of Products • Selection of communities • Pre-selection of participants • Assignment of research days • Understanding and Practicing using research tools Tips! • Work participatively and use flip charts to jointly discuss. • Fill worksheet electronically after session, and give a copy to each of the team. • Seek management support if required – NGO teams looking at several districts

may want to bring together district teams with senior manager supervision to complete this task.


RAPID MARKET ANALYSIS TOOL FOR FRUIT, VEGETABLES AND FOOD PROCESSING:

Preparational Phase Worksheet

To be filled out by the Research Team Leader (yellow parts). District name:………………………………………….. 1. Research team selection Teams should comprise pairs of researchers that include a local agriculturalist. The Team Leader should have previous experience with research / evaluations and basic knowledge on conducting interviews, and participating in PRA exercises. Ideally they should have also participated in the FAO training. The research team should split into subteams (pairs) - for example subteam A and subteam B - as illustrated below: Name Agency Position Research position

1. Team Leader / Researcher Team A

2. Researcher Team A

3. Researcher Team B

4. Researcher Team B

N.B. In the case of multiple districts, NGO teams should be flexible. Where possible, it is advised that researcher pairs cover more than one district to enhance data consistency. Note on gender: if you are planning to work with women, and need to interview women in the survey, ensure that you include women researchers. Similarly, it may be difficult for women to interview male informants. You may choose to have a women’s team and a men’s team.


2. Pre-selection of Fruit, Vegetables or Food Processing Products The teams should identify approximately 6-8 potential products – vegetables, fruit and food processing products - for pre-assessment according to the below criteria, and then pre-select a maximum of 4 products for the research that gain high scores (Note: if possible select one processed product in final selection). The criteria for pre-selection comprise common indicators used for subsector selection in market development projects, and key factors that are important to food security and livelihoods projects. NB. If products have already been researched in previous / recent market studies, they can be discarded.

Criterion Rating / 1=low – 4=high Potential Product Potential for

increase in rural incomes (considering cost of production) Score double

Unmet regional market demand

Capacity for local production (and key inputs are available)

Capacity for replacing foreign products

Participation of women

Good nutritional value

Product is supported by other projects and synergy with these projects is possible

NGO has the capacity to support production

Total score

1

2

3

4

5

6

7

8

* Potential for increase in incomes must be assessed extremely carefully: costs of production must be considered versus potential sales price!

Rapid Market Analysis / Preparation Phase 11

Selected products for research (4 maximum): Product A. Product B. Product C. Product D. 3. Mapping of district and community selection The research team should sketch a rough map of the district outlining:

• Communities • Main roads • Resources • Markets • Production areas

The team should identify 4 communities for involvement in the research that produce selected products. These should be located in different areas of the district. The team should also identify the main district market or nearest market centre (should have more than 2 shops), which can be located outside the district. 4. Selection of research participants The selection of good respondents is imperative to obtaining useful information. The team should consider speaking with respondents that they are familiar with, or consulting with key local personnel that can recommend good participants. The team should familiarize themselves with the participant list overleaf, and start to identify where to locate these participants. Respondent Characteristics Min. number

required Farmers Existing male / female small-scale producers

with fruit / vegetable gardens (max.1-2 jeribs) from the selected communities. These producers should already be selling their produce on the market, and where possible involved in processing.

14

Shopkeepers Fruit / vegetable merchants in the local market 5


Individuals involved with agriculture and trade e.g. NGO staff, government, trader

3

Note on gender: If your project is planning on working with women, it is essential that you interview both men and women. It is advised to organize separate focus groups with women. When doing so, ensure that male community members are informed prior to the focus group.


The following sheet should be filled out by the research team and used during the research.

Total List of Participants for Research

Tool # Participants

Who Name / Location Researcher Pair

Key informant interview I ~3 Farmer Group 1. 2. 3.

A


A


A

Key informant interview II ~3 Shopkeeper Group 1. 2. 3.

B

Key informant interview II ~3 Shopkeeper Group 1. 2. 3.

B

Market observation N/A (Traders / buyers) A and B

Focus Group 1 6-8 Farmers Group 1. 2. 3. 4. 5. 6. 7. 8.

A

Focus Group 2 6-8 Farmers Group 1. 2. 3. 4. 5. 6. 7. 8.

A


Ranking Group 1 6-8 Shopkeepers / Key Local Individual

Group 1. 2. 3. 4. 5. 6. 7. 8.

B

THE TEAM SHOULD GIVE EACH PARTICIPANT ONE-DAY’S NOTICE OF THE TIME, PLACE AND OBJECTIVE OF THE INTERVIEW.


5. Research Agenda The research team should familiarize themselves with the agenda and assign consecutive days for the research. The following agenda format is suggested, but can be adjusted according to the distance between the research sites and location of selected participants. Day Activity Phase

Day 1…………………. Preparation I Preparation

Day 2…………………. Key informant interviews (min. 5) Summarise Key Informant Interviews

Day 3…………………. Market observation (min. 2) Summarise Market Observation

Day 4………………….

Day 5………………….

Focus Groups (min. 2) Ranking (min. 1) Summarise Focus Groups

II Research

Day 6…………………. Final Consolidation III Consolidation

6. Research techniques: Overview and Tips The team leader should go through each of the research techniques with their team. Immediately before each technique is then used in practice, the team leader should again refresh his / her team.

15

Stage 2 Research Phase: Information and Data Gathering

Rapid Market Analysis / Tool 1 / Key Informant Interview 16

TOOL 1: Key Informant Group interviews for RMAFVP Tool Guide

Objective • To understand local production activities and food processing of pre-selected

products, and marketing. • To obtain basic information about the market e.g. prices, supply, demand; constraints

and opportunities; and local services. Duration Minimum 1 day Staff required Team leader, researcher pair(s) Tasks As pre-prepared in the Preparation Sheet, in this phase, the team will complete the following: ⇒ 3 Key Informant Interview A (Producers) ⇒ 2 Key Informant Interview B (Shopkeepers / Key Local Individuals) ⇒ Summary of Key Informant Interview A* ⇒ Summary of Key Informant Interview B* * Management can assist with this prior to the Consolidation Phase if necessary. Key Informant Interview A

Key Informant Interview B What Semi structured interview with individual respondents Duration ~1 hour Information gathered Basic information can be gathered about:

- Markets, services market constraints and opportunities Type of Participant Shopkeepers, Key local individuals Who involved For each: 2 team members (an interviewer and recorder) Resources Key Informant Worksheet B # Interviews Minimum 2

What Semi structured interview with individual respondents Duration ~ 1 hour Information gathered Basic information can be gathered about:

- Production, marketing, collective capacity - Market constraints and opportunities

Type of Participant Producers Who involved For each: 2 team members (an interviewer and recorder) Resources Key Informant Worksheet A # Interviews Minimum 3

Rapid Market Analysis / Tool 1 / Key Informant Interview 17

Tips! • Practice the questions with the team to become familiar with the content • Schedule the interview when / where convenient for the participant • Introduce research team (interviewer and recorder) • Explain general research objective: “We are conducting some market research into

fruit, vegetables and food processing for local marketing” • Ask your questions clearly • Be relaxed and listen • Follow the questions but take note of additional comments • Always ask for examples: yes / no answers are NOT SUFFICIENT • Thank the participant for their time • Jointly discuss interview afterwards to fill in gaps • Summarise each set of interviews with key information

Rapid Market Analysis / Tool 1 / Key Informant Interview A 18

RAPID MARKET ANALYSIS TOOL FOR FRUIT, VEGETABLES & FOOD PROCESSING

TOOL 1A: Key Informant Group Interview Understanding Producer Activities in District with Producers

Date:……………………..District:……………….. Community:…………………. Name / job / contact:…………………….. Name / job / contact:…………………….. Name / job / contact:……………………..

Interviewer:……………………. Recorder:…………………………..

1. Producer activities

A. What is the current production of selected products of the typical small-scale producer? ’

Product What is the average

yearly production of a producer (tonne)?

Which locations in the district are major producing areas?

Where are the required inputs for production obtained?

What is the cost of inputs required? (1=low -4=high )

How much labour is required? (1=low-4=high)

Which season are the products available?

A

B

C

D

(Fill the grey box with the 4 pre-selected products) NB INPUTS = ingredients required to produce the product.


B. How are the products marketed?

Product How much does a typical small-scale producer sell each year?

Which market is it sold on and at what price? (Afs /kg)

How is the product prepared or packaged?

A

B

C

D

2. Collective producer capacity and support – FOR PRODUCTS DISCUSSED

A. How many small-scale producers are there in the average community?–

B. Are there producer groups in your area? If yes, describe the type and their activities.

C. In your area, can women join or form producer groups? If not, why not?

D. What support do NGOs provide local producers?

3. Constraints and opportunities – FOR PRODUCTS DISCUSSED


A. Describe the main constraints facing small scale producers

e.g. Lack of organisation, transport to market, connection with traders, market information, packaging, security, credit

B. Which of the products could be produced or scaled up, and sold locally / regionally?

Other comments:

Rapid Market Analysis / Tool 1 / Key Informant Interview B 21


TOOL 1b: Key Informant Group Interview Understanding Local Markets and Marketing with Shopkeepers (or Traders)

Date:………………..District:……………….. Location: Name / job / contact:…………………….. Name / job / contact:…………………….. Name / job / contact:……………………..

Interviewer:……………… Recorder:……………….. 1. Local and regional market

A. What is the market demand for selected products (locally produced and non-locally produced)?

Product Where are they produced?

What is the quality of these products? (1=low-4=high)

Which season are they available?

What is the demand for these products in local and regional markets? (1=low-4=high)

Who do you buy the produce from?

What is the average price you pay? (Afs /kg)

What is the average price you sell in the shops? (Afs /kg)

A

B

C

D

(Fill the grey box with the 4 pre-selected products)

Rapid Market Analysis / Tool 1 / Key Informant Interview B 22

B. Which of the products discussed are most in demand in local and regional markets?

C. Which business services (e.g. credit, communication, transport, BDS, packaging) are present in the area? And who provides these?

2. Constraints and opportunities – FOR PRODUCTS DISCUSSED

A. What are the main constraints facing local shopkeepers / traders (e.g. supply / demand problems, services)?

B. What are the main threats (e.g. environmental, security) to the market? And to what extent do they affect the market (High / low)?

C. Which of the products could be scaled up and sold locally? Is there local / regional consumer demand?

3. Other organisations and institutions – FOR PRODUCTS DISCUSSED

A. Are there local business partners in the area that could work with producer groups and / or shopkeepers? e.g. processing units. other producer groups, packaging agencies or donor funded groups?

B. Which NGOs / government agencies are operational in the area? What support do they provide for enterprise development?

Other comments:

Rapid Market Analysis / Tool 2 / Market Observation 23

TOOL 2: Market Observation for RMAFVP Tool Guide

Objective To gather information from the local or regional market places on market situation, produce available (quantity and quality), demand and prices, and services in local area Duration Minimum 1 day Staff required Team leader, researcher pair(s), management support if required Tasks As pre-prepared in the Preparation Sheet, in this phase, the team will complete the following:

⇒ 2 Market Observation exercises ⇒ Summary of Market Observation* ⇒ Completion of Food Processing Costings Sheets (as relevant)*

* Management can assist with this prior to the Consolidation Phase if necessary. What Observation in the local market place Duration 1-2 hours Information gathered Basic information can be gathered about:

Market situation, produce available (quantity and quality), demand and prices, services in local area and NGOs

Type of Participant (Market buyers and sellers) Who involved For each market trip: 2 team members # Market observations 2 trips Tips! • Read through the sheet to become familiar with information to be collected • Pre-fill the inputs as discussed with the team • Schedule the trip when the market is busy • Note the situation of the market • Do not get involved in transactions • If you take notes in the shop, ask the shopkeeper if this is ok • Try to visit different shops to get a good overall picture of vegetables and food processing products sold, and their quantity and quality • Jointly discuss the trip afterwards to complete the sheet • Summarise the trips with key information • Complete food processing costs with management support



TOOL 2: Market Observation Sheet Observing the Local Market: Buying / Selling, and Services

Date:………………………..District:……………….. Market Location:………………….

Researcher 1:……………… Researcher 2……………….. 1. Describe conditions / size of local market

2. Describe selected products Product Describe quantity on

market Specify if local / non-local (1=low…4=high)

Is it locally or non-locally produced, or both?

What is the price on the market? (Afs /kg) Specify if local / non-local

What is the quality of the product? Specify if local / non-local (1=low…4=high)*

What sort of packaging is used? Specify if local / non-local

A

B

C

D

(Fill the grey box with the 4 pre-selected products) * You can assess the quality of the product by looking at the appearance (colour, cleanliness), expiry date, quality of packaging (seal / label) etc


3. Describe costs of inputs for food-processed items in research

Key Inputs e.g. sugar, vinegar, fuel, salt, produce

Availability in local market – Yes / No Price in local market

(Fill the grey box with appropriate resources required to make the processed products in the investigation)

4. Describe local business services available e.g. credit, packaging, processing, storage, transport

Other comments……….


Food Processing Costings (seek assistance to complete!) Following the market observation, the local teams will need to calculate local food processing production costs for each of the RESEARCH PRODUCTS that are PROCESSED. Excel sheets are supplied for:

• Jams • Pickles • Dried Products • Potato crisp

The teams will need to fill the orange shaded parts, which can calculate the total cost of production, and market profit (in green). NB

• Calculate the labour, ingredients, fuel, equipment and packaging required for a fixed quantity of processed product (e.g. 1 kg, or 10kg, or 100kg batch).

• When comparing the production costs and selling prices, make sure that you are comparing them for the same unit (e.g. Afs / kg, or Afs/ 500g).

Analysing Local Food Processing Production Costs for Jams(Costs are in Afs)

Labour cost Produce Sugar cost Fuel cost Equipment Packaging

1kg of Processed product

labour required

(hrs) Cost / Hr*Total labour

cost

Amount of produce

required (kg) Mkt Cost / kg

Total produce

cost

Amount of Sugar

required Cost / kgTotal sugar

cost

Amount of fuel

required Cost / litreTotal fuel

cost

Estimated Equipment

Cost

Estimated Packaging

CostTotal

production costActual current market price

Actual market profit

E.g. Carrot Jam 30 10 10 10 10 10 10 60 66 110.00%30 0 0 0 0 0 #DIV/0!30 0 0 0 0 0 #DIV/0!30 0 0 0 0 0 #DIV/0!30 0 0 0 0 0 #DIV/0!30 0 0 0 0 0 #DIV/0!30 0 0 0 0 0 #DIV/0!

* This is the typical approximate price paid for unskilled labour in rural Afghanistan in 2008.


TOOL 3: Focus Groups for RMAFVP Tool Guide

Objective To gather information on local production, processing, and marketing; and opportunities and constraints for small-scale producers. Duration Minimum 1 day Staff required Team leader, researcher pair(s) Tasks As pre-prepared in the Preparation Sheet, in this phase, the team will complete the following: ⇒ 2 Focus Groups ⇒ Summary Sheet of Focus Groups* * Management can assist with this prior to the Consolidation Phase if necessary.

What Group discussion with producers Duration ~2 hours Information gathered Basic information can be gathered about:

Current activities with selected products Marketing constraints and Opportunities

Type of Participant Producers Who involved For each: 2 team members (a facilitator and recorder) Resources Flip chart with questions, pens, note pad, refreshments # Focus Groups 2 groups (8 participant each) Tips! • Practice focus groups and become familiar with main questions and examples • Choose a good team member to facilitate, and the other to record • Schedule the focus group when / where convenient for participants - offer transport if

held in the office (particularly for women) • Introduce research team (interviewer and recorder) • Explain general research objective: “We are conducting some market research into

fruit, vegetables and food processing for local marketing” • Explain questions in focus group, and ask each of your questions clearly • Facilitate carefully / try to get each member of the group to contribute • Use local language • Use a flip chart with the BOLDED QUESTIONS to record information. • Sum up at end and thank the participants for their time • Jointly discuss the focus group afterwards to add any additional information • Summarise the focus groups with key information

Rapid Market Analysis / Tool 3 / Focus Group 29


TOOL 3: Focus Groups Assessing Current Activities, Constraints and Opportunities with Producers

Date:………………..District:……………….. Location: 1 Name:…………………………….Job:……………Contacts:…………… 5 Name:………………………………… Job:………………………Contacts:……… 2 Name:………………….. ……….Job:…………… Contacts:…………… 6 Name:………………………………….Job:………………………Contacts:……… 3 Name:……………………………Job:…………… Contacts:…………… 7 Name:………………………………….Job:………………………Contacts:……… 4 Name:……………………………Job:…………… Contacts:…………… 8 Name:………………………………….Job:………………………Contacts:………

Facilitator…………………… Recorder:……………….. 1. What is the scale of local production of the research products in your district (tonnes per year), and where are the key production areas? (Research Product A………, B………, C………., D………)

2. Which of these do you currently sell on the market, and how? e.g. Which of the products are sold locally / regionally? Do producers work together for certain products?

Rapid Market Analysis / Tool 3 / Focus Group 30

3. What is the level of demand / potential demand on the local and regional market, and why? e.g. Are some products more in demand than others because of quality, price, reputation?

4. What are the major marketing constraints? e.g. Are products difficult to take to market or suffer from spoilage? Are products too expensive, or poor quality? Do producers have difficulty accessing transport, and inputs?

5. What potential market / selling opportunities are there for the products in local or regional markets? e.g. Is there new demand on market for some of the products? Can working together help? Are business partners / services available?

Comments

Rapid Market Analysis / Tool 4 / Ranking 31

TOOL 4: Group Ranking for RMAFVP

Tool Guide Objective To gather information on locally selected products only on: quantity, quality, demand, availability of inputs and profitability. Duration Minimum 0.5 day Staff required 1 pair of researchers Tasks As pre-prepared in the Preparation Sheet, in this phase, the team will complete the following: ⇒ 1 Ranking Group What Ranking exercise with shopkeepers / key local individuals Duration 1 hour Information gathered Information can be obtained on availability, profitability, quality,

quantity, demand of selected products

Type of Participant Shopkeepers, key local individuals Who involved Each ranking exercise requires 2 team members: a facilitator and

recorder Resources Flip chart with grid, pens, note pad, refreshments # Ranking exercises 1 group (6-8 participants) Tips! • Practice using the grid with the team and become familiar with the key questions • Choose a good team member to facilitate, and the other to record • Schedule the ranking exercise when / where convenient for the participants • Introduce research team (facilitator and recorder) • Explain general research objective “We are conducting some market research into

fruit, vegetables and food processing for local marketing” • Explain questions on grid, and ask each of your questions clearly • Facilitate carefully / try to get each member of the group to contribute • Use the grid overleaf to record information on a flipchart • Add any recommendations at the bottom of the grid • Sum up at end and thank the participants for their time • Jointly discuss the exercise afterwards to add any additional information

Rapid Market Analysis / Tool 4 / Ranking 32


TOOL 4: Group Ranking Assessing Local Products Only with Shopkeepers and Key Local Individuals

Date:………………..District:……………….. Location: 1 Name:…………………………….Job:……………Contacts:…………… 5 Name:………………………………… Job:………………………Contacts:………………. 2 Name:………………….. ……….Job:…………… Contacts:……………6 Name:………………………………….Job:………………………Contacts:……………….. 3 Name:……………………………Job:…………… Contacts:…………… 7 Name:………………………………….Job:………………………Contacts:………………. 4 Name:……………………………Job:…………… Contacts:…………… 8 Name:………………………………….Job:………………………Contacts:……………….

Facilitator:……………… Recorder:………………..

*Use O= very low (in red), and + =medium low, ++ = medium high, +++=high (in green) Recommendations…… NB You can assess the quality of the product by looking at the appearance (colour, cleanliness), expiry date, quality of packaging (seal / label) etc)

Product What quantity is produced locally (tonnes / year)?

What is the quality of local products?*

What is the demand of the local product on local / regional market?*

What is the availability of inputs?*

What is the profit of the local product for the shopkeeper?*

A

B

C

D

Rapid Market Analysis / Research Consolidation Sheet 33

Stage 3 Consolidation Phase:

Summarising the Research


Consolidation Phase for RMFVP

Worksheet Guide

Objective To consolidate key points obtained in the rapid market research. Duration Minimum 1 day Staff required Team leader, researchers (plus senior manager as necessary) Tasks In this phase, the team will complete the Consolidation Phase Worksheet, which covers the following: • Pre-selected local product information • Main market constraints and opportunities • General market / service information in district

Tips! • Try to gather key points in the market research. • Work participatively and use a flip chart. • Fill worksheet electronically after session. • Create a file and keep the Summary Technique forms and Food Processing Costings

for further / detailed information. • Seek management support if required – NGO teams looking at several districts may

want to bring together district teams with senior manager supervision to complete this task.



Research Consolidation Worksheet Date…………………………Province………………………..…District:………………..Total # Research participants: ………………… 1. Pre-selected Local Product Information

Product Local Supply

1=low…4-high

Quality

1=low…4-high

Local/regional Demand

1=low…4-high

Availability of Inputs

1=low…4-high

Production Costs

1=low…4-high

Labour

1=low…4-high

Price sold by farmers

Price on bazaar

Profitability

1=low…4-high

A

B

C

D

Use the following to fill this sheet: Key Informant Summary Sheet A, Key Informant Summary Sheet B, Market Observation Summary Sheet, Ranking Group


2. Constraints and Opportunities of Products

Product Specific Constraint Specific Opportunity Areas for further possible research

A

B

C

D

Use the following to fill this sheet: Key Informant Summary Sheet A, Key Informant Summary Sheet B, Focus Group

Summary Sheet


3. General market / organisation information in district Location of Producers

Existence of Producer Organisations

Local market constraints

Local market opportunities

Availability of business services

Availability of NGO services

Use the following to fill this sheet: Key Informant Summary Sheet A, Key Informant Summary Sheet B, Market Observation Summary Sheet, Focus Group Summary Sheet

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Next Steps…! Use of Research in Projects The research can be used to support different pre-selected products in the respective districts: ⇒ Increasing / Improving Production, Processing and Packaging ⇒ Strengthening and Facilitating Establishment of Producer Organisations ⇒ Improving Local and Regional Marketing Further Research The research can also be used as a springboard for further research including sector-specific research using value chain analysis techniques, and consumer demand surveys (see sample in Appendix 2). Modules and Training To begin to develop NGO staff (and client group) skills in understanding markets and marketing, the following trainings can be pursued: • Why is marketing important • Supply and Demand • Market Drivers and Trends • Understanding the Market Context for Small-scale Producers • Calculating Market and Production Costs • Value Chain Analysis

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Useful Resources

• Clients First: A Rapid Market Appraisal Toolkit, Helvetas, 2004 • SEED: Rapid Market Appraisal ILO • Producer Organisations: A Guide to Developing Collective Rural Enterprise, Oxfam

2007 • A Market Facilitator’s Guide for Agro-Enterprise Development, Kaganzi et al, CIAT • Farm Planning and Management for Trainers of Extension Workers, South East Asia,

FAO 2006 • Market Research for Agro-Processors - Marketing Extension Guide 3, A.Shepherd,

FAO • Understanding and Using Market Information, A.Shepherd, FAO • Value Chain Research Toolkit MEDA, (Draft) 2006, MEDA

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Appendix 1: Comparison between Market Research Approaches

Market Research / Traditional Approach

Value Chain Market Research

Rapid Market Analysis

When 1970s – 2000s 2003- 1990s

Focus Product specific, and multi products

Single pre-selected products Multiple Agri-products

Type Highly quantitative Highly qualitative with basic quantitative information

Highly qualitative with basic quantitative information

Assessment level

Depends on scale of survey Detailed examination of selected value chain at different levels

Preliminary / basic assessment of different products

Recommended tools

Surveys Questionnaires

Range of qualitative tools: • Key informant interviews • In-depth interviews • Market observation • Focus groups • Stakeholder meetings

Range of qualitative tools: • Key informant interviews • Market observation • Focus groups • Ranking • Mapping

Results Heavily data focused leading to: Detailed information on market sectors, demand, supply but frequently superficial understanding of market context / constraints / opportunities in under-developed environments. Absence of rationale for key market player behaviour Absence of clear entry points for commercially viable interventions / business opportunities

Less data focused and more qualitative in nature leading to: In-depth understanding of status quo in given context Clear value chain constraints identified at local level with local market players Detailed information on local market player behaviour Provides opportunity for jointly identifying realistic and practical ‘solutions’ from ‘constraints’, and developing commercially viable interventions Gives information on small enterprises Recommended approach for underdeveloped value chains

Mostly qualitative: Basic understanding of status quo in given context Indicative value chain constraints identified at local level with local market players Basic information on local market player behaviour Provides some understanding of market constraints, and possible opportunities

Potential follow up research

As appropriate Value Chain Analysis at Broader Levels Consumer Surveys

Value Chain Analysis Consumer Surveys

Other comments

Previously used by all development practitioners as ‘research’ was understood to be heavily numerical in nature.

Developed by Value Chain Research Community and Small Enterprise Development practioners following emergence of PRA.

Toolkits are varied and choice of tool depends on local situation / competency of teams.

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Appendix 2: Local Consumer Survey (Derived from Market Research for Agroprocessors, Andrew Shepherd, FAO) This could be done at the district or provincial level, as appropriate. It may be more relevant once potential products / constraints / opportunities have been identified at the end of the RMAFVP. For the purpose of this example, we assume that the agroprocessor is thinking of producing cherry jam.

1. Good morning. I work for a company (or organisation) that makes jams. Could I ask you some questions about what you think about jams?

2. Do you or your family eat jam?

.........Yes ……..No

3. Could you tell me what types of jam you have had in your home in the last 12 months? …….Cherry jam …….Apple jam …… Apricot jam ……..Other

4. Who are the main consumers of jam in your home? ..........Adults ……..Children

5. Approximately how many jars of jam have people in your home bought in the last 12

months? ……More than 20 …….Between 11 and 20 …… Between 6 and 10 ……..Between 3 and 5 ……..1 or 2

6. What size of jam do you normally buy? (show different sizes to person being interviewed)

………………………………………………………………………………

7. Does your family buy jams all through the year or only on special occasions?

………………………………………………………………………………

8. Of the jams purchased, can you remember approximately how many were cherry jam? ………………………………………………………………………………

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9. Can you remember the brand of cherry jam your family usually purchases? (Give them examples to help jog their memory) ………………………………………………………………………………

10. From the words on this line, how would you rate the quality and taste of that brand of cherry jam? Excellent Very good Good Ok Poor

………… ………….. …….. ……. ……… 11. What are the two main reasons that you buy that brand rather than a different one?

…… It’s the only one in the shops …….The price is right …… My family prefer this brand ……..It spreads well ……..I like the label ……..It has the best taste ……..Other

12. What do you think about the colour of the cherry jam presently in the shops?

Too bright About right Too dull ………… ………….. …….. 13. What do you think about the sweetness of these jams?

Too sweet About right Not sweet enough ………… ………….. …….. 14. What do you think about the thickness of these jams?

Too thick About right Too thin ………… ………….. …….. 15. If most of the jam your family buys is not cherry jam, what is the reason for this?

……..My family prefers other jams ……..The cherry jam in the shops is not very good ……..Other

16. If a new brand of cherry jam was available in the shops, do you think you would try it?

.........Yes ……..No ……..Perhaps

17. At which shop do you buy most of your jams? ……………………………………………………………………………

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18. What are the reasons why you shop there?

…… It is near our home or work ……..The prices are good ……..It is a nice place to shop ……..It has a good selection ……..Other

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