Trade and Market Bulletin

Transcription

1 Trade and Market Bulletin Central Darfur Darfur Development and Reconstruction Agency Headlines Cereal prices have risen in almost all monitored markets during the quarter because of the delayed rainy season, also the impact of localized conflict and the blocking of some important trade routes due to flooding. Um Dukhun market, normally regarded as a major area for millet production supplying large parts of Darfur, unusually registered the highest average millet price of all monitored markets in the three states of North, West and Central Darfur. Livestock prices have fluctuated in almost all monitored markets reflecting the impact of local conflict on trade dynamics. When conflict flares up the livestock are usually moved away from the area causing prices to rise, as in Dellage market in July In some cases there is distress selling when livestock become a liability, as in Um Dukhun market in July 2013, where the price fell. Groundnut prices were stable or increased during the quarter. Dry okra and dry tomatoes were available in all monitored markets. Other important cash crops such as sesame, gum arabic and hibiscus were not available in all markets. The price of onions rose following normal seasonal trends in the off-season, but there was no availability of fresh tomatoes in many markets (also the off-season ). Potatoes, planted during this quarter in the Jebel Marra area, were widely available. Most trade routes between the major markets of Central Darfur and beyond were badly affected by heavy rain and flowing wadis during the quarter. As these routes became impassable to vehicles, farmers and traders used animals instead to transport their produce, including donkey and horse carts. The exception was El Ingaz Road linking Nyala, Kass and Zalingei which remained open. Participating CBOs and the markets they monitor During the quarter many people dependent on daily labouring generated an income from agricultural operations including sowing,weeding and ploughing instead of brick-making and construction. This is the normal pattern in the rainy season. Recommendations The unusually high price of cereals in traditional areas of production Um Dukhun, Mukjar and Bindisi reflect the negative impact of localized conflict. Close monitoring of food security and livelihoods in these south and south-west parts of Central Darfur is recommended. Sudanese Environment Conservation Society (SECS) Zalingei Darfur Development and Reconstruction Agency (DRA) Umshalaya Almanar Nerteti Daro Baida Garsila and Delaig Albaraka Agriculture Organisation (AAO) Bendisi, Umdukhn and Mukjar Arebow Charity Organisation (ACO) Abatta and Tereig

2 trade routes by heavy rainfall and wadis flowing in August. The poor anticipated harvest in 2013 may have encouraged many households to hold their cereal stocks until the picture is clearer. Cereals There was an upwards trend in cereal prices in most monitored markets in Central Darfur this quarter (June to August 2013), despite food aid distribution by WFP in all ten monitored markets during the quarter. See Figure 1. The reasons may be the following: the late start of the rainy season which did not begin until August 2013 instead of July, localized conflict that restricted access to certain markets, as well as blocking of some Prices rose most sharply in markets affected by localized conflict during the quarter. Conflict broke out in the south-west of Central Darfur State in June 2013 and has continued since. The most affected areas registered the highest cereal prices: Um Dukhun, Bindisi and Mukjar markets. Bindisi market was closed for most of the month of August because of localised conflict. See Figure 1. Although Um Dukhun market is located in one of Darfur s major production areas for millet, normally supplying large parts of the greater Darfur region, unusually it registered the highest average millet price of all monitored markets in the three states of North, West and Central Darfur this quarter. See Figure 2. Many localities banned the transportation of cereals out of their locality in an attempt to control the cereal trade and maintain affordable prices. Figure 1: Millet prices in monitored markets in Central Darfur, June to August 2013 Figure 2: Average price of millet, June to August 2013, in Zalingei market (relatively stable) and Um Dukhunmarket (conflict-affected) Daily Labouring As illustrated in Table 1, wage rates for agricultural labour were higher than wage rates for other activities this quarter, and this was therefore the preferred source of employment. Wage rates for agricultural labour and construction work were higher in Zalingei than in the other nine markets monitored by the project. Table 1: Wage rates for daily labouring, June to August 2013 Activity Wage rate (SDG per day) Gender of labourers Zalingei Other 9 markets Farm work 30 to to 25 Mainly women Building work 20 to to 20 Women /men/ children Brick making 20 to to 25 Women /men/ children Wheel barrow 20 to to 15 Boys Restaurant and tea services 15 to to 20 Women /men/ children Domestic service 10 Women 2

3 Livestock Fluctuating livestock prices reflect the impact of local conflict on trade dynamics. The Wadi Salih zone, which includes Um Dukhun, Mukjar and Bindisi, is traditionally regarded as an area of livestock production in Central Darfur, particularly the Um Dukhun area which has links with Central African Republic and with Chad. Livestock prices would therefore be expected to be low in this area, as in Mukjar during the quarter. See Figure 3 for the price of sheep. But prices were unusually low in Um Dukhun market due to distressed sales of livestock as they became a liability in the conflict. See Figure 4. With the flare-up of conflict livestock-owners tend to move their animals away from the area if they can. This can cause prices to soar as in Dellage market in July By the time the conflict had reached Dellage the livestock had been moved to more secure locations. Thus, the sheep prices recorded in Figure 3 reflect the localized circumstances of each market. Figure 3: The price of male sheep in selected markets in Overall, there appears to have been some shift in livestock trading from conflict-affected areas to more secure markets which could be accessed by traders, such as Zalingei, Abata and Treij, which recorded higher sheep prices during the quarter. In Zalingei market, the state capital, which was relatively stable this quarter, there was a steady increase in the price of cattle. See Figure 5. This may be partly attributed to a fall in supply as livestock are moved away from the main markets during the rainy season, a normal seasonal trend, but also due to the fact that traders could safely access Zalingei, thus generating demand. The price of local donkeys rose this quarter in all 10 markets reflecting increased demand for agricultural operations. Figure 4: Average price of male sheep, June to August 2013, in Zalingei market (relatively stable) and Um Dukhun market (conflict-affected) Figure 5: Price of male cattle in Zalingei market, June to August

4 Cash Crops Groundnut prices were generally stable during the quarter, except in Garsilla and Um Dukhun markets which both registered a significant rise in groundnut prices in July and August See Figure 6. In Um Dukhun market an INGO, Triangle Génération Humanitaire, bought groundnut seed in a programme designed to encourage groundnut production. This may have had an impact in pushing up the price. Localised conflict may also have had an impact. The increase in the price of cooking oil may also have influenced groundnut prices. During the quarter dry okra and dry tomatoes were available in all monitored markets, but other cash crops such as sesame, gum arabic and hibiscus were not available in all markets. This may be partly due to seasonal trends. In addition, some crops are being cultivated very little during the conflict years if they are vulnerable to early grazing by livestock, for example sesame and hibiscus. The price of dry tomatoes and dry okra started to rise in July and August, a normal seasonal trend as this is the offseason. The lowest prices of both dry tomatoes and dry okra were registered in Nertiti market, an area of production, and the highest prices were registered in Garsilla market, an area of consumption. See Figure 7. Figure 6: Groundnut prices in monitored markets in Figure 7: Average price of dry tomatoes in selected markets in Fruits and Vegetables There was a steady increase in the price of onions in almost all monitored markets, reflecting the impact of seasonality into the off-season. See Figure 8. The lowest average prices were recorded in production areas such as Um Shalaya, Dellage, Abata and Zalingei respectively, whereas the highest average prices were recorded in consumption areas such as Um Dukhun, Mukjar and Nertiti. Localized conflict may also have had an impact, for example on Um Dukhunmarket which recorded the highest onion prices. The price of fresh tomatoes also demonstrated an upward trend during the quarter reflecting normal seasonal trends, but many of the monitored markets in Central Darfur had no availability of fresh tomatoes this quarter. Potatoes were widely available, but with increasing prices as this quarter is the planting season in the Jebel Marra area. Although the Jebal Marra area in Central Darfur is a major production area for fruit, especially oranges and mangoes, the cost of a dozen oranges in almost all monitored markets in Central Darfur was SDG 25 to 30, a similar price to other markets monitored by this project in North and West Darfur. Mangoes have a very short harvest period, in May, when the price is low, and then phase out in the market. Figure 8: Price of onions in selected markets in Central Darfur, June to August

5 Transportation: Access and Costs During this quarter most of the trade routes monitored by the project in Central Darfur were severely affected by heavy rainfall and flooding causing widespread disruption for transportation by truck. Instead donkey-carts and horse-carts were commonly used. Many monitored markets became inaccessible: accordingly the price of locally produced commodities fell and the price of imported ones rose. There are also many checkpoints along the roads imposing fees. Zalingei Kass Nyala trade route: This is a major trade route connecting Central Darfur with other parts of Sudan. It is critical for transporting locally-produced commodities out of Central Darfur eg cereals, cash crops and fruit, and for bringing other commodities into the state. It is the only semi-paved road in Central Darfur although it is in very bad condition and in need of repair. The length of this route (Zalingei to Nyala) is about 213km, with 81 check points. This was the only trade route functioning during the quarter. UmDukhun Garsilla Zalingei trade route: This trade route is particularly important because it links the most productive areas for cereals and livestock, for example Um Dukhun and Garsilla, with consumption areas such as Zalingei. It is also key for cross-border trade from Um Dukhun to Central African Republic and Chad. The distance of this route is about 212km. It was badly affected by heavy rainfall and by insecurity during the quarter, causing transportation costs to double: the cost of transporting one 90 kg sackrose from SDG 30 to SDG 60. Background and methodology The goal of this community-based market monitoring initiative is to deepen analysis and understanding of the shifting patterns of trade and markets in Darfur, on an ongoing basis for key agricultural and livestock commodities, to identify how livelihoods and the economy can be supported through trade, and to identify peace-building opportunities through trade. Five CBOs/NGOs plus DRA are monitoring 10 markets across Central Darfur on a weekly basis. Quantitative data, for example the price of Darfur s main cereals, livestock, cash crops and fruits and vegetables are collected weekly as well as qualitative data, for example on sources of supply. Some data are collected on a monthly basis, for example transport costs, transport routes and the impact of the conflict on flows of commodities. DRA holds quarterly analysis workshops with the CBO enumerators. Advisory support: Feinstein International Center, Tufts University, funded by UKAid from the Department for International Development through the United Nations Environment Programme United Nations Environment Programme This project is funded by the European Union Ministries with which DRA has a technical agreement in North Darfur: 1. Ministry of Finance and Economy and Civil Service 2. Ministry of Agriculture and Irrigation 3. Ministry of Animal Resources and Fisheries This bulletin has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of DRA and can in no way be taken to reflect the views of the European Union 5