Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Value Chain

No description
by

K M

on 27 April 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Value Chain

Value
BACKGROUND AND CONCEPT
VALUE CHAIN (VC)
Chain
COMMODITY VALUE CHAIN DEVELOPMENT PROJECTS
HOW TO DO
A Value Chain (VC) is a vertical alliance to bring a product from the initial input supply stage, through the various phases of production up to final consumption.
1
Production
Delivery
Processing
Products
Market
Customer
Consumption
The expression “farm-to-fork” is often used to describe food VCs.
Key
Every VC serves one specific market
Farmers are linked to the needs of consumers.
DIVERSE LIVELIHOODS
Rural population is heterogenous.
A VC approach tends to work with the better integrated segment of the rural population. This bears the risk of leaving out the poorest segments. Smart targeting and employment generation can mitigate this risk.
2
ANALYSIS
Stylised VC Map
3
PROJECT
DESIGN
VC UPGRADING STRATEGIES
4
TARGETING
Organised and commercially
active producers
Subsistence oriented poorly organized producers
FINANCIAL FLOWS
5
FINANCIAL AND
NON-FINANCIAL SERVICES
Identify how VC actors can meet:
Financial needs: working and investment capital.

Non-financial needs: business development services, technical assistance, extension.
Finance within
the VC
Buyer credit
Supplier credit
Warehouse receipt financing
Non-Financial services
Business Development Services (BDS)
Brokerage of contacts/legal advice
Technical assistance to producers organizations or lead actors
Technical assistance to financial institutions
CROSS
CUTTING
ISSUES
6
Gender
Gender-specific roles and responsibilities along a VC affect the chain’s functioning. Inequalities can prevent a chain from working efficiently and jeopartize development strategies.
Nutrition and Food Security
VC development should consider impacts on nutrition and food security (availability, affordability, acceptability, nutritional quality). VCs can be made more nutrition sensitive by focusing on nutrient-rich foods and promoting actions that specifically seek to improve dietary quality and nutritional status.
Environmental risk management
Environmental risk management: take climate and environmental criteria into account during VC selection, assess risks at various knots in the VC and identify mitigation strategies.
STAKEHOLDERS
ROLES AND RESPONSIBILITIES
PRIVATE SOCIAL SYSTEM
A VC constitutes a private social system in which VC actors interact according to cultural norms and their own interests and negotiating power.
7
Government
Provides conducive business environment
Project Management Unit
IFAD entry point to project, might have
limitation to work with private sector actors
External service providers
Provide technical and business services (including applied research)
POLICIES AND THE
BUSINESS ENVIRONMENT
POLICY MATTERS
8
Regulatory Environment
Well-functioning agricultural markets and VCs rely on supportive policies and a conducive regulatory environment.
M&E OF VC DEVELOPMENT
PROJECTS
INDICATORS
9
Indicators for the baseline and subsequent M&E may be either qualitative or quantitative.
IMPACT LEVEL
3%
46%
71%
1999
2009
2014
Percentage of IFAD projects
with a Value Chain component
Input
IFAD VALUE CHAIN
PROJECT ENTRY POINTS
2. production
1. input
3. delivery
4. processing
5. products
6. market
7. customer
8. consumption
VC Selection & Mapping
Upgrading strategies
Identification
Identification of opportunities for and constraints to VC upgrading, based on the mapping exercise and analysis of target groups.
VC Upgrading Strategies
Production
Process/product upgrading: “doing things bigger or better”.

Value Addition/Processing
Functional upgrading: target group takes on new functions (e.g. processing).

Coordination
Upgrading of coordination and business models: strenghtening vertical and horizontal linkages.
MODELS

Producer-driven
Buyer-driven
Intermediary-driven
CONTEXT
Distribution of 500 million small farmers in the world on a pyramid.
70-85%
Semi-commercial producers
10-25%
2-5%
Who will drive the VC development process?
Finance
Finance can be provided within the VC or from financial institutions (Banks, MFIs).
External sources
Investment capital
Working capital
Gender - Nutrition - Risk Management
PROJECT IMPLEMENTATION
The VC development process
Stakeholders roles and responsibilities should be clearly discussed and defined early on.
Producer groups
Can take on service provision/extension functions and chain coordination
Associations of Traders and retailers
Can help steering the VC development
Financial institutions and insurance
Ensure that linkages to finance and insurance are provided.
National Policy Context
Identify policy gaps during VC analysis and mapping
Identify agents responsible for policy formulation
Analyse existing form of policy dialogue (including with partners)
Projects' Activities
Analyse and highlight policy issues
Address needs, such as capacity building, exchange programmes, etc.
Project Implementation
Define responsibilities for management and implementation
Link actions with M&E, knowledge management and policy agendas
Policy Engagement
List stakeholders to engage with for policy dialogue
Define entry points or platforms/ networks that the project can use to engage in the process
M&E needs to monitor the full chain, not only production stage.

Indicators can capture linkages between chain actors, e.g. “% of produce meeting market requirement”.
Full transcript