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Exploring Food Assistance Programmes: Evidence for Lebanon

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Exploring Food Assistance Programmes: Evidence for Lebanon Exploring Food Assistance Programmes: Evidence for Lebanon Market Assessment Authors: Oscar Maria Caccavale, Tobias Flämig, Marine Lalique Published in November 2015 - Data collected in March/April 2015 For additional information, please contact: WFP Lebanon Issa Sanogo, Deputy Country Director [email protected] WFP Headquarters Arif Husain, Chief Economist & Deputy Director Policy and Programme Division [email protected] Tobias Flämig, Head of Economic and Market Analysis Unit [email protected] Oscar Maria Caccavale, Economist / Market Analyst [email protected] All rights reserved. The reproduction and dissemination of material in this information product for educational or other non- commercial uses is authorized without any prior written permission from the copyright holders, provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission. Applications for such permission should be addressed to the Director, Communications Division, e-mail: [email protected] © WFP 2015 World Food Programme Via Cesare Giulio Viola, 68/70 - 00148 Rome - Italy http://vam.wfp.org [email protected] i | P a g e Foreword The World Food Programme (WFP) is the largest United Nations agency in the Middle East and North Africa region. WFP provides life-saving and transitional humanitarian food assistance to more than 25 million food insecure people, including refugees, internally displaced persons and local populations. Lebanon is hosting over one million Syrian refugees and over 40,000 Palestinian refugees. These pop- ulations have completely changed the demographics and socio-economic situation of the country, posing significant challenges for the national and local government. While on the one hand the refu- gee influx is placing high fiscal pressure on the government, the demand for goods and services has also increased significantly, creating space for more economic opportunities. Since 2012, WFP has supported Syrian and Palestinian refugees in Lebanon, primarily through market-based food assis- tance programming. The main objective of WFP’s support is to deliver humanitarian assistance at scale in an efficient man- ner, providing dignified solutions to refugees and affected communities. Support to refugees in Leba- non is part of a larger regional emergency operation which began in July 2012. Voucher-based food assistance – implemented through a network of over 400 shops throughout Lebanon – benefitted over 900,000 refugees at its peak. After two years of voucher-based food assistance programming in Lebanon, this assessment was con- ducted to understand how markets responded to the increased demand for food. It also looked at the impact that the programme has had on the food supply chain. In terms of secondary impact on markets, this study highlights that WFP’s voucher programme mainly benefits dominant traders and import markets so far as the supply side benefits are concerned. The programme has had limited benefits on local production and only some effects on local trade and labour markets. The results are however not surprising given the high food import dependency of the Lebanese econ- omy, particularly in relation to urban areas and consumers. In this context, the key ‘opportunity mul- tipliers’ to enhance benefits for beneficiaries come from leveraging negotiations with the commercial sector to achieve increasingly better prices and services. In relation to rural areas, the study mentions that the voucher programme positively impacted local production, especially that of fresh vegetables. In this regard, WFP is working with FAO to identify more opportunities for complementary initiatives under an overarching social protection strategy for Lebanon. In view of evolving demand and access considerations, the study recommends that the selection of retailers be revised to ensure that services and opportunities for beneficiaries are optimised. I take this opportunity to express my sincere gratitude to the research team for the dedication and a very useful document. We expect that the information and analysis in the report will be useful in the drafting, in 2016, of the WFP Country Strategy for Lebanon. Gawaher Atif WFP Representative Lebanon ii | P a g e Exploring Food Assistance Programmes: Evidence for Lebanon Table of Contents List of Figures ......................................................................................................................................... iv List of Tables ........................................................................................................................................... v List of Maps ............................................................................................................................................. v Acknowledgements ................................................................................................................................ vi Acronyms .............................................................................................................................................. vii Glossary ................................................................................................................................................ viii Key findings ............................................................................................................................................. x Executive Summary ................................................................................................................................ xi Introduction and background ................................................................................................................. 1 1. Economic environment .................................................................................................................... 4 1.1 Trade balance remains vibrant amid regional turmoil ....................................................... 5 1.2 Increased demand has had a limited impact on national consumer prices ....................... 6 1.3 Economic and social impact on the host communities ...................................................... 7 2. Food availability through local production and trade ..................................................................... 9 2.1 Imports of products specifically demanded by Syrian refugees ......................................... 9 2.2 Local food production ......................................................................................................... 9 3. WFP response to the Syrian crisis .................................................................................................. 11 3.1 Food deserts ...................................................................................................................... 12 3.1.1 Physical access to food .................................................................................................. 14 3.1.2 Economic access to food ............................................................................................... 14 3.1.3 Hot spots ....................................................................................................................... 17 4. Exploring weaknesses and opportunities for market-based solutions .......................................... 20 4.1 Supply chains matter ........................................................................................................ 21 4.2 Imported food – global, long, short and local supply chains ............................................ 22 4.2.1 Local food ...................................................................................................................... 23 4.3 Revenues from vouchers .................................................................................................. 25 4.3.1 Investments ................................................................................................................... 28 4.3.2 Employment .................................................................................................................. 29 4.3.3 Problems and opportunities ......................................................................................... 30 4.4 Strengthening customer relationships .............................................................................. 32 4.4.1 Access to and provision of credit .................................................................................. 32 4.4.2 Customer base .............................................................................................................. 34 4.4.3 Syrian-demanded products ........................................................................................... 34 4.4.4 Promotions – customer/client relationships ................................................................ 35 4.5 Food price analysis ............................................................................................................ 36 5. Concluding remarks ....................................................................................................................... 38 Bibliography .......................................................................................................................................... 43 Annex 1: Questionnaire ........................................................................................................................ 45 Annex 2: Additional Tables
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