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CHAPTER 3
VALUE CHAIN ANALYSIS
Value chain analysis
• What is a value chain?
• What value chains are relevant to us?
• How does understanding value chains help us in the
control of FMD?
Borders
Consumption centre
Quarantine
Station
Abattoir
Market
RoadMovements are driven by demand
managed by people (stakeholders),
under local laws and customs
Value chains –
chains that link production systems,
markets and consumers
Borders
Consumption centre
Quarantine
Station
Abattoir
Market
Road
With these interactions of people and
animals, there are many opportunities
for FMDvirus transmission
Risk-based disease prevention, control
and surveillance
informed by
epidemiological
situation assessment
(disease incidence)
(virus reservoirs)
(virus multiplication points)
(virus transmission points)
Risk analysis
knowledge of the animal
population (value chains)
(flow of inputs, animals and products)
(activities of stakeholders involved)
(socio–economic analysis of the value chain …
understanding what the stakeholders have at
stake)
(slide from Rushton et al)
knowledge of the animal
population (value chains)
(flow of inputs, animals and products)
(activities of stakeholders involved)
(socio–economic analysis of the value chain
… understanding what the stakeholders
have at stake)
Visual diagram and maps
showing
movements of animals,
products and materials.
Knowledge of movements of
people, vehicles involved
(traders, transport)
Description of activities
of people involved in
the value chains
Socio-economic analysis of
the value chain,
Understanding what
stakeholders have at stake
Margins, value added,
resources available.
(slide from Rushton et al)
• Basis of a value chain is the exchange of products for
money/incentives
$$$$
Input or
Service
Fresh
Product
Processed
Product
Processed
Product
Middlemen, financial services
Middlemen, transport, traders
Products
sold to
consumers
with
particular
demands
who do very
little home
processing
Producer Processor Marketers
Towards finished product
Money from consumer to producer
• Networks and linkages in value chains provide
opportunities for transmission of disease
$$$$
Input or
Service
Fresh
Product
Processed
Product
Processed
Product
Middlemen, financial services
Middlemen, transport, traders
Products
sold to
consumers
with
particular
demands
who do very
little home
processing
Providers
of inputs and
services
Producer Processor Marketers
Assignment Thinking in a reverse way group work
What did you have for
breakfast/dinner (we make a
selection)?
For meat/dairy products,
what routes have these taken
to get on your table?
• Places
• Preceding products
• Persons handling and producing
15 minutes
Generic Beef Value chain
Small
holder
farm
Market
Fattening
farm
Market Abattoir Shop Home
Bull calf
Fattened bull Meat Kebab
Farmer
Beef
farmer
Slaughter-
men
Butcher
Consumer
Trader Trader Trader
•Veterinarinan
•Feed suppliers
•Manure
disposal
•workers
•...
(milk)
(Cull cows)
(crops) It is people that move
animals/animal products
around = People-centred
(Cull cows)
(sheep)
Example
Value chain libya
• Different value chains may exist for same product
• People make animals and animal products move
– Naming places and products, helps to identify people involved
• Is it possible to put
– Volumes
– Nr of persons
– Values
At each of the steps?
Discussion on mapping a value chain
If not possible,
list the data
needed
Output of mapping
• Graphical maps of actor linkages and product flows
• Identification of production practices and costs
• Identification of different chains based on relationships
• Transaction costs and chain constraints
knowledge of the animal
population (value chains)
(flow of inputs, animals and products)
(activities of stakeholders involved)
(socio–economic analysis of the value chain
… understanding what the stakeholders
have at stake)
Visual diagram and maps
showing
movements of animals,
products and materials.
Knowledge of movements of
people, vehicles involved
(traders, transport)
Description of activities
of people involved in
the value chains
Socio-economic analysis of
the value chain,
Understanding what
stakeholders have at stake
Margins, value added,
resources available.
(slide from Rushton et al)
Step 2 – Governance in value chain
• Identify nature of relationships and coordination
mechanisms between actors
• Provide details on aspects of business environment of
chain
• Identify power relationships in value chain
Stakeholder identification
Need for participation in
developing disease control
Governance
• Main outputs:
– Who decides what is produced
– How the rules of trade are determined
– Nature of relationships between
stakeholders
– Roles of associations
– Coordination mechanisms
– Extent of chain ‘power’, based on
relative size of a particular actor,
share of chain profits, or control
over a key technology
What is position and role of animal health
professionals in value chain?
• Suppliers of animal health input
– Vaccine, medicines, treatment
• Employed by large producers
• Regulators of marketing and transport
• Enforcers of food hygiene and quality
regulations
• Advisors to government
• Facilitating value chain
• Regulators of value chain
• Advisors, thus influencial
for behaviour change
Balance between precision and timely use
• Value chain analysis is a iterative process
– Starting with the full comprehensive chain
– Upon identification of hotspot, define what more detail is
required
– Possibly with limited information for each step
– Identification of gaps
– May repeat over time
Conceptual Framework
• Animal diseases are spread by movements of input
materials, animals and livestock products and also by
fomites, people, equipment and transport
• These movements are driven and controlled by people
• The use of value chain analysis with risk analysis allows
identification of ‘risk hotspots’ in the livestock sector
• These ‘risk hotspots’ should then be examined to determine
how control measures could then be targeted at them
20
Assignment More mapping of value chains
• Continue from assignment -
Where does it come from
– People
– Places
– Product
• Define
– Species,
– Production system
– Product (raw versus processed)
– Marketing (self marketing vs dairy industry
• Include: service providers(feed, credit, animal health,
semen), middlemen + traders for each holding type
– Including frequency (x times per month)
– Consider seasonal fluctuations
30 minutes
Cattle: beef
Dual purpose herd
(Cull) cows and ♂calves
Live animal
market On-farm slaughter
Communal
grazing
Veterinary input
workers
purchased
Feed
markets
replacement
bulls
slaughterhouse
Meat market
-90% collected by a ‘dealer’
-10% taken by farmer
Some beef is also imported,
particularly from India
Home (village?)
Consumption
Waste to dumps:
pigs may consume
Waste
(manure spread on fields)
Skins for leather
Some to Turkey
CONSUMER
AI
Locally produced
Further processing
95%: 5%:
Waste : pigs may
consume (?)
Waste : pigs may
consume (?)
Small Ruminants
Dual purpose flock
Cull ewes
and lambs
Live animal
market
On-farm slaughter
Communal
grazingVeterinary input
Wool,
used on
farm
feed
AI (?)
replacements
Rams
slaughterhouse
Meat marketHome (village?)
Consumption (risk?)
Waste to dumps:
pigs may consume
Waste
SkinsCONSUMER
markets
Milk
factory On farm
(risk?)
Waste: pigs may
consume
Waste: pigs may
consume
Export lambs to
Iran, usually via
Yerevan
Some additional considerations!
1. What linkages are there with other value chains?
1. Bull calves into the meat value chain
2. Carcasses into the waste-disposal (value) chain
2. How are people linked/connected within and between
value chains?
1. Workers on dairy farms may have some cattle/sheep and sell
milk themselves at the local market
3. Where are veterinary services linked with the value
chain?
CHAPTER 4
FROM VALUE CHAIN
TO RISK PATHWAYS
Dairy farm
Milk collection
center
Milk truck
Dairy processing
plant Supermarket Home
Situation
analysis and
preliminary
risk analysis
Detailed risk &
value chain
analysis to
identify risk
reduction options
Option
appraisal
and decision
making
$$ $$ $$ $$ $$
$$
Market/
dealer
From value chain analysis to risk pathways
Identifying risk issues
• What are disease risks and risky practices
– Input from epidemiologists and economists
– Transmission of disease within value chain
– Factors identified that are likely to affect probability and
amount of disease transmission (risk factors)
• At each point in value chain, ask …
– Can disease agent enter here?
– Can disease agent survive here?
– Would disease be noticed here?
– Can disease agent be carried out from here?
• Additionally:
– What is likelihood of transmission?
– What is impact of / consequences of disease?
Likelihood of disease transmisson
• Depends on …
– People acting risky behaviour / risky practices
• Not intentional, but often driven by economics
• Think of …
– Infected livestock
– People in contact with livestock
– Vehicles in contact with livestock
– Fomites
– By-products
• Regard not only likelihood per encounter but also
frequency of encounters
Intensity times frequency
Frequency
Probability to
transmit infection
High risk
Medium risk
Lower risk
FAO-ICAR FMD conference
Materials People Animal
Potential impact of FMD
• Amount of disease agent (virus load)
• Exposure and subsequent infection
• Amplification of infection
– Relation with other value chains
– Number of animals/people involved
• Spatial spread (nearby, distant)
– Seasonality, festivals, holidays
• Spread across species
• Potential economic losses
knowledge of the animal
population (value chains)
(flow of inputs, animals and products)
(activities of stakeholders involved)
(socio–economic analysis of the value chain
… understanding what the stakeholders
have at stake)
Visual diagram and maps
showing
movements of animals,
products and materials.
Knowledge of movements of
people, vehicles involved
(traders, transport)
Description of activities
of people involved in
the value chains
Socio-economic analysis of
the value chain,
Understanding what
stakeholders have at stake
Margins, value added,
resources available.
(slide from Rushton et al)
Risk-based disease prevention, control
and surveillance
informed by
epidemiological
situation assessment
(disease incidence)
(virus reservoirs)
(virus multiplication points)
(virus transmission points)
Risk analysis
knowledge of the animal
population (value chains)
(flow of inputs, animals and products)
(activities of stakeholders involved)
(socio–economic analysis of the value chain …
understanding what the stakeholders have at
stake)
(slide from Rushton et al)
Identify “Risk Hotspots”: Points in the value chain where the
combined effect of the probability and the consequences of FMD
entry/spread are greatest.
Descriptive epidemiology
Susceptible populations;
Circulating strains
Marketing network
Transmission
opportunities
National Husbandry characteristics
Seasonality; Geographical
distribution/movement patterns
CHAPTER 5
RISK PATHWAYS
Risk pathways
• Describes everything that must happen for the
negative event (ie FMD entry or spread) to occur?
A Risk pathway is the framework of Risk Assessment
• describes all stages in the biological process that
lead to the outcome of interest.
Include all steps required for the risk to occur
Important: report your underlying assumptions
Risk pathways
Possible pathway of release of the foot and mouth disease virus outside
the boundaries of the Kruger National Park by escaped buffalo From: Jori et al, 2009
Possible pathway of transmission of foot and mouth disease virus from buffalo
to cattle and subsequent spread outside Kruger National Park
(= exposure pathway)
From: Jori et al, 2009
Risk pathway for spread from backyard farm
Infected
backyard
Animal send
out for grazing
infectious
Contact with
susceptibles
No contact
with
susceptibles
Shed virus on
grass
Indirect
contact with
animals
No shedding on
grass
Not infectious
Animal not
send out for
grazing
FMD
Slide from: VEPH group of the RVC
EXAMPLEOFATABULARFORM
FAOGUIDELINESNR4,P36
WHAT - HOW – WHAT – HOW – WHAT
What is of
concern? How?
Route of
transmission
What?
Risky practices How?
Qualitative
risk
assessment
What?
More
information
required?
Assignment Develop risk pathways
1. Outline the risk pathway –
1. Include people involved (stakeholders)
2. The practices of these people
3. What is reason why ‘things are done, as these are done’?
4. Where do you see the risks of FMD (release, exposure, transmission)
2. List any evidence that exists to substantiate that this is an
important risk
1. And if possible, estimates of prevalence/probabilities
3. What is currently done to mitigate the risk?
1. And include assumed/quantified effect
4. From this exercise: what do you consider the best next step(s)
(but that is next slide)?
15 minutes
What are Critical Control Points
Criticial control points are points in the risk pathway where:
1. Control measures exist
2. These control measures could eliminate or reduce risk to
acceptable level
Using Value Chains to Identify “Risk Hotspots”
• Within each point in the value chain: consider whether
FMD virus could
– Enter
– Survive and
– be carried on from that point to infect other points in the chain
and/or other value chains.
AND
• Assess impact of FMD infection on stakeholders
risk hotspots: points in the value chain where the
combined effect of the probability of FMD entry/spread
and the consequences of FMD entry/spread are
greatest.
Focussing on risk hotspots
• Involve stakeholders
– Behaviours, motivations
• Detailed risk pathways per hotspot
• Qualitative risk assessment
• Identify risk mitigation measures
Information needed:
• Origin of pigs, types of slaughter
places, application of vaccine,
visibility of infection
• Thoroughness of meat
inspection, safe disposal of
rejected carcasses,
• Do farmers buy pork from off-
farm places?
• Do hotels/households discard
raw meat trimmings?
etc.
These questions relate to
possible risk factors.

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Value chain libya

  • 2. Value chain analysis • What is a value chain? • What value chains are relevant to us? • How does understanding value chains help us in the control of FMD?
  • 3. Borders Consumption centre Quarantine Station Abattoir Market RoadMovements are driven by demand managed by people (stakeholders), under local laws and customs Value chains – chains that link production systems, markets and consumers
  • 4. Borders Consumption centre Quarantine Station Abattoir Market Road With these interactions of people and animals, there are many opportunities for FMDvirus transmission
  • 5. Risk-based disease prevention, control and surveillance informed by epidemiological situation assessment (disease incidence) (virus reservoirs) (virus multiplication points) (virus transmission points) Risk analysis knowledge of the animal population (value chains) (flow of inputs, animals and products) (activities of stakeholders involved) (socio–economic analysis of the value chain … understanding what the stakeholders have at stake) (slide from Rushton et al)
  • 6. knowledge of the animal population (value chains) (flow of inputs, animals and products) (activities of stakeholders involved) (socio–economic analysis of the value chain … understanding what the stakeholders have at stake) Visual diagram and maps showing movements of animals, products and materials. Knowledge of movements of people, vehicles involved (traders, transport) Description of activities of people involved in the value chains Socio-economic analysis of the value chain, Understanding what stakeholders have at stake Margins, value added, resources available. (slide from Rushton et al)
  • 7. • Basis of a value chain is the exchange of products for money/incentives $$$$ Input or Service Fresh Product Processed Product Processed Product Middlemen, financial services Middlemen, transport, traders Products sold to consumers with particular demands who do very little home processing Producer Processor Marketers Towards finished product Money from consumer to producer
  • 8. • Networks and linkages in value chains provide opportunities for transmission of disease $$$$ Input or Service Fresh Product Processed Product Processed Product Middlemen, financial services Middlemen, transport, traders Products sold to consumers with particular demands who do very little home processing Providers of inputs and services Producer Processor Marketers
  • 9. Assignment Thinking in a reverse way group work What did you have for breakfast/dinner (we make a selection)? For meat/dairy products, what routes have these taken to get on your table? • Places • Preceding products • Persons handling and producing 15 minutes
  • 10. Generic Beef Value chain Small holder farm Market Fattening farm Market Abattoir Shop Home Bull calf Fattened bull Meat Kebab Farmer Beef farmer Slaughter- men Butcher Consumer Trader Trader Trader •Veterinarinan •Feed suppliers •Manure disposal •workers •... (milk) (Cull cows) (crops) It is people that move animals/animal products around = People-centred (Cull cows) (sheep)
  • 13. • Different value chains may exist for same product • People make animals and animal products move – Naming places and products, helps to identify people involved • Is it possible to put – Volumes – Nr of persons – Values At each of the steps? Discussion on mapping a value chain If not possible, list the data needed
  • 14. Output of mapping • Graphical maps of actor linkages and product flows • Identification of production practices and costs • Identification of different chains based on relationships • Transaction costs and chain constraints
  • 15. knowledge of the animal population (value chains) (flow of inputs, animals and products) (activities of stakeholders involved) (socio–economic analysis of the value chain … understanding what the stakeholders have at stake) Visual diagram and maps showing movements of animals, products and materials. Knowledge of movements of people, vehicles involved (traders, transport) Description of activities of people involved in the value chains Socio-economic analysis of the value chain, Understanding what stakeholders have at stake Margins, value added, resources available. (slide from Rushton et al)
  • 16. Step 2 – Governance in value chain • Identify nature of relationships and coordination mechanisms between actors • Provide details on aspects of business environment of chain • Identify power relationships in value chain Stakeholder identification Need for participation in developing disease control
  • 17. Governance • Main outputs: – Who decides what is produced – How the rules of trade are determined – Nature of relationships between stakeholders – Roles of associations – Coordination mechanisms – Extent of chain ‘power’, based on relative size of a particular actor, share of chain profits, or control over a key technology
  • 18. What is position and role of animal health professionals in value chain? • Suppliers of animal health input – Vaccine, medicines, treatment • Employed by large producers • Regulators of marketing and transport • Enforcers of food hygiene and quality regulations • Advisors to government • Facilitating value chain • Regulators of value chain • Advisors, thus influencial for behaviour change
  • 19. Balance between precision and timely use • Value chain analysis is a iterative process – Starting with the full comprehensive chain – Upon identification of hotspot, define what more detail is required – Possibly with limited information for each step – Identification of gaps – May repeat over time
  • 20. Conceptual Framework • Animal diseases are spread by movements of input materials, animals and livestock products and also by fomites, people, equipment and transport • These movements are driven and controlled by people • The use of value chain analysis with risk analysis allows identification of ‘risk hotspots’ in the livestock sector • These ‘risk hotspots’ should then be examined to determine how control measures could then be targeted at them 20
  • 21. Assignment More mapping of value chains • Continue from assignment - Where does it come from – People – Places – Product • Define – Species, – Production system – Product (raw versus processed) – Marketing (self marketing vs dairy industry • Include: service providers(feed, credit, animal health, semen), middlemen + traders for each holding type – Including frequency (x times per month) – Consider seasonal fluctuations 30 minutes
  • 22. Cattle: beef Dual purpose herd (Cull) cows and ♂calves Live animal market On-farm slaughter Communal grazing Veterinary input workers purchased Feed markets replacement bulls slaughterhouse Meat market -90% collected by a ‘dealer’ -10% taken by farmer Some beef is also imported, particularly from India Home (village?) Consumption Waste to dumps: pigs may consume Waste (manure spread on fields) Skins for leather Some to Turkey CONSUMER AI Locally produced Further processing 95%: 5%: Waste : pigs may consume (?) Waste : pigs may consume (?)
  • 23. Small Ruminants Dual purpose flock Cull ewes and lambs Live animal market On-farm slaughter Communal grazingVeterinary input Wool, used on farm feed AI (?) replacements Rams slaughterhouse Meat marketHome (village?) Consumption (risk?) Waste to dumps: pigs may consume Waste SkinsCONSUMER markets Milk factory On farm (risk?) Waste: pigs may consume Waste: pigs may consume Export lambs to Iran, usually via Yerevan
  • 24. Some additional considerations! 1. What linkages are there with other value chains? 1. Bull calves into the meat value chain 2. Carcasses into the waste-disposal (value) chain 2. How are people linked/connected within and between value chains? 1. Workers on dairy farms may have some cattle/sheep and sell milk themselves at the local market 3. Where are veterinary services linked with the value chain?
  • 25. CHAPTER 4 FROM VALUE CHAIN TO RISK PATHWAYS
  • 26. Dairy farm Milk collection center Milk truck Dairy processing plant Supermarket Home Situation analysis and preliminary risk analysis Detailed risk & value chain analysis to identify risk reduction options Option appraisal and decision making $$ $$ $$ $$ $$ $$ Market/ dealer From value chain analysis to risk pathways
  • 27. Identifying risk issues • What are disease risks and risky practices – Input from epidemiologists and economists – Transmission of disease within value chain – Factors identified that are likely to affect probability and amount of disease transmission (risk factors) • At each point in value chain, ask … – Can disease agent enter here? – Can disease agent survive here? – Would disease be noticed here? – Can disease agent be carried out from here? • Additionally: – What is likelihood of transmission? – What is impact of / consequences of disease?
  • 28. Likelihood of disease transmisson • Depends on … – People acting risky behaviour / risky practices • Not intentional, but often driven by economics • Think of … – Infected livestock – People in contact with livestock – Vehicles in contact with livestock – Fomites – By-products • Regard not only likelihood per encounter but also frequency of encounters
  • 29. Intensity times frequency Frequency Probability to transmit infection High risk Medium risk Lower risk FAO-ICAR FMD conference Materials People Animal
  • 30. Potential impact of FMD • Amount of disease agent (virus load) • Exposure and subsequent infection • Amplification of infection – Relation with other value chains – Number of animals/people involved • Spatial spread (nearby, distant) – Seasonality, festivals, holidays • Spread across species • Potential economic losses
  • 31. knowledge of the animal population (value chains) (flow of inputs, animals and products) (activities of stakeholders involved) (socio–economic analysis of the value chain … understanding what the stakeholders have at stake) Visual diagram and maps showing movements of animals, products and materials. Knowledge of movements of people, vehicles involved (traders, transport) Description of activities of people involved in the value chains Socio-economic analysis of the value chain, Understanding what stakeholders have at stake Margins, value added, resources available. (slide from Rushton et al)
  • 32. Risk-based disease prevention, control and surveillance informed by epidemiological situation assessment (disease incidence) (virus reservoirs) (virus multiplication points) (virus transmission points) Risk analysis knowledge of the animal population (value chains) (flow of inputs, animals and products) (activities of stakeholders involved) (socio–economic analysis of the value chain … understanding what the stakeholders have at stake) (slide from Rushton et al)
  • 33. Identify “Risk Hotspots”: Points in the value chain where the combined effect of the probability and the consequences of FMD entry/spread are greatest. Descriptive epidemiology Susceptible populations; Circulating strains Marketing network Transmission opportunities National Husbandry characteristics Seasonality; Geographical distribution/movement patterns
  • 35. Risk pathways • Describes everything that must happen for the negative event (ie FMD entry or spread) to occur? A Risk pathway is the framework of Risk Assessment • describes all stages in the biological process that lead to the outcome of interest. Include all steps required for the risk to occur Important: report your underlying assumptions
  • 36. Risk pathways Possible pathway of release of the foot and mouth disease virus outside the boundaries of the Kruger National Park by escaped buffalo From: Jori et al, 2009
  • 37. Possible pathway of transmission of foot and mouth disease virus from buffalo to cattle and subsequent spread outside Kruger National Park (= exposure pathway) From: Jori et al, 2009
  • 38. Risk pathway for spread from backyard farm Infected backyard Animal send out for grazing infectious Contact with susceptibles No contact with susceptibles Shed virus on grass Indirect contact with animals No shedding on grass Not infectious Animal not send out for grazing FMD
  • 39. Slide from: VEPH group of the RVC
  • 41. WHAT - HOW – WHAT – HOW – WHAT What is of concern? How? Route of transmission What? Risky practices How? Qualitative risk assessment What? More information required?
  • 42. Assignment Develop risk pathways 1. Outline the risk pathway – 1. Include people involved (stakeholders) 2. The practices of these people 3. What is reason why ‘things are done, as these are done’? 4. Where do you see the risks of FMD (release, exposure, transmission) 2. List any evidence that exists to substantiate that this is an important risk 1. And if possible, estimates of prevalence/probabilities 3. What is currently done to mitigate the risk? 1. And include assumed/quantified effect 4. From this exercise: what do you consider the best next step(s) (but that is next slide)? 15 minutes
  • 43. What are Critical Control Points Criticial control points are points in the risk pathway where: 1. Control measures exist 2. These control measures could eliminate or reduce risk to acceptable level
  • 44. Using Value Chains to Identify “Risk Hotspots” • Within each point in the value chain: consider whether FMD virus could – Enter – Survive and – be carried on from that point to infect other points in the chain and/or other value chains. AND • Assess impact of FMD infection on stakeholders risk hotspots: points in the value chain where the combined effect of the probability of FMD entry/spread and the consequences of FMD entry/spread are greatest.
  • 45. Focussing on risk hotspots • Involve stakeholders – Behaviours, motivations • Detailed risk pathways per hotspot • Qualitative risk assessment • Identify risk mitigation measures
  • 46. Information needed: • Origin of pigs, types of slaughter places, application of vaccine, visibility of infection • Thoroughness of meat inspection, safe disposal of rejected carcasses, • Do farmers buy pork from off- farm places? • Do hotels/households discard raw meat trimmings? etc. These questions relate to possible risk factors.