Mapping the MarketAssessing Market Systems for & with the Poor

Alison Griffith & Mike Albu Market and Livelihoods Programme22nd September 2005

Making market systems work for rural producers

Improving competitiveness linkages collaboration access to services enabling

environment

The Market Map approach to assessment & intervention

Market literacy – a key capability The Market Map framework for communicating complex information for stimulating coordination for catalysing action

Practical Action drew on several tools, approaches and experiences:

Sub-sector analysis Sustainable Livelihoods framework

approach Value Chain Analysis Integrated Agro-enterprise Project

methodology (CIAT)

Background to the Market Map

The Market Map (a generic schematic)

The case of aloe in Kenya

In collaboration with Traidcraft & Kenya Gatsby Trust

Mapping the Market

The Aloe Market Chain in Kenya

Harvesters

Boilers

Traders

Exporters

ALOE SAP

HARVESTERS

WEST POKOT

SAP

BOILERS

WEST

POKOT

URBAN TRADER

EL DORET

URBAN TRADERS

OTHER REGIONS

EXPORTERS AT

MOMBASSA

BROKERAGE AGENT NAIROBI

RE-

EXPORTERS

SOUTH

AFRICA

BUYERS

EUROPE,

MIDDLE

EAST &

SOUTH

ASIA

Aloe Market Chain into West Pokot, Kenya

DROUGHT & FAMINE RELIEF

PREJUDICE

CONFLICT / INSECURITY

LAND TENURE

CITES TRADE RESTRICTIONS

PRESIDENTIAL DECREE

CORRUPTION IN LICENSING

FOREST ACT

HARVESTER COORDINATION

QUALITY CONTROL

PACKAGINGSTORAGE & BULKING UP

ROAD TRANSPORT

FUEL SAVING

TECHNOLOGY

TECHNICAL EXTENSION

SHIPPINGMARKET

INFORMATION

BUSINESS SERVICES

THE ENABLING ENVIRONMENT

Using Market Mapping for stimulating collaborative action

Participatory Market Chain Analysis:The steps:

Preliminary mapping Preparing producers Involving other stakeholders Market Chain workshops

1. Building trust and coordination in the aloe market chain

Tackling misconceptions Dealing with imbalances of power Managing expectations Addressing uncertainty and secrecy Coping with physical distances

Bite-size market chain analysis

Harvesters Boilers

Boilers Traders

Traders Exporters

2. Assessing service needs of aloe market chain actors

Identifying new services that would be valued in the market chain

Advice on sustainable harvesting Verification of sustainable sources Sap extraction technology Energy efficient processing

3. Tackling issues in the Aloe business environment

Trade restrictions are a key issue for the entire chain

Proof of sustainable harvesting of aloe (the “hook” for PMCA)

Bringing producers’ voices into the national aloe working group

What we achieved so far….

Credibility as a facilitator in the aloe market system

Increased market literacy of remote, resource-poor pastoralist communities

Dialogue between disparate market chain actors

Stronger articulation of demand for services

Producers voices influencing a key policy issue, trade restriction

Oops! What we would do differently Introduce the producers to the ideas and

contacts more gradually Not allow the PMCA workshop focus to be

diluted by too many issues and stakeholders.

Ensure project team have sufficient knowledge and skills capacity

Move to practical action sooner e.g. services to boilers (sap processors)

From Analysis… …to ActionIn market assessment, it can be difficult to decide how much information is enough….

Market Mapping is a rapid, low-cost tool for generating sufficient relevant knowledge

By linking market mapping to participatory processes, PMCA creates market literacy, strengthens relationships and encourages coordination

This creates the context and opportunity for tackling business environment constraints and developing services that make the market system work better for poor producers.