FEWS NET Haïti : Fondamentaux du marché des produits alimentaires de base 2018

FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network i HAITI STAPLE FOOD MARKET FUNDAMENTALS MARCH 2018 This publication was produced for review by the United States Agency for International Development. It was prepared by Chemonics International Inc. for the Famine Early Warning Systems Network (FEWS NET), contract number AID - OAA - I - 12 - 00006. The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States government. FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network ii About FEWS NET Created in response to the 1984 famines in East and West Africa, the Famine Early Warning Systems Network (FEWS NET) provides early warning and integrated, forward - looking analysi s of the many factors that contribute to food insecurity. FEWS NET aims to inform decision makers and contribute to their emergency response planning; support partners in conducting early warning analysis and forecasting; and provide technical assistance t o partner - led initiatives. To learn more about the FEWS NET project, please visit http://www.fews.net Disclaimer This publication was prepared under the United States Agency for International Development Famine Early War ning Systems Network (FEWS NET) Indefinite Quantity Contract, AID - OAA - I - 12 - 00006. The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States governmen t. Acknowledgments FEWS NET gratefully acknowledges the network of partners in Haiti who contributed their time, analysis, and data to make this report possible. See the list of participating organizations in Annex 1 . Participants in the Markets and Trade Workshop . Cover photos @ FEWS NET and Flickr Creative Commons. FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network iii Table of Contents Executive Summary ................................ ................................ ................................ ................................ ................................ ..... 1 Pre face ................................ ................................ ................................ ................................ ................................ ......................... 3 Key Concepts ................................ ................................ ................................ ................................ ................................ ............... 5 1. Haiti Staple Food Market Fundamentals ................................ ................................ ................................ ................................ . 8 1.1. Introduction ................................ ................................ ................................ ................................ ................................ 8 1.2. Domestic food supply ................................ ................................ ................................ ................................ ................. 8 1.3. Domestic food demand ................................ ................................ ................................ ................................ ............ 10 1.4. Domestic food trade ................................ ................................ ................................ ................................ ................. 10 1.5. International food trade ................................ ................................ ................................ ................................ ........... 11 2. Cross - cutting Issues ................................ ................................ ................................ ................................ ........................... 14 2.1. Agroecological context ................................ ................................ ................................ ................................ ............. 14 2.2. Macro - economic context ................................ ................................ ................................ ................................ .......... 15 2.3. Infrastructure ................................ ................................ ................................ ................................ ............................ 16 2.4. Social context ................................ ................................ ................................ ................................ ............................ 17 2.5. Political and institutional context ................................ ................................ ................................ ............................. 18 3. Rice (local and imported) ................................ ................................ ................................ ................................ .................. 19 3.1. Consumption ................................ ................................ ................................ ................................ ............................ 19 3.2. Production ................................ ................................ ................................ ................................ ................................ 19 3.3. Structure of the marketing system ................................ ................................ ................................ ........................... 20 3.4. Performance of the marketing system ................................ ................................ ................................ ..................... 22 4. Maize (local and imported) ................................ ................................ ................................ ................................ ............... 25 4.1. Consumption ................................ ................................ ................................ ................................ ............................ 25 4.2. Production ................................ ................................ ................................ ................................ ................................ 25 4.3. Structure of the marketi ng system ................................ ................................ ................................ ........................... 26 4.4. Performance of the marketing system ................................ ................................ ................................ ..................... 28 5. Sorghum ................................ ................................ ................................ ................................ ................................ ............ 31 5.1. Consumption ................................ ................................ ................................ ................................ ............................ 31 5.2. Production ................................ ................................ ................................ ................................ ................................ 31 5.3. Structure of the marketing system ................................ ................................ ................................ ........................... 32 5.4. Performance of the marketing system ................................ ................................ ................................ ..................... 33 6. Wheat (imported grains and flour) ................................ ................................ ................................ ................................ ... 36 6.1. Consumption ................................ ................................ ................................ ................................ ............................ 36 6.2. Production ................................ ................................ ................................ ................................ ................................ 36 6.3. Structure of the marketing system ................................ ................................ ................................ ........................... 37 6.4 . Performance of the marketing system ................................ ................................ ................................ ..................... 38 7. Pulses (dry beans and peas) ................................ ................................ ................................ ................................ .............. 40 7.1. Consumption ................................ ................................ ................................ ................................ ............................ 40 7.2. Production ................................ ................................ ................................ ................................ ................................ 40 7.3. Structure of the marketing system ................................ ................................ ................................ ........................... 41 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network iv 7.4. Performance of the marketing sy stem ................................ ................................ ................................ ..................... 43 8. Bananas (plantains) ................................ ................................ ................................ ................................ ........................... 46 8.1. Consumption ................................ ................................ ................................ ................................ ............................ 46 8.2. Produ ction ................................ ................................ ................................ ................................ ................................ 46 8.3. Structure of the marketing system ................................ ................................ ................................ ........................... 47 8.4. Performance of the marketing system ................................ ................................ ................................ ..................... 48 9. Roots and Tubers ................................ ................................ ................................ ................................ .............................. 50 9.1. Consumption ................................ ................................ ................................ ................................ ............................ 50 9.2. Production ................................ ................................ ................................ ................................ ................................ 50 9.3. Structure of the marketing system ................................ ................................ ................................ ........................... 51 9.4. Performance of the marketing system ................................ ................................ ................................ ..................... 52 10. Edible Oi l ................................ ................................ ................................ ................................ ................................ ........... 54 10.1. Consumption ................................ ................................ ................................ ................................ ............................ 54 10.2. Production ................................ ................................ ................................ ................................ ................................ 54 10.3. Structure of the marketing system ................................ ................................ ................................ ........................... 54 10.4. Performance of the marketing system ................................ ................................ ................................ ..................... 55 11. Areas of Future Investigation ................................ ................................ ................................ ................................ ............ 57 12. Market Monitoring Plan ................................ ................................ ................................ ................................ .................... 58 Annex 1. Participants in the Markets and Trade Workshop ................................ ................................ ............................... 61 Annex 2. Conversion Factors to Cereal Equivalent ................................ ................................ ................................ ............. 62 Annex 3. Market Integration ................................ ................................ ................................ ................................ ............... 63 References ................................ ................................ ................................ ................................ ................................ ................. 66 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network v List of Figures Figure 1. Map of Haiti ................................ ................................ ................................ ................................ ................................ .. 1 Figure 2 . FEWS NET ’ s approach to market monitoring and analysis ................................ ................................ ........................... 3 Figure 3. FEWS NET presence and remote monitoring countries ................................ ................................ ................................ 4 Figure 4. Seasonal calendar for Haiti ................................ ................................ ................................ ................................ ........... 8 Figure 5. Location of processing facilities in Haiti ................................ ................................ ................................ ........................ 9 Figure 6 . Share of calorie availability of main food groups, average, 2009 – 2013 ................................ ................................ ....... 9 Figure 7. Transport options for food products ................................ ................................ ................................ ........................... 11 Figure 8 . Belladère (Haiti) – Elías Piña (Dominican Republic) border crossing ................................ ................................ .......... 12 Figure 9 . Ouanaminthe (Haiti) – Dajabon (Dominican Republic) border crossing ................................ ................................ ..... 12 Figure 10. Elevation, Haiti ................................ ................................ ................................ ................................ .......................... 14 Figure 11 . Average annual rainfall, 2000 – 2014 , Haiti ................................ ................................ ................................ ................ 14 Figure 12. Land cover, Haiti ................................ ................................ ................................ ................................ ........................ 14 Figure 13. Major natural eve nts affecting Haiti ................................ ................................ ................................ ......................... 15 Figure 14 . Contribution of Haiti ’ s economic sectors to GDP, 2011/12 – 2015/16 ................................ ................................ ....... 16 Figure 15. Annual inflatio n rate in Haiti, 2011 – 2016 ................................ ................................ ................................ ................. 16 Figure 16. Road network in Haiti ................................ ................................ ................................ ................................ ............... 16 Figure 17. Population distribution by Department, Haiti, 2015 ................................ ................................ ................................ . 17 Figure 18. Rice production and price map, Haiti ................................ ................................ ................................ ........................ 19 Figure 19. Rice field in Artibonite Department ................................ ................................ ................................ .......................... 19 Figure 20 . Production of paddy rice in Haiti, MT, 2012 – 2016 ................................ ................................ ................................ .... 20 Figure 21 . Rice (milled) imports in Haiti, MT, 2011 – 2016 ................................ ................................ ................................ .......... 20 Figure 22. Marketing of rice ................................ ................................ ................................ ................................ ....................... 21 Figure 23. Rice marketing channels, Haiti ................................ ................................ ................................ ................................ .. 21 Figure 24. Retai l price of local rice (Shella, HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ..................... 22 Figure 25 . Retail price of imported rice (Bull, HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ................. 22 Figure 26. Seasonal index for Croix des Bossales (Port - au - Prince) local rice retail price, Haiti, 2012 – 2016 .............................. 22 Figure 27. International export rice prices and wholesale price in Port - au - Prince, Haiti, 2012 – 2016 ................................ ...... 23 Figure 28. Rice (local) production and trade flow map, Haiti ................................ ................................ ................................ .... 24 Figure 29. Maize production and price map, Haiti ................................ ................................ ................................ ..................... 25 Figure 30 . Production of maize in Haiti, MT, 2012 – 2016 ................................ ................................ ................................ ........... 26 Figure 31. Maize imports in Haiti, MT, 2012 – 2016 ................................ ................................ ................................ .................... 26 Figure 32. Marketing of maize ................................ ................................ ................................ ................................ ................... 27 Figure 33. Maize marketing channels, Haiti ................................ ................................ ................................ ............................... 27 Figure 34. Wholesale prices (HTG/lb) of local and imported ground maize in Croix des Bossales (Port - au - Prince), Haiti, 2012 – 2016 ................................ ................................ ................................ ................................ ................................ ........... 28 Figu re 35 . Retail price of local ground maize (HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ................. 28 Figure 36 . Retail price of imported ground maize (HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ......... 28 Figure 37 . Seasonal index for Croix des Bossales (Port - au - Prince) local ground maize retail price, Haiti, 2012 – 2016 .............. 29 Figure 38. Maize (local) production and trade flow map, Haiti ................................ ................................ ................................ . 30 Figure 39. Sorghum production and price map, Haiti ................................ ................................ ................................ ................ 31 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network vi Figure 40. Producti on of sorghum in Haiti, MT, 2012 – 2016 ................................ ................................ ................................ ...... 32 Figure 41. Marketing of sorghum: sorghum in grain and ground sorghum ................................ ................................ ............... 32 Figure 42. Sorg hum marketing channels, Haiti ................................ ................................ ................................ .......................... 33 Figure 43 . Retail prices (HTG/lb) of sorghum in selected markets, Haiti, 2012 – 2016 ................................ ............................... 33 Figure 44 . Seasonal index Fonds - des - Nègres sorghum retail price, Haiti, 2012 – 2016 ................................ .............................. 34 Figure 45. Sorghum production and trade flow map, Haiti ................................ ................................ ................................ ....... 35 Figure 46 . Formal wheat (all products) imports, 2011 – 2016 , Haiti ................................ ................................ ........................... 36 Figure 47 . Formal wheat flour imports, 2011 – 2016 , Haiti ................................ ................................ ................................ ......... 36 Figure 48. Wheat marketing channel, Haiti ................................ ................................ ................................ ............................... 37 Figure 49. Wheat flour brands, Haiti ................................ ................................ ................................ ................................ .......... 37 Figure 50. Retail price of wheat flou r (HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ............................. 38 Figure 51. Seasonal index for Croix des Bossales (Port - au - Prince) and Ouanaminthe wheat flour retail prices, Haiti, 2012 – 2016 ................................ ................................ ................................ ................................ ................................ ........... 38 Figure 52. Bean and pea production and price maps, Haiti ................................ ................................ ................................ ....... 40 Figure 53 . Production of pulses in Haiti, MT, 2012 – 2015 ................................ ................................ ................................ .......... 41 Figure 54 . Pulses imports in Haiti, MT, 2011 – 2015 ................................ ................................ ................................ .................... 41 Figure 55. Bean and pea marketing channels, Haiti ................................ ................................ ................................ ................... 42 Figure 56. Marketing of pulses in Haiti ................................ ................................ ................................ ................................ ...... 42 Figure 57 . Retail price of black beans (HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ............................ 43 Figure 58 . Retail price of red beans (HTG/lb) in selected markets, 2012 – 2016 , Haiti ................................ ............................... 43 Figure 59. Seasonal index for Croix des Bossales (Port - au - Prince) local black a nd red beans retail price, Haiti, 2012 – 2016 .... 43 Figure 60. Pulses (beans and peas) production and trade flow map, Haiti ................................ ................................ ............... 45 Figure 61. Banana production map, Haïti ................................ ................................ ................................ ................................ .. 46 Figure 62 . Production of bananas in Haiti, MT, 2011 – 2015 ................................ ................................ ................................ ....... 46 Figure 63. Banana marketing cha nnels, Haiti ................................ ................................ ................................ ............................. 47 Figure 64. Banana trade, by bunch ................................ ................................ ................................ ................................ ............ 48 Figure 65. Banana retail, by hand/unit ................................ ................................ ................................ ................................ ...... 48 Figure 66. Wholesale prices (HTG/lb) of bananas in Croix des Bossales (Port - au - Prince), Haiti, 2012 – 2016 ............................ 48 Figure 67. Seasonal index for plantain musquée wholes ale price in Croix des Bossales (Port - au - Prince), Haiti, 2012 – 2016 ... 48 Figure 68. Banana (plantain) production and trade flow map, Haiti ................................ ................................ ......................... 49 Figure 69. Tuber production map, Haiti ................................ ................................ ................................ ................................ ..... 50 Figure 70 . Production of the main tubers in Haiti, MT, 2012 – 2015 ................................ ................................ ........................... 50 Figure 71 . Tuber imports in Haiti, MT (cereal equivalent), 2011 – 2016 ................................ ................................ ..................... 51 Figure 72. Tuber marketing channels, Haiti ................................ ................................ ................................ ............................... 52 Figure 73. Wholes ale prices (HTG/lb) of roots and tubers in Croix des Bossales (Port - au - Prince), Haiti, 2012 – 2015 ............... 52 Figure 74. Trade of roots and tubers, by bucket ................................ ................................ ................................ ........................ 52 Figure 75. Retail of roots and tubers, by pile ................................ ................................ ................................ ............................. 52 Figure 76. Root and tuber production and trade flow map, Haiti ................................ ................................ ............................. 53 Figure 77 . Formal edible oil imports, 2011 – 2015 , Haiti ................................ ................................ ................................ ............. 54 Figure 78. Marketing of edible oil in Haiti ................................ ................................ ................................ ................................ .. 55 Figure 79. R etail price of edible oil “ Mazola ” (HTG/gal) in selected markets, 2012 – 2016 , Haiti ................................ ............... 55 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network vii Figure 80. Seasonal index for Croix des Bossales (Port - au - Prince) edible oil (Mazola) retail price, Haiti, 2012 – 2016 .............. 55 Figure 81 . FEWS NET ’ s approach to market monitoring and analysis ................................ ................................ ....................... 58 Figure 82. Rice price in selected markets in H aiti and the United States, 2010 - 2017 ................................ .............................. 64 Figure 83. Black beans price in selected markets in Haiti and the United States, 2010 - 2017 ................................ ................. 64 Figure 84. Black beans price in selected markets in Haiti and the Dominican Republic, 2010 - 2017 ................................ ....... 64 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network viii List of Tables Table 1. Annual per capita requiremen ts of the main staples ................................ ................................ ................................ ..... 9 Table 2 . Commodity balance (MT cereal equivalent), Haiti, 2011/12 – 2015/16 average ................................ .......................... 10 Table 3. General n onpreferential duty rates to staple foods, as applied in 2016 ................................ ................................ ...... 11 Table 4. Food products banned from land - based imports, Haiti ................................ ................................ ............................... 12 Table 5 . Occurrence of natural disasters in the period 2000 – 2016 ................................ ................................ ........................... 15 Table 6. Seasonal calendar for irrigated rice (Artibonite Department) ................................ ................................ ...................... 20 Table 7. Correlation coefficient for local rice prices in selected markets ................................ ................................ ................... 23 Table 8. Seasonal calendar for maize ................................ ................................ ................................ ................................ ......... 25 Table 9. Correlation coefficient for local ground maize in selected markets ................................ ................................ ............. 29 Table 10. Seasonal calendar for sorghum ................................ ................................ ................................ ................................ .. 31 Ta ble 11. Correlation coefficient for sorghum in selected markets ................................ ................................ ........................... 34 Table 12. Correlation coefficient for wheat flour prices in selected markets ................................ ................................ ............ 39 Table 13. Seasonal calendar for beans and peas ................................ ................................ ................................ ....................... 40 Table 14. Correlation coefficient for local black beans in selected markets ................................ ................................ .............. 44 Table 15. Correlation coefficient for local red beans in selected markets ................................ ................................ ................. 44 Table 16. Approximate weight of banana bunches ................................ ................................ ................................ .................... 47 Table 17. Seasonal calendar for tubers ................................ ................................ ................................ ................................ ...... 51 Table 18. Average yield of tubers (MT/ha) in Haiti and Dominican Republic ................................ ................................ ............. 51 Table 19. Examples of cooking oil brands consumed in Haiti ................................ ................................ ................................ .... 54 Table 20. Correlation coefficient for edible oil prices in selected markets ................................ ................................ ................ 56 Table 21. Existing food/agricultural market monitoring systems in Haiti ................................ ................................ .................. 59 Table 22. Aspects relevant for short - and/or long - term monitoring of key food staples markets ................................ ............. 59 Table 23. Participants in the markets and trade workshop ................................ ................................ ................................ ........ 61 Table 24. Conversion factors to maize equivalent ................................ ................................ ................................ ...................... 62 Table 25. Data used for market integration analyses ................................ ................................ ................................ ................. 63 FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network ix Acronyms and Abbreviations BRANA Brasserie Nationale d’Haïti, S.A. CARICOM Caribbean Community CARIFORUM Body of t he Caribbean Group of African, Caribbean and Pacific (ACP) states COMTRADE United Nations Commodity Trade Statistics Database CNSA Coordination Nationale de la Sécurité Alimentaire DR Dominican Republic FAO Food and Agriculture Organization (United Nat ions) FEWS NET Famine Early Warning Systems Network GDP Gross domestic prod uct IDB Inter - American Development Bank IICA Inter - American Institute for Cooperation on Agriculture ha Hectare s HT Haiti HTG Haitian g ourde HUHSA Huileries Haïtiennes S.A. IHSI Institut Haïtien de Statistique et d’Informatique kg Kilograms km Kilometers LAC Latin America and the Caribbean lb Pound LMH Les Moulins d’Haïti MARNDR Ministère de l’Agriculture, des Ressources Naturelles et du Développement Rural mm Millim eter s MT Metric tons NGO Nongovernmental organization ORE Organisation pour la Réhabilitation de l’Environnement SIMA Système d’Information sur les Marchés Agricoles USAID United States Agency for International Development USD United States d ollar U SGS United States Geological Survey WFP World Food Programme FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network 1 Executive Summary • This FEWS NET Market Fundamentals report presents findings to inform regular market monitoring and ana lysis in Haiti . Among other uses, the information presented in this report can be used to support the design of food security programs, including but not limited to informing USAID Bellmon analyses for food assistance programs in Haiti. • This study is based on desk research, fieldwork using rapid rural appraisal techniques covering all 10 departments of the country ( Figure 1 ) , and a three - day stakeholder consultation workshop carried out in the capital city of Port - au - Prince during February 2017 (see Annex 1 , Table 23 ). • The main staple foods in the country are rice, maize, wheat flour , sorghum, pulses (beans and peas), tubers (yams, cassava or yuca , and sweet potato), bananas (particularly plantains) , and ed ible oil . These are consumed to varying degrees across the territory, based on supply and demand dynamics. Overall, a high level of market dependence exists , with poorer households purchasing up to 85 percent of their food needs in the markets. • Generally, Haiti ’s f ood supply is ensured through domestic production and imports from the global market (including cross - border imports from neighboring Dominican Republic) . Levels of self - sufficiency vary across commodities, but Haiti is structurally deficit in ric e , the most relevant staple in the country. As well , the country is fully dependent on imports of wheat and edible oil, as these are not produced domestically. • Crop production in Haiti is mostly rainfed, making Haitian agriculture highly vulnerable to the adverse effects of climatic events such as erratic and insufficient rainfall, storms/hurricanes, flooding, and droughts. Constraints to agricultural production include limited access to and use of production inputs (including financing), incidence of pests and diseases, soil degradation, and implementation of unimproved cropping practices. Postharvest losses are large due to inadequate handling and storage infrastructure. • With respect to food imports, the United States and the Dominican Republic are Haiti’ s main trade partners for cereals and pulses and Malaysia for edible oil . Formal imports are concentrated in a small group of enterprises, leading to asymmetric power relationships along the chain. Large - scale modern processing facilities are operated by s ome of the major imp orters. Small - scale processing takes place across the country , relying mostly on outdated equipment . Informal imports from the Dominican Republic are substantial, but remain difficult to quantify. • The network of traders (Madame Saras, s mall - scale traders, and retailers) collecting products from producers and distributing /retailing commodities across the country toward final consumers comprise s a large number of actors, with no evident barriers to entry. Physical accessibility and transpo rt possibilities are key factors affecting food availability in remote areas. Transactions are usually done on the spot, with producers typically price takers and consumers shifting demand to other commodities in response to price changes. The staples’ mar keting chains tend to be fragmented and display little organization among market actors. Madame Saras are key actors i n the chain, facilitating the flow of locally produced commodities from production to consumption sites. Generally, market information is spread across actors following private business networks. • The main domestic consumption markets are Jérémie , Les Cayes, Gona ï ves, Port - de - Paix , Cap - Haitien , and the broader Port - au - Prince area , which includes Petion Ville, Carrefour, Delmas, Cité Soleil , a nd the Croix des Bouquets and Croix des Bossales markets. For all commodities analyzed, the largest flows of locally produced staples are directed toward the broader Port - au - Prince market area. Flows of imported products move in the opposite direction, ori ginating mainly in Port - au - Prince and transiting toward the rest of the country. Transport costs capture a large share of the transaction costs along the chain. Figure 1 . Map of Haiti Source: FEWS NET. FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network 2 • The seasonality of harvests result s in some intra - annual variation in prices for locally produ ced staples. Prices vary across markets , but pr ices in Port - au - Prince tend to be among the lowest across commodities . P rice s of imported products show less variation over time. • Broadly speaking, prices in Haitian markets display co - movement with each othe r. Moderate to strong price correlations are generally observed between markets, with a tendency of northern markets presenting stronger correlation s among each other and southern markets presenting stronger correlations with each other. Prices in Port - au - Prince correlate with most markets at varying degrees across commodities. At the international level, Haiti is generally in tegrated with the world markets , as price trends in Port - au - Prince reflect those of key international markets. • Several initiatives in Haiti carry out market monitoring activities across the country. From the public sector, the Ministry of Agriculture, Natural Resources, and Rural Development ( Ministère de l’Agriculture, des Ressources Naturelles et du Développement Rural, MARNDR) and th e National Coordination of Food Security ( Coordination Nationale de la Sécurité Alimentaire, CNSA) monitor prices in key collection (MARNDR) and consumption (CNSA) markets. FEWS NET collects retail prices for several commodities in major consumption market s across the country. Development - oriented agencies such as the World Food Programme ( WFP ) and the Food and Agriculture Organization ( FAO ) of the United Nations also collect retail prices on a regular basis. FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network 3 Preface Markets and trade information and anal ysis are key inputs in FEWS NET’s integrated food security analysis. FEWS NET relies on a common understanding of a given population’s livelihoods (food and income sources and typical coping strategies used to handle shocks) as well as an understanding of typical market conditions and outcomes. Together, these are used to identify and quantify the magnitude of market - based anomalies and their potential impacts on food security outcomes of the poor and very poor ( Figure 2 . ). Figure 2 . FEWS NET’s approach to market monitoring and analysis Source: FEWS NET (2014). Several types of information help inform the understanding of typical market conditions that affect the food and income sources of the poor and very poor. These include: the geography of supply and demand for a particular commodity (for example, maize) or category of commodities (for example, staple foods); the role of different actors in the marketing system (from small - scale producers to indust rial food processors); the seasonality of specific events or activities; aggregate import - dependence, particularly in the case of staple foods; and key programs and policies. These factors affect the stability of fo od availability and access (food prices a nd income levels) and therefore three of the four pillars of food security (food availability, access, utilization, and stability). Collectively, an understanding of these key elements constitutes the FEWS NET Markets an d Trade Knowledge base. Under FEWS N ET III (FY 2012 – 2016), Markets and Trade Knowledge base information is compiled into “Market Fundamentals” reports that seek to provide readers with a general understanding of market dynamics during a typical year. These consolidated documents are elaborat ed for both presence and remote monitoring (RM) countries, with references to relevant external documents and resources when they are available. Two pilots were carried out in FY 2014, one in Sudan and one in Burkina Faso, to test the appropriateness of th e approach, the usefulness of the products, and the level of effort required. During the first year of rollout (FY 2015), the Market Fundamentals reports focused largely on staple food market structure and behavior. Such reports can be prepared for cash cr op, livestock, and labor markets following a similar approach. Of particular interest to the FEWS NET project are markets identified as important sources of food and income for the poor and very poor based on an understanding of the livelihoods of those po pulations. The Markets and Trade Knowledge team aims to eventually have a staple food Market Fundamentals report for each FEWS NET country and region. Other reports (focusing on cash crop, livestock, and labor markets) will be added in a modular fashion as time and resources permit. FEWS NET monitors markets in presence as well as RM countries ( Figure 3 ). A presence country is monitored by FEWS NET staff working in a local country office. RM countries are typically covered by analysts in a nearby country using a lighter analytical approach to identify anomalies and deteriorating conditions. FEWS NET also monitors staple food markets in other countries or regions that are relevant to understanding food availability an d access for the poor and very poor in FEWS NET countries (for example, Benin, Pakistan, Kazakhstan, South Africa, and Mexico, among others). The Market Fundamentals reports will continue to inform the project’s regular market monitoring in terms of the co mmodities covered in the project’s Markets and Trade database, Price Bulletins, Price Watch, and special reports ( Figure 2 . ). The specific markets and commodities covered in country - specific reports will depend on a number of fac tors. The reports focusing on staple food markets touch on the following: • Cross - cutting issues that affect all markets in a given country or region: The political and macroeconomic environment and key national - level programs and policies that influence foo d and income sources. • For each commodity market o Market structure, including the relative importance of local production versus imports in aggregate food availability and access, including the geographic distribution of production and consumption, and key a ctors in the marketing chain. o Market behavior/conduct, including purchase or selling behavior of key actors present in the marketing chain. FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network 4 o Market performance outcomes, including production trends, inter - and intra - annual price variability, and regional or international competitiveness. o Key indicators that analysts need to monitor over the course of the marketing year that could affect food availability and access of the poor and very poor. FEWS NET’s widely recognized production and trade flow maps are inc orporated into the report for commodities produced and consumed both locally and regionally as a means of illustrating the relative importance of certain markets and trade flow patterns in assuring food availability and access throughout the country. Howev er, when a commodity is grown almost entirely as an exported cash crop or imported almost exclusively from international markets, other relevant diagrams and illustrations are used. Figure 3 . FEWS NET presence and remote monitoring countries Source: FEWS NET . FEWS NET HAITI Staple Food Market Fundamentals 201 8 Famine Early Warning Systems Network 5 Key Concepts The following provides the definitions of several key terms used throughout the report. For more detail on these definitions and other useful terms, consult the FEWS NET Markets and Trade Glossary . Marketing system: This includes the entire commodity distribution system from production to consumption. A marketing system describes the key actors and the linkag es between different stages of the distribution process of a given commodity. The marketing system also describes the spatial and functional relationships between market actors. Marketing year: This refers to the period during which agricultural production from a given year’s harvest is sold. This period typically extends from one harvest of a particular commodity to the next, and is very similar to the consumption year used in FEWS NET’s livelihoods work in many cases. Price: The cost or value of a good or service expressed in monetary terms. It is the financial cost paid when one buys a unit of a specific product or service. Prices, in the purest sense, indicate value that has been added to a particular commodity. This value added can be changes in the for m (e.g., production or milling), place (e.g., transportation), or time (e.g., storage) of a commodity. Price signals can carry information about cost of production, transportation, storage, perceptions and desire s as well as, in some instances, distortions Incentive: Something that incites an action or provides a motive (e.g., potential profits, benefits or gain from performing a particular economic activity). Food balance sheet: This presents a comprehensive picture of the pattern of a country's food suppl y during a specified reference period. A food balance sheet shows for each food item – i.e., each primary commodity and a number of processed commodities potentially available for human consumption – the sources of supply and its utilization Commodity bala nce sheet: This shows balances of food and agricultural commodities in a standardized form. The scope of standardization is to present these data in a less detailed form for a selected number of commodities without causing any significant loss of the basic variables monitoring the agriculture sector . The selected commodities include the equivalents of their derived products falling in the same commodity group, but exclude the equivalents of by - products and derived commodities, which through processing, chan ge their nature and become part of different commodity groups. Unimodal areas: Unimodal areas are agroecological zones with one distinct rainy season with one rainfall peak and typically a single harvest. Bimodal areas: Bimodal areas are agroecological zon es with either a single prolonged rainy season with two rainfall peaks or two or more distinct rainy seasons (which could each be unimodal or bimodal), resulting in two or more harvests. The amount of rainfall can be equivalent between rainy seasons or one may be dominant (for all commodities or for a single crop), resulting in differing yields between seasons. Commodity Classifications Commodity - specific classifications of surplus and deficit areas are established based on historical production figures and on FEWS NET staff and key informants’ knowledge of the consumption patterns of particular areas of a given country. When surplus and deficit areas are identified in aggregate, the determination is typically based on total local production, expres sed in ki localorie terms, compared to total local needs (also expressed in kilocalorie terms). Estimated staple food needs are typically established by local governments and updated as consumption patterns change. Surplus - producing area: A geographic area that prod uces sufficient quantity of a given commodity (or set of commodities, like cereals) to cover local demand and to supply other areas. An area can likewise be defined either as having a minor surpl us, meaning that in a normal year slightly more of a commodit y is produced than required to meet local needs, or as having a major surplus, meaning that production in a given area largely surpasses local needs. Deficit area: A geographic area that does not produce enough of a given commodity to meet local demand. Se lf - sufficient area: A