Springer heinze on_valuelinks_addis_3

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Experiences using the ValueLinks methodology: Use of tools, adaptation and capacity building, by Andreas Springer-Heinze (GIZ)

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  • 0 determine whether VCD is the right approach to take
  • Springer heinze on_valuelinks_addis_3

    1. 1. Experiences using the ValueLinks methodology: Use of tools, adaptation and capacity building Andreas Springer-Heinze, GIZ1
    2. 2. Contents1 Some notes on the ValueLinks methodology2 Networks, support institutions, workshop formats2
    3. 3. Methodology ValueLinks ... 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 policy1 Procedure of ValueLinks Selecting Value chain Strategic Objective / Action planning a VC analysis analysis Fields of and implementation (description) upgrading 1 2 3 4 (5-10)3
    4. 4. Modules Setting project Chain analysis Implementation Monitoring boundaries and strategy 0 Deciding whe- 2 Analysing a 5 Strengthening 11 Monitoring and ther to engage value chain business linkages managing in chain pro- motion impact 6 Engaging in public- 1 Selecting a 3 Determining a private partnership1 value chain for chain upgrading promotion strategy 7 Strengthening services in VC 4 Facilitating the chain develop- 8 Financing value ment process chains 9 Introducing social, Obligatory & quality standards according 10 Improving the biz4 to priorities environment of VC
    5. 5. Rice: Generic overview of VC map (Sierra L.) Paddy Assembly Distribution Retail Milling Imports Repackaging (& repack) production trade Institutional Public Relief buyers (WFP) programs supply Smallholder co-operatives with P4P agreement Market Inland (53) Small women on rural Up-country Open Mkts markets Millers Intermediary Smallholders (selling surplus) traders1 Local assemblers Public Hospital Institutional Military Smallholder buyers Schools co-operatives Food Commercial farmers with own mills Intermediary shops traders Urban markets Market Importers women 50 kg bags Small bags / cups This VC map is a simplified overview map, showing only major actors and their relations5
    6. 6. Modules Setting project Chain analysis Implementation Monitoring boundaries and strategy 0 Deciding whe- 2 Analysing a 5 Strengthening 11 Monitoring and ther to engage value chain business linkages managing in chain pro- motion impact 6 Engaging in public- 1 Selecting a 3 Determining a private partnership1 value chain for chain upgrading promotion strategy 7 Strengthening services in VC 4 Facilitating the chain develop- 8 Financing value ment process chains 9 Introducing social, Obligatory & quality standards according 10 Improving the biz6 to priorities environment of VC
    7. 7. The upgrading objective / vision Formulating a strategic objective 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 .....$$1 • 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) • ....7
    8. 8. Rice value chain: Typical constraints Paddy Assembly Distribution Retail Milling Imports Repackaging (& repack) production trade Institutional Public Relief buyers (WFP) programs supply Smallholder co-operatives with P4P agreement Market Inland (53) Small women on rural Millers Open Mkts markets1 Smallholders Local Intermediary Food Urban assemblers traders shops markets Smallholders: Importers No market info Lack of finance High price volatility Knowledge gaps Little use of inputs Soil mining Poor market infrastructure (of storage, assembly Cross-border trade: Low yields markets) Variable trade flows Post-harvest loss Poor roads Grades and standards not defined or not enforced Complicated intra- Lack of trade finance regional trade regimes, standards Mistrust between VC operators not harmonized Weak market coordination, unreliable links high marketing cost8
    9. 9. Modules Setting project Chain analysis Implementation Monitoring boundaries and strategy 0 Deciding whe- 2 Analysing a 5 Strengthening 11 Monitoring and ther to engage value chain business linkages managing in chain pro- motion impact 6 Engaging in public- 1 Selecting a 3 Determining a private partnership1 value chain for chain upgrading promotion strategy 7 Strengthening services in VC 4 Facilitating the chain develop- 8 Financing value ment process chains 9 Introducing social, Obligatory & quality standards according 10 Improving the biz9 to priorities environment of VC
    10. 10. Value chain work – roles of different actors Government Public policy (e.g. CAADP-related) provides or hires VC-external Service External Technical Trainer, providers VC facilitator specialists1 teacher work with VC business leaders leaders Technology Primary Packhouse providers Producers Industry Traders Market Private association or Institute10 VC-internal facilitator
    11. 11. Applying ValueLinks Lessons derived from practical experience • 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.1 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 countries11
    12. 12. Contents1 Some notes on the ValueLinks methodology2 Networks, support institutions, workshop formats12
    13. 13. Training in VC development ValueLinks training for VCD practitioners – 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 ValueLinks training of trainers – connected with standard training2 – additional know-how on training organisation and facilitation skills Adaptation to the African VCD policy context – 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 process13
    14. 14. Networks of trainers and facilitators International ValueLinks Association e.V. 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.org2 Value Chain Professionals Association, Kenya – 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 touch14
    15. 15. Capacity to implement agric. investment plans Public sector capacity to implement the NAIP in Africa – 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 Capacity of private support service providers2 – 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.15
    16. 16. Steps in capacity development CAADP workshop formats at country level More competitive VCs achieving 6% growth p.a. Coordinated Commodity VC Investment Stakeholder Workshops2 Subjects: National policy CAADP VC Subjects: VCD approach Capacity VC analysis Development National policy VC strategy Workshop VCD approach Institutional set-up Application to priority VCs Planning Upgrading solutions16 Institutional set-up

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