1Andreas Springer-Heinze, GIZ

Experiences using the ValueLinks methodology:Use of tools, adaptation and capacity building

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Networks, support institutions, workshop formats

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Contents Some notes on the ValueLinks methodology

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ValueLinks

Procedure of ValueLinks Value chain analysis(description)

Strategic analysis

Objective /Fields of upgrading

Action planning and implementation

Selectinga VC

1 2 3 4 (5-10)

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... 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

Methodology

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Strengthening business linkages

Determining a chain upgrading strategy

Analysing a value chain

Facilitating the chain develop-ment process

ImplementationChain analysisand strategy

MonitoringSetting project boundaries

Selecting a value chain for promotion

Engaging in public- private partnership

Deciding whe-ther to engage in chain pro-motion

Monitoring and managing impact

Financing value chains

Strengthening services in VC

Improving the biz environment of VC

Introducing social, & quality standards

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0

4

3

2 5

6

7

8

9

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Obligatory

according to priorities

Modules

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5

Rice: Generic overview of VC map (Sierra L.)

Paddyproduction

Milling ImportsAssembly

trade

Importers

Localassemblers

Smallholders (selling surplus)

Urban markets

(53) SmallMillers

Retail(& repack)

Marketwomen

Commercial farmers with own mills

Inland rural

markets

Market women onOpen Mkts

This VC map is a simplified overview map, showing only major actors and their relations

Institutional buyers (WFP)

Public programs

Smallholderco-operatives

Smallholder co-operatives with P4P agreement

DistributionRepackaging

Up-countryIntermediary

traders

50 kg bags

Reliefsupply

Hospital MilitarySchools

PublicInstitutional

buyers

FoodshopsIntermediary

traders

Small bags / cups

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6

Strengthening business linkages

Determining a chain upgrading strategy

Analysing a value chain

Facilitating the chain develop-ment process

ImplementationChain analysisand strategy

MonitoringSetting project boundaries

Selecting a value chain for promotion

Engaging in public- private partnership

Deciding whe-ther to engage in chain pro-motion

Monitoring and managing impact

Financing value chains

Strengthening services in VC

Improving the biz environment of VC

Introducing social, & quality standards

1

0

4

3

2 5

6

7

8

9

10

11

Obligatory

according to priorities

Modules

1

7

The upgrading objective / vision

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)• ....

Formulating a strategic objective

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8

Paddyproduction

Milling ImportsAssembly

trade

Importers

Localassemblers

Urban markets

(53) SmallMillers

Retail(& repack)

Inland rural

markets

Market women onOpen Mkts

Institutional buyers (WFP)

Public programs

Smallholders

Smallholder co-operatives with P4P agreement

DistributionRepackaging

Reliefsupply

Foodshops

Intermediary traders

High price volatility

Poor market infrastructure (of storage, assembly markets)Poor roads Grades and standards not defined or not enforcedLack of trade finance

Mistrust between VC operators Weak market coordination, unreliable links high marketing cost

Cross-border trade: Variable trade flows

Complicated intra-regional trade regimes, standards not harmonized

Smallholders:No market infoLack of financeKnowledge gapsLittle use of inputsSoil miningLow yieldsPost-harvest loss

Rice value chain: Typical constraints

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Strengthening business linkages

Determining a chain upgrading strategy

Analysing a value chain

Facilitating the chain develop-ment process

ImplementationChain analysisand strategy

MonitoringSetting project boundaries

Selecting a value chain for promotion

Engaging in public- private partnership

Deciding whe-ther to engage in chain pro-motion

Monitoring and managing impact

Financing value chains

Strengthening services in VC

Improving the biz environment of VC

Introducing social, & quality standards

1

0

4

3

2 5

6

7

8

9

10

11

Obligatory

according to priorities

Modules

1

10

Value chain work – roles of different actors

Public policy

VC-externalService

providers

Government(e.g. CAADP-related)

External VC facilitator

Technical specialists

providesor hires

Technologyproviders

PackhouseIndustry Market

PrimaryProducers

Private association or Institute

VC business leaders

Traders

work withleaders

Trainer, teacher 1

VC-internalfacilitator

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• 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. 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

Lessons derived from practical experience

Applying ValueLinks

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Networks, support institutions, workshop formats

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Contents Some notes on the ValueLinks methodology

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Training in VC development

ValueLinks training for VCD practitioners

ValueLinks training of trainers

Adaptation to the African VCD policy context

– 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

– connected with standard training– additional know-how on training organisation and facilitation skills

– 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

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Networks of trainers and facilitators

International ValueLinks Association e.V.

Value Chain Professionals Association, Kenya

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

– 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

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Capacity to implement agric. investment plans

Public sector capacity to implement the NAIP in Africa

Capacity of private support service providers

– 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

– 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.

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Steps in capacity development

CAADP workshop formats at country level

More competitive VCsachieving 6% growth p.a.

CoordinatedInvestment

CAADP VCCapacityDevelopmentWorkshop

Commodity VC StakeholderWorkshops

Subjects:

National policyVCD approachApplication to priority VCsUpgrading solutionsInstitutional set-up

Subjects:

National policyVCD approachVC analysisVC strategyInstitutional set-upPlanning

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