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Somalia

Somalia - Joint Markets and Supply Chain Update: 09 July - 15 July 2023

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KEY HIGHLIGHTS

Prices: Overall, compared to a week ago, prices of both food and non-food items exhibited mixed trends except in Galmudug, Somaliland, and Jubaland where prices remained relatively stable.

Local cereal prices remained stable in most regions except in Southwest, Hishabelle and Puntland where the prices increased (1-8%) due to slight decline in supply as commodity flow between Mogadishu to Southwest was disrupted. Prices of imported food commodities (rice, wheat flour, pasta, sugar, and vegetable oil) also remained relatively stable across the country except some increases (1-3%) in Hirshabelle (mainly in Beletweyne) and Southwest (mainly Baidoa) states as a result of decline of supply resulting from road blockage. Rice price moderately increased (13%) in Mogadishu due to insufficient stock. Notably, vegetable oil price declined in Puntland (4%) and Southwest (5%) compared to a week ago following the global price reductions. Local quality goat price remained relatively stable in most states except in Puntland and Southwest where the price mildly declined (3%).

Compared to a week ago, camel milk price exhibited increases in Southwest (2%) and Puntland (5%) but declined in Hirshabelle (2%) and Mogadishu (5%) due to seasonal increases in milk availability. Price of fuel (diesel) remained relatively stable in most states compared to previous week except in Southwest where the price increased (6%) due to decrease in supply attributable to stock movement disruption due to restricted service delivery. Labor wage rates remained relatively stable in all states.

Availability: In general, sufficient stocks existed to meet demand for days to weeks. However, unavailability of a few essential commodities and fuel was reported in Southwest, especially in Baidoa town due to road transportation sanctions imposed by insurgents. Also in Xarardheere, Baraawe, Cadale and Laasqoray towns, there continued to be stockouts and shortages for rice, wheat flour, camel milk and camel meat, which resulted quite modest price changes compared to last week. The seasonal monsoon continues to impact coastal communities stocks, preventing small boats from easily docking in some ports.

Assortment: With the exception of Southwest, where insurgents obstructed the flow of goods, assortment remained strong in the majority of markets.
Quality: There were no major quality issues observed during the reporting period.

Logistics: For major and minor corridors, there was consistent movement. All ports are open, although some small vessels that bring food (and other goods) up and down the coast are hindered by strong winds. The border opening is still postponed, after Kenya cited increased insecurity and slowed the process. Overall, roads remain passable. The main road leading to Baidoa was closed for food and other commercial goods for a week now due to insurgents, while roads through Laas Caanood continue to experience restricted flows resulting from the social conflict.

Resilience: Most shops enjoyed regular flows through their supply chains. But, in two markets (mainly in Puntland and Southwest) traders continue anticipating a rise in sugar prices, because they project facing constricted supplies.

IMPLICATIONS ON FOOD SECURITY

  • The economic food access of the vulnerable households in Puntland and Hirshabelle may decrease following the price increases reported for local cereals besides likely fuel price spikes.

  • Market-dependent households in the Southwest may face difficulties in accessing food commodities due to the sanctions in the main towns which may result in price increases as the supplies are limited with stockout anticipated.