Professional Documents
Culture Documents
Supporting
Market Providers National
National Retailers
Consumers
Exporters Wholesalers
Sector-specific
Providers
Processors
Cross-cutting
Providers
Financial Producers
Providers
Figure 2
Traditional Marketing
CONSUMERS
Systems
Market “Push” tends to be
based on independent
transactions at each step, or
RETAILERS
&
between each node. Products
EXPORTERS may often be sold into a
crowded and competitive
market. The farmers is largely
isolated from the consumer,
Flow of Goods and Products
INPUTS
Research &
Suppliers Finance
Development
In a Value Chain marketing system (Figure 3), farmers are linked to the needs of consumers, working
closely with suppliers and processors to produce the specific goods required by consumers. Using
this approach, and through continuous innovation and feedback between different stages along the
value chain, the farmer's market power and profitability can be enhanced. Rather than focusing
profits on one or two links, players at all levels of the value chain can benefit. Well functioning value
chains are said to be more efficient in bringing products to consumers and therefore all actors,
including small-scale producers and poor consumers, should benefit from value chain development.
Figure 3
Value Chain Marketing
CONSUMERS
Systems
The market “Pull” is based on
integrated transactions and
information. Consumers
RETAILERS
ACDI/VOCA (2006). World Report Fall 2006: The Value Chain Includes the following articles:
Approach; Strengthening Value Chains to Promote - Strengthening Value Chains to Promote
Economic Opportunities. Available at: Economic Opportunities
http://www.acdivoca.org/852571DC00681414/ - The Importance of Input Supply to Value
ID/resources_worldreportfall06 Chain Performance
- The Importance of Upgrading for Micro
and Small Enterprises in the Competitive
Value Chain
- Working Within the Value Chain to Get
Financial Services to Micro & Small
Enterprises
- Information & Communication
Technology: Levelling the Playing Field
Between Producers & Buyers in the
Value Chain
- The Intersection of Health, Industry &
the Value Chain Methodology
Altenburg, T. (2007). Donor approaches to supporting pro-poor A review of the literature and discussion of
value chains. Report prepared for the Donor Committee for analytical
Enterprise Development Working Group on Linkages and
Value Chains. German Development Institute. 61 pp.
http://www.fao-ilo.org/fileadmin/user_upload/fao_ilo/pdf/
DonorApproachestoPro-PoorValueChains.pdf
FIAS. (2007). Moving Towards Competitiveness: A Value Chain This technical paper emphasizes how to
Approach. FIAS: The Foreign Investment Advisory Service, use value chain analysis to develop policy
World Bank. recommendations. Offers value chain
http://www.ifc.org/ifcext/media.nsf/Content/ workers the tools for addressing key
FIAS_Value_Chain_Approach_Publication institutional constraints in the business
environment that affect growth and
competitiveness of firms in emerging
economies.
Fiter, R. and Kaplinsky, R. (2001). Who gains from product Applies value-chain analysis to an
rents as the coffee market becomes more differentiated? A agricultural commodity which is in the
value chain analysis. IDS Bulletin Paper. process of significant change in final
http://www.ids.ac.uk/ids/bookshop/bulletin/bull323abs.htm product markets. It is hypothesised that
similar trends can be observed in other
agricultural-based value chains.
Fromma, I. and Dubónb, J.A. (2006). Upgrading and the Value There is evidence that small producers and
Chain Analysis: The Case of Small-scale Coffee Farmers in exporters in developing countries can
Honduras. Conference on International Agricultural insert themselves successfully in global
Research for Development. Tropentag 2006. Available at scale agricultural value chains. The aim of
http://www.tropentag.de/2006/proceedings/index.html. this study was to analyze how small coffee
farmers were integrating themselves in the
value chain.
Gloy, B. (2005). A guide to understanding the value chain. A short introduction to understanding the
Department of Applied Economics and Management, value-chain.
Cornell University, Ithaca, NY 14853. Smart Marketing,
September 2005. 2 pp.
http://www.fruit.cornell.edu/Berries/
marketingpdf/valuechain.pdf
GTZ (2007). ValueLinks Manual. The Methodology of Value Includes modules on selecting a value chain
Chain Promotion. GTZ. for promotion, analyzing a value chain and
http://www.value-links.de/manual/distributor.html determining the chain upgrading strategy
as well as modules on implementing and
monitoring value chain development
programs.
Kaplinsky, R. and Morris, M. (2002). A Handbook for Value Provides a detailed description for how to
Chain Research. Institute of Development Studies. conduct Value Chain Analysis
http://www.ids.ac.uk/ids/global/pdfs/VchNov01.pdf
KIT, Faida MaLi and IIRR. (2006). Chain empowerment: This manual brings together a broad range
Supporting African farmers to develop markets. Royal of experiences to secure market access for
Tropical Institute, Amsterdam; Faida Market Link, Arusha; smallholder farmers and indigenous
and International Institute of Rural Reconstruction, marginalized communities from different
Nairobi. contexts throughout Africa.
http://www.mamud.com/Docs/chains.pdf
Roduner, D. (2005). Value-Chains: What is behind this new key A short overview of existing value chain
word? And what is the role of development agencies in theories. Illustrates the first results of a
value chain development in developing countries? Rural broad international Community of Practice
Development News 2/2005. 6 pp. on Value Chains in Rural Development
http://www.agridea-international.ch/fileadmin/
10_International/PDF/RDN/RDN_2005/
value_chains_what.pdf
Roduner, D. (2007). Donor Interventions in Value Chain Guidelines highlight ingthe most important
Development. Working Paper, Swiss Agency for issues that development agencies need to
Development and Cooperation (SDC), Switzerland. consider when they engage in value chain
http://www.deza.admin.ch/ressources/ development in rural areas. Offers guiding
resource_en_162772.pdf principles for development practitioners
and policy makers, and points to further
useful material.
Schmitz, H. (2005). Value Chain Analysis for Policy Makers and A guide to Value Chain Analysis targeted
Practitioners. International Labour Office. specifically at policy-makers and planners
http://www.ilo.org/dyn/empent/docs/ at different levels of government, business
F204969253/VCA_book_final.pdf associations and trade unions and others
responsible for developing strategies for
enterprise development and local
economic development.
Shepherd, A.W. (2004). Financing Agricultural Marketing: the Reports on a study of how traders of grains
Asian experience. Marketing and Finance Service (AGSF), and horticultural produce in Asia finance
Agricultural Support Systems Division, FAO, Rome. their activities and how they use that
http://www.fao.org/Ag/ags/subjects/en/ finance.
agmarket/markfinance.html
Van den Berg, M., Boomsma, M., Cucco, I., Cuna, L., Jnassen, Focuses on Value Chain Analysis from a
N., Moustier, P., Prota, L., Purcell, T., Smith, D. and Van pro-poor perspective. Provides value chain
Wijk, S. (). Making Value Chains Work Better for the Poor: practitioners with an easy to follow set of
A Toolbook for Practitioners of Value Chain Analysis. tools for value chain analysis, focused on
Working Group, Market Access for the Poor (SNV), Markets poverty reduction.
and Agriculture Linkages for Cities in Asia
(CIRAD/VAAS/IPSARD).
http://www.markets4poor.org/?
name=publication&op=viewDetailNews&id=964
Van Wagenberg, C.P.A., Schepers, H.E., and Wijnands, J.H.M. This paper describes a deterministic
(2005). Integrated agro-socio-economic dynamic dynamic simulation model as a decision
simulation model of the organic value chain. Adelaide, support tool for the analysis of the growth
Australia : LEI Dier - Markt en Netwerken. 15th IFOAM perspectives of the Dutch organic sector.
organic world congress, 2005-09-20/2005-09-23. Available The model combines agronomic, sociologic
at: http://www.inra.fr/ciab/papers/vanWagenbergC.pdf and economic insights of the organic value
chain from farmer to consumer.