Agricultural value chain development food and agriculture. Prospects and challenges 5 communication technologies. This report can be downloaded as a pdf file from the deval website. However, this goal is getting harder to achieve every year due to. The agricultural and food value chain kpmg international. At one end of the agricultural value chain are the producers the farmers who grow. Specifically for digital payments, section 5 discusses the suitability of bulk.
Opportunities in agricultural value chain digitisation. In other words, supply chain management is the integrated process of producing value for the end user or ultimate consumer. The agribusiness sectors complex value chain spans input companies, farmers, traders, food companies and retailers, all of whom must ultimately satisfy the. The supply chain represents all the steps required to get the. Digitising the last mile in ghanas agricultural value chains 1. Deval policy brief 042016 agricultural value chains engines of inclusive rural economic development. The theoretical concept of value chain was coined by michael porter in 1985 porter, 1985.
The value chain the term value chain was used by michael porter in his book competitive adva n tage. It is an approach that is increasingly being applied by. As such, in recent years, highlighted by the 2008 world development report on. Actors in agricultural value chains agriculture nigeria. Agriculture and rural development includes bibliographical references and index. Concepts and analysis synthesis of reading materials. Using value chain approaches in agribusiness and agriculture.
The promotion of agricultural value chains is a key approach in german. In particular, applying a value chain framework to development projects is provided in another aciar publication, a guide to value chain analysis and development for overseas. Mar 24, 2020 the value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers. Rather, it is written to help broadcasters understand how agricultural agricultural part of a and talks about different strategies farmers can follow to improve or introduction a value chain is not an object that you can see. It is a key feature of new initiatives, and is a primary pathway for achieving the goal of increasing agricultural growth and expanding the staple food. Value chain finance for agriculture has become a topic of interest for ifad and other development agencies. A key point for value chain thinking is that all actors in the value chain need to work together to meet the needs of the customer or consumer.
Therefore the objective of this evaluation was to find out, based on the analysis of the german bilateral promotion portfolio, whether, how, and in what circumstances promoting agricultural value chains contributes to poverty reduction and food security. The real measure of supply chain success is how well activities coordinate across the supply chain to create value for consumers, while increasing the profitability of every link in the supply chain. Mapping a value chain is a key component within a vca, as. A guide to integrating gender into agricultural value chains. Usaids value chain systems training, and a number of projects in collaboration with professors ray collins and andrew fearne, and associate professor laurie bonney. Given the economic importance of agriculture in many african countries, improving the functionality and the accessibility along the whole agricultural value chain can bring multiple benefits for smallholder farmers. Agricultural value chain finance strategy and design ifad. Finally, section 5 draws on the ugandan case studies to outline key learnings for the broader industry on the technology readiness of different types of businesses for value chain digitisation. Food and agriculture value chain international trade. Scm in agriculture 1 page 1 of 15 supply chain management in agriculture including economics aspects like responsibility and transparency abstract supply chain management as a business strategy can combine both microeconomic and macroeconomic aspects of preferred value chains. The most essential method and the core of any analysis is value chain mapping. Enabling climate risk management along agricultural value chains. Click the image above to view or download a pdf version of the graphic.
Pdf agriculture continues to be a fundamental instrument for sustainable development and poverty reduction world bank, 2008. In particular, applying a value chain framework to development projects is provided in another aciar publication, a guide to valuechain analysis and development for overseas. The primary mechanisms for enhancing value chain performance are by. Agricultural value chain finance strategy and design. The gambia agriculture value chain development project purpose of the project. Agricultural value chain finance is concerned with the flows of funds to and within a value chain to meet the needs of chain actors for finance, to secure sales, to buy inputs or produce, or to improve efficiency. At the same time, modern and particularly urban consumers in india will get better quality and safe food products according to their choices and preferences. Value chain analysis for soybeans in malawi rl tinsley prof. Food and agriculture organization of the united nations.
Agriculture is an important economic sector in many. Jul 28, 2014 a value chain is a set of linked activities that work to add value to a product. Below is a graphic depicting the basic food and agriculture value chain. It is a group of individuals who often represent organizations with different backgrounds and interests. Deval policy brief 042016 agricultural value chains. In agriculture they can be thought of as a farmtofork set of inputs. Analysing value chains comprises a whole series of different methods. Going forward in support of agricultural value chain development 48 appendixes 1 the value chain approach 51 2 the evaluation design matrix 56 3 logic model illustrating the impact of agriculture and natural resources 60 4 key elements of a value chain 61 5 value chain logic model 64. Innovation platforms for agricultural value chain development definitions an innovation platform is a space for learning and change. Participation in wellfunctioning value chains can offer job opportunities, services and connective infrastructure linking to.
A value chain in agriculture identifies the set of actors and activities that bring a basic agricultural product from production in the field to final consumption, where at each stage value is added to the product. Mozambique agricultural value chain analysis 1 executive summary usaidmozambique commissioned a value chain analysis vca to prioritize and guide interventions within and across target value chains. Value chain development is at the core of usaids agricultural programming. The report shows what can be done to sustainably mechanize agriculture to increase productio n and enhance value addition across value chain segments. They link together input from providers, farmers, processors, retailers and consumers, creating relationships that enable the effective functioning of the value chain. Food and agriculture organization of the united nations rome, 2014 david neven developing sustainable food value chains guiding principles. To enhance food and nutrition security and reduce rural poverty in the gambia along the rice and livestock value chains results chain key performance indicators means of verification riskmitigation measures. The designations employed and the presentation of material in this information. Supply chain management in agriculture including economics. A value chain in agriculture describes the range of activities and set of actors that bring agricultural product from production in the field to final consumption, wherein at each stage value is added to the product.
Modern agricultural value chains usually offer wage and self. The creation of a value chain map is usually an integral part of most value chain analysis vca. Resilience of agricultural value chains in developing. Agribusiness and value chains small and medium agribusiness enterprises are critical to link smallholder producers to national markets, meet food demand and create tomorrows jobs. The analysis targeted nine value chains, as summarized below. The world bank group works to increase market access for smallholders and strengthen food value chains.
A large proportion of the worlds poor people live in rural regions and work in agriculture or its upstream and downstream sectors. The literature on agricultural value chain in developing countries provides insights into the engagement of small farmers and the role of standards and certifications and social issues, such as. In an effective value chain, the wants and needs of the end user are at the core of all chain activities and decision making. An agricultural value chain is defined as the people and activities that bring a basic agricultural product like maize or vegetables or cotton from obtaining inputs and production in the field to the consumer, through stages such as processing, packaging, and distribution. Summary agriculture is an important economic sector in many developing countries. Agricultural value chain financing avcf and development for. A value chain can be a vertical linking or a network between various independent. Agricultural value chain analysis linkedin slideshare. View notes african continental free data area agriculture value chains. A value chain in agriculture identifies the set of actors and activities that bring a basic agricultural product from production in the field to final consumption. This can also contribute to reducing poverty and hunger, particularly if small farmers and agribusinesses can be part of the value chain. Innovation platforms for agricultural value chain development. The sustainable food value chain development paradigm 15. The agriculture supply chain is further complicated by fragmented inbound and outbound networks.
The actors private and public, including service providers and the sequence of valueadding activities involved in bringing a product from production to the endconsumer. The areas where we are focused are highlighted in green. T he value chain analysis describes the activ ities the organ ization performs and links them to the organizations competitive pos ition. They only add value if the end user perceives it adds value.
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