1Andreas Springer-Heinze, GIZ
Experiences using the ValueLinks methodology:Use of tools, adaptation and capacity building
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Networks, support institutions, workshop formats
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Contents Some notes on the ValueLinks methodology
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ValueLinks
Procedure of ValueLinks Value chain analysis(description)
Strategic analysis
Objective /Fields of upgrading
Action planning and implementation
Selectinga VC
1 2 3 4 (5-10)
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... is a methodology to analyse a value chain, determine an upgrading objective and strategy, organize collaborative action, and develop business solutions for key constraints and opportunities
... from the point of view of public policy
Methodology
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Strengthening business linkages
Determining a chain upgrading strategy
Analysing a value chain
Facilitating the chain develop-ment process
ImplementationChain analysisand strategy
MonitoringSetting project boundaries
Selecting a value chain for promotion
Engaging in public- private partnership
Deciding whe-ther to engage in chain pro-motion
Monitoring and managing impact
Financing value chains
Strengthening services in VC
Improving the biz environment of VC
Introducing social, & quality standards
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0
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3
2 5
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7
8
9
10
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Obligatory
according to priorities
Modules
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5
Rice: Generic overview of VC map (Sierra L.)
Paddyproduction
Milling ImportsAssembly
trade
Importers
Localassemblers
Smallholders (selling surplus)
Urban markets
(53) SmallMillers
Retail(& repack)
Marketwomen
Commercial farmers with own mills
Inland rural
markets
Market women onOpen Mkts
This VC map is a simplified overview map, showing only major actors and their relations
Institutional buyers (WFP)
Public programs
Smallholderco-operatives
Smallholder co-operatives with P4P agreement
DistributionRepackaging
Up-countryIntermediary
traders
50 kg bags
Reliefsupply
Hospital MilitarySchools
PublicInstitutional
buyers
FoodshopsIntermediary
traders
Small bags / cups
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6
Strengthening business linkages
Determining a chain upgrading strategy
Analysing a value chain
Facilitating the chain develop-ment process
ImplementationChain analysisand strategy
MonitoringSetting project boundaries
Selecting a value chain for promotion
Engaging in public- private partnership
Deciding whe-ther to engage in chain pro-motion
Monitoring and managing impact
Financing value chains
Strengthening services in VC
Improving the biz environment of VC
Introducing social, & quality standards
1
0
4
3
2 5
6
7
8
9
10
11
Obligatory
according to priorities
Modules
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7
The upgrading objective / vision
Value added of the industry = prices obtained and/or volumes sold...• for the product (specify type, quality, etc.)• in the ... market (specify segment and product)• increased by 6% p.a. by .....$$ • in the year ... (5 years from now)
By... • penetrating the ...market• improving / innovating the product (quality etc.)• reducing cost (of production and/or marketing)• expanding capacity (in different stages of the VC)• ....
Formulating a strategic objective
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Paddyproduction
Milling ImportsAssembly
trade
Importers
Localassemblers
Urban markets
(53) SmallMillers
Retail(& repack)
Inland rural
markets
Market women onOpen Mkts
Institutional buyers (WFP)
Public programs
Smallholders
Smallholder co-operatives with P4P agreement
DistributionRepackaging
Reliefsupply
Foodshops
Intermediary traders
High price volatility
Poor market infrastructure (of storage, assembly markets)Poor roads Grades and standards not defined or not enforcedLack of trade finance
Mistrust between VC operators Weak market coordination, unreliable links high marketing cost
Cross-border trade: Variable trade flows
Complicated intra-regional trade regimes, standards not harmonized
Smallholders:No market infoLack of financeKnowledge gapsLittle use of inputsSoil miningLow yieldsPost-harvest loss
Rice value chain: Typical constraints
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Strengthening business linkages
Determining a chain upgrading strategy
Analysing a value chain
Facilitating the chain develop-ment process
ImplementationChain analysisand strategy
MonitoringSetting project boundaries
Selecting a value chain for promotion
Engaging in public- private partnership
Deciding whe-ther to engage in chain pro-motion
Monitoring and managing impact
Financing value chains
Strengthening services in VC
Improving the biz environment of VC
Introducing social, & quality standards
1
0
4
3
2 5
6
7
8
9
10
11
Obligatory
according to priorities
Modules
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10
Value chain work – roles of different actors
Public policy
VC-externalService
providers
Government(e.g. CAADP-related)
External VC facilitator
Technical specialists
providesor hires
Technologyproviders
PackhouseIndustry Market
PrimaryProducers
Private association or Institute
VC business leaders
Traders
work withleaders
Trainer, teacher 1
VC-internalfacilitator
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• Visioning is key: We have to start with opportunities, not with problems
• Standardize visual language and terminology !
• Separating private upgrading activities and public facilitation: Private enterprises have to take responsibility for upgrading business. Public institutions facilitate and provide support services
• Switch between (micro) business models and (meso) VCD at large
• Need to build capacity in line with national (CAADP) agricultural investment plans - means focusing on priority VCs
• “Nationalize” VC methodologies to create ownership and give the value chain approach a “home” in African countries
Lessons derived from practical experience
Applying ValueLinks
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Networks, support institutions, workshop formats
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Contents Some notes on the ValueLinks methodology
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Training in VC development
ValueLinks training for VCD practitioners
ValueLinks training of trainers
Adaptation to the African VCD policy context
– Standard 5-day training course covering all modules – Focus on practical know-how and methods– generic tools, applicable to all kinds of products and VCs– training in Kenya, Ethiopia, Ghana, Bénin, Burkina, Cote d´Ivoire, Sierra L. South Sudan, participants from other countries
– connected with standard training– additional know-how on training organisation and facilitation skills
– 5-day training of trainers focusing on priority VCs – introduction and validation of typical VC maps, quantitative information, problem analysis and solutions– Capacity development strategies & instruments In line with CAADP process
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Networks of trainers and facilitators
International ValueLinks Association e.V.
Value Chain Professionals Association, Kenya
Objectives: The Association promotes:• international contacts and exchange of experience between VL users• quality standards in the application of ValueLinks• the flow of information about VL training and consulting services• the outreach and further development of the approach• the dissemination of information - www.valuelinks.org
– founded in 2010, officially registered in 2012 in Kenya– organizes trainers and facilitators of ValueLinks in Kenya and beyond– meet with Abraham Okolla, ATC, to find out more and get in touch
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Capacity to implement agric. investment plans
Public sector capacity to implement the NAIP in Africa
Capacity of private support service providers
– The NAIP determine priority value chains but are not always specific on the organization of public services to implement the plans – VCD know-how in Ministries of Agriculture is still insufficient – Collaboration of development partner programs is ongoing but policies have to be better coordinated – in line with NAIP and VC strategies
– VC associations (interprofessions) do exist in important VCs, need strengthening to be able to take over VCD facilitation roles– Institutionalizing the know-how on VC development in African countries is necessary but difficult. A good success story is ATC, Kenya.
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Steps in capacity development
CAADP workshop formats at country level
More competitive VCsachieving 6% growth p.a.
CoordinatedInvestment
CAADP VCCapacityDevelopmentWorkshop
Commodity VC StakeholderWorkshops
Subjects:
National policyVCD approachApplication to priority VCsUpgrading solutionsInstitutional set-up
Subjects:
National policyVCD approachVC analysisVC strategyInstitutional set-upPlanning
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