QUICKAPPRAISAL OF LOCAL MARKET (QUACK) TOOL
Instructions
The QUACK APPRAISAL OF LOCAL MARKET (QUACK) Tool[1]aims to help Emergency Rapid Response (ERR) teams determine if local markets have the capacity to serve as one of the potential supply options to meet local demands for certain relief commodities.
When local markets are resilient enough they have the potential to both provide the needed relief goods fastest to those affected, while also serving as local investment points into the local economy with an eye towards the future fostering community led recovery processes.
Local market based interventions should always be a first response choice when market conditions are favorable, and when negative potential consequences on prices and supply are low and/or can be mitigated.
The QUACK Tool is meant to cover that initial assessment process discussed in the Rapid Assessment of Markets (RAM)--STEP 1, where ERR teams are starting to consider the response design and they want to determine if it is a go/no go option with local market and what volumes could be possible.
Ideally the QUACK would be carried out 3-5 days after the emergency to have an impact within the first week of the response.
The QUACK Tool should quickly allow the ERR team to define the response modality by determining if the local market option is viable, and if traders have enough supply on hand to become an immediate sourcing option, or if it would be advisable instead to source relief items from larger national markets, donors or import etc.
The local option may also be determined to be viable though just not ready quite yet, and initial steps can be taken with traders such as supply support assistance and market rehabilitation so that they get themselves into a position to be able to respond through a market based intervention.
If the team determines that local market conditions are favorable, meaning that traders have enough supply on hand and they seem to have the capacity to restock quickly, then the team would decide to carry out an initial interventionto test their stated resupplying capacity.
The team would decide whether it would be best to direct buy and distribute, or try to set up a market based intervention using vouchers, cash, ATM cards, mobile money, or e-vouchers.
The initial purchase would be for less than 50% of total estimated supply on hand with all traders, and spread across those traders that seem to have the most capacity to respond.
The team would also have to coordinate with peer agencies responding to the emergency to see what they are doing, and make sure the cumulative initial engagement with traders in first week does not exceed this 50% threshold.
The items purchased locally would be targeted to neediest populations in the area, and the traders would be monitored for how fast they are actually able to restock and any possible effects on prices.
All data collected would be used in the eventualmore in depth RAM or EMMA process for making determinations on how best to design the response in the near to medium term.
The QUACK tool is composed of just ten market focused questions that have the following general focuses:
(1)Local market mapping—visual description of markets and interactions in emergency area.
(2)Normal market resiliency—how has the market been affected and responded to similar such shocks in past.
(3)Prices—before and after shock.
(4)Traders—how many before and after shock by size.
(5)Volume—how much before and after shock by size.
(6)Supply restocking—from where and how long does it take.
(7)Alternative sourcing options—are there alternative sources and what does this mean for delivery and price.
(8)Constraints—what are all possible constraints to supply flows.
(9)Demand—how has it changed since the shock, and what are near term expectations.
(10)Growth—how much could each type of trader provide per week if they had enough money.
The QUACK tool is to be carried out with 1-7 key informants in the main medium-sized market near the emergency area, and the key informants would most likely be from the following types of market related figures: large traders, former government/ state/ local employees, businesspeople, or other people who would have knowledge of the whole market and its different actors.
The format of the interview is similar to a focus group discussion, and the interviewers should probe deeper with follow on questions to the ten market focused questions as needed.
After collection quantitative and qualitative feedback on these ten questions, the ERR team should know enough about the local market and its response capacity to be able to make a determination if it is possible to consider the local market option, and if so what would be the size and scope of the initial test purchase that could be made.
Finally, there are two key calculations that should be possible after collecting the quantitative information that will assist in making a decision:
- Total estimated supply = estimated stocks normally per type of trader (Q6) X estimated # of traders per type (Q5).
- Trader supply support assistance = amount for growth per type (Q10) minus normal stocks per type (Q6), and only those types that have problems with capital or access to credit would be considered.
Geographic Location / Commodities / 1
MarketName / 2
Interview Date / 3
Key Informants / # / Name / Title / Telephone #
1
2
3
#1 / Local Market Mapping / Ask key informants who are familiar with this area to draw a basic local market map (on ground or flip chart paper), which considers the following:
(1)Where are the main large source markets where wholesales operate?
(2)Where are the closest medium-sized daily/ weekly markets?
- Please mark approximate distances from these tomain market
- Please mark approximate distances from these tomain market
(5)How far do people generally travel to get to market?
(6)How do they get there? (Car, foot, donkey, etc.)
(7)What are the prices per type of commodity in each market?
(8)Are there current security and/or access risks for people to get to markets?
(9)What are the main challenges people experience with markets currently? (supply, quality, price etc.)
(10)If we were to try to set up market based interventions would traders be interested?
Comments (take picture of map):
#2 / Normal Market Resiliency / Have there been similar such emergency shocks in the past, and if so, how have local markets responded? How long did it take to get back to normal?
Comments:
#3 / Prices / What has happened to the prices for these commodities since the shock?
Commodity / Price Before / Price Now / % Variance
1
2
3
Comments (cross check for seasonal variations that normally occur):
#4 / Traders / Approximately how many large, medium and small traders are there for these commodities in these local markets before the emergency and now? (Complete information in table below)
#5 / Volumes / Approximately how much of these commoditiesper week have been sold in these markets by type of trader before the crisis and now? (Complete information in table below)
Commodities / Type of traders / Before shock / After shock
# of traders / Weekly sales in kg per trader / # of traders / Weekly sales in kg per trader
1 / Large
Medium
Small
2 / Large
Medium
Small
3 / Large
Medium
Small
Comments:
#6 / Supply Restocking / Roughly how much stock do different size traders keep on hand, and how long does it normally take to restock these commodities from source markets? Will this be different after the shock?
Traders size / Estimated quantity of normal stock on hand per trader
Commodity 1 / Commodity 2 / Commodity 3
Large
Medium
Small
Comments:
#7 / Alternative Sourcing Options / If main sourcing options does not have enough supply due to increased demand or access constraints, then do traders have alternative sourcing options, and what implications does this have for restocking time and price?
Comments:
#8 / Constraints / What are some possible constraints to supply flows?(Check all that apply and provide comments)
Government policies / [ ]
Supply limitations (availability, prices) / [ ]
Transportation problems (availability, price, fuel, infrastructure) / [ ]
Market infrastructure limitations (damaged, insufficient, stores, warehousing) / [ ]
Communication issues between markets / [ ]
Financing limitations (lack of capital, access to credit or cash, weakening exchange rate) / [ ]
Access problems (protests, strikes, banditry, roadblocks) / [ ]
Other (specify): / [ ]
#9 / Demand / How has household demand for these commodities changed since the shock? What are expectations over next three months?
Comments:
#10 / Growth / How much could each type of trader provide per week at best if they had good access to credit and capital? Which type of traders lack this access to credit?
Traders size / Estimated quantity of potential supply increase per trader
Commodity 1 / Commodity 2 / Commodity 3
Large
Medium
Small
Comments:
1
[1] The QUACK Tool has been derived from various existing CRS market assessment tools, ICRC’s Rapid Assessment of Markets (RAM), and OXFAM’s 48-hour assessment tool.