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Mapping the Market

Mapping the Market. Assessing Market Systems for & with the Poor Alison Griffith & Mike Albu Market and Livelihoods Programme 22 nd September 2005. Making market systems work for rural producers. Improving competitiveness linkages collaboration access to services

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Mapping the Market

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  1. Mapping the Market Assessing Market Systems for & with the Poor Alison Griffith & Mike Albu Market and Livelihoods Programme 22nd September 2005

  2. Making market systems work for rural producers Improving • competitiveness • linkages • collaboration • access to services • enabling environment

  3. 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

  4. Background to the Market Map 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)

  5. The Market Map (a generic schematic)

  6. Mapping the Market The case of aloe in Kenya In collaboration with Traidcraft & Kenya Gatsby Trust

  7. The Aloe Market Chain in Kenya Harvesters Boilers Traders Exporters

  8. URBAN TRADERS OTHER REGIONS BUYERS EUROPE, MIDDLE EAST & SOUTH ASIA SAP BOILERS WEST POKOT EXPORTERS AT MOMBASSA URBAN TRADER EL DORET ALOE SAP HARVESTERS WEST POKOT RE-EXPORTERS SOUTH AFRICA BROKERAGE AGENT NAIROBI Aloe Market Chain into West Pokot, Kenya THE ENABLING ENVIRONMENT DROUGHT & FAMINE RELIEF CITES TRADE RESTRICTIONS PRESIDENTIAL DECREE PREJUDICE FOREST ACT CORRUPTION IN LICENSING CONFLICT / INSECURITY LAND TENURE TECHNICAL EXTENSION ROAD TRANSPORT STORAGE & BULKING UP FUEL SAVING TECHNOLOGY PACKAGING BUSINESS SERVICES HARVESTER COORDINATION MARKET INFORMATION QUALITY CONTROL SHIPPING

  9. Using Market Mapping for stimulating collaborative action Participatory Market Chain Analysis:The steps: • Preliminary mapping • Preparing producers • Involving other stakeholders • Market Chain workshops

  10. 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

  11. Bite-size market chain analysis Harvesters Boilers Boilers Traders Traders Exporters

  12. 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

  13. 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

  14. 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

  15. 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)

  16. From Analysis… …to Action In 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.

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