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Can you explain what an import parity price is and why we should know what it is? Can you please do the comparison, taking into

Can you explain what an import parity price is and why we should know what it is?

  1. Can you please do the comparison, taking into account any supply chain costs?
  2.  
  3. For each commodity in the food basket, is it more cost-effective to purchase internationally, wholesale locally, or use CVA? By how much?
  4.  

David Tatlock said that if the options are effectively cost-neutral (less than 5% difference), then he thinks SCILaid should probably use CVA. But if there is a big savings to consider, then he wants to know about it! He wants to be prepared to answer any donor questions about SCILaid's consideration of value for money.

  1. What would the total costs be for the entire food basket, if it were purchased internationally, locally, or using CVA?
  2. Is there any potential benefit from using different approaches for each commodity (for example, choosing international for one or two items while using CVA for the balance)?

Find the following sections of the learning materials useful:

6.1 Assessments, Analyses, & Building to Modality Decision

6.3 The Procurement Options Analysis

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