Value Chain Development

A product is rarely directly consumed at the place of its production. It is transformed, combined with other products,transported, packaged, displayed etc. until it reaches the final consumer. In this process the raw materials, intermediate products and final products are owned by various actors who are linked by trade and services, and each add value to the product. Various types of public and private services, like business development services, electricity, transport, financial services, etc., are as important as favourable framework conditions, i.e. laws, regulations and their enforcement.

The Value Chain model supposes that by understanding these interactions, it is possible for private and public agencies (including development agencies) to identify points of intervention to increase efficiency and thereby increase total generated value, and to improve the competence of intended actors to increase their share of the total generated value.

In 2010 the E+I network launched a series of three e-learning cycles on M4P and Value Chain Development. It focused on "planning, implementing and evaluating" projects and programs related to M4P and Value Chain Development (VCD). Find the synthesis papers here.

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International Finance Institutions and Development through the Private Sector
September 2011
Author: A joint report of 31 multilateral and bilateral development finance institutions
Download (PDF, 2616 KB):  [en]  

Why have a Standard for measuring results? Progress and plans of the Donor Committee for Enterprise
Author: Jim Tanburn, Nabanita Sen
Download (PDF, 1221 KB):  [en]   [fr]  

The Organic Business Guide - Developing Sustainable Value Chains with Smallholders
Author: Bo van Elzakker, Frank Eyhorn

This guide provides several tools to practicioners who are engaged in setting up or in managing organic businesses. One chapter exclusively focuses on developing organic value chains as well as a tool on value chain facilitation.

Download (PDF, 5567 KB):  [en]  

Credible Evidence: Tackling the Challenges in Evaluating Agricultural VC support
September 2009
Author: Giel Ton & Sietze Vellema & Marieke de Ruyter de Wildt

Draft version (September 2009). The document gives a brief overview (16 pages) on the current state of the discussion of agricultural value chain support and provides you with an exhaustive list of references.

Download (PDF, 125 KB):  [en]  

Value Chain Development for Decent Work
Author: Matthias L. Herr, Tapera J. Muzira, ILO

This guide for development practitioners, government and private sector initiatives gives guidance on how to address the underlying causes of failures in the performance of market systems, rather than looking at symptoms in individual chains. This guide addresses Value Chain development from a market development perspective with a unique focus on how to achieve Decent Work.

Download:  [en]   [es]  

Where Farmer and Fashion Designer Meet
August 2008
Author: Urs Heierli

This case study explores the economics of organic cotton production, by analysing how to absorb higher costs of production, certification and farmers’ premiums. The study describes several projects that managed to link farmer with mainstream markets. The paper presents projects in India, Tanzania, West Africa and Kyrgyzstan and discusses how to adapt fair trade practice to meet new challenges in highly complex value chains.

Download (PDF, 3478 KB):  [en]  

Donor Intervention in Value Chain Development
July 2007
Author: Daniel Roduner, Agridea

These guidelines highlight the most important issues that development agencies need to consider when they engage in value chain development in rural areas. The paper offers guiding principles for development practitioners and policy makers, and points to further useful material.

Download (PDF, 476 KB):  [en]  

Ending Poverty with Water Control and Market Access
March 2007
Author: Urs Heierli, Elisabeth Katz

Small farmers often have lower production costs but they are still not competitive because their transaction costs are high and they cannot produce what the market wants at the right time. Alongside other inputs such as seeds, they need affordable water control technologies and access to profitable markets. As more and more agricultural goods are sold through supermarkets, they need to deliver the qualities and quantities as and when they are needed. This publication discusses three pillars necessary to the support of small farmers: 1) access to affordable water control technologies, 2 ) private supply chains for irrigation hardware and agroinputs, and 3 ) access to new marketing channels.

Download (PDF, 2769 KB):  [en]  

ValueLinks Manual - The Methodology of Value Chain Promotion
Author: GTZ

The ValueLinks Manual provides guidance on the whole project cyclce of a value chain promotion project. It provides several modules on: 1)setting the project boundaries, 2)chain analysis and stragety, 3)project implementation, and 4)monitoring. It is a must for each newcomer to value chain promotion!

Download (PDF, 4566 KB):  [en]  

Comparative Approaches to Private Sector Development - a MWW Perspecitve Paper
April 2006
Author: Marieke de Ruijter de Wildt, David Elliott, Rob Hitchins

This document serves as a focus for discussions about the relationship between various private sector development fields. It addresses a common challenge in private sector development: how to reconcile apparently diverse concepts such as value chains, subsectors, clusters and networks, enabling environment and local economic development, and the approaches related to them. The document illustrates that recent thinking on making markets work for the poor rather than being a substitute for or in competition with these other concepts and approaches, is complementary to them, providing an overarching framework to aid understanding about their use in efforts to reduce poverty.

Download (PDF, 270 KB):  [en]   [fr]   [es]  

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