Value Chain Concepts: Perspective from LIVES
Berhanu Gebremedhin
LIVES Project Implementation Planning Workshop
Addis Ababa, 11–12 July 2012

The value chain concept
• When IPMS started operation ………….
• Now ………………..
• However ………………..

Why has not dairy production developed?
• Farmer Abreham: Could not produce enough
feed
• Farmer Hagos: Not suitable in our
agro-ecology
• Farmer Megersa: Not good milk market
access
• Farmer Zeberga: No processing
facilities during fasting period
• Farmer Behailu: Not enough demand for our
milk

Why …? (2)
• Farmer Baredo: Extension service is weak
• Farmer Chaltu: Poor business training and
assistance
• Farmer Berhe: Inadequate credit supply
• Farmer Tadelle: Weak input supply service
• Farmer Dindamo: Poor communication
infrastructure
• Farmer Tafesse: Poor transportation
facilities

Why …? (3)
• Farmer Bedassa: Rules and regulations are
restrictive
• Farmer Dinkinesh: Taxation is high
• Farmer Ayalneh: Kebele administration is
corrupt
• Farmer Hingidu: Very weak collective action

Commodity value chain
Business support services
and enabling environment Consumption
Retailing
Trading
Research
Processing
Govt. Policy/regulation
Trading Transportation
Postharvest Communications
handling
Processing
Production Market support services
- -
Input
Extension Service
Supply Financial services
Input supply

Value chain actors
• Value chain actors: Actors involved in
ownership of commodity and its value addition
• To be contrasted with service providers

Service Providers
• Public (extension, input supply, research, market
information etc.): provide service mostly for free,
but also for fee
• Private (input supply, credit, transport, processing,
storage, etc.): provide service on fee
• If service is provided by the value chain actor itself
for own business, service becomes part of the value
chain actor activities (eg. transport, processing)
•

The value system
• The system that comprises the value chain
actors, service providers and the institutional
environment in which the value chain actors
and service providers operate, including the
institutions that govern their actions and
interactions.

Thank You!

The Value Chain
Input supply
Production
Trading
Processing
Trading
Retailing
Consumption

Value chain actors
• Value chain actors: Actors involved in
ownership of commodity and value addition
• To be contrasted with service providers

• Value chain:
Input supply Production post-harvest
Trading Processing trading Consumption
• Value chain actors: Actors involved in ownership
of commodity and value addition
• To be contrasted with service providers (also
called business development services (BDS))

Main objective
• Determining the reach of the project
– Commodities
– Geographical coverage
– Value chain actors and service providers
• Initiate baseline data collection
– Data

Regional teams
• ILRI/IWMI HQ staff
• lIVES regional staff/consultant
• Regional partners staff (BoA, RARIs)

Identification of commodities, Zones,
Districts, PAs
• Regional meetings with BoA, BoW, RARI to
introduce project and select Commodities/Zones
( 2-3 Zones/Region) – expert consultation and GIS
maps and zonal statistical data
• Zonal meetings with partners to introduce project
and select clustered Districts/commodities (3
districts/Zone) – expert consultation, ranking
• District meetings with partners to introduce
project and determine suitable PAs/commodities
(max 4 commodities/District/PA

Service providers and other value chain actors
and linkage
• Other commodity value chain actors – traders,
processors and whole/retails and vertical linkages
• Public and private sector suppliers of physical inputs
and services and vertical linkages
• Public and private sector suppliers of skills (including
gender), knowledge/information and vertical linkages
• Linkages between value chain actors and service
providers by commodity (matrixes)

Baseline data and maps
• District level data on number of animals and
irrigated areas (fruits and vegetables)
• PA level data on number of producers
• Regional, zonal and district level data on
public sector staff Agricultural offices,
Livestock office, Water offices
• GIS maps soils, elevation, rainfall, agro
ecolocial zones, land use,

Thank you