1. One village one product and value chain development -Cases from China
Case Presentation to ASEAN Village Leader Exchange Program-2016, Shanghai, China
One village one product and value chain development -Cases from China
Prof. Liu Yonggong
College of Humanities and Development
China Agricultural University, Beijing

2. Major contents
Review on the evolution and development of “OVOP” in China
Success of “OVOP” in China
How can “OVOP” model be replicated in poor communities
Value Chain Development for “OVOP”

3. 1. Evolution and development of “OVOP” in China
Japan: Concept and movement of OVOP was first time advocated and initiated in 1979 by Mr. Mirihiko Hiramatsu, a Japanese Politician and Scholar.
Since 1980s, the concept was widely adopted by China, South Asian Countries, European Countries;

4. 1. Evolution and development of “OVOP” in China
In 1983, Mr. Hiramatsu introduced OVOP to China while his official visit to Shanghai Municipality;
From 1990s to 2015, OVOP expo is organized every year in different provinces of China for promoting the OVOP market ;
In 2009 Ministry of Agriculture issued an official document for promoting the development OVOP program national-wide
Until now 1922 villages and townships are listed in the national catalogue by Ministry of Agriculture as OVOP products.

5. 1. Evolution and development of “OVOP” in China
The OVOP villages cover all 31 provinces and autonomous regions in Mainland China
According the Ministry of Agriculture, until 2015 China has already 11,000 villages engaged in OVOP.

6. 1. Evolution and development of “OVOP” in China
Year
Registered Number of OVOP villages/townships
2010
322
2012
326
2013
328
2014
324
2015
306
2016
316
Total
1922

7. 1. Evolution and development of “OVOP” in China
The products cover:
Crops, vegetable, herb plants, cash crops;
Livestock/poultry products
Forest products; fruits; non timber forest products
Fishery and aquaculture
Rural tourism; leisure agriculture
Handicrafts;
Other products

8. 2. Success of “OVOP” in China
Until 2014, through more than 20 years development, OVOP significantly contributed to farmer’s income increase in more than 55,000 OVOP villages;
Of which 2419 OVOP villages achieved more than 100 million CNY production value; 214 OVOP villages with more than 1.0 billion CNY
Farmer’s per capita net income of OVOP reached CNY, 18% higher than the non OVOP villagers.

9. 2. Success of “OVOP” in China
OVOP promoted the cooperative development in the OVOP villages. According to MOA, 67% OVOP villages set up farmer’s cooperatives;
OVOP extended the value chain of agro-products, promoted the connection of OVOP villages with dragon head enterprises and the super-market
OVOP increased the quality of products, product branding, organic products. in 2014 ca. 23,000 OVOP villages are certified as green and organic products

10. 2. Success of “OVOP” in China
Case of Shaanxi Province:
OVOP villages and townships registered by MOA: 101 (2016)
Products produced by OVOP villages: 860
Provincial OVOP demonstration villages: 4973; demonstration townships: 296
Benefited households: 1.42 million HH
Labors engaged in OVOP: 4.35 million

11. 2. Successful Cases of “OVOP” in China
Major cluster industrialized products: apples, kiwis, taro, tea and silkworm
Greatly contributed to the Shaanxi regional economic development

12. 2. Successful Cases of “OVOP” in China

13. 2. Success of “OVOP” in China
From OVOP to “One Township One Sector-OTOS” （一乡一业），”One Cooperative One Product-OCOP”

14. 3. How can “OVOP” model be replicated in poor rural villages
Selection of the products based on the local natural resources and ecosystem
Initiated by the village leaders, driven by cooperatives/dragon head enterprises/supermarkets/outside investors
Market development/value chain development
Organization of small farmers, skill training for farmers;
Combining OVOP concept with Governmental Poverty Reduction Program

15. 4. Value chain development for “OVOP”
Extending the value chain from production to post harvest processing, branding, storage, marketing is the precondition of success of OVOP
Village leaders should play a decisive role in value chain development for the selected products.

16. 4. Value chain development for “OVOP”
Steps of value chain development for OVOP
Selecting the village products from the existing products;
Conducting value chain analysis for the selected products, identifying the gaps and weak points in the existing market value chain;
Formulating the value chain development actions, particularly focus on the post harvest sections of the value chain, storage, grading and processing, marketing channels, marketing facilities, branding, quality (green and organic) certification, etc.

17. 4. Value chain development for “OVOP”
Steps of value chain development for OVOP
（4） Identifying and selecting the stakeholders related to the value chain sections;
（5）Formulating the value chain development project proposal;
（6） Applying governmental supports;
（7） Inviting investors who are interested in the project proposal;
（8）Implementing the value chain development projects

18. How to select the products
Identifying local products
Estimating and searching the market demands on these products, local, regional and global market demands and changes of the market prices
Governmental sector development policies
Resource endowment, ecosystems for the production of the products and sector development

19. Alternative market channel development for Agro-products
Brokers
Wholesale market
Cooperatives
Retail market
Producer
Market channels
Aro-Enterprises
Consumers
E-commerce

20. Value Chain Map for Agro Products
Pre-Production
Production
Processing
Marketing
Consumers
Inputs
Produced Products
Processed Products
Wholesale, retail proudcts
Commodity
Suppliers
HH, Cooperatives
Cooperatives, Enpterpriese
Whole salers retailers
Consumers

21. Analysis matrix for VC improvement
Value chain
Constraints
Solutions /actions
Pre-production
Production
Post-production
Marketing

22. Thanks for your attention !!!
Contact : Prof. Liu Yonggong
College of Humanities and Development
China Agricultural University