WVE | Rapid Market Assessment

September 2019

RAPID MARKET ASSESSMENT INFORMATION GATHERING REPORT

WORLD VISION ECUADOR

WORLD VISION ECUADOR Rapid Market Assessment Report Approval José Luis Ochoa National Director

Report Editing José Bagua Integrated Ministry Director Gabriela Benítez Specialist in Emergency and Humanitarian Topics Ángel Cucurí Design, Monitoring, and Evaluation Coordinator

Report Compiling Mayra Flores Jácome Design, Monitoring, and Evaluation Specialist

Field Operative Ronald Ramírez Technical Assistant in Emergency Humanitarian Attention

Report Created: September, 2019 All rights reserved. To cite, paraphrase or somehow reproduce the information presented in this document, the source must be cited: World Vision Ecuador (WVE) (2019), Directorate of Integrated Ministry (DMI), available at: https://issuu.com/worldvisionec If you would like more information about this report, please contact the DMI focal point at WVE: Gabriela Benítez (gabriela_benitez@wvi.org) World Vision Ecuador (WVE) Gaspar de Villarroel E3-62 entre Jorge Drom y Londres P.O. Box: 17-03-04 Quito, Ecuador Telephone: (593 2) 225 3475 Ext. 1101. Fax: (593 2) 227 0331 E-mail: ecuador@wvi.org

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Table of Contents Acronyms .............................................................................................................. 4 Introduction .......................................................................................................... 5 Purpose .................................................................................................................. 5 Methodology .......................................................................................................... 5 Section 1 – Needs analysis ................................................................................... 6 1.

Study Design ................................................................................................... 9

Section 2 – Market Mapping .............................................................................. 10 Section 3 – Analysis of the main study results................................................. 17 I.

Venezuelan population ................................................................................ 17

II. Wholesale and retail merchants ................................................................ 22 III.

People who rent homes to the Venezuelan population ....................... 30

Conclusions and recommendations.................................................................. 32 Annexes ............................................................................................................... 33

Graphics Index Graphic 1. Geographical location of the main markets accessed by the affected population .................................................................................................................................................... 10 Graphic 2. Markets evaluated that the affected population uses most ......................... 10 Graphic 3. Rice Production and Marketing in Ecuador ......................................................... 11 Graphic 4. Production and Marketing of Wheat (flour and its derivatives) in Ecuador ......................................................................................................................................................... 12 Graphic 5. Production and Marketing of Chicken Meat in Ecuador ............................... 13 Graphic 6. Map of the local and external rice market in Ecuador ................................... 14 Graphic 7. Map of the local and external market of Wheat (Flour) in Ecuador ....... 15 Graphic 8. Map of the local and external market of Chicken Meat in Ecuador ........ 16 Graphic 9. Total number of family members............................................................................. 18 Graphic 10. Market access is safe for women............................................................................. 18 Graphic 11. Market access is safe for children ........................................................................... 19 Graphic 12. Total amount spent per month by the affected population ..................... 19 Graphic 13. Main products consumed by the affected population .................................. 20 Graphic 14. Main money transfer services used by the affected population .............. 21 Graphic 15. Influx of customers in the markets ....................................................................... 22 Graphic 16. Main products sold in the markets ........................................................................ 23 Graphic 17. Time it takes to stock products, according to demand .............................. 24 Graphic 18. Origin of the main suppliers ..................................................................................... 24

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Graphic 19. Origin of clients that visit the study markets ................................................... 25 Graphic 20. Merchants who have requested credit to buy their products .................. 25 Graphic 21. Gender of people who buy in the market .......................................................... 26 Graphic 22. Gender of people who buy in the market, by cities ...................................... 26 Graphic 23. Actions implemented by merchants to preserve the quality of their products ........................................................................................................................................................ 27 Graphic 24. Challenges faced by merchants ............................................................................... 28 Graphic 25. Terms for partnership with World Vision in the execution of a project ........................................................................................................................................................................... 28 Graphic 26. Reasons why they would not participate with World Vision in the execution of a project ............................................................................................................................ 29 Graphic 27. Type of housing for rent ............................................................................................. 30 Graphic 28. Rental value Hotel, Hostel or Residential, Daily Cost ................................. 31 Graphic 29. Room rental value, Monthly Cost .......................................................................... 31 Graphic 30. Rental value Apartment, House, Monthly Cost .............................................. 31 Graphic 31. Places where the affected population acquires food .................................... 32

Acronyms ACNUR FAO GAD HEA IG INEC INEN LEAP MAG ONG RAM WV WVC WVE WVUS

United Nations High Commissioner for Refugees United Nations Food and Agriculture Organization Municipal Decentralized Autonomous Government Humanitarian Emergency Care Geophysical Institute National Institute of Statistics and Census Ecuadorian Institute for Standardization Learning through Responsibility, Assessment, and Planning Ministry of Agriculture and Livestock Non Governmental Organization Rapid Market Assessment World Vision World Vision Canada World Vision Ecuador World Vision United States

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Introduction In recent years Ecuador has experienced significant population growth, which is mainly due to the migration of citizens of other nationalities. According to figures from the Ecuadorian Foreign Ministry, Ecuador is the third largest recipient of Venezuelans in Latin America and the Caribbean (after Colombia and Peru). From 2015 to the end of 2018, about 262,000 Venezuelan people have settled in the country. This translates to 1.9% of the Ecuadorian population; of which 97,000 have managed to regularize their immigration status (they have a visa) according to the Ministry of Foreign Affairs and Human Mobility. In the month of August 2018, high migratory flows were registered, reaching more than 6,000 people daily.

This phenomenon allows the markets to constitute a basic scenario for the commercialization of basic products from diverse economic sectors. This means that selling products in this manner is the main source of income for millions of people, and their main source of supply in basic necessary products. Hence its importance regarding the livelihoods of people in that it allows them to generate sufficient resources to meet their own needs, and those of their families, and to continue living sustainably and with dignity.

The functioning of systems and places of business can be significantly limited by different crises or disturbances such as natural disasters or migratory conflicts. This affects the ability of people to access essential commodities.

Purpose The Rapid Market Assessment (RAM) is intended to establish a general and basic overview of the situation in the principle markets following a crisis. The evaluation helps to strengthen the pre-intervention analysis as it provides data on the markets that, in turn, are essential for the creation of informed decisions of the most appropriate type of transfer mechanism in case of assistance (International Federation of Companies of the Red Cross and Red Crescent).

Methodology The information from the RAM is crucial for the implementation of projects aimed at responding to the migratory crisis of the Venezuelan population. The information gathered provides a realstic overview of the market situation, in production, transport, purchase and sale of products, as well as formal and informal institutions, the rules and regulations that govern these interactions, and also the infrastructure that facilitates them.

The information gathering was carried out in two cities where there is a greater Venezuelan population and where other Non-Governmental Organizations (NGOs) are not collecting similar information. The population surveyed corresponds to the Venezuelan population, interviews with wholesalers and retailers in the principle markets, and are complemented by interviews with people who rent homes to the Venezuelan population.

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Section 1 – Needs analysis Type of crisis:

Venezuela migration

Date on which the crisis occurred:

From 2018 to present day

Date of RAM:

July - August 2019

Evaluated affected zones:

The geographical location of the study is distributed over 2 cities of Ecuador which were selected with the following criteria: a) cities with a Venezuelan population, b) cities where NGOs such as WFP are not collecting similar information, c) cities that are in support plans from World Vision Ecuador (WVE), and d) cities prioritized by the donor. The selected cities are the following: Guayaquil and Esmeraldas.

Total population in the affected zone:

According to the Ecuadorian Institute of Statistics and Censuses (INEC), the projection of the Ecuadorian population in 2018 in the affected areas is: Guayaquil - 2,671,801 people; Esmeraldas - 214,975 people.

Total, population: 2,886,776 people 742,102 homes - based on an average family size of 3.89 (3.80 Guayaquil and 3.97 Esmeraldas).

Population affected in the evaluated zone:

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According to data from the Ministry of Foreign Affairs and Human Mobility of Ecuador 1 , until 2018 86,615 Venezuelan people reside in the 2 evaluated cities (79,409 in Guayaquil and 7,206 in Esmeraldas) 23,730 households - based on a family size of 3.65.

According to information from the Ministry of Interior, of the total number of Venezuelan people who entered Ecuador in 2018, 49% are women and 51% are men2.

Human Mobility Study: Venezuelan Migrants. Smart Steps, LUCA platform (TelefĂłnica). February 2019.

2 International Cooperation Framework for the National Response to Venezuelan Persons in Situations of Human Mobility in

Ecuador. Ministry of Foreign Affairs and Human Mobility. December 2018

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Average family size:

The average Ecuadorian household size is 3.78, according to the Population and Housing Census conducted by the National Institute of Statistics and Census (INEC) in 2010. However, the average number of people per household for Guayaquil and Esmeraldas is 3.80 and 3.97 respectively.

The average size of a Venezuelan family residing in Ecuador is 3.65, according to the protection monitoring carried out by the United Nations High Commissioner for Refugees (UNHCR) in September 2018.

Location of the affected population:

The RAM focused on the Venezuelan population that lives in rural and urban areas in Guayaquil (Guayas province), and Esmeraldas (Esmeraldas province).

Evaluated markets:

Main local markets located in the 2 study cities: 1. Municipal Central, Esmeraldas; 2. Municipal El Oeste, Guayaquil; 3. Municipal José Mascote, Guayaquil; 4. Municipal Asisclo Garay, Guayaquil; 5. Municipal Gomez Rendón, Guayaquil; 6. Municipal Las Cuatro Manzanas, or Market for Various Articles, Guayaquil; 7. Municipal Central, Guayaquil.

Number of merchants (wholesalers and retailers):

5,179 wholesale and retail merchants from the main local markets located in the 2 study cities, according to the data analyzed in the RAM in August 2019: Esmeraldas – 83 merchants; Guayaquil – 5,096 merchants.

According to the data analyzed in the RAM in August 2019, the main products consumed by the affected population are:

Commodities demanded by the population affected by the crisis

(Type, volume and duration requested by the affected population)

 Rice – 18,620 tons (t)/year.

Minimum price per pound USD. 0.40 and a maximum of USD. 0.50.  Wheat and derived products (Flour) - 10,500 t/year.

Minimum price per pound USD. 0.50 and a maximum of USD. 0.80.  Chicken – 12,250 t/year.

Minimum price per pound USD. 1.20 and a maximum of USD. 1.50.  Pasta - 910 t/year.

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Minimum price per pound USD. 1.20 and a maximum of USD. 1.50.  Red Meat (Bovine) - 5,950 t/year.

Minimum price per pound USD. 1.75 and a maximum of USD. 3.50.  Bread – 9,100 t/year Minimum price per unit (common bread) USD. 0.12 and a maximum of USD. 0.20.  Cheese – 550 t/year.

Minimum price per pound USD. 2.50 and a maximum of USD. 3.00  Eggs – 57,750,000 units per year Minimum price per USD unit. 0.10 and a maximum of USD. 0.15.  Beans – 1,400 t/year.

Minimum price per pound USD. 1.50 and a maximum of USD. 1.80.

To calculate of the quantity and frequency requested by the affected population, the total number of people affected (350,000) was used, per capita consumption according to data from the Ministry of Agriculture, and Livestock (MAG), and the Organization of United Nations for Food and Agriculture (FAO): rice (53.2kg / year); wheat flour (30kg / year); chicken (35kg / year); pasta (2.6 kg / year); red meat- bovine (17 kg / year); bread (26kg / year); cheese (1.6 kg / year); eggs (165 units / year); beans (4kg / year).

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1. Study Design As part of the first phase (determination of the scope and content of the evaluation) and second phase (collection of information on markets), tools were applied to define the affected population, markets and commodities where the study will be focused. a. Type of Study A mixed quantitative and qualitative study was conducted, whose focus audience is the Venezuelan population, wholesalers and retailers in the markets, and people who rent homes to the Venezuelan population.

b. Quantitative Study A quantitative cross-sectional study was conducted, whose audience was the Venezuelan population, located in 2 cities selected for the study, for which the sampling survey technique was used, with the application of the instrument shared by World Vision United States (WVUSA), which were reviewed, validated and contextualized by WVE prior to its application.

c. Qualitative Study For the qualitative component, the technique of interviews with merchants from small, medium and large markets, and the Venezuelan population residing in the selected cities was applied to determine if the humanitarian crisis affected the functioning of systems and market places and the people's ability to access essential commodities essential for their life and their livelihood.

The instrument was shared by WVUSA, which was reviewed, validated and contextualized by WVE for its application.

The combination of qualitative and quantitative information allows for the in-depth exploration of the phenomenon or phenomena studied, and enriches the interpretation of the data obtained, from which conclusions and recommendations will be established in relation to market behavior.

d. Information Gathering For the information gathering process, contextualized surveys and interviews were used. They were implemented through the KoBoCollect system3. For the field work, one tablet was used, and the team that participated in this study consisted of: a) one interviewer, b) one supervisor, c) one coordinator and one Design, Monitoring and Evaluation (DME) specialist, d) one Humanitarian Emergency Care (HEA) specialist, and f) one Cash-Transfer specialist from World Vision Canada (WVC).

3

KoBoCollect (Android) is an application that allows you to collect interview data or other information both online and offline related to numerous aspects such as humanitarian emergencies and other environmental situations (natural disasters, humanitarian crises, etc.).

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e. Processing The information processing was carried out via the Microsoft Excel electronic sheet, to generate totals, averages, frequencies and graphs; with a participatory approach by the team that carried out the study.

Section 2 – Market Mapping Graphic 1. Geographical location of the main markets accessed by the affected population

Number

2

Province

City

Market Municipal El Oeste Municipal José Mascote Municipal Asisclo Garay

1

Guayaquil

Guayaquil

1

Municipal Gómez Rendón Municipal Las Cuatro Manzanas or Market of Various Articles Municipal Central

2

Esmeraldas Esmeraldas Municipal Central

Source: HEA - World Vision Ecuador, August 2019.

Compliation: DME - World Vision Ecuador, September 2019.

Graphic 2. Markets evaluated that the affected population uses most

54%

12%

12%

12% 4%

MERCADO CENTRAL GUAYAQUIL

MERCADO MUNICIPAL DE LAS CUATRO MANZANAS GUAYAQUIL

MERCADO MUNICIPAL JOSÉ MASCOTE GUAYAQUIL

MERCADO MUNICIPAL ESMERALDAS

MERCADO MUNICIPAL ASISCLO GARAY GUAYAQUIL

4% MERCADO MUNICIPAL OESTE GUAYAQUIL

4% MERCADO MUNICIPAL GÓMEZ RENDÓN GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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a) Production Maps and Market Flowcharts Graphic 3. Rice Production and Marketing in Ecuador

Production (1,786,098 Metric Tons per year) Guayas (71%) Los Ríos (24%) Manabí (4%) Resto del País (1%) Perú

Main Market Centers National Storage Units (UNA) Collection and Wholesale Collection and Wholesale and Retail Sales Border Market (Aguas Verdes - Perú) Collection and Wholesale

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 4. Production and Marketing of Wheat (flour and its derivatives) in Ecuador

Canada United States Ukraine

Production (6,288 Metric Tons per year) BolĂ­var (32%) Chimborazo (25%) Imbabura (18%) Pichincha (10%) Azuay (7%) Loja (3%) Cotopaxi (2%) CaĂąar (2%) Tungurahua (1%) Main Market Centers Industrialization of Wheat Ecuadorian Mills Association (ASEMOL) Industrial Markets and Wholesale Wholesale and retail Border Market (Imports 919,274 Metric Tons per year) Canada (57%) Brazil Argentina

United States (37%) Brazil (3%) Argentina (1%) Ukraine (1%)

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 5. Production and Marketing of Chicken Meat in Ecuador

Production (490,000 Metric Tons per year) Pichincha (27%) Guayas (27%) El Oro (8%) Imbabura (7%) Manabí (6%) Resto del País (25%) Perú

Main Market Centers Industrial Slaughtering Plants (PRONACA, AVICOLA SAN ISIDRO, AVITALSA, INTEGRACION AVICOLA ORO, PROAVICEA) Collection and Wholesale Collection and Wholesale and Retail Sales Border Market (Perú) Collection and Wholesale

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 6. Map of the local and external rice market in Ecuador EXTERNAL ENVIRONMENT

PRODUCERS

Small Producers

Season (rain/drought)

HITCHERS

Hitchers

Consumer Consumption Preferences

PILLERS

DISTRIBUTORS

Small Pillers

Medium Pillers

Large Producers

Large Pillers

Transport Services

Financing (access to credit)

MARKET

Intermediate

Wholesale

Medium Producers

INFRASTRUCTURE AND SERVICES

Market, Supply and Demand Trends

Internal (Ecuador)

Supermarkets Neighborhood Stores

Retailer

NATIONAL STORAGE UNIT (UNA)

Exporter

Agricultural Supplies

Machinery Suppliers

External (Ecuador)

Storage Facilities

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 7. Map of the local and external market of Wheat (Flour) in Ecuador EXTERNAL ENVIRONMENT

Season (rain/drought)

Production and Marketing Costs

PRODUCERS

INDUSTRIALIZATION

Seedbeds

Other Wheat Products

ECUADORIAN MILLS ASSOCIATION (ASEMOL)

Cultivate

Consumer Consumption Preferences

Market, Supply and Demand Trends

DISTRIBUTORS

MARKET

Internal (Ecuador)

Wholesale

Retailer

Common Flour Harvest

INFRASTRUCTURE AND SERVICES

External Importation (Ecuador)

Importers

Certified Seed

Harvest Center

Financing (access to credit)

Agricultural supplies

Supermarkets Neighborhood stores

Machinery Suppliers

Import Regulations

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 8. Map of the local and external market of Chicken Meat in Ecuador Farm Pollution (Pests or diseases) (lluvia/sequia)

EXTERNAL ENVIRONMENT

Production and Marketing Costs

Consumer Consumption Preferences

INDUSTRIALIZATION

PRODUCERS

Breeding Farms

DISTRIBUTORS

Alternative Foods - Value Added (sausages, canned, etc.)

Market, Supply and Demand Trends

MARKET

Internal (Ecuador)

Supermarkets Neighborhood stores

Wholesaler Fertile Eggs

INDUSTRIAL SLAUGHTERING

Live Chickens

(PRONACA, AVICOLA SAN ISIDRO, AVITALSA, INTEGRACION AVICOLA ORO, PROAVICEA)

PACKAGING

Retailer

ARTISANAL SLAUGHTERING

External Importation

INFRASTRUCTURE AND SERVICES

Laying Hens

Modern Technology in Poultry Breeding

COMMERCIAL EGGS

Balanced suppliers

Financing (access to credit)

Regulations (Sanitation) in the Breeding, Transportation and Distribution Processes

Importation Regulations

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Section 3 – Analysis of the main study results After reviewing the graphics in section 2 and the information collected using the RAM tools, the main findings and results of the study are presented as follows, which allow us to visualize the current market situation, allowing decisions to be made at the time of designing and implementing support interventions and strengthening of these spaces.

I.

Venezuelan population

}

The main findings and conclusions of the survey of 171 Venezuelan people residing in the 2 cities studied are presented below. This information allows us to know the demand and access of the affected population to the basic products that are sold in the main markets.

Table 1. Surveys of the Venezuelan population Number 1 2

Cities GUAYAQUIL ESMERALDAS

Masculine Femenine 74 37 111

30 30 60

Total Surveyed 104 67 171

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

In the 2 study cities, 171 heads of household were interviewed, where 65% were male and 35% female. It was observed that Guayaquil is the city that has the largest concentration of participants, 61%, compared to Esmeraldas with 39%.

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The average size of people per Venezuelan family residing in Ecuador is 3.65, consisting of parents, children, cousins, grandparents, etc.

Graphic 9. Total number of family members 23% 19% 15% 11%

10%

8% 5%

3

4

1

6

2

5

5%

7

8

3%

10

1%

1%

9

11

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Access of the affected population to the main markets 77% (131) of the Venezuelan population that was interviewed, affirmed that they go to local markets to obtain the food they consume at home.

In terms of distance, 74% of households are less than 2 km from a local market or supermarket, hence 56% go daily and 26% go weekly to meet their daily food needs. In this sense, 71% (121) travel on foot and 29% (49) in public transport vehicles (bus or taxi). The average amount of money used by households for a round trip on public transport to the market or supermarket is 0.25 ctvs. to $1.00 depending on the distance. 76% of the population interviewed said that markets are safe for women, and 57% for children.

Graphic 10. Market access is safe for women CONSOLIATED

CITIES

76%

45% 31%

SI

SI

NO

16%

8%

24%

NO ESMERALDAS

SI

NO GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Graphic 11. Market access is safe for children CONSOLIDATED

CITIES

57%

31%

26%

43%

30%

13%

SI

SI

NO

SI

ESMERALDAS

NO

NO GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Household purchasing power/demand On the other hand, 58% of those affected say that the cost of current labor for daily manual labor is 6 to 10 dollars, followed by 22% who say it is from 12 to 15 dollars, 9% say it is from 3 to 5 dollars, 8 % say it is from $ 17 to $ 25, and 3% say it is over $ 30; Hence, the amount of money that most families spend per month is between $ 210.00 to $ 300.00.

Graphic 12. Total amount spent per month by the affected population

21% 18%

18% 15% 11%

7%

3% 50 - 100 DÓLARES

130 - 200 DÓLARES

210 - 300 DÓLARES

350 - 400 DÓLARES

440 - 500 DÓLARES

550 - 600 DÓLARES

650 - 700 DÓLARES

5% 2% 800 - 900 DÓLARES

1.000 - 1.300 DÓLARES

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Of this amount, 38% corresponds to food expenses; 38% for rental payment; 7% transport expenses; 5% in clothing; 5% in health, 3% in education; 2% in recreational activities; and 2% in other expenses.

Although 66% of the interviewees consider that there is not enough food in their homes, it can be seen that they try to eat properly, so that 51% of adults consume 3 meals a day, as do 49% of children.

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To avoid a food shortage at home, 59% of the heads of household perform informal work such as selling different products (sweets, prepared foods, bottled water, telephone accessories) on buses and on the street; work in various positions in restaurants, bakeries, and hotels; cleaning and housework in homes; 22% are forced to ask for food or money in the street; 6% ask family, friends and acquaintances for help; 5% reduce the portion size and number of daily meals; 2% read the Bible and leave it to God because he provides them; 2% decrease expenses and save; and 4% have no need because they have formal work.

75% of the foods they consume regularly are rice, flour, chicken, noodles, red meat, and 25% consists of bread, dried grains, cheese, eggs, vegetables, fruits, green plantains, fish, soft drinks, milk, sausages, potatoes, tuna, cereals, oil, water, coffee, cookies.

Graphic 13. Main products consumed by the affected population

Fuente: HEA - World Vision Ecuador, agosto 2019.

26% ElaboraciĂłn: DME - World Vision Ecuador, septiembre 2019.

21%

11%

11% 8% 5%

5%

4%

2%

2%

2%

2%

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Food supply and non-food products required by the affected population For the interviewed population, it is very important to have food aid from NGOs. 40% prefer to receive food directly from the organizations, while 36% consider that it is better to receive money to buy food. For 22% it is better collect food from a local merchant who works with the NGO, and 2% ask them for support so they can support themselves.

43% of the participants say that these modalities are safer, for 31% they allow what, when and where to buy food, and 26% do not make them lose their dignity at the time of receiving the help.

The majority of participants (54%) have used local money transfer services as a safe option to support their families, and stock up on products to meet the basic needs of their homes.

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Graphic 14. Main money transfer services used by the affected population

60%

30%

4% WESTERN UNION

PICHINCHA MI VECINO

BANCO DEL BARRIO

3% CASA DE CAMBIOS

1% DELGADO TRAVEL

1% BANCOS LOCALES (PACÍFICO Y PRODUBANCO)

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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II.

Wholesale and retail merchants

Below are the findings and conclusions of the interviews conducted with 36 merchants from the main markets of the 2 study cities.

Table 2. Interview with wholesalers and retailers Number 1 2

Cities GUAYAQUIL ESMERALDAS

Interviews 21 15 36

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

In the 2 study cities, it is estimated that there are 5,179 wholesalers and retailers in the main markets. 98% of them are concentrated in Guayaquil, compared to Esmeraldas with 2% where there is only one municipal market.

Of the 36 merchants interviewed, 64% sell their products in permanent structures, 33% in kiosks, and 3% in street stalls. For most interviewees (78%) their businesses has become more commercial, usually once or twice a week.

Graphic 15. Influx of customers in the markets 47% 31% 19% 3% A DIARIO

UNA VEZ POR SEMANA

DOS VECES POR SEMANA

SOLO TEMPORADAS

22

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Products that are mainly marketed within the markets 18 products that are most commercialized in the 7 study markets (Guayaquil, Esmeraldas) have been identified. 85% correspond to key products such as rice, oil, sugar, salt, flour, pasta, and tuna. The volume of sales and price of the aforementioned products varies according to the different times of the year. Sales volume is higher during summer.

Graphic 16. Main products sold in the markets 85%

7% PRODUCTOS CLAVE (ARROZ, ACEITE, AZÚCAR, SAL, HARINA, FIDEO, ATÚN)

CARNE ROJA, POLLO, HUEVOS, PESCADO

3%

2%

FRÉJOL Y OTROS GRANOS SECOS

AGUA

1% EMBUTIDOS

1% LÁCTEOS

1% FRUTAS

1% GASEOSAS

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

To be able to supply products to their customers and provide better service, the majority of merchants (81%) are resupplied when they have sold half of the volume they have established as stock for each of their products, and 19% restock when the volume of commodities is below half.

On the other hand, making a correlation between the current sales season with that of a year ago, 67% say that it has decreased, 30% say it has remained the same, and 3% consider that it has increased. In the same way, 86% of merchants affirm that the prices of key products such as rice, oil, sugar, salt, flour, noodles, and tuna, vary according to the agricultural season, so trends in prices range from: Table 3. Price trend according to the agricultural season Price Variation Number Key Products (Dollars) 1 Rice (1/2 kg) 0,35 - 0,50 2 Oil (litro) 0,50 - 1,50 3 Sugar (1/2 kilo) 045 - 0,50 4 Salt (1/2 kg) 0,25 - 0,30 5 Flour (1/2 Kg) 1,00 - 1,50 6 Pasta (500 g) 0,60 – 0,90 7 Tuna (150 g) 1,00 – 1,75 For the rest of the products, prices remain constant independent of the season.

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Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Product supply The delay in the supply for the demand of the products that are commercialized in the study markets can be seen in the following graph:

Graphic 17. Time it takes to stock products, according to demand 39% 33% 22%

3% DE 2 A 5 DÍAS

A DIARIO

SEMANAL

3%

15 DÍAS

1 MES

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Only a small percentage (8%) of merchants have been presented with delays in the time it takes to supply them products.

 Main suppliers and clients 70% of suppliers for the 36 merchants interviewed are from the Coast (Guayaquil, Santo Domingo, Esmeraldas, Manta), and 30% from the Sierra (Quito, Ambato, Latacunga).

Graphic 18. Origin of the main suppliers 53% Fuente: HEA - World Visión Ecuador, marzo 2019.

Elaboración: DME - World Visión Ecuador, abril 2019.

Los principales clientes de los 71 comerciantes, residen en Quito, Machala, Babahoyo, Riobamba, 18%

11%

GUAYAQUIL

QUITO

STO.

9%

AMBATO

5%

ESMERALDAS

4% LATACUNGA

2% MANTA

Source: HEA - World Vision Ecuador, AugustDOMINGO 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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On the other hand, the wholesalers and retailers interviewed ensure that the majority of their clients come from sectors close to the study markets.

Graphic 19. Origin of clients that visit the study markets 27%

ESMERALDAS

2%

2%

2%

2%

2%

2% SUBURBIO

2%

SAUCES

4%

ESTE DE GUAYAQUIL

4%

BARRIO GARAY

4%

AYACUCHO

SUR DE GUAYAQUIL

4 ESQUINAS

LA BAHÍA

CENTRO DE GUAYAQUIL

QUININDÉ

TONSUPA

ATACAMES

ESMERALDAS CENTRO

2%

ATARAZANA

5%

ALBORADA

5%

NORTE DE GUAYAQUIL

7%

5%

KENEDY

9%

LOS CERROS

15%

GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

 Business financing 94% of merchants finance their companies with their own resources (self-financing); 3% say they are family businesses; and 3% are financed with the income obtained through product sales.

However, 36% have, at one time, requested credit from a financial institution to acquire their products for sale. Along these same lines, only 8% of wholesale and retail merchants extend credit to their customers.

Graphic 20. Merchants who have requested credit to buy their products CONSOLIATED

CITIES 50%

64% 36%

28% 14%

SI

NO

SI

NO

ESMERALDAS

8% SI

NO GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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 Market access For 100% of the merchants interviewed, the market is a safe place for women, considering that 78% of the people who come to buy in their stores are women (28% come alone, 50% come with a man).

Graphic 21. Gender of people who buy in the market CONSOLIATED 50%

28%

22%

HOMBRES

MUJERES

HOMBRES Y MUJERES

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Graphic 22. Gender of people who buy in the market, by cities 25% 22% 19% 14% 11% 8%

MUJERES

HOMBRES

HOMBRES Y MUJERES

ESMERALDAS

MUJERES

HOMBRES

HOMBRES Y MUJERES

GUAYAQUIL

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Regarding children´s access to markets, 86% of merchants consider it safe, and 14% say that it is not a safe place because of the many dangers they face, especially crime and robbery a daily occurrence.

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

Quality and quantity of products in demand by merchants and families

100% of merchants interviewed implement actions that ensure the cleanliness and classification of the products that are sold. However, these actions do not include the development of standards, technical regulations, and quality assurance programs. Among the main activities that merchants implement to preserve the quality of their products are:

Graphic 23. Actions implemented by merchants to preserve the quality of their products

71%

24% 2% LIMPIEZA DIARIA DE LOS PRODUCTOS

CLASIFICACIÓN DE LOS PRODUCTO

REVISIÓN DE LA FECHA DE CADUCIDAD

2% REVISIÓN SEMANAL DE LOS PRODUCTOS

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Regarding the process used to evaluate the products, it consists of making an inventory, reviewing of packaging, supply, expiration date, nutrition “traffic light” on products when they enter and leave the company. For the merchants, the actions described in Graphic 23, are quality standards, industrial safety standards, hygiene standards and INEN standards4, which are being met. The objective of cleaning products is to keep them fresh. The classification of products is usually done by supplier, by type and location on shelves. In this sense, 33% store their products in suitable warehouses (refrigerators, freezers and hangers), and 67% properly store them in the same place where they are sold (hangers, refrigerators, freezers, thermal containers, and industrial drawers).

The majority (83%) of wholesalers and retailers claim to have the ability to respond quickly to the demand for food should it increase, without affecting the price of the products. For 98% of merchants, the estimated time it takes to get the products to have the necessary supply is between 1 to 7 days. On the other hand, for 90% of the merchants, the daily review of the products (status, expiration date, when entering and leaving), allows adequate and timely supply of the products.

Regarding the transport of products to the market or point of sale, 97% of merchants use the suppliers vehicles, and 3% use their own vehicles.

4

INEN standards, Ecuadorian technical standards to meet local needs and facilitate national and international trade in Ecuador.

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

Opportunities for interventions that support the rehabilitation and/or strengthening of the market

Wholesale and retail merchants point out that they have had to face several challenges to maintain sales volume, and satisfy the customer. Among the main challenges are: Graphic 24. Challenges faced by merchants 33%

33%

14%

11% 6%

COMPETENCIA

REGULACIONES DEL GOBIERNO (PERMISOS)

NEGOCIOS INFORMALES

LIMITACIONES FINANCIERAS

OTROS

3% NADA

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Others consider the lack of solidarity between merchants and logistics issues such as the location of markets, and personal issues as the top challenges.

With the aforementioned, 53% of wholesalers and retailers are interested in implementing projects that allow them to face these challenges and strengthen their businesses.

In this sense, World Vision (WV) is considering the implementation of a “Food voucher assistance for vulnerable groups” project, which consists of making a contract between WV and wholesale and retail merchants to provide food to the affected population through of vouchers (coupons). Once this exchange is made, merchants can invoice the respective payment to WV, which would be done through mutually agreed terms.

In this context, for the project to be successful, merchants believe that the following terms of association should be established: Graphic 25. Terms for partnership with World Vision in the execution of a project 84%

16%

ESTABLECER FORMAS DE PAGO RÁPIDAS, ÁGILES Y SEGURAS (CONTADO, SEMANALES O QUINCENALES)

ESTABLECER TIEMPOS PARA EL PAGO Y PRECIO JUSTO

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

28

On the other hand, 47% of wholesalers and retailers who are not interested in participating in this type of projects or partnering with an NGO, say it is due to the following reasons:

Graphic 26. Reasons why they would not participate with World Vision in the execution of a project 18%

18%

12%

1

2

6%

6%

6%

6%

3

4

5

6

12%

12%

6%

7

8

9

10

1 – Logistical limitations to respond to the demand.

2 – Financial limitations to respond to the demand.

3 – Lack of Infrastructure.

4 – They like to be independent.

5 – It is a family run business.

6 – Distrust.

7 – They do not give credit.

8 – They have no experience working with this type of project and methodology.

9 – They don't know the NGO. 10 – They are not interested.

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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III.

People who rent homes to the Venezuelan population

The results of the interviews conducted with 40 people who rent homes to the affected population in the 2 cities selected for the study are presented below. This information will allow us to know the context of the houses rented by the Venezuelan population.

Table 4. Interviews with people who rent out their homes Interviews with people Number Cities who rent homes 1 GUAYAQUIL 23 2 ESMERALDAS 17 40 Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Regarding the type of housing they rent, 60% of the population interviewed indicates that they rent rooms in hotels, hostels, and/or residential homes; 28% rent apartments; 10% rent houses; and, 2% rooms. 95% of these places have separate bathrooms.

Graphic 27. Type of housing for rent 28%

25%

25% 15% 7%

DEPARTAMENTO

HOTEL

HOSTAL/RESIDENCIAL

CASA

CUARTO

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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The price that the affected population has to pay to rent a house, apartment or room, varies due to many factors, such as the type of housing, location, services, and size, among others.

Graphic 28. Rental value Hotel, Hostel or Residential, Daily Cost 40% 25% 10%

10% 5%

$10,00

$15,00

$18,00

$20,00

5%

$8,00

5%

$12,00

$30,00

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Graphic 29. Room rental value, Monthly Cost

67% 33%

$60,00

$100,00

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

Graphic 30. Rental value Apartment, House, Monthly Cost 41% 29% 18% 12%

$150,00

$200,00

$300,00

$250,00

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.

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Conclusions and recommendations 

The following graph summarizes the main places where most of the affected population goes to buy their food: Graphic 31. Places where the affected population acquires food 77%

15% 5% SUPERMERCADOS (AKI, GRAN AKI, SANTA MARÍA, TIA, MI COMISIARIATO)

MERCADOS LOCALES

TIENDAS LOCALES

2% COMERCIO AMBULANTE

2% NO COMPRAN (COMEN EN LA CALLE)

Source: HEA - World Vision Ecuador, August 2019.

Compilation: DME - World Vision Ecuador, September 2019.



85% of the products that are sold in the main markets of Guayaquil and the Municipal Market of Esmeraldas are rice, oil, sugar, salt, flour, pasta and tuna. Regarding the Venezuelan population, the foods they consume regularly are rice, flour, chicken, pasta, red meat, bread, dried grains, cheese, eggs, vegetables and fruits.



Guayaquil has a high percentage of merchants- approximately 5,096 in the six study markets.

Esmeraldas, having only one municipal market, has a lower number of wholesalers and retailers- approximately 83.



The time it takes for merchants to stock up on products is 1 to 5 days, allowing them to immediately meet demand especially for key products (rice, oil, sugar, salt, flour, pasta and tuna), without affecting the price of these products.



Considering the location of the main suppliers, it can be seen that local, national, and regional products are sold in local markets.



98% of wholesalers and retailers in the study markets carry out daily cleaning activities, classification, and review the expiration date to ensure the quality of the products that are sold. That is, there is no evidence of compliance with mandatory health surveillance and control standards for storage, transportation, distribution, marketing and sale of products for human use and consumption.



The study reveals that there is a higher percentage of male heads of household (65%), compared to female heads of household, at 35%.

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

77% of affected people go to supermarkets and local markets to obtain the food they consume at home, and a smaller percentage, 12%, still receive food aid from an organization (NGO).



The majority of affected families (21%), spend a monthly average of $ 210.00 to $ 300.00, with the highest costs being leases (38%) and food (38%); Other expenses include less expensive items such as transportation, health, clothing, education, and recreational activities.



It can be seen that the majority of the affected population (60%) rent rooms in a hotel/hostel/residential building, 28% rent apartments; and 10% rent houses. Rental prices vary due to many factors, such as the type of housing, location, services, and size, among others. The daily price for renting a room in a hotel/hostel/residential building for one person is between 10 and 15 dollars a day. In the case of an apartment and houses, the monthly rental price varies between 150 and 200 dollars, where one to three families can reside, depending on the family members, and the size of the apartment or house.

Annexes  Annex 1. Tools for Information Gathering  Annex 2. Database – Venezuelan Population  Annex 3. Database – Market  Annex 4. Database – Rental

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