FSNAU's Market Analysis: Market analysis and its impact on livelihoods and food security is a major component of FSNAU's monitoring and analysis activities. FSNAU continually monitors market trends as part of its early warning monitoring and combines this analysis with Baseline Livelihoods Analysis to determine the impact of market trends and changes on food and livelihood security.
Importance of Markets in Food and Livelihood Security
Markets in Somalia play a critical role in the economy affecting both the food and livelihood security of the population. Markets and trade in general have proven to be dynamic and resilient since the collapse of the Somali State in the early 1990s and are a major factor in the livelihoods of the population. Trade is both domestic and export/import oriented and is closely integrated with neighboring countries and within the greater region. Rural and urban market linkages are strong and inflows of remittances from the Diaspora abroad are substantial, ranging from 350 to 700 million USD annually. The livestock export sector is significant as Somalia is the largest single exporter of live animals in the world.
In rural areas pastoralists, agro-pastoralists and agriculturalists all depend on markets to varying degrees in gaining access to income and food. Pastoralists rely on the local and export sale of livestock and livestock products for 40-80% of their cash income and cover 30-70% of their food needs through locally and imported cereal purchases. Agro-pastoralists and agriculturalists depend on markets for the sale of their crop production, as well as for self-employment and employment.
FSNAU's Market Price Monitoring System
Since 1998, FSNAU in partnership with FEWSNET put in place a market price monitoring system to collect and analyze weekly price data on 24 commodities (cereals, other foods, livestock, energy, and labour) and two exchange rates (Somaliland and Somali Shilling) in 36 markets throughout Somalia. In addition, FSNAU regularly collects and analyzes secondary import and export data (Berbera and Bosasso Port).
FSNAU Products from Market Sector Analysis:
- The Market Data Update (FSNAU/FEWSNET) is a monthly report that presents a compilation of graphical market analysis which FSNAU produces and regularly analyzes as part of the monthly monitoring analysis
- Within FSNAU's Monthly Food Security and Nutrition Brief more in-depth market analysis is given which is integrated within other key sectors analysis, such as agriculture and livestock, as well as within a regionally focused integrated food and livelihood security analysis.
- Market analysis is an integral part of all of FSNAU's Annual Food Security Projections and seasonal technical reports (Technical Reports on FSNAU Post Gu and Deyr Analysis).
- Market Price Data for 24 commodities and Somali and Somaliland Exchange Rates in 36 major markets throughout Somalia for 1997-current. Official Port Authority Import and Export Statistics (MT) for Berbera and Bossaso Ports.