Experiences using the ValueLinks methodology:
Use of tools, adaptation and capacity building
1
Andreas Springer-Heinze, GIZ
Contents
1
Some notes on the ValueLinks methodology
2
Networks, support institutions, workshop formats
2
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 policy
1
Procedure of ValueLinks
Selecting Value chain
analysis
a VC
(description)
1
3
2
Strategic
analysis
Objective /
Fields of
upgrading
3
Action planning
and implementation
4 (5-10)
Modules
Setting project
boundaries
0
1
1
Deciding whether to engage
in chain promotion
Selecting a
value chain for
promotion
Chain analysis
and strategy
2
3
4
Obligatory
4
according
to priorities
Analysing a
value chain
Determining a
chain upgrading
strategy
Facilitating the
chain development process
Implementation
5
Strengthening
business linkages
6
Engaging in publicprivate partnership
7
Strengthening
services in VC
8
Financing value
chains
9
Introducing social,
& quality standards
10
Improving the biz
environment of VC
Monitoring
11
Monitoring and
managing
impact
Rice: Generic overview of VC map (Sierra L.)
Paddy
production
Assembly
trade
Milling
Smallholder co-operatives with P4P agreement
Smallholders
(selling surplus)
1
Imports
Distribution
Repackaging
Institutional
buyers (WFP)
(53) Small
Millers
Up-country
Intermediary
traders
Local
assemblers
Smallholder
co-operatives
Commercial farmers with own mills
Intermediary
traders
Importers
50 kg bags
5
Retail
(& repack)
Public
programs
Relief
supply
Market
women on
Open Mkts
Inland
rural
markets
Public
Institutional
buyers
Hospital
Military
Schools
Food
shops
Market
women
Urban
markets
Small bags / cups
This VC map is a simplified overview map, showing only major actors and their relations
Modules
Setting project
boundaries
0
1
1
Deciding whether to engage
in chain promotion
Selecting a
value chain for
promotion
Chain analysis
and strategy
2
3
4
Obligatory
6
according
to priorities
Analysing a
value chain
Determining a
chain upgrading
strategy
Facilitating the
chain development process
Implementation
5
Strengthening
business linkages
6
Engaging in publicprivate partnership
7
Strengthening
services in VC
8
Financing value
chains
9
Introducing social,
& quality standards
10
Improving the biz
environment of VC
Monitoring
11
Monitoring and
managing
impact
The upgrading objective / vision
Formulating a strategic objective
1
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 .....$$
• 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
Rice value chain: Typical constraints
Paddy
production
Assembly
trade
Milling
Smallholder co-operatives with P4P agreement
Imports
Distribution
Repackaging
Institutional
buyers (WFP)
(53) Small
Millers
1
Smallholders
Smallholders:
No market info
Lack of finance
Knowledge gaps
Little use of inputs
Soil mining
Low yields
Post-harvest loss
Local
assemblers
Intermediary
traders
Public
programs
Relief
supply
Market
women on
Open Mkts
Inland
rural
markets
Food
shops
Urban
markets
Importers
High price volatility
Poor market infrastructure (of storage, assembly markets)
Poor roads
Grades and standards not defined or not enforced
Lack of trade finance
Mistrust between VC operators
Weak market coordination, unreliable links
high marketing cost
8
Retail
(& repack)
Cross-border trade:
Variable trade flows
Complicated intraregional trade
regimes, standards
not harmonized
Modules
Setting project
boundaries
0
1
1
Deciding whether to engage
in chain promotion
Selecting a
value chain for
promotion
Chain analysis
and strategy
2
3
4
Obligatory
9
according
to priorities
Analysing a
value chain
Determining a
chain upgrading
strategy
Facilitating the
chain development process
Implementation
5
Strengthening
business linkages
6
Engaging in publicprivate partnership
7
Strengthening
services in VC
8
Financing value
chains
9
Introducing social,
& quality standards
10
Improving the biz
environment of VC
Monitoring
11
Monitoring and
managing
impact
Value chain work – roles of different actors
Public policy
Government
(e.g. CAADP-related)
provides
or hires
1
VC-external
Service
providers
VC business
leaders
Technology
providers
10
External
VC facilitator
Technical
specialists
Trainer,
teacher
work
with
leaders
Primary
Producers
Packhouse
Industry
Private association or
Institute
Traders
VC-internal
facilitator
Market
Applying ValueLinks
Lessons derived from practical experience
• Visioning is key: We have to start with opportunities, not with
problems
• Standardize visual language and terminology !
1
• Separating private upgrading activities and public facilitation:
Private enterprises have to take responsibility for upgrading business.
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 countries
11
Contents
1
Some notes on the ValueLinks methodology
2
Networks, support institutions, workshop formats
12
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
2
– connected with standard training
– 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 process
13
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.org
2
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 touch
14
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
2
Capacity of private support service providers
– 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
Steps in capacity development
CAADP workshop formats at country level
More competitive VCs
achieving 6% growth p.a.
Coordinated
Investment
Commodity VC
Stakeholder
Workshops
2
Subjects:
CAADP VC
Capacity
Development
Workshop
16
Subjects:
National policy
VCD approach
Application to priority VCs
Upgrading solutions
Institutional set-up
National policy
VCD approach
VC analysis
VC strategy
Institutional set-up
Planning