Business & Marketing: Marketing, Value Added and Value Chain

Business & Marketing: Marketing, Value Added and Value Chain

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Description: The value chain in agriculture is a set of actors, activities, and services that bring a basic agricultural product from the field to the final consumption. Every stage of the chain usually adds value to the product (making it more valuable). Traditional agricultural value chains are directed by spot markets involving a large number of small sellers and buyers.

The modern value chain is a complex chain involving vertical coordination, supply base consolidation, agro-industrial processing and use of standards throughout the chain.

 
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Domain:  Business Category: Sales & Marketing 
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Contents:
Business & Marketing :
Marketing, Value Added and Value Chain

Lesson 5:
Advancing Women’s Participation in the
Agricultural Value Chains

Learning Objectives









What is value chain
Traditional vs. modern value chain
What is value chain analysis
Actors in the value chain
Women in the value chain
Steps to conduct a value chain analysis
Potential entry points for women
Benefits from women’s participation

Value Chain
• Value chain in agriculture is a set of actors, activities, and
services that bring a basic agricultural product from the field
to the final consumption.
• Every stage of the chain usually adds value to the product
(making it more valuable)

Production

Processing

Packaging

Storage

Transport

Distribution

Traditional vs. Modern Value Chain
• Traditional agricultural value chains are directed by spot markets
involving a large number of small sellers and buyers

• Modern value chain is a complex chain involving vertical
coordination, supply base consolidation, agro-industrial
processing and use of standards throughout the chain

Value Chain Analysis
• The value chain analysis is a useful conceptual tool to
understand the factors that impact the long-term profitability of
the business venture or activity.
• Value chain analysis helps answer questions regarding:
– How the products the cooperative produces reach the final
consumer
– What is the structure (economic relationships) between different
actors in the chain
– How will this structure be likely to change over time
– What are the key threats to the entire value chain

Actors in the Value Chain

Consumers
Retailers



Processors
Traders
Farmers
Input
Providers






Seed
Fertilizer
Crop protection
Animal health &
nutrition
Extension





Crops
Meat
Dairy






Crops
Meat
Oils/meal
Biofuels







Bakery
Meat
Dairy
Beverages
Textiles






Community shop
Local market
Supermarkets
Global market

Urban
Rural

Women in the Value Chain
• It is important to consider integrating women,
individually or in groups, to participate in the
value chain
• Value Chain analysis helps:
– Determine the entry points for women in the
chain
– Assess different gender-based opportunities
within the chain
– Assess gender-based division of activities in a
given value chain, or
– How gender power relations affect economic
return among actors within the chain

Steps to Conduct a Value Chain Analysis (1)
Step 1: Conduct a market analysis
– Usually a value chain analysis begins with a market study to
identify the potential gains than can be captured by
individuals or groups, and the current make-up of the chain.
Step 2: Map the chain and conduct a stakeholder analysis

– Mapping the chain helps identify the main products and their
markets, as well as activities involved and the geographical
location for each node in the chain.
– A stakeholder analysis must be conducted to identify different
stakeholders (by function, socio-economic category, and
gender) at each node of the chain.

Steps to Conduct a Value Chain Analysis (2)
Step 3: Identify constraints and opportunities for the value chain
– Identify all constraints on each node of the chain to determine
what needs to happen to minimize or eliminate constraints for
entry or participation in the value chain
– Studying constraints allows identifying the “leverage points” to
advance the chain and redistribute values among all chain
participants in an equitable and efficient manner. The causes
are mapped out to help with decision-making process and
focus on strengthening particular nodes and actors in the
chain
– Some actors (especially new entrants may need more support
and business-like environment to sustain participation

Steps to Conduct a Value Chain Analysis (3)
Step 4: Develop a strategic action plan
– Information collected in the previous steps can help form the
basis for a strategic action plan to integrate women
(individually or in groups) to participate in the value chain or
advance to the next node in the chain
 For example, involving women cooperatives in the wholesale or retail
activities in addition to their participation in the production and
processing of the product.

Potential Entry Points for Women
in the Value Chain
On the example of the tomato value chain
Input Supplies
(Ag Sales or
Extension)

Small
Farmers

Women’s
Cooperative
Large
Farmers

Packers/
Fabrication

Markets
Distributors

(local or
export)

Benefits from Women’s Participation
 Increased agricultural productivity
 Stronger cooperative culture
 Economic (higher income return to the
household)
 Improved nutrition in the household
 Increased food security in the household
 Increased employment and income
opportunities for all in the community
Tip: Include men in defining and analyzing the
value chain problem and the solution!

What did we learn today?

Thank you!

Terms of Use

© 2013 MEAS Project, National Center for Agricultural Research and Extension (Samia
Akroush, and Asmahan Hattar) &
University of Florida (Kristen Augustine, Nargiza Ludgate, Jennifer Allen, and Sandra L.
Russo)
This work is licensed under a Creative Commons Attribution 3.0 Unported License.
Users are free:
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• to Remix — to adapt the work
Under the following conditions:
• Attribution — Users must attribute the work to the author/institution but not in any
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Disclaimer
This presentation was made possible by the generous support of the

American people through the United States Agency for International
Development, USAID. The contents are the responsibility of the
author(s) and do not necessarily reflect the views of USAID or the
United States Government.