Machine learning project forecasting food price volatility in Somalia and generating proxy early-warning alerts for vulnerable regions and commodities.
# Machine Learning Forecasting of Food Price Volatility in Somalia
An applied machine-learning project that forecasts food commodity prices and converts predicted price levels into a proxy early-warning system for Somalia.
## Project overview
Somalia's food markets are affected by drought, floods, supply-chain disruptions, exchange-rate movements, and fragmented market reporting. This project evaluates whether machine-learning models can forecast food commodity price volatility using historical market prices and exchange-rate data, and whether those forecasts can be translated into practical risk signals for policymakers and humanitarian organizations.
The project compares Random Forest, XGBoost, LightGBM, LSTM, and a hybrid LSTM-XGBoost model. The strongest model is then used to classify predicted prices into four alert levels: Normal, Warning, Alert, and Crisis.
## Objectives
- Prepare and integrate Somalia food-price data with exchange-rate data.
- Engineer time-series, volatility, commodity, market, and regional features.
- Compare tree-based, gradient-boosting, deep-learning, and hybrid models.
- Identify the most important drivers of predicted food prices.
- Create a price-threshold proxy early-warning mechanism.
- Present regional and commodity risks through an interactive dashboard.
## Data sources
- World Food Programme - Somalia Food Prices
- World Bank Microdata Library
The modelling dataset combines historical food-price observations with Somalia's unofficial exchange rate. Raw source data is not redistributed in this repository; users should retrieve it from the original providers and follow their licensing terms.
## Methodology
The project follows the CRISP-DM framework:
1. Business and data understanding
2. Data cleaning and integration
3. Missing-value treatment and outlier analysis
4. Log transformation, encoding, scaling, and feature engineering
5. Feature selection using correlation, multicollinearity checks, F-tests, and mutual inform …