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

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Presentation on theme: "1 Andreas Springer-Heinze, GIZ Experiences using the ValueLinks methodology: Use of tools, adaptation and capacity building."— Presentation transcript:

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

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

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

4 4 Strengthening business linkages Determining a chain upgrading strategy Analysing a value chain Facilitating the chain develop- ment process ImplementationChain analysis and strategy Monitoring Setting 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 Obligatory according to priorities Modules 1

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

6 6 Strengthening business linkages Determining a chain upgrading strategy Analysing a value chain Facilitating the chain develop- ment process ImplementationChain analysis and strategy Monitoring Setting 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 Obligatory according to priorities Modules 1

7 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 1

8 8 Paddy production Milling Imports Assembly trade Importers Local assemblers Urban markets (53) Small Millers Retail (& repack) Inland rural markets Market women on Open Mkts Institutional buyers (WFP) Public programs Smallholders Smallholder co-operatives with P4P agreement Distribution Repackaging Relief supply Food shops Intermediary traders 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 Smallholders: No market info Lack of finance Knowledge gaps Little use of inputs Soil mining Low yields Post-harvest loss Rice value chain: Typical constraints 1

9 9 Strengthening business linkages Determining a chain upgrading strategy Analysing a value chain Facilitating the chain develop- ment process ImplementationChain analysis and strategy Monitoring Setting 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 Obligatory according to priorities Modules 1

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

11 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 Lessons derived from practical experience Applying ValueLinks 1

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

13 13 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 2

14 14 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 - – 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 2

15 15 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. 2

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


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