ValueLinks Standard Material

Value Chains and Development

The point of departure of the training module, and indeed the fundamental goal to which it seeks to contribute is that of “pro-poor growth (PPG)”. Wherever poor people are able to participate in product markets, e.g. in the markets for food or labour-intensive manufacturing products, promoting the respective value chains can help lift people out of poverty. Value chain promotion represents a systematic approach to economic development and can be applied for promoting pro-poor growth.

Analysing a Value Chain

ValueLinks Module 2 describes the economic system organised around particular product markets. It provides a model and situation analysis of the value chain in question. The module presents principles and guidelines for mapping and quantification, as well as an introduction to the concept of value addition. The environmental analysis and social analysis put emphasis on assessing sustainability and poverty aspects.

Determining the Chain Upgrading Strategy

Formulating a strategy to develop a value chain always has two dimensions: The first concerns what the actors in a value chain must do to become more competitive and to generate greater value added in the future: “value chain upgrading”. The chain upgrading strategy should particularly consider strategic options of greening value chains and inclusive growth. The second dimension is called “value chain promotion” and concerns the role of external facilitators.

Program and Project Design

This ValueLinks module presents know-how and tools which can guide external facilitators in their task of promoting and facilitating a process of value chain upgrading. This includes organizing collaborative action and leadership in the processes of strategy formation and introduction of innovations. To the extent possible the know-how is specified according to different VCD lead actors.

Promoting Innovative Business Models

Every enterprise has a business model, either explicitly or implicitly. The business model canvas is used to identify and describe innovative business models for inclusive growth which can be introduced and replicated in the value chain. Tools for promoting entrepreneurship are discussed.

Strengthening Vertical and Horizontal Business Linkages

The coordination between different chain actors is at the core of the value chain concept. This module is about improving business linkages at both levels between actors at the various stages of the value chain (vertical business linkages) and between operators working at the same stage (horizontal collaboration).

Enhancing Service Provision in Value Chains

This module provides guidelines on how to strengthen non-financial service arrangements in order to improve chain efficiency. The task of external facilitators is to advise on the most appropriate service arrangements, work on service market failures and build the capacity of service providers without distorting service markets.

Better Financial Services in Value Chains

This module discusses possibilities of VC internal and external financing solutions in order to cover short-term and long-term financial needs. A special focus is placed on risk management and credit insurance. Examples of improving access to financial services are presented.

Introducing Social, Ecological and Product Quality Standards

Mandatory and voluntary standards are of increasing importance for quality management in the chain. The focus here is on introducing standard systems and building the capacity of enterprises to comply with these standards.

Improving the Business Environment of Chains

This module discusses the improvement of market, environmental and social regulations and ways in which influence can be exerted in the form of public-private dialogue and lobbying for change by the involved stakeholders.

Monitoring and Managing Impact

This module presents the main principles of monitoring and data management in value chain promotion. It concludes the cycle of modules addressing the tasks of facilitators, so that from selecting a value chain for promotion (Module 1) to monitoring the results of solutions implemented (Modules 5-10), we finally arrive at results monitoring.

Separate presentation: Climate-smart VC solutions

The cross-cutting presentation provides an overview of different kinds of solutions applied for climate change adaptation and mitigation in agricultural value chains.

Resource Documents Guide on climate change adaptaion and mitigation in agricultural value chains

The resource documents guide on climate change adaptation and mitigation in agricultural value chains provides an overview for selected reading and links to find further detailed information.