2013
Rapid Assessment for
Market Report
Typhoon Hayain - Leyte, Philippines
This market report accesses key shelter commodities across the island of Leyte
which was badly damaged by Typhoon Hayain. GOAL plan on distributing
shelter commodities to households supported by a direct hand-to-hand cash
transfer but in order to do so the market must be able to support this
programme. All findings in this report are based on information available at the
time of the assessment, it must be noted that the market environment in Leyte
is constantly changing as more stores being to open across the island.
James Kelly
GOAL
1/1/2013
Table of Contents
1.
Shock and needs analysis summary ............................................................................................ 2
2.
Market Mapping ......................................................................................................................... 2
3.
Trader Analysis ............................................................................................................................ 2
3.1
Impact on physical access of the affect population to the market..................................... 2
3.2
Affected household purchasing power ............................................................................... 3
3.3
The impact of the shock on the supply chain ..................................................................... 3
3.4
The capacity of retailers and wholesalers to increase their supply to meet demand ........ 3
3.5
Changes in quality and quantities of commodities demanded .......................................... 4
3.6
The impact of the shock on the pricing of the commodities .............................................. 4
3.7
Opportunities for market-based interventions .................................................................. 4
3.8
Market related considerations that urgently require attention ......................................... 4
3.9
Assumptions, difficulties and challenges ............................................................................ 5
4 Conclusion ........................................................................................................................................ 5
RAM Leyte Island / Nov 28th 2013 / GOAL Emergency Response
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1. Shock and needs analysis summary
Type of shock:
Typhoon
Date of shock:
8th November
Date of RAM assessment:
25TH – 28TH November
Area of operation:
Jaro
Affected areas assessed:
Jaro, Tacloban, Carigara, Ormoc.
Population in area of operation:
Estimated, 10,000 households
Average household size:
5, based on information from local
government
Stationary in own homes.
Location of affected population:
Markets assessed:
Number of total markets assessed:
Commodities included in the assessment:
Retailers in Tacloban, Jaro, Carigara and
Ormoc. Wholesalers and Manufacturers
based in Cebu and Manila were not
contacted.
13 retailers in total – 3 were closed due to
the Typhoon in both Jaro and Tacloban.
Corrugated iron sheeting, umbrella nails,
regular nails, vulca seal and tie-wire.
2. Market Mapping
[Include two maps, one of the Philippines highlighting Leyte, Manila and Cebu, and the other of
Leyte highlighting Jaro, Tacloban, Carigara and Ormoc]
Before the Typhoon the people of Jaro sourced the named commodities in their local market in Jaro
while some would also travel to Tacloban. The local market in Jaro sourced the commodities from
larger retailers in Tacloban – an hour drive from Jaro.
After the Typhoon the people of Jaro are now sourcing the highlighted commodities in one market in
Jaro, Rag 2 Concrete Products, which is not fully registered. This hardware store is now sourcing
their commodities in Carigara and Ormoc which they did not do in the past.
Before: Tacloban – Jaro hardware store – Consumer
After: Ormoc – Carigara - Jaro hardware store – Consumer
3. Trader Analysis
3.1 Impact on physical access of the affect population to the market
The affected population have now regained access to the market after more than a week being cut
off. A local hardware store in Jaro has reopened and is now sourcing shelter materials which the
affected population are buying. Hardware stores that used to source their commodities from
Tacloban are now sourcing this commodities in Ormoc as all hardware stores in Tacloban are closed
with no known open date in sight.
The affected area is quite large in size and it will cost varying amounts for different communities to
get to a local hardware store in Jaro. As the income for most households was wiped out in the
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typhoon it will be difficult for households to get the cash together in order for them to access the
market.
3.2 Affected household purchasing power
The purchasing power of the affected households has been greatly impacted. The majority of
households relied heavily on farming, their sole income. With almost all crops completely destroyed
or badly damaged in the Typhoon, almost all households have been left without any source of
income.
It was highlighted in one Barangay (community area) that the leader of the Barangay, the Barangay
Captain, used to give credit to families in the community but after the storm this stopped. As almost
all coconut trees in area were knocked or severely damaged the community have no source of
income and therefore will not be able to pay back any loans for the foreseeable future.
3.3 The impact of the shock on the supply chain
Large numbers of households are seeking corrugated iron, umbrella nails, vulca seal and regular
nails. The market place is finding it difficult to support the needs of communities with these
commodities. Supply chains which pre-Typhoon would have sought stock in Tacloban are now
seeking stock being sourced in Cebu.
Due to large volume’s of recovery aid being shipped into Ormoc and Tacloban, retailers are finding it
extremely difficult to transport stock into their hardware stores. Recovery aid is being prioritized in
all ports and as a result all other shipments are being delayed or completely held-back. The bigger
retailers in Ormoc have largely kept their prices the same as pre-Typhoon with the only adjustment
to price covering extra cost of shipment from Cebu to Ormoc as the retailers now have to pay for
trucks, overtimes for drivers and so on.
Retailers in Carigara and Jaro have increased their prices more than that of Ormoc as they are
covering the cost of fuel (which has increased 100% since the Typhoon) for the trucks they now have
to send to Ormoc. It was noted that as the mobile phone and landline communications are not
operational in Jaro and also partly in Ormoc it is difficult to call ahead, therefore trucks are
sometimes sent to Ormoc to get stock but have to return empty as there is no more stock available.
3.4 The capacity of retailers and wholesalers to increase their supply to meet demand
Since the storm retailers have been able to source the listed commodities in Cebu, however many of
the manufacturers in Cebu are now struggling to meet demand and have completely run out of stock
for umbrella nails and 8 foot CGI. It is unclear how long other stocks will last and several retailers are
hoping to receive stock direct from manufacturers in Manila – it is estimated that it will take 2 to 3
weeks for stock to arrive from Manila. Even then, retailers have requested as many as 100 crates of
CGI (containing between 500 and 700 pieces of CGI depending on the length) however the
manufacturers are only sending 25 to 30 as they cannot meet the full demand.
If ports in Tacloban and Ormoc do not allow more shipments of non-recovery items then it will most
definitely lead to a shortage of the listed commodities.
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3.5 Changes in quality and quantities of commodities demanded
The quantity required by the general population of the listed commodities has increased
dramatically since November 8th. Stocks which are being shipped into Ormoc last just one to two
days in-store before they are sold out, before November 8th they would last several weeks.
Many people are looking to buy the cheapest corrugated iron available which is .2 or .3 millimetre.
This is not good quality as it is .4 or .45 millimetre which should be used for roofing when possible. It
is the cost that is causing people to buy the cheaper product as people need to buy large quantities
as many have lost their whole roof in the typhoon.
3.6 The impact of the shock on the pricing of the commodities
The pricing of all items has risen as a result of the Typhoon. Manufacturers in Cebu have reportedly
increased their price by 1 peso per square foot for corrugated iron. The cost of getting the goods to
Ormoc has also increased and this has been reflected in the price for most retailers.
However, the increase in price has been minimal for hardware stores in Ormoc. It is the local
hardware stores in Jaro and Carigara which have had the larger increases in price as they now have
to cover the cost of trucking the commodities from Ormoc.
3.7 Opportunities for market-based interventions
For households in Jaro many will not have the opportunity to buy the required commodities to fix
their roofing. This is a direct result of the typhoon as their sole income has been wiped out due to
the destruction of their coconut and banana crops.
In the past, organisations have used hand-to-hand cash transfers during emergencies in the
Philippines, (Cash Transfer Programming in Emergencies, CaLP, 2011). These hand-to-hand transfers
are quicker to roll out, do not require the beneficiaries to hold a bank account and have proven to
work extremely well even when the donation is unconditional. The hand-to-hand cash transfer will
be used in whatever way the beneficiary deems necessary for the family household. In speaking with
many beneficiaries in the affected area the top three problems include; food, shelter and livelihoods.
As GOAL will be distributing food on a blanket basis across the affected area then it can be assumed
that households will use the cash transfer for either shelter or livelihoods depending on the
household.
With a hand-to-hand cash transfer the affected areas will also have the opportunity to access the
market as they can use the cash to pay for transport to a local hardware store.
3.8 Market related considerations that urgently require attention
An issue urgently requiring attention is the retailer’s access to transportation of stock. As many of
the listed commodities are being shipped in from Cebu the majority of retailers are experiencing
long delays in shipment. This is solely down to emergency aid taking priority before all other
shipments. Retailers in Ormoc noted that in some cases it was taking 10 to 14 days before a truck
was approved for shipment from Cebu to Ormoc. With these delays it will be difficult to keep stock
the listed commodities at the necessary levels to satisfy the needs of the general population.
Some stocks in Cebu have started to run out, primarily 8 foot corrugated iron and umbrella nails.
These are now being shipped from Manila but will take longer to arrive in Ormoc. It is believed that
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the next manufacturing date for these goods in Cebu is not until late December. To help with this it
would help if the port in Tacloban was also opened up to shipments from Maila for retails in Ormoc.
Currently they are unable to gain access to any shipments in Tacloban which they could easily
transfer to Ormoc by truck.
3.9 Assumptions, difficulties and challenges
The main difficulties for retailers is the shipment of good and the limited stocks available. The
challenges for these retailers are primarily based around getting their shipments approved for
transport from Cebu to Ormoc. It is assumed that in the coming days and weeks that the shipments
will be approved faster as the emergency aid starts to lessen over time.
For customers in the affected area of Jaro the difficulty is their limited income which was drastically
affected by the Typhoon. The challenge now is to rebuild their homes with little or no access to the
market due to their lack of any income. It is assumed that with a direct hand-to-hand cash transfer,
the households involved will regain access to the market and compliment the shelter items being
distributed at the same time as the cash transfer.
4 Conclusion
In conclusion, the local market in Jaro will be able to sustain the required quantity of listed
commodities for potential customers due to the direct cash distribution. If Jaro hardware stores for
some reason are unable to sustain the demand then the local market in Carigara will most certainly
be able to do so.
Tacloban is about to start trading once again and the demand on the Ormoc market will decrease
once this takes place.
If beneficiaries decide to use the funds in other areas they will most likely be; food, livelihoods and
education. This assumption is based off past direct cash distributions which Oxfam and Christian Aid
delivered in 2011. Education is most likely not going to start until mid-January so this is the most
unlikely area to be focused on. As GOAL will be delivering a blanket distribution of rice to all affected
areas fortnightly this is also another area most beneficiaries will not focus on. However, livelihoods
have been completely destroyed in almost all areas affected and therefore this might become the
focus of many beneficiaries who might deem this more important than further shelter requirements.
Coconuts and bananas were the main crops in the affected areas. As both these crops take several
years before another harvest will reap any profits for the farmers, other crops will take higher
importance. As a result, beneficiaries may put the cash donated with the shelter commodities
towards starting another income generating livelihood.
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