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Somalia

Market Systems Resilience Assessment Report: Milk, Cowpeas, Leafy Greens - Baidoa, Somalia - April 2023

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Executive Summary

This report looks at the market systems resilience of three market systems in Baidoa, Somali; namely milk, cowpeas, and leafy greens. These three markets were selected based on a mapping exercise of locally-available nutritious food. The assessment ran from April 5-20, 2023.

Building on market systems development (MSD) approaches, this assessment uses a Market Systems Resilience (MSR) lens to gain insights on the capacity of the three market systems to absorb, adapt, or transform in the face of multiple shocks and stresses. It does this by interrogating eight MSR domains (four structural, four behavioral): Connectivity, Diversity, Power Dynamics, Rule of Law, Cooperation, Competition, Decision-Making, and Business Strategy. In addition, two resource related elements have been included in the analysis— access to finance and market infrastructure—to form a clearer picture of the resilience capacity of these markets.

Three key messages from the assessment are:

Connectivity among market actors is very high across all three market systems. Market actors communicate freely both horizontally (e.g. farmer to farmer) and vertically (e.g. farmer to trader). Trust is based on culture and religion. Somalis find dignity in being helpful, hospitable and charitable to others with everything (money, food, time, personal connections, etc.).

Hence, strong relationships are viewed as an important element of business and trust is high between many market actors. This finding is important because it is possible that markets can be used as a mechanism for early action in response to specific shocks or to encourage innovation and behavior change. Some of the mentioned effects of drought include devastated crop production which also made it near impossible for herders to find fodder for their animals. This led to reduced milk volumes in the market and increased prices due to demand that outstrips supply. As producers (who are also consumers) lose their livelihoods to drought, coupled with the high food prices in the market, they can barely afford to purchase food.

Cowpea traders mentioned good connectivity as a survival support factor. This is because they would be able to get supplies from distant markets e.g. in Ethiopia and Kenya, even during periods of drought.

While the drought was the most frequently cited shock, volatile prices and lack of storage (as appropriate to each market system) are also having a negative impact on market systems. The need to improve market infrastructure ( e.g. designated market stalls & shades, sanitation amenities, storage/cold facilities in Hanano, Bukriyey, Dugandug village markets, access roads, etc) across all market systems (and/or provide the financing to allow market actors to do this) is clear, and addressing these issues at multiple levels has the potential to improve food security and contribute to stabilizing prices.

There is a need and an appetite for diversification of food products. Competition is not strong enough to naturally bring out innovation and, given the multiple shocks of drought and conflict, market actors do not have the resources to invest. But supporting diversification (increased processing, drought-resistant crops) would improve market resilience significantly.