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Andreas Springer-Heinze, GIZ

Experiences using the ValueLinks methodology: Use of tools, adaptation and capacity building. Andreas Springer-Heinze, GIZ. Contents. 1. Some notes on the ValueLinks methodology. 2. Networks, support institutions, workshop formats. Methodology. ValueLinks.

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Andreas Springer-Heinze, GIZ

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  1. Experiences using the ValueLinks methodology: Use of tools, adaptation and capacity building Andreas Springer-Heinze, GIZ

  2. Contents 1 Some notes on the ValueLinks methodology 2 Networks, support institutions, workshop formats

  3. 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 Value chain analysis (description) Strategic analysis Action planning and implementation Objective /Fields of upgrading Selecting a VC 4 (5-10) 1 2 3

  4. Modules Setting project boundaries Chain analysis and strategy Implementation Monitoring 0 2 5 11 Deciding whe-ther to engage in chain pro-motion Analysing a value chain Strengthening business linkages Monitoring and managing impact 6 Engaging in public- private partnership 1 3 1 Determining a chain upgrading strategy Selecting a value chain for promotion 7 Strengthening services in VC 4 Facilitating the chain develop-ment process 8 Financing value chains 9 Introducing social, & quality standards Obligatory 10 according to priorities Improving the biz environment of VC

  5. Rice: Generic overview of VC map (Sierra L.) Distribution Repackaging Retail (& repack) Paddyproduction Assembly trade Imports Milling Relief supply Institutional buyers (WFP) Public programs Smallholder co-operatives with P4P agreement Inland rural markets Market women on Open Mkts (53) Small Millers Up-country Intermediary traders Smallholders (selling surplus) 1 Local assemblers Hospital Military Schools Public Institutional buyers Smallholder co-operatives Commercial farmers with own mills Food shops Urban markets Intermediary traders Market women Importers Small bags / cups 50 kg bags This VC map is a simplified overview map, showing only major actors and their relations

  6. Modules Setting project boundaries Chain analysis and strategy Implementation Monitoring 0 2 5 11 Deciding whe-ther to engage in chain pro-motion Analysing a value chain Strengthening business linkages Monitoring and managing impact 6 Engaging in public- private partnership 1 3 1 Determining a chain upgrading strategy Selecting a value chain for promotion 7 Strengthening services in VC 4 Facilitating the chain develop-ment process 8 Financing value chains 9 Introducing social, & quality standards Obligatory 10 according to priorities Improving the biz environment of VC

  7. The upgrading objective / vision Formulating a strategic objective • 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) • .... 1

  8. Rice value chain: Typical constraints Distribution Repackaging Retail (& repack) Paddyproduction Assembly trade Imports Milling Relief supply Institutional buyers (WFP) Public programs Smallholder co-operatives with P4P agreement Inland rural markets Market women on Open Mkts (53) Small Millers 1 Urban markets Smallholders Local assemblers Intermediary traders Food shops Smallholders: No market info Lack of finance Knowledge gaps Little use of inputsSoil mining Low yields Post-harvest loss 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 Cross-border trade: Variable trade flows Complicated intra-regional trade regimes, standards not harmonized

  9. Modules Setting project boundaries Chain analysis and strategy Implementation Monitoring 0 2 5 11 Deciding whe-ther to engage in chain pro-motion Analysing a value chain Strengthening business linkages Monitoring and managing impact 6 Engaging in public- private partnership 1 3 1 Determining a chain upgrading strategy Selecting a value chain for promotion 7 Strengthening services in VC 4 Facilitating the chain develop-ment process 8 Financing value chains 9 Introducing social, & quality standards Obligatory 10 according to priorities Improving the biz environment of VC

  10. Value chain work – roles of different actors Government (e.g. CAADP-related) Public policy provides or hires VC-external Service providers External VC facilitator Technical specialists Trainer, teacher 1 work with leaders VC business leaders Technology providers Packhouse Industry Primary Producers Traders Market Private association or Institute VC-internalfacilitator

  11. 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 Applying ValueLinks Lessons derived from practical experience 1

  12. Contents 1 Some notes on the ValueLinks methodology 2 Networks, support institutions, workshop formats

  13. 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 – connected with standard training – additional know-how on training organisation and facilitation skills 2 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

  14. 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

  15. 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 Capacity of private support service providers 2 – 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.

  16. Steps in capacity development CAADP workshop formats at country level More competitive VCs achieving 6% growth p.a. CoordinatedInvestment Commodity VC StakeholderWorkshops 2 Subjects: National policy VCD approach VC analysis VC strategy Institutional set-up Planning Subjects: National policy VCD approach Application to priority VCs Upgrading solutions Institutional set-up CAADP VC CapacityDevelopment Workshop

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