Understanding the role of value chains in enhancing diets in - - PowerPoint PPT Presentation

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 Noora Aberman, IFPRI. Based on ongoing work with Jason Donovan, Amy Margolies, Marco Santacroce, and others… IMMANA webinar, May 2017.

Agenda

• Rationale
• Recap: Conceptual framework, pathways and typology for interventions
• Improving the sustainability of WFP programmes
• Diagnostics
• Objectives
• Methods
• Results
• Discussion
• Conclusions

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
• f markets in food systems and potential to improve diets (Hawkes & Ruel,

2011, Gelli et al. 2015)

• 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

• f 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

Food value chain C

Food environment

Food availability Food affordability Food acceptability Nutrient density Food safety risk Under/over-consumption Changing food consumption

Nutrition and health status

Food consumed from own production Food from purchases Food from safety net transfers

Food value chain B Food value chain A

Demand Supply

Food production Target Group  Age, gender, etc.  Location  Income, nutrition & health status  Nutritional knowledge and practices  Number

Income Quality of Diet

Sales and profits Value Chain Characteristics

• Structure
• Capabilities of value chain actors
• Linkages & governance structures
• Nature and magnitude of constraints
• Access to resources

Value Chain Capacity & Incentives Product, Market & Institutional Context  Credence issues  Perishability  Level & modes of market competition  Information access & asymmetries  Level & nature of regulatory systems  Costs of entry & exit  Level & nature of market dynamics Income to consumption Production to consumption

Legend

Food environment as the interface between supply and demand

• 5 properties of the food environment

provide link between quality of diets and value chain performance

• 1. Food availability
• 2. Food affordability
• 3. Food acceptability
• 4. Nutrient content
• 5. Food safety risk

Food value chain C

Value Chain Characteristics

• Structure
• Capabilities of value chain actors
• Linkages & governance structures
• Nature and magnitude of constraints
• Access to resources

Value Chain Capacity & Incentives Product, Market & Institutional Context  Credence issues  Perishability  Level & modes of market competition  Information access & asymmetries  Level & nature of regulatory systems  Costs of entry & exit  Level & nature of market dynamics

Identifying, designing and evaluating interventions to tackle constraints in value chains

• Range of possible interventions to tackle

constraints in VC is very broad

• Use a typology based on demand and supply

profile to characterise food environment context and examine VC constraints

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 target Population)

Supply

(Year-round availability in markets)

+

• +

Bean and legumes Steady increase in demand not followed by supply side investments; problems related to low production capacity, inefficient aggregation and other post- harvest processes. Intervention options:

• Innovation in production

technologies

• Innovation in the

formulation of inputs for production (and improved access to inputs)

• Organization of producers to

supply higher volumes

• Facilitation for the

expansion of market outlets Dairy & meat products Existing ample base of suppliers. Potential problems may relate to high costs, inconsistent quality, limited attention to food safety

• etc. or overconsumption of

unhealthy foods. Intervention options:

• Improved business and

regulatory environment (food safety)

• Upgrades in technologies
• Improved mechanisms for

coordination between chain actors

• Taxation of unhealthy foods

Locally grown vegetables Consumption is not prioritized by local consumers; potential problems related to limited awareness of health benefits, costs, competition from unhealthy snacks. Interventions options:

• Social marketing to

stimulate demand

• Adjustments in the

regulatory framework

• Subsidies for

consumption

• Support for marketing by

retailers

• Public purchasing

programs Nutritious tree fruits Low diversity of offer, strong seasonality effects, inadequate shortage and marketing facilities, or bio-fortified crops, with good nutritional qualities, but with limited production for markets, coupled with limited awareness of health benefits and overall low demand (relative to other food types). Intervention options:

• Building capacities for

primary production

• Producer organization
• Social marketing to

stimulate demand

• Subsidies for consumption
• Incentives for risk taking by

processers and retailers

Improving the sustainability of WFP

• perations
• 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 problem
• 2. 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 security

• 5. Prioritising intervention options

Country context

• Malawi is a low-income food-deficit country, with high rates
• f child stunting (37% in 2015), low rate of wasting (3%) (DHS

2015-16)

• 8% of children 6-23 months have minimum

acceptable diets (DHS 2015-16)

• 36% of children anemic (greater among poor and

rural populations); 33% of women aged 15-49 years are anemic

• Malaria is endemic (33% of children under 5, DHS-MIS, 2014)
• HIV prevalence is high (9% in 15-49 year olds, peaking at 20% for

women 15-19 years and at 21% for men aged 50-54 years)

• Recurrent severe seasonal food shortages

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

Seasonality and prices during study period

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).

On metrics: How efficiently can market provide diet-based “nutrient bundles”?

• Combine HH survey with market surveys to calculate nutrient content of dietary

bundles divided by prices of dietary bundles during post-harvest and lean seasons

• Use nutrient index based on “nutrient value score” (based on % RDAs)

Work in progress with Joanne Arsenault

Market analysis

• Aim: Provide insights on the role of informal markets in Zomba to

deliver year-round access to safe and nutritious food to rural households

• 5 main markets in Zomba

district

• Semi-structured interviews

with traders and other VC actors

• Focused on 6 chains based on analysis of food consumption patterns

Market sellers interviewed in market in and around Zomba, Malawi

Availability and affordability of nutritious foods

• Leafy greens:
• Demand low during early months,

mainly because rural households tend to have leafy greens growing in their garden

• Demand picks up mid-year as

income improves following maize harvest and stocks from own garden dwindle

• Sellers who are also growers

(without irrigation) have small window in which to sell the greens (January-April)

• Demand is greatest towards end of

the year. Price increases between 25-50% during periods of peak demand.

0=no sales; 1=low volume sales; 2=high volume sales; 3=lowest prices during year; 4=highest prices during year

Fruits

• Avocado
• Sales are marked by strong seasonality and large

variation in price. For most of the year there is little avocado on market. 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

Animal source foods

• Dried fish:
• Available year round; however, fish harvests generally decline during the

hottest months of the year

• Most fish are purchased from intermediaries or directly from fisherman in

Lake Malawi and Lake Chilwa

• Demand is lowest February-March, reflecting abundant fish stocks and lack
• f income by rural households. Following the maize harvest in April demand

picks us, with the months of June and 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

• Live chicken
• Available throughout the year by local traders
• Demand is limited during most of the year. Rural households tend to

purchase more chicken following the maize harvest, from April to July. Demand peaks in December, as rural households purchase chicken for end-

• f-year festivities
• Price roughly 75-100% greater during peak season compared to off-season

Legumes

• Dried beans and peas:
• Available throughout the year, demand peaking in months

following maize harvest and at end of year

• Traders purchase beans following harvest and store them, or

purchase them from traders in central region or in Mozambique

• Prices for red beans vary about 25-50% during the year
• Groundnut:
• Available during most of year. 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%)

Overview of food chains and value addition

Chain Chain reach Actors involved Inputs, services utilized by chain actors Level of processing Leafy greens Localized: surrounding villages Producers, market traders None None Avocado Localized: surrounding villages Producers, market traders None None Live chicken Localized: surrounding villages Producers, market traders None None Dried fish Regional: Shores of Lake Malawi and Lake Chilwa Fishermen, local and regional traders None Drying Beans and peas Regional: sourced from throughout the country Producers, traders (large and small scale) Transportation, storage Drying Groundnuts Regional: sourced from throughout the country Producers, processors (conventional and niche markets), traders (small and large scale) Storage, marketing, aflatoxin control High, processed peanut based products for national market

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

Ch Challe lenge Selle ellers rep eporting as big igges est ch chall llenge (n (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

Other challenges

• Inadequate market infrastructure:
• Lack of clean water and toilets; lack of

infrastructure for storage and selling; and weak coordination among sellers/producers.

• Limited evidence of product

differentiation based on origin, quality,

• r other attributes

Greens being sold under full sun not under covered shed

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

• f 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)

Lean Season: No purchasing power

• Households are highly constrained in the lean season
• Little room to maneuver in diets, constrained buying power -> “pull”
• Likely that BCC won’t be highly effective
• However, some lean season interventions have potential
• Promote underutilized foods in large-scale lean season interventions

to address the pull and the push

• For instance, supply avocado for school meals and/or vouchers for

purchasing leafy greens, provided along with MVAC

Outside the lean season: Information and enhanced supply

• Financial constraints are loosened, so some more room to influence

food consumption patterns

• Promote behavior change to increase acceptability and

consumption of underutilized foods

• Provision of inputs for nutritious foods that aren’t typically preferred (bio-

fortified foods, drought tolerant foods, local “wild” foods) along with education about benefits and preparation

• Extend the time period for which leafy greens are available into

the months when people can afford them

• Inputs (seeds) for hearty leafy greens, plus simple irrigation approaches

(in areas where there is a nearby water source)

Some evidence from 2 interventions

• Effects of lean season food transfers on food security, diets and nutrition status of

young children in Zomba district in Malawi (quasi-experiment PSM/DID)

• Food transfers increased calories and nutrient consumption at household level, and increased

dietary diversity of young children

• Effect on diets driven by consumption of milk and dairy, oils and fats
• Effects concentrated in poor households
• Impact of agriculture-nutrition training and input provision on diets, food security

and production (RCT)

• Provision of inputs (seeds/vines) of nutritious foods and training improved household

production diversity and children’s dietary diversity

• As expected, effects driven by increase in planting of legumes (beans) and roots and tubers

(orange fleshed sweet potato)

• Unexpectedly, effect of ag-intervention on dietary diversity for children 36-72months
• ccurred before nutrition trainings had started, driven by consumption of fruits

Different seasons call for different support

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

1) lean season food transfers to smoothen consumption and protect vulnerable households from seasonal price spikes (quadrant C), and of 2) ag-nutrition inputs and training to promote longer term investment shaping supply of (and demand for) nutritious foods (quadrant B)

• A strategy for interventions could be framed around enhancing

consumption in low-income households of basket of nutritious foods

• Objectives could be framed around interventions/constraint in specific food chains
• Factor in seasonality components explicitly
• Includes roles for public and private sectors

Important questions remain…

• What are the costs of the strategy/interventions…?
• Are impacts sustained?
• Spoiler alert

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! Now we would like your thoughts and inputs…