Workshop: Value Chains - An introduction to value chains
Download as PPTX, PDF10 likes22,004 views
This document provides an overview of a workshop on value chain analysis and development. It defines key concepts such as value chains, value chain analysis, institutional frameworks, governance, upgrading, and gender considerations. It also outlines steps for value chain development programs, including selecting value chains, conducting analysis, identifying and assessing solutions, implementing interventions, and monitoring outcomes. Case studies discussed include analyzing impacts of large companies' procurement practices on poverty reduction, improving small-scale producer value chains, and using cost-benefit analysis to evaluate fishing policies.
Workshop: Value Chains - An introduction to value chains
- 1. WORKSHOPan introduction to value chainsmalcolmbeveridge and froukjekruijssenWorldFish Center, Penang18-22 July 2011
- 2. overviewFish market, Dohaapurposeintroduction to value chainsmethodologiesvalue chain analysisvalue chain developmentusing value chain analysis and developmentcase studiesSource: http://www.flickr.com/photos/yahl/3246788986/#source: Oxfam America (2011)
- 3. purposevalue chains are central to the CRPsWorldFish scientists should understand the basicsby the end of the workshop, we intend that you have a better understanding ofwhat a value chain is (jargon)why value chain research is central to the CRPsvalue chain analysiswhat value chain development entailshow to engage with VC research in the Center
- 4. background
- 5. value chains – a definition ‘.. comprise all activities needed to bring farmed produce to consumers..’ *
- 6. credit
- 7. seed
- 8. feed
- 9. production
- 10. processing
- 11. storage
- 12. marketing
- 13. distribution
- 14. consumption* source: Gomez et al. 2011. Science, 332, 1154-1155.
- 15. value chainsapplied to an enterprise, a conglomerate, a sub-sector or a sector
- 16. at each node a product is exchanged or transformed and value addedinputsandservicestransportandprocessingmarketingconsumptionproductionupstreamdownstreamincreasingly used in development and associated research because theyprovide a good framework to ensure desired outcomes and impactsidentify where problems – e.g. inefficiencies, gender inequities - are occurring and where interventions are neededhighlight the importance of private sector development and identify where public sector and civil society can best play a role
- 18. value chain analysisthe analysis of chain configuration (input-output structure)institutional frameworkgovernanceupgrading (development)takes account ofdynamicsbarriers, opportunitiesinputsandservicesShrimp farming value chain, Bangladeshsource: USAID(2010)
- 19. institutional framework‘.. the rules of the game in a society’*
- 20. organizations
- 21. formal (e.g. laws) and informal (e.g. norms of social behaviour) rules
- 23. factors that interact with the functioning of the value chain
- 24. external to the governance of the chain
- 25. influence terms of participation, gains.NGOsregulationsorganizationsandpressure groupspoliticalpartiesinputsandservicestransportandprocessingproductionmarketingconsumptionministriesstandardsproducerorganizationsindustryorganizations*source: North (1990)
- 26. governance“.. inter-firm relationships and institutional mechanisms through which non-market, or ‘explicit’, coordination of activities in the chain is achieved..”*exercising governancedeciding who does what, when, how, under what conditions along the chainresults in allocations of resources, distributions of gains, and specific terms of participation and of exclusion‘lead firms’occupy one or more functional positions along a value chain that govern or drive itdecide who does what along the chain, how, with what specifications and for what rewardsinputsandservices*source: Humphrey & Schmitz (2004)
- 28. value chain development - program designsource: www.actionforenterprise.org
- 29. step 1 – which value chain?Typical supply flows for livestock products in a lower-income countrysource: ILRI/CIAT/WorldFish/ICARDA (2011)
- 30. step 2 - value chain analysismodified from www.actionforenterprise.org
- 31. step 2 - e.g. study type methodologyinexpensive; rapid; useful for scoping - preliminary analysis - and where limited outputs and outcomes (i.e. little change) are soughtProduction ZoneConsumption ZoneInputsFarmTradersProcessingRetailersProcessorsRetail outletsHatcheriesOn-farmseedLarge TradersOn-farmfeedFeed MillsInformal TradersEnergy CommoditiesManuregeneralized aquaculture value chain, Zambiainaccuracies/biases
- 32. methodologies
- 33. key informants (phone and e-mails; field visits)
- 34. published information (reports and papers; statistics)steps 3–4 – identify and assess solutionse.g. green bean exports, Kenyadiscuss with solutionproviders and usersType ofconstraintConstraint Market-based solutionsmodified from www.actionforenterprise.org
- 35. steps 5–6 – intervene and monitorStep 5 – choose interventionsfocus on causes not symptoms
- 36. prioritize
- 37. strategic view
- 38. enable (invest), incentivize and sustain changeStep 6 – measure performancemore affordable fish
- 39. increased consumption by target groups
- 40. more gender equitable employmentsource: www.actionforenterprise.org
- 42. (i) TNCs - maximizing poverty reductione.g. Coca-Cola/SABMiller, ZambiaObjectivesdetermine how the company’s procurement, manufacturing and distribution practices influence how easily poor people find quality employment, earn a living wage, sustain a business or participate in the market.source: Oxfam America (2011)
- 43. maximizing poverty reduction among TNCsnumbers of workers at each node
- 44. incomes and benefits; taxes generated
- 45. empowerment
- 47. grievance and dispute resolution
- 48. diversity and women’s participation
- 49. environmental impactsrecommendationsindependent auditactionssource: Oxfam America (2011)
- 50. (ii) improving small-scale producer value chainssmall producers linked only to buyers of their products
- 51. reduces rewards and/or whole value chain performance
- 52. sales of small volumes
- 53. high uncertainty of price
- 54. sales to many buyers
- 55. cannot acquire reliable market information or access finance and other support from buyers
- 56. poorly quality standards and quality
- 57. lack of traceabilityseaweed farming, Tanzania
- 58. upgradingprocess upgrading: transform inputs into outputs more efficiently by reorganizing production system or through better technologies. e.g. change from cage to pond culture by fish farmersproduct upgrading: change to more profitable product lines e.g. processors switch from frozen to breaded filletsfunctional upgrading: increase skill set e.g. from feed mill to vertically integrated company that includes farming and processinginter-chain upgrading: use skills acquired in a different sector/chain e.g. farmers switch from rice to Pangasiusother forms of upgrading: increase volume, meet standards and certification, deliver on logistics and lead times, get paid better for the same product e.g. Fair Tradephotos: Chen Oai Li, Hong MeenChee, Ingrid Kelling, Froukje Kruijssen http://free-photos.biz
- 59. (iii) cost – benefit analysis of fishingObjectivesevaluate impact of interventions
- 60. quotas, effort regulation or area closures
- 61. on ecosystems, the economy, society and food availabilitycost-benefit analysis fishing - methodologyEcopath/EcosimValue Chain Analysislinks trophic eco-system model to a value chainssource: Christensen et al. 2011determine flow (amounts, revenue, costs) of fish products from sea to consumerdescribe the social benefits (employment, incomes) from fish production and tradeconsider income distribution and social benefits of the fishing sector
- 62. modeled benefits to fleet and value chainrevenuerevenueprofitprofitsource: Christensen et al. 2011
- 63. (iv) gendervalue chains are embedded in a social contextvalue chain development affects gender roles and relationsgender equity and value chain competitiveness are mutually supportive goals
- 64. supporting gender equitable value chainsunderstand men and women’s roles and relationshipsfoster equitable participationaddress the distinctive needs of womensupport women’s economic advancementdesign and promote gender equitable, benefit sharing mechanismsinclude men in defining problems and solutionssource: http://www.fao.org/gender/gender-home/gender-programme/gender-livelihoods/en/
- 65. removing gender constraintssource: USAID (2010)
- 66. further readingChristensen et al. 2011. A combined ecosystem and value chain modeling approach for evaluating societal costs and benefits of fishing. Ecological Modeling, 222, 857-864.Gomez, M I et al. 2011. Research principles for developing country food value chains. Science, 332, 1154-1155. Mayoux, L and Mackie, G. 2008. A Practical Guide to Mainstreaming Gender Analysis in Value Chain Development . International Labour Office. - Addis Ababa.Oxfam America. 2011. Exploring the Links Between International Business and Poverty Reduction. The Coca-Cola/SABMiller value chain impacts in Zambia and El Salvador. Oxfam America, Riisgaard, L, Bolwig, S, Matose, F, Ponte, S, du Toit, A and Halberg, N. 2008. A Strategic Framework and Toolbox for Action Research with Small Producers in Value Chains. DIIS Working Paper no 2008/17. Copenhagen: Danish Institute for International Studies.Rubin, D, Manfre, C and Barrett., K N 2009. Promoting Gender Equitable Opportunities in Agricultural Value Chains: A Handbook. Publication prepared under the Greater Access To Trade Expansion (GATE) project, under the Women in Development IQC Contract No. GEW-I-00-02-00018-00, Task Order No. 02. Washington, DC: United States Agency for International Development.USAID. 2011. Gender and Pro-Poor Value Chain Analysis: Insights from the Gate Project Methodology and Case Studies. http://www.usaid.gov/our_work/cross-cutting_programs/wid/pubs/GATE_Gender_Pro-Poor_Value_Chain_Analysis_05-09.pdfVeliu, A, Gessesse, N, Ragassa, C.and Okali, C. 2009. Gender Analysis of Aquaculture Value Chains in Northern Vietnam and Nigeria. Agriculture and Rural Development Discussion Paper 44. Washington, World Bank.
- 67. fin