1. WORKSHOP an introduction to value chains malcolmbeveridge and froukjekruijssen WorldFish Center, Penang 18-22 July 2011

2. overview Fish market, Dohaa purpose introduction to value chains methodologies value chain analysis value chain development using value chain analysis and development case studies Source: http://www.flickr.com/photos/yahl/3246788986/# source: Oxfam America (2011)

3. purpose value chains are central to the CRPs WorldFish scientists should understand the basics by the end of the workshop, we intend that you have a better understanding of what a value chain is (jargon) why value chain research is central to the CRPs value chain analysis what value chain development entails how to engage with VC research in the Center

4. background

6. credit

7. seed

8. feed

9. production

10. processing

11. storage

12. marketing

13. distribution

14. consumption* source: Gomez et al. 2011. Science, 332, 1154-1155.

16. at each node a product is exchanged or transformed and value addedinputs and services transport and processing marketing consumption production upstream downstream increasingly used in development and associated research because they provide a good framework to ensure desired outcomes and impacts identify where problems – e.g. inefficiencies, gender inequities - are occurring and where interventions are needed highlight the importance of private sector development and identify where public sector and civil society can best play a role

17. value chain analysis

18. value chain analysis the analysis of chain configuration (input-output structure) institutional framework governance upgrading (development) takes account of dynamics barriers, opportunities inputs and services Shrimp farming value chain, Bangladesh source: USAID(2010)

20. organizations

21. formal (e.g. laws) and informal (e.g. norms of social behaviour) rules

22. value chain analysis

23. factors that interact with the functioning of the value chain

24. external to the governance of the chain

25. influence terms of participation, gains.NGOs regulations organizations and pressure groups political parties inputs and services transport and processing production marketing consumption ministries standards producer organizations industry organizations *source: North (1990)

26. governance “.. inter-firm relationships and institutional mechanisms through which non-market, or ‘explicit’, coordination of activities in the chain is achieved..”* exercising governance deciding who does what, when, how, under what conditions along the chain results in allocations of resources, distributions of gains, and specific terms of participation and of exclusion ‘lead firms’ occupy one or more functional positions along a value chain that govern or drive it decide who does what along the chain, how, with what specifications and for what rewards inputs and services *source: Humphrey & Schmitz (2004)

27. value chain development

28. value chain development - program design source: www.actionforenterprise.org

29. step 1 – which value chain? Typical supply flows for livestock products in a lower-income country source: ILRI/CIAT/WorldFish/ICARDA (2011)

30. step 2 - value chain analysis modified from www.actionforenterprise.org

32. methodologies

33. key informants (phone and e-mails; field visits)

36. prioritize

37. strategic view

39. increased consumption by target groups

40. more gender equitable employmentsource: www.actionforenterprise.org

41. developing value chains

42. (i) TNCs - maximizing poverty reduction e.g. Coca-Cola/SABMiller, Zambia Objectives determine how the company’s procurement, manufacturing and distribution practices influence how easily poor people find quality employment, earn a living wage, sustain a business or participate in the market. source: Oxfam America (2011)

44. incomes and benefits; taxes generated

45. empowerment

46. freedom of association

47. grievance and dispute resolution

48. diversity and women’s participation

49. environmental impactsrecommendations independent audit actions source: Oxfam America (2011)

51. reduces rewards and/or whole value chain performance

52. sales of small volumes

53. high uncertainty of price

54. sales to many buyers

55. cannot acquire reliable market information or access finance and other support from buyers

56. poorly quality standards and quality

57. lack of traceabilityseaweed farming, Tanzania

58. upgrading process upgrading: transform inputs into outputs more efficiently by reorganizing production system or through better technologies. e.g. change from cage to pond culture by fish farmers product upgrading: change to more profitable product lines e.g. processors switch from frozen to breaded fillets functional upgrading: increase skill set e.g. from feed mill to vertically integrated company that includes farming and processing inter-chain upgrading: use skills acquired in a different sector/chain e.g. farmers switch from rice to Pangasius other forms of upgrading: increase volume, meet standards and certification, deliver on logistics and lead times, get paid better for the same product e.g. Fair Trade photos: Chen Oai Li, Hong MeenChee, Ingrid Kelling, Froukje Kruijssen http://free-photos.biz

60. quotas, effort regulation or area closures

62. modeled benefits to fleet and value chain revenue revenue profit profit source: Christensen et al. 2011

63. (iv) gender value chains are embedded in a social context value chain development affects gender roles and relations gender equity and value chain competitiveness are mutually supportive goals

64. supporting gender equitable value chains understand men and women’s roles and relationships foster equitable participation address the distinctive needs of women support women’s economic advancement design and promote gender equitable, benefit sharing mechanisms include men in defining problems and solutions source: http://www.fao.org/gender/gender-home/gender-programme/gender-livelihoods/en/

65. removing gender constraints source: USAID (2010)

66. further reading Christensen et al. 2011. A combined ecosystem and value chain modeling approach for evaluating societal costs and benefits of fishing. Ecological Modeling, 222, 857-864. Gomez, M I et al. 2011. Research principles for developing country food value chains. Science, 332, 1154-1155. Mayoux, L and Mackie, G. 2008. A Practical Guide to Mainstreaming Gender Analysis in Value Chain Development . International Labour Office. - Addis Ababa. Oxfam America. 2011. Exploring the Links Between International Business and Poverty Reduction. The Coca-Cola/SABMiller value chain impacts in Zambia and El Salvador. Oxfam America, Riisgaard, L, Bolwig, S, Matose, F, Ponte, S, du Toit, A and Halberg, N. 2008. A Strategic Framework and Toolbox for Action Research with Small Producers in Value Chains. DIIS Working Paper no 2008/17. Copenhagen: Danish Institute for International Studies. Rubin, D, Manfre, C and Barrett., K N 2009. Promoting Gender Equitable Opportunities in Agricultural Value Chains: A Handbook. Publication prepared under the Greater Access To Trade Expansion (GATE) project, under the Women in Development IQC Contract No. GEW-I-00-02-00018-00, Task Order No. 02. Washington, DC: United States Agency for International Development. USAID. 2011. Gender and Pro-Poor Value Chain Analysis: Insights from the Gate Project Methodology and Case Studies. http://www.usaid.gov/our_work/cross-cutting_programs/wid/pubs/GATE_Gender_Pro-Poor_Value_Chain_Analysis_05-09.pdf Veliu, A, Gessesse, N, Ragassa, C.and Okali, C. 2009. Gender Analysis of Aquaculture Value Chains in Northern Vietnam and Nigeria. Agriculture and Rural Development Discussion Paper 44. Washington, World Bank.

67. fin