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Guidelines in the Constructionof Provincial Menus

4th Meeting of the TC on Poverty StatisticsAugust 11, 2004

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I. Background

II. Guidelines in the Construction of Provincial Menus

III. Sample Results

IV. Possible Sources of Overestimation/Underestimation

Outline of the Presentation

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I. Background

• Presentation of the initial provincial poverty statistics using the initially approved methodology

• The NSCB Technical Staff to review methodology due to some findings

NSCB Executive Board meeting held on June 5, 2002

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I. Background

Findings based on the results of the initial validation of provincial menus

1. Large variability of thresholds within regions (Region 3)

2. Some of the provincial thresholds are higher than NCR

3. Some of the commodities identified in the provincial menu are not “low-cost” but more of “commonly-eaten”

4. Use of “low-cost” menu is possible without sacrificing nutritional requirements

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I. Background

Phase I

1) Study the validity of the proposed provincial menus;

2) Recommendations made to improve the proposed provincial menus will be consulted with the Project Consultant to check the validity of the changes made/proposed by the Project Staff;

3) Conduct of tests of revealed preferences using the revised provincial menus

Improvement of the Provincial Poverty Estimation Methodology (Area 2) – WB ASEM Grant

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Come up with the least-cost possible and nutritionally adequate menu comprised of low-cost food items that are eaten and available in the province

Main Objective

II. Guidelines in the Construction of Provincial Menus

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II. Guidelines in the Construction of Provincial Menus

1) To address the issue of comparability across space, start with a nationally-representative reference menu that is simple, nutritious and potentially low-cost and one that reflects the meal pattern of a poor household;

2) All menus should meet the nutritional requirements based on the approved methodology:

General Guidelines

Energy and protein: 100%Other Vitamins and minerals: 80% (calcium, iron, vitamin A, thiamin, riboflavin, niacin, and

vitamin C) .

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Reference Menu

II. Guidelines in the Construction of Provincial Menus

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1) Determine alternative food items

Specific Guidelines

II. Guidelines in the Construction of Provincial Menus

Food Item Possible choices of variety/type

Coffee instant, roastedGreen leafy vegetable in sautéed mongo malunggay leaves, ampalaya leaves

Sahog in sautéed mongo dried dilis, smoked galunggong, tamban (orany kind of smoked fish), tagonton, hibe

Banana (dessert for lunch) latundan, lakatanFried fish fresh dilis, galunggong, tilapia, tulingan, or

whichever type of fish is available andcheapest in the province

Vegetable dish camote tops, kangkong, or whichever typeof vegetable is available and cheapest inthe province

Boiled rootcrop/saba (sugar may be added toincrease energy content of the menu; in case thisis not enough, the dish may be changed into friedor que (e.g., banana que, camote que, etc.) to addin cooking oil and increase energy content in theprocess )

saba, cassava, camote

Sugar brown onlyCooking oil coconut oil, corn oil, vegetable oil

(whichever is cheapest price available)

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2) Standard measurements for selected food items

Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

Food Item Standard Measurements

Rice

Average

Minimum

Maximum

342 grams

320 grams

360 grams

Coffee, instant 1 gram

Coffee, roasted 7 grams

Milk, filled, instant 5 grams

Sugar, brown 10 grams

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3) Weight of other food items

- should be within the range of acceptable/reasonable weights

- observe proper proportions (e.g. for sauteed mongo, ratio of malunggay/ampalaya leaves to mongo is at most 1:1)

4) Assumptions

4.1 Among the snack items, camote is the most nutritious, followed by cassava, then saba. Although cassava is not superior to saba in all nutrient types, cassava is richer in nutrients that are oftentimes difficult to satisfy, e.g., energy, iron, niacin.

Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

4.2 Seven (7) grams of roasted coffee is more nutritious than one (1) gram of instant coffee

4) Assumptions (cont’d):

Nutrient composition of roasted coffee against instant coffee per 100 gms

Energy Protein Calcium Iron

Total

Vit. A

(RE)

Thiamin Riboflavin

k cal g mg mg ug mg mg

Coffee, roasted

406.00 15.20 219.00 4.90 - 0.02 0.04

Coffee, instant

328.00 21.60 118.00 1.90 - - 0.12

Food Item Edible Portion

100

100

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

4.3) The use of dried dilis usually results in a cheaper overall menu cost since it is richer than smoked fish in nutrients that are more often difficult to satisfy (energy, iron, niacin)

4) Assumptions (cont’d):

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

4.3) cont’d…

4) Assumptions (cont’d):

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

4.4) For equal weights of lakatan and latundan, the latter is richer only in niacin but is inferior/equal to lakatan in other nutrients.

4) Assumptions (cont’d):

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5.1) For every food item in the reference menu, identify the cheapest variety/type in the province.

5.2) Select the case that applies depending on the price situation in the province.

5) Step by step procedure

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure

5.3) Cont’d:

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Specific Guidelines . . .

II. Guidelines in the Construction of Provincial Menus

5) Step by step procedure (cont’d):

5.4) Using the cheapest menu arrived at in the previous step, replace latundan with lakatan and compute the resulting menu cost

5.5) If roasted is the cheaper coffee, then the cheaper menu in Step 5.4 is considered the final menu.

Otherwise, using the cheaper menu in Step 5.4, replace instant coffee with roasted coffee and compute the resulting menu cost. Whichever menu is cheaper is considered the final menu.

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III. Sample Results

Cavite, proposed provincial menu

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III. Sample Results

Marinduque, proposed provincial menu

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III. Sample Results

Southern Leyte, proposed provincial menu

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• Does not include cost of fuel (underestimation)

• Use of one-day menu to represent consumption for the whole year (underestimation)

• Does not consider the fact that the seven (7) grams of roasted coffee can be used many times (overestimation)

• Use of uniform standard conversion from farmgate/wholesale price to retail price and vice versa (under/overestimation)

IV. Possible Sources of Overestimation/ Underestimation

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Thank You!Thank You!