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Impact of High Food Prices in Cambodia

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Impact of High Food Prices in Cambodia IMPACT OF HIGH FOOD PRICES IN CAMBODIA SURVEY REPORT CAMBODIA DEVELOPMENT RESOURCE INSTITUTE (CDRI) SPONSORED BY WORLD FOOD PROGRAMME NGO FORUM ON CAMBODIA OXFAM AMERICA UNDP WORLD BANK FAO OCTOBER 2008 Table of Contents Acknowledgement .................................................................................................................. vi Executive Summary .............................................................................................................. vii I. Introduction ..........................................................................................................................1 1.1 Rationale .............................................................................................................................1 1.2 Methodology .......................................................................................................................2 II. Recent Macroeconomic Performance and Rising Prices ................................................5 2.1 Recent Macroeconomic Performance .............................................................................6 2.2 Rising Prices ......................................................................................................................7 2.2.1 Rising Prices in Consumer Goods ..................................................................................7 2.2.2. Rising Prices in Producer Goods ................................................................................12 2.3 Implications of Rising Prices on the Economy ..............................................................15 III. Impact on Household Food Security .............................................................................15 3.1 Food Consumption and Food Security Patterns ..........................................................15 3.1.1 Cereals and Tubers .......................................................................................................16 3.1.2 Pulses ............................................................................................................................17 3.1.3 Meat, Fish and Dairy product ......................................................................................17 3.1.4 Vegetable and Fruits .....................................................................................................19 3.1.5 Oils, fats and sugar .......................................................................................................19 3.1.6 Sources of Staple Food .................................................................................................19 3.1.7 Dietary Diversity: Food Consumption Scoring ............................................................21 3.1.8 Dietary Diversity: Food Consumption Scoring applied to Cambodia .........................22 3.3. Food (In)Security Profiles: How many, who and where Are the Food Insecure?.......24 3.2.1 Current Food Insecurity Status (end of May – early June 2008) ..........................................24 3.2.2 Location and Patterns of Current “Borderline Consumption” population .................26 3.2.3 Main characteristic of the “Poor Food Consumption” population .............................28 3.2.4 Location and Patterns of Current “Borderline Consumption” population .................34 3.2.5. Probable Food Insecurity Status during next Lean Period .........................................35 3.3. Sources and Changes of Cash Income .........................................................................38 IV. Household Coping Strategies..........................................................................................40 4.1 Difficulties Faced by Households and Measures Households Used to Cope ..............40 4.1.1 Selling Land and Other Assets .......................................................................................44 4.1.2 Loans as way of coping mechanism ...............................................................................46 4.1.3 Migration as way of coping mechanism ........................................................................51 4.2 Assistance Preferred by Households ..............................................................................52 V. Potential and Constraints to Increase Food Supply ......................................................53 5.1 Agricultural Land Characteristics .................................................................................53 5.2 Production of Main Staple Crops by Region .................................................................55 5.2.1 Wet Season Rice Production ..........................................................................................55 5.2.2 Dry Season Rice Production ..........................................................................................57 5.2.3 Maize Production ...........................................................................................................59 5.2.4 Cassava Production in Target Village ...........................................................................61 5.2.5 Soya Bean Production in Target Village .......................................................................62 5.3 Potential and Constraints to Increase Production ........................................................63 ii VI. Analysis and Recommendations .....................................................................................65 RERFERENCES ....................................................................................................................68 ANNEXES ..............................................................................................................................69 ANNEX I: Additional Tables ................................................................................................69 ANNEX II: Household Survey Questionnaire ....................................................................80 ANNEX III: Village Checklist ..............................................................................................94 List of Tables Table 1.1 Number of surveyed villages by province and agro-climatic zone ...........................3 Table 1.2 Sites for Purposive Sample Survey and Focused Group Discussions .......................4 Table 2.1 Structure of Household Food Consumption, 2004 ....................................................8 Table 2.2a Retail Prices of Milled Rice in Phnom Penh Markets .............................................8 Table 2.2b Prices of Milled Rice Purchased by Farmers, by Province and Month ...................9 Table 2.3 International Prices of Rice (US$/tonne) ................................................................10 Table 2.4 Reasons for Increased Prices of Milled Rice Provided by Group Interviews ...................10 Table 2.5 Retail Prices of Other Food Items ............................................................................11 Table 2.6 Wholesale Prices of Livestock and Poultry .............................................................12 Table 2.7 Retail Prices of Fuels (Phnom Penh) .......................................................................12 Table 2.8 Prices of Fertiliser in Provincial Markets (thousand riels per sack of 50 kg) ..........13 Table 2.9 Median Wages for Day Labour (riels per person per day) ......................................14 Table 2.10 Daily Wages in Rice ..............................................................................................14 Table 3.1 Average Weekly Household Food Consumption by Ecological Zones (how many days during the last week each food item was taken) ..............................................................16 Table 3.2 Comparative Analysis of Food Consumption Score (FCS) by Ecological Zone ....16 Table 3.3 Percentage of Households Who Never Ate Pulse ....................................................17 Table 3.4 Percentage of Households Who Never Ate Meat ....................................................18 Table 3.5 Percentage of Households Who Never Ate Fish .....................................................18 Table 3.6 Percentage of Owned Production of Rice by Ecological Zone (weighted by households) ..............................................................................................................................19 Table 3.7 Sources of main food consumption in the last 7 days prior to the survey (percent of Respondent households) ..........................................................................................................20 Table 3.8 Collected Food Items, Food Groups and Their Relative Weights ...........................21 Table 3.9 Thresholds of Food Consumption Score .................................................................22 Table 3.10 Poor Food Consumption by Ecological Zone ........................................................22 Table 3.11 Borderline Food Consumption by Ecological Zone ..............................................23 Table 3.12 Acceptable Food Consumption by Ecological Zone .............................................23 Table 3.13 Number of Current Food Insecure Households by Ecological Zone .....................24 Table 3.14 Household coping strategies (Lower figures means more frequent) .....................32 Table 3.15 Thresholds of Food Consumption Score (FSC) (weighted by household) ............35 Table 3.16 Estimated number of Food Insecure Households during Lean Season by Ecological Zone .......................................................................................................................36
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