Presented by Iddo Dror and Diana Brandes van Dorresteijn at the CRP Livestock and Fish Planning Meeting, Naivasha, Kenya, 24-28 March 2014

1. Iddo Dror, Diana Brandes – van Dorresteijn
Abridged Rapid Value
Chain Analyses Training
CRP Livestock and Fish Planning Meeting,
Naivasha, Kenya, 24-28 March 2014

2. Training Outline
• Why think in terms of value chains?
• How are value chains relevant for livestock?
• How to represent a value chain?
• Issues in value chain assessment(s)
• Illustrating different results of value chain analysis:
Tanzania
2

3. The CGIAR L&F research program
operates in how many value chains?
A. 7
B. 8
C. 9
7
8
9
0%0%0%

4. Which value chain do you primarily
work in?
A. Bangladesh
B. Burkina Faso
C. Egypt
D. Ethiopia
E. India
F. Nicaragua
G. Tanzania
H. Uganda
I. Vietnam
Bangladesh
Burkina
Faso
EgyptEthiopia
IndiaN
icaraguaTanzania
UgandaVietnam
0% 0% 0% 0%0%0%0%0%0%

5. What is your background?
A. Economist
B. Value Chain Coordinator
C. Animal
Health/Breeding/Feeding
Specialist
D. Cross practice Specialist
Econom
ist
Value
Chain
Coordinator
Anim
alHealth/Breedin...
Crosspractice
Specialist
0% 0%0%0%

6. 6
Role of Livestock in Developing Countries
• > 40% total agricultural GDP
• 70% of world’s livestock (18.5 billion “head”)
• One billion people earning <$2 a day depend on livestock:
600 million in South Asia; 300 million in sub-Saharan Africa
• Provides food for >830 million food-insecure people: many poor
have little access to nutritious animal-source foods
• Small-scale mixed crop-livestock farmers offer opportunities to
prevent disease outbreaks, close yield gaps etc.
Source: Better Lives through Livestock, ILRI Strategy 2013-2022, ILRI, Nairobi and 2000 – 2030 figures, FAO, 2011.

7. Value chains for Livestock Development
Using a value chain framework can help better
evaluate smallholder livestock systems to:
• Understand the poverty implications of the value chains
• Design, prioritize policy interventions and to assess the impact of
technology decisions on livestock systems
• Formulate (and measure impact) of technological, marketing and
organizational innovations
• Evaluate, capture and learn from the overall value chain
performance and its actors
• Promote a holistic approach
7

8. A piecemeal traditional approach to
agricultural interventions can be defined as….
A. Breaking a complex task into
several smaller pieces so that
various teams can work on all
parts of the value chain in
parallel
B. Working on some parts of the
value chain in a single country
but not on others
C. A traditional manner of
preparing meals into smaller
parts
D. Working on all parts of the
value chain in a single country
by dividing work into pieces
Breakingacom
plextask...
W
orkingon
som
e
partso...
A
traditionalm
annerof...
W
orkingon
allpartsof...
0% 0%0%0%

9. Inputs &
Services
Production Processing Marketing Consumers
Inputs &
Services
Production Processing Marketing Consumers
...in Country A
Inputs &
Services
Production Processing Marketing Consumers
Inputs & Services Production Processing Marketing Consumers
...in Country D
...in Country C
...in Country B
9
Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Piecemeal traditional approach to
agricultural interventions

10. Feed
Medicines
Services
Breeding and
intermediate
rearing animals
+/- Markets
+/-Middlemen
Farms - many
types
Manure, waste
and by products
Other food and
consumer products
Milk, Eggs, wool/
fiber
Manure,
waste and
by products
Meat
+/- Markets
+/- Middlemen
Consumer
Retailer
Wholesaler
+/-Markets
+/-Middlemen
Abattoirs
+/-Processors
Animals
+/- Markets
+/- Middlemen
+/-Markets
+/-Middlemen
Baker, 2007: “A value chain is the set of actors, transactions, information flows, institutions that enable value to be
delivered to the customer.”
Source: Tom Randolph, referred to in CRP L& F proposal, 2012
A visualization

11. How does the Livestock and Fish Research value
chain approach differ from the traditional
“piece meal” approach?
A. The program adopts an integrated “solution-
driven research with development” approach
by working together with key partners and
stakeholders
B. The program takes a holistic approach towards
implementing value chain interventions
C. Crosscutting areas like Knowledge
Management, Communications, Partnership
and Capacity Development play prominent roles
in the global value chains
D. All of the above
The
program
adoptsan
i...
The
program
takesa
holis...
Crosscutting
areaslike
...
Allofthe
above
0% 0%0%0%

12. Livestock & Fish research interventions addresses value chain holistically:
Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity
Development
Technology Generation
Market Innovation
Targeting, Gender, Learning and Impact
Consumers
Value chain development team + research partners
GLOBAL RESEARCH PUBLIC
GOODS
INTERVENTIONS TO SCALE
OUT REGIONALLY
Major intervention with development partners
12
Policy
Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Value chain analysis approach: Research for Development

13. Small Group Exercise
13
Briefly discuss what the gaps are in our “holistic” value chain
approach (5-10 min.) and draw out (5-10 min.) the main
elements that need to be considered in a (dairy) value chain
mapping

14. Three levels of value chain mapping
Understand the context in which the system operates
Understand how the
different business
links function
together as a system
Identify and assess the relationship,
leverage points, capacities and resources
of partners including support services and
stakeholders
14Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012
Purpose:
• Identify value chain actors, services and enablers; main market
channels (relative importance, requirements, geographical spread);
visualize linkages; demonstrate interdependencies

15. Level one: Core Processes
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012 15

16. Level two: Organizational & partner network
Incl. support
services &
other
stakeholders
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets. 2012
16

17. Level three: Institutional landscaping
Source: Lundy, M. and others. LINK Methodology. A Participatory Guide to Business Models that link Smallholders to Markets, 2012
17

18. Most important issues to consider
in value chain analysis
• Governance, formal and informal power structures,
political economy
• Value chain upgrading opportunities to create job
opportunities and create incomes, organization and
business development
• Favorable environment for (investment in) innovation
• Measuring impact of overall chain performance
• Local versus global-oriented value chains
18

19. Which of these issues do you
consider the most important?
A. Governance and Power
B. VC upgrading
opportunities
C. Enabling environment
investment in innovation
D. Measuring Impact
E. Local versus Global VC Governance
and
Pow
er
VC
upgradingopportunities
Enablingenvironm
enti...
M
easuringIm
pact
LocalversusGlobalVC
0% 0%0%0%0%

20. Value chain analysis – tools, techniques
Value chain analyses are more than pretty pictures or
maps.
What else would it include?
• Individual surveys of value chain stakeholders
• Using sampling/detailed questionnaires, group
interviews to identify practices, costs and prices
• Using statistical tools to extract (data) trends
• Partner scoping studies
20

21. • Reliable value chain mapping: geographical mapping
of chain actors and marketing channels
• Solid Market analysis: quantify product and
information flows, prices and costs along the chain
• Value creation: quantify and analyze value created
through,- and along the chain
• Sound models for value chain analysis: to
understand contribution of various factors in value
creation and chain participation
• Constraints and opportunities identification
• Policy and business recommendations formulated
21
Results from value chain mapping and analysis

22. Illustrating different results of
value chain analysis
Case from Tanzania

23. 23
Case:
Tanzania Dairy
“Maziwa Zaidi”

24. Goals (10-12 years)
Three principle goals:
• Smallholder farmers have reliable and consistent access to
quality inputs and services in order to efficiently achieve high
milk productivity
• Smallholder famers have access to reliable, well-coordinated,
and efficient dairy products marketing arrangements with
resultant improvement in household income and livelihoods
• Poor consumers have improved access to quality, safe, and
nutritious dairy products at affordable prices to increase per
capita consumption of the dairy products
24

25. Impact Pathways (10-12 years)
Long term impacts through four main pathways:
• Institutional innovations for reliable and consistent access to
inputs and services
• Innovative strategies for consistent and reliable access to
artificial insemination materials and services, forage, and
water
• Generation of evidence for achieving impact at scale and
influencing policy
• Innovative strategies for increasing the consumption of dairy
products
25

26. Project sites
26

27. Producers
Households
outside village
Restaurants
outside village
Milk vendors
Collectioncenters
Households
in village
Restaurants in
village
Auction market in
& outside village
Agro- vet shops
outside village
Mobile
agro-vets
Agro-vet shop in
urban centres
1
6
2
5
4
3
Government/Research
institution (AI, Breeding
management, vaccines)
Processors
<--------------------------------------------Mostly commercial / intensive & semi-intensive producers---------------------------------->
<---- Mostly pre-commercial/extensive producers producers------>
Key: 1-6 = channels in order of preference by producers across 8 typical villages in Morogoro
and Tanga. These also reflect decreasing price gradient that ranges from TSh 1000/liter for
direct sales down to TSh 300/liter for sales to vendors collection centers.
Dairy Value Chains in Tanzania
27

28. Milk processing in Tanzania has been declining since 1990
28
Milk Processing is declining

29. Huge seasonal fluctuation in milk
supply from traditional herd
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
7500
8000
8500
9000
9500
10000
10500
11000
11500
12000
12500
13000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Volumeofmilk(litres/month)
Month
Milk collection by a small scale processor from
traditional herd in Morogoro, 2009
Average/month Total supply
29

30. Reported Yields
30

31. Farmer groups are struggling
in most places except in Tanga
Performance of milk collection at Nnronga women dairy co-operative Society, Hai
Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007)
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
550000
600000
650000
700000
750000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Year
VolumeofMilk(Litres)
Nnronga
CHAWAMU-Muheza
31

32. Four inter-related problems faced by
resource-poor milk producers
1. Smallholders produce small volumes for direct sales: no economies of
scale
2. Inadequate credit facilities for basic inputs/services/working capital: lack of
investment opportunities to improve productivity
3. Lack of appropriate organizational models for pre-commercial producers
(complex cooperative models and technology-driven solutions have largely
failed)
4. Seasonality of rainfall and related effects on production are strong
32

33. What do you consider to be the most
important constraints faced by
resource-poor milk producers ?
A. Production: No economies
of scale
B. Inadequate access to
finance/credit
C. Lack of organisation(s)
D. Seasonality
E. Policies
F. Other
Production:N
o
econom
i..
Inadequate
accessto
fin...
Lack
oforganisation(s)Seasonality
Policies
O
ther
0% 0% 0%0%0%0%

34. Distribution Channels
34
Milk marketing outlets (NBS, 2003)
Milk Buyer %
Neighbours 86.1
Local market 5.5
Secondary market 0.5
Processors 1.4
Large scale farms 0.2
Trader at farm 4.5
Other 1.7
TOTAL 100.0

35. Milk processing installation 1995-2000. (Total approx. 315,000 l/day)
Processor name Installed
capacity
(litres/day)
1 Azam Dairy 3,000
2 Tommy Dairy (Hakifanyikazi) 15,000
3 Tan Dairies 15,000
4 Tanga Fresh Ltd 40,000
5 Ammy Brothers Ltd 2,000
6 Brookside (T) Ltd (Hakifanyikazi) 45,000
7 International Dairy Products 5,000
8 Mountain Green Dairy 1,500
9 Arusha Dairy Company 5,000
10 Kijimo Dairy Cooperative 1,000
11 Longido (Engiteng) 500
12 LITI Tengeru 500
13 Terrat (Engiteng) 500
14 Orkesumet (Engiteng) 500
15 Naberera (Engiteng) 1,000
16 Nronga Women 3,500
17 West Kilimamnjaro 1,000
18 Mboreni Women 1,000
19 Marukeni 1,000
20 Ng'uni Women 1,000
21 Kalali Women 1,000
22 Same (Engiteng) 500
23 Fukeni Mini Dairies 3,000
24 Kondiki Small Scale Dairy 1,200
25 Musoma Dairy 40,000
26 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,000
27 Makilagi SSDU 1,500
28 Baraki Sisters 3,000
29 Mara Milk 15,000
30 Mwanza Mini Dairy 3,000
31 Kagera Milk (KADEFA) 3,000
32 Kyaka Milk Plant 1,000
33 Del Food 1,000
34 Bukoba Market Milk Bar 500
35 Bukoba Milk Bar - Soko Kuu 500
36 Mutungi Milk Bar 800
37 Salari Milk Bar 800
38 Kashai Milk Bar 800
39 Kikulula Milk Processing Plant 1,000
40 Kayanga Milk Processing Plant 1,000
41 MUVIWANYA 1,000
42 SUA 3,000
43 Shambani Graduates 4000
44 New Tabora Dairies 16,000
45 ASAS Dairy 12,000
46 CEFA Njombe Milk Factory 10,000
47 Mbeya Maziwa 1,000
48 Vwawa Dairy Cooperative Society 900
49 Gondi Foods 600
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Key
26
12
16
6
7
8
1
2
9
4
5
10
3
11131415
17
18
19
20
21
22
23
24
42
45
25272829
3031
32
32
33
34 35 36
37 38 39
40
41
43
4647
48
49
46
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGA
MBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
LakeTang
a
n
yi
k
a
La
ke
Nyasa
INDIANOCEAN
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
Milk processing installation 1995-2000. (Total approx. 315,000 l/day)
Processor name Installed
capacity
(litres/day)
1 Azam Dairy 3,000
2 Tommy Dairy (Hakifanyikazi) 15,000
3 Tan Dairies 15,000
4 Tanga Fresh Ltd 40,000
5 Ammy Brothers Ltd 2,000
6 Brookside (T) Ltd (Hakifanyikazi) 45,000
7 International Dairy Products 5,000
8 Mountain Green Dairy 1,500
9 Arusha Dairy Company 5,000
10 Kijimo Dairy Cooperative 1,000
11 Longido (Engiteng) 500
12 LITI Tengeru 500
13 Terrat (Engiteng) 500
14 Orkesumet (Engiteng) 500
15 Naberera (Engiteng) 1,000
16 Nronga Women 3,500
17 West Kilimamnjaro 1,000
18 Mboreni Women 1,000
19 Marukeni 1,000
20 Ng'uni Women 1,000
21 Kalali Women 1,000
22 Same (Engiteng) 500
23 Fukeni Mini Dairies 3,000
24 Kondiki Small Scale Dairy 1,200
25 Musoma Dairy 40,000
26 Utegi Plant (Ex TDL ) (Hakifanyikazi) 45,000
27 Makilagi SSDU 1,500
28 Baraki Sisters 3,000
29 Mara Milk 15,000
30 Mwanza Mini Dairy 3,000
31 Kagera Milk (KADEFA) 3,000
32 Kyaka Milk Plant 1,000
33 Del Food 1,000
34 Bukoba Market Milk Bar 500
35 Bukoba Milk Bar - Soko Kuu 500
36 Mutungi Milk Bar 800
37 Salari Milk Bar 800
38 Kashai Milk Bar 800
39 Kikulula Milk Processing Plant 1,000
40 Kayanga Milk Processing Plant 1,000
41 MUVIWANYA 1,000
42 SUA 3,000
43 Shambani Graduates 4000
44 New Tabora Dairies 16,000
45 ASAS Dairy 12,000
46 CEFA Njombe Milk Factory 10,000
47 Mbeya Maziwa 1,000
48 Vwawa Dairy Cooperative Society 900
49 Gondi Foods 600
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Key
26
12
16
6
7
8
1
2
9
4
5
10
3
11131415
17
18
19
20
21
22
23
24
42
45
25272829
3031
32
32
33
34 35 36
37 38 39
40
41
43
4647
48
49
46
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Key
Less than 5000 litres/day
5000-30,000 litres/day
More than 40,000 litres/day
Less than 5000 litres/dayLess than 5000 litres/day
5000-30,000 litres/day5000-30,000 litres/day
More than 40,000 litres/dayMore than 40,000 litres/day
Key
26
12
16
6
7
8
1
2
9
4
5
10
3
11131415
17
18
19
20
21
22
23
24
42
45
25272829
3031
32
32
33
34 35 36
37 38 39
40
41
43
4647
48
49
46
26
12
16
6
7
8
1
2
9
4
5
10
3
11131415
17
18
19
20
21
22
23
24
42
45
25272829
3031
32
32
33
34 35 36
37 38 39
40
41
43
4647
48
49
46
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGA
MBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
LakeTang
a
n
yi
k
a
La
ke
Nyasa
INDIANOCEAN
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
D.R.C
Pemba
Unguja
LINDI
RUKWA
TABORA
IRINGA
MBEYA
RUVUMA
SINGIDA
MOROGORO
KIGOMA
PWANI
ARUSHA
DODOMA
SHINYANGA
TANGA
MARA
KAGERA
MANYARA
MTWARA
MWANZA
MANYARA
KILIMANJARO
DAR ES SALAAM
LakeTang
a
n
yi
k
a
La
ke
La
k
La
ke
Nyasyasyasa
INDIANOCEAN
KENYA
UGANDA
RWANDA
BURUNDI
ZAMBIA
MOZAMBIQUE
Milk processing installation
35

36. Gender: Women participation in milk
related tasks
36

37. BREEDS
• Dearth of artificial insemination technicians due to restrictive certification
system
• Unreformed sector (improved breeding bill not yet submitted)
• Breeding regulator and practitioner are one and the same
• Inadequate, disjointed service delivery, with different agencies
overseeing animal registration, performance and genetic evaluation
• Brucellosis is not listed as a notifiable disease so testing and control are
neither mandatory nor publicly funded
• No information systems to capture livestock identification, registration
and performance for breed improvement and animal traceability programs
FEEDS, HEALTH – WHAT ABOUT GENDER ?
Policy constraints

38. Livestock & Fish research interventions addresses value chain holistically:
Strategic cross-cutting areas such as KM/Comms, Partnership and Capacity
Development
Technology Generation
Market Innovation
Targeting, Gender, Learning and Impact
Consumers
Value chain development team + research partners
GLOBAL RESEARCH PUBLIC
GOODS
INTERVENTIONS TO SCALE
OUT REGIONALLY
Major intervention with development partners
38
Policy
Source: Tom Randolph, referred to in CRP L&F proposal, 2012
Value chain analysis approach: Research for Development

39. CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR
Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems
in sustainable ways, making meat, milk and fish more available and affordable across the developing world.
CGIAR Research Program on Livestock and Fish
livestockfish.cgiar.org