Module 1 Market System Selection Purpose: Participants are aware of the importance of rigorous market system (subsector) selection, and understand different selection criteria and how to apply the selection process - PowerPoint PPT Presentation

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Module 1 Market System Selection Purpose: Participants are aware of the importance of rigorous market system (subsector) selection, and understand different selection criteria and how to apply the selection process

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TRAINING MATERIALS Module 1 Market System Selection Purpose: Participants are aware of the importance of rigorous market system (subsector) selection, and understand ... – PowerPoint PPT presentation

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Title: Module 1 Market System Selection Purpose: Participants are aware of the importance of rigorous market system (subsector) selection, and understand different selection criteria and how to apply the selection process


1
Module 1 Market System Selection Purpose
Participants are aware of the importance of
rigorous market system (subsector) selection, and
understand different selection criteria and how
to apply the selection process
TRAINING MATERIALS
2
Why is it important?
  • Why is the process of selecting a market system
    to work in so important?
  • If the right market is chosen, the PMSD process
    has the potential to
  • Include a large number of poor and marginalised
    producers in the market
  • Sustain market transformations beyond the life of
    the project
  • Be scaled up or replicated elsewhere
  • If the wrong market is chosen, the PMSD process
    has the potential to
  • Waste time and resources
  • Encourage poor producers to invest in a product
    that has no market
  • Cause conflict or unsustainable use of natural
    resources

3
Selecting markets key steps
  1. Brainstorm list of market systems
  2. Select key criteria
  3. Collect relevant information
  4. Narrow down the list /make final selection
  5. Deeper analysis of shortlist, leading to final
    selection (optional)
  6. Conflict screening of shortlist (optional)

4
Market System Selection Criteria
CATEGORY EXAMPLE CRITERIA
Economic opportunity Market growth Unmet market demand Small producers competitiveness
Poverty impacts Potential increase in poor peoples incomes Number of beneficiaries (current and potential) Participation of socially excluded (e.g. women and youth)
Other context/project specific Environment (e.g. impact on natural resource management) Synergy with government/donor priorities Conflict vulnerability
5
Example market selection grid
Criteria (with weighting) Dairy NTFPs Vegetables
Unmet Market demand (x2) 5 (10) 4 (8) 3 (6)
Number of poor producers (x2) 5 (10) 3 (6) 4 (8)
SSP competitiveness 4 3 3
Gender 4 4 4
Climate change 2 4 3
Total weighted score 30 25 24
6
Types of information
CRITERIA EXAMPLE INDICATORS
Growth Potential Current trends in consumption Investment of large firms
Unmet market demand and market linkage Number and type of buyers (Size of markets) Buyers have ready market for products but are unable to meet demand
Potential to increase income and employment Potential for increased revenues at rural areas Income distribution and opportunity for employment
7
Sources of information
  • Secondary sources - donor reports etc.
  • econ.worldbank.org
  • www.fao.org
  • Interviews with key informants
  • Government reports
  • Trade association reports
  • www.intracen.org (for import/export data)
  • Research institutes

8
Blank market selection grid
Criteria (with weighting) MS 1 MS2 MS3 MS4 MS5
Criteria (with weighting)






Total weighted score
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