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Value chains and nutrition
Meeting on “Mapping the linkages between agriculture, food security and nutrition in Malawi”
April 28th 2015, Ufulu Gardens, Lilongwe
Aulo Gelli
Research Pellow, Poverty, Health and Nutrition Division, IFPRI
Value chains and nutrition
• Value chain approaches can provide useful frameworks to examine
the food system and the potential to achieve improved nutritional
outcomes by leveraging market-based systems
• However, understanding links between value chains, overall business
environment, and “nutrition” among targeted populations is complex
- Involving actors and activities working across agriculture, health and nutrition
- Very little evidence exists on the potential effects or the trade-offs involved
• How can value chains to bring about increased consumption of
nutritious food?
Value chains for nutrition
• Define a “value chain for nutrition (VCN) approach” as process of
developing a strategy to address nutrition problems through
interventions that alleviate constraints in demand and supply in specific
value chains
- High-level goals centre on the health and nutrition of consumers, reflecting the
end result that is intended
- Specific objectives relate to the constraints that are involved in terms of supply
and demand
• Structure of the strategy is based on the pathways through which VCN
interventions can be expected to improve nutrition, including three main
channels linking demand and supply for nutritious foods
Context is critical
• 5 key steps to improve design & evaluation of interventions:
1. Identifying the nutrition problem to be addressed
2. Analysis of the macro-level food systems context
3. Characterising diets, identifying constraints and relative
contributions of key foods
4. Value chain analyses also examining nutrition and food safety
value addition
5. Prioritising intervention options
B) High demand and inconsistent supply A) High demand and consistent supply
D) Low demand and inconsistent supply C) Low demand and consistent supply
-
Demand
Supply
+
- +
Example:
Dairy & meat products, where
demand grows with income, and
where there is an existing ample
base of suppliers.
Potential problems may relate to
high costs, inconsistent quality, and
limited attention to food
safety…etc
Possible interventions:
• Improved business and
regulatory environment (food
safety)
• Upgrades in technologies
• Improved mechanisms for
coordination between chain
actors
Example:
Beans and legumes in India, steady
increase in demand not followed
by supply side investments
Potential problems may relate to
low production capacity, inefficient
aggregation and other post-harvest
processes...etc.
Possible interventions:
• Innovation in production
technologies
• Innovation in the formulation
of inputs for production (and
improved access to inputs)
• Organization of producers to
supply higher volumes
• Facilitation for the expansion
of market outlets
Example:
Value chains for fruits and
vegetables in areas where fruit and
vegetable consumption is not
prioritized by local consumers
Potential problems may relate to
limited awareness of health
benefits, costs, competition from
unhealthy snacks…etc.
Possible interventions:
• Social marketing to stimulate
demand
• Adjustments in the regulatory
framework
• Subsidies for consumption
• Support for marketing by
retailers
• Public purchasing programs
Example:
Value chains for lesser-know fruits
& vegetables, or bio-fortified crops,
with exceptional nutritional
qualities, but with limited
production for markets
Potential problems may relate to
production capacity, inefficient
aggregation and other post-harvest
coupled with limited awareness of
health benefits, costs…etc.
Possible interventions:
• Building capacities for
primary production
• Producer organization
• Social marketing to stimulate
demand
• Subsidies for consumption
• Incentives for risk taking by
processers and retailers
Some reflections on trade-offs and pro-poor
considerations
• Impact pathways on consumers, producers and other chain actors
involve complex direct and in-direct effects
- Are win-win outcomes for smallholders and consumers possible?
• Pathways highlight other important trade-offs at household level
- e.g. Women’s role, decision making and time use
• On the demand side: how to promote consumption of nutritious
foods to target populations that may or may not be able to afford a
healthy diet?
• On the supply-side: is it feasible to target the poorest small-holders
and informal enterprises for intervention along the value chain?
Thank you!
The materials presented in these slides are based on Gelli, A., Hawkes, C., Donovan, J., Harris, H., Allen, S., de Brauw, A.,
Henson, S., Johnson, N., Garrett, J., and Ryckembusch, D. 2015. Value Chains and Nutrition: A Framework to Support the
Identification, Design, and Evaluation of Interventions. IFPRI Discussion Paper 01413. IFPRI. Washington, DC.

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Value chains and nutrition

  • 1. Value chains and nutrition Meeting on “Mapping the linkages between agriculture, food security and nutrition in Malawi” April 28th 2015, Ufulu Gardens, Lilongwe Aulo Gelli Research Pellow, Poverty, Health and Nutrition Division, IFPRI
  • 2. Value chains and nutrition • Value chain approaches can provide useful frameworks to examine the food system and the potential to achieve improved nutritional outcomes by leveraging market-based systems • However, understanding links between value chains, overall business environment, and “nutrition” among targeted populations is complex - Involving actors and activities working across agriculture, health and nutrition - Very little evidence exists on the potential effects or the trade-offs involved • How can value chains to bring about increased consumption of nutritious food?
  • 3. Value chains for nutrition • Define a “value chain for nutrition (VCN) approach” as process of developing a strategy to address nutrition problems through interventions that alleviate constraints in demand and supply in specific value chains - High-level goals centre on the health and nutrition of consumers, reflecting the end result that is intended - Specific objectives relate to the constraints that are involved in terms of supply and demand • Structure of the strategy is based on the pathways through which VCN interventions can be expected to improve nutrition, including three main channels linking demand and supply for nutritious foods
  • 4.
  • 5. Context is critical • 5 key steps to improve design & evaluation of interventions: 1. Identifying the nutrition problem to be addressed 2. Analysis of the macro-level food systems context 3. Characterising diets, identifying constraints and relative contributions of key foods 4. Value chain analyses also examining nutrition and food safety value addition 5. Prioritising intervention options
  • 6. B) High demand and inconsistent supply A) High demand and consistent supply D) Low demand and inconsistent supply C) Low demand and consistent supply - Demand Supply + - + Example: Dairy & meat products, where demand grows with income, and where there is an existing ample base of suppliers. Potential problems may relate to high costs, inconsistent quality, and limited attention to food safety…etc Possible interventions: • Improved business and regulatory environment (food safety) • Upgrades in technologies • Improved mechanisms for coordination between chain actors Example: Beans and legumes in India, steady increase in demand not followed by supply side investments Potential problems may relate to low production capacity, inefficient aggregation and other post-harvest processes...etc. Possible interventions: • Innovation in production technologies • Innovation in the formulation of inputs for production (and improved access to inputs) • Organization of producers to supply higher volumes • Facilitation for the expansion of market outlets Example: Value chains for fruits and vegetables in areas where fruit and vegetable consumption is not prioritized by local consumers Potential problems may relate to limited awareness of health benefits, costs, competition from unhealthy snacks…etc. Possible interventions: • Social marketing to stimulate demand • Adjustments in the regulatory framework • Subsidies for consumption • Support for marketing by retailers • Public purchasing programs Example: Value chains for lesser-know fruits & vegetables, or bio-fortified crops, with exceptional nutritional qualities, but with limited production for markets Potential problems may relate to production capacity, inefficient aggregation and other post-harvest coupled with limited awareness of health benefits, costs…etc. Possible interventions: • Building capacities for primary production • Producer organization • Social marketing to stimulate demand • Subsidies for consumption • Incentives for risk taking by processers and retailers
  • 7. Some reflections on trade-offs and pro-poor considerations • Impact pathways on consumers, producers and other chain actors involve complex direct and in-direct effects - Are win-win outcomes for smallholders and consumers possible? • Pathways highlight other important trade-offs at household level - e.g. Women’s role, decision making and time use • On the demand side: how to promote consumption of nutritious foods to target populations that may or may not be able to afford a healthy diet? • On the supply-side: is it feasible to target the poorest small-holders and informal enterprises for intervention along the value chain?
  • 8. Thank you! The materials presented in these slides are based on Gelli, A., Hawkes, C., Donovan, J., Harris, H., Allen, S., de Brauw, A., Henson, S., Johnson, N., Garrett, J., and Ryckembusch, D. 2015. Value Chains and Nutrition: A Framework to Support the Identification, Design, and Evaluation of Interventions. IFPRI Discussion Paper 01413. IFPRI. Washington, DC.