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Market Assessment Questions
Q. When doing a current year analysis I find that prices for some commodities have increased disproportionately to others. What should I do to make sure I put in the correct “problem specification”?
In the spreadsheet for the problem specification you can enter different problem specifications for different commodity prices. Different constituents of the household food and non-food basket can also be given different price problems.
Q. How is market analysis useful in monitoring impacts of projects? What do we mean?
This answer is best given with reference to specific examples. Click here.
Q. How do traders determine their prices? This is needed when we make scenarios of likely future prices.
Traders need to calculate the marketing margin and add this to the price at which they buy from suppliers. The marketing margin includes transport, storage, processing (if necessary). In terms of fixing their prices to rig the market – this is done through verbal agreements between members who make up a cartel. However, for the purposes of HEA we do not go into these sorts of calculations, but rather rely on a combination of historical data and primary information from key informants.
