The Value chain
approach
1
Strategic goal:
Strengthen productive capacities to
promote sustainable and equitable
economic growth.
Reduce poverty and food insecurity.
Methodology:
Commodity value chain development to
enhance competitiveness, flexibility and
productivity
Technical assistance & interventions along a
2
Major
Opportunities:
-Abundance of resources
-Market (D&I)
Constraints
-Access to appropriate technology
-Supply capacity-raw material /finished goods
-Quality/-TBT
3
Immediate
Follow Up
Activities:
• Selection of specific sectors that have comparative
•
•
•
•
advantage
Grouping of regions (across borders) with commonalities
in terms of commodities of economic importance
Based on feasibility studies, development of business
plans for each selected product
Development of regional master plans for the
development of each selected commodity
Development of regional program/s
4
Potential Programme
Focus Areas:
• Policies
– Regional policy review/development (agricultural policies,
investment, trade etc)
– Harmonization of national policies with regional requirements
• Institutional Capacity Building
– Establishment/rehabilitation of centers of excellence for selected
commodities.
– Support for the establishment of regional/national quality
infrastructure
• Industrial upgrading at the enterprise level
– Diagnostic assessments of enterprises in selected sectors
– Selection of enterprises with existing potential for growth
5
– Technical assistance to upgrade selected enterprises –technology
Stakeholders:
• Policy makers
• Support institutions
• Individual chain actors
6
COMMODITIES
Food
Textile
Leather
Wood
Machines
7
Possible interventions along
a commodity value chain
Raw materials
Outputs
Capacity to
supply
Capacity to supply
Quality
competitiveness
Agricultural
policies
Inputs
Processing 1,2,3
etc
Quality
Investment policies
Market
Access/de
velop
markets
Increase
market
share
Manufacturing inputs
New product
development,
product
diversification,by
product utilization
(COE’s)
Agricultural
tools/machine
ry
Niche market
identification
Management skills
Trade policies
labor
Appropriate
technologies
Agricultural
inputs
Water
resource
management
Aggressive
promotion of
products
Technical skills
Meet specific
regulations HACCP
8
Product
design and
development
Technology
centres
Develop
competitive
manufacturing
capability
Compete
Demonstration
units/operations
Prove
conformity with
market
requirements
Conform
Technoeconomic
assessments
Connect to
the markets
Connect
MARKETS
PRODUCTS
Examples of possible interventions
9
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Definition:
• Value creation
• Enhancing quality of industrial products
• Effective communication of product
values to consumers
10
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Services:
• Introduction and promotion of products featuring market
requirements (food, leather, textiles)
• Improve market access and competitiveness
• Adapting/developing products to consumer needs
11
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Results:
• Value addition
• Lower share of rejects and higher value
• Upgraded marketing capabilities resulting in
an increased number of products and
increased participation in global trade
• Farmers/entrepreneurs have access to
efficient and quality agricultural equipment
12
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Definition:
Physical and intellectual facilities
• specialized on given industrial activities
• capable of identifying and transferring
appropriate manufacturing techniques;
• providing technical assistance;
• generate and disseminate technical
information;
• rendering specific services (e.g.
laboratory testing and quality assurance)
and
• imparting training.
13
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
• Support and advice on technology-related analyses to
identify technical choices and related development
options and related policies and strategies
• Capacity building in the agro industry and related
institutions
• Establishment and/or strengthening of professional
education and training institutes
14
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
• Reveal features, advantages and
benefits of the proposed technology;
• Exhibit (pre)conditions and
infrastructural requirements for adopting
or adapting the transferred technology;
• Provide prospective users with factual
and authentic information and
example(s).
• Demonstrate sound enterprise and
business management practices.
15
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Results:
•
•
•
•
Enhanced product value chain
Improved technical skills
(Sub)sectoral training and support centers
Innovative technologies transferred
16
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Services:
• Technology upgrading and product quality improvement;
• Assistance and advice on modern technologies
• Introduction of improved technology, smoother production
flow, improved quality, upgraded skills
• Process optimization contributing to reduction of pollution,
waste minimization and by-products’ utilization
• Advisory services to promote and develop the Agro
Machinery Industrial System (AMIS)
• Establishment or strengthening professional (trade)
associations
17
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Results:
•
•
•
•
•
Improved processing technologies
Optimized processes
Improved technical skills
Higher level of value-added, sustainable use of natural resources;
Rural artisans/blacksmiths produce standardized equipment
responding to local needs;
• Upgraded production methods for enhanced productivity;
• Generation of employment and income in remote rural areas for
vulnerable groups.
18
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Definition:
• Evaluation of competitiveness
• Determining baseline data
• Establishing feasibility of development
programmes or investments
• Analyzing global trends
• Conducting techno-economic surveys
19
Product
design and
development
Technology
centres
Demonstration
units/operations
Technoeconomic
assessments
Applications:
•
•
•
•
Assessment of food industries
Assessment of textile and garment industries
The UNIDO Leather and Leather Products Industry Panel
Wood industry advisory expert group.
20
Sectoral coverage:
• Food processing
• Agricultural machinery, tools and
chemicals production and supply;
• Fiber processing (technology):
• Textile and garment industry;
• Leather processing and leather products
(footwear, leather goods, gloves, leather
garment, sports goods) manufacturing;
• Wood and non-wood forest products
manufacturing (including paper and pulp);
21
Food Unit
Example
FISHERIES IN LAKE VICTORIA
22
Agro-
Machinery
Unit
Post harvest system in the food sector
23
Food Unit
Example
DRYING FRUITS AND VEGETABLES IN
BURKINA FASO
24