Sector Value Chain Research Articles

Challenges Faced by The Chemical Industry in Strengthening the Bioeconomy in Brazil

Objective: This study aims to discuss the chemical industry's role in developing new bioeconomic systems in Brazil. Theoretical Framework: The bioeconomy provides significant opportunities for Brazil. By exploring the country's biodiversity and environmental resources, bioeconomic systems can drive the development of innovative technologies and high-value products across various sectors. Additionally, the bioeconomy plays a crucial role in generating quality employment and preserving ecosystems. Achieving this optimistic scenario depends on the efforts of the Brazilian chemical industry in research and development (R&D). Method: This research is documental and descriptive. We reviewed several sectoral reports focusing on the obstacles to using renewable inputs from Brazilian biodiversity in the chemical sector's value chains. Results and Discussion: Brazil's bioeconomy systems face limited R&D investments due to structural bottlenecks related to the national tax system, logistical infrastructure, and high energy costs. These issues have reduced the competitiveness of the Brazilian chemical industry. Furthermore, increased imports of Chinese chemical products following the Ukraine War and the subsequent industry idleness can exacerbate these structural constraints and further erode the chemical sector's R&D funds. Research Implications: The structural problems described in this article can delay the development of renewable energy sources and innovative bioproducts. Originality/Value: We show that the chemical industry possesses the technology and scale necessary to integrate into Federal Government programs in the bioeconomy field. However, the sector's structural problems and low R&D investments tend to inhibit the development of new bioeconomic systems. Brazil must overcome these challenges to establish itself as a global bioeconomy powerhouse.

Illusion or reality? Building a metaverse community focused on value creation in the agricultural sector

Obsolete models, lack of professionalisation and an environment characterised by continuous changes have turned out to be a dangerous mix that has ended up stopping or slowing down the development of the agricultural sector. It is now necessary to design and carry out initiatives that counteract this trend, especially initiatives based on innovation and the use of technology. This article aims to analyse the implications of the new ways of working to be used in spaces created under the umbrella of a new technological order known as metaverse. Through the creation of a community of metaverses, capable of promoting interaction, collaboration and communication between the different agents involved in the value chain of the agricultural sector, the aim of this research is to create an integrated and collaborative trusting environment that allows consensual, well-founded and robust business decisions focused on cost savings and the optimisation of quality and productivity. This research seeks to benefit all agents involved in the agricultural sector value chain. By placing producers at the centre of the system, the approach described in this study aims to avoid the current imbalances between the interests of different agents, while promoting an innovative and sustainable agricultural sector committed to meeting the challenges of today’s society.

Spirulina-based poultry feed: opportunities, challenges and future prospects

There is a concerted effort to find newer sources of feed additives that are not only economically viable but superior in nutritional composition and less dependent on agricultural crop sources that are primarily intended for human use. Furthermore, as a commercial enterprise, it is essential for the development of the poultry sector to maximize earnings in a sustainable manner. Meat and egg prices are highly volatile, being determined mostly by market forces at the expense of feed. Many problems in the poultry business could be addressed by exploring the potential of microalgae as an animal feed ingredient. Typically, the protein content of the substituted feed component should be high, have a well-balanced amino acid profile, be easily digested and not pose any nutritional risks to the bird. Green technology is introduced into the poultry sector value chain through the use of microalgae-based feed supplements which provide sustainability and carbon-capturing potential during the algae production phase. Microalgae such as Spirulina (Arthrospira sp.) can be used as a feed resource for chickens because of their high nutritional value. Animals fed with a diet consisting of spirulina showed improved growth and development, resistance to diseases, improved fertility and enhanced aesthetic and nutritional quality of their products. However, there is a significant gap in our understanding of how animals respond to Spirulina in the diet. Thus, this study examines the history and present state of knowledge concerning the use of Spirulina as a poultry feed additive, as well as the industry's current and future opportunities, challenges and prospects.

Towards AI-driven transformation and smart data management: Emerging technological change in the public sector value chain

Governments worldwide are beginning to implement AI-based services to exploit data and seek solutions that provide value to citizens and assist in decision-making. AI-driven transformation and smart data management can replace the workforce or enhance it. This paper focuses on exploring AI-driven transformation and smart data management in the public sector value chain. Guided by two research questions, a systematic literature review was conducted using the PRISMA approach, complemented with empirical evidence on the emerging technological change applied to management levels and decision-makers in the public sector. The needs related to AI-driven transformation and smart data management for the public sector are characterized by an operational transformation, which includes human resources and know-how as the spearhead. Challenges have to do with the generation of efficient and transparent services that provide public value and promote the benefit of society. Some implications are related to governments deciding to plan digitalization that allows them to take advantage of the emerging technological change to improve activities along the value chain.

Performance evaluation of Indian electricity distribution companies: An integrated DEA-IRP-TOPSIS approach

Energy is a fundamental building block of human growth and plays a significant role in developing emerging economies such as India. The Indian electricity sector has a strong generation and transmission system but a weak distribution system. This is considered the weakest link in the electricity sector's value chain, and regulators are primarily concerned with the performance of electricity distribution companies (DISCOMs). Despite numerous reforms introduced to attain financial sustainability, most DISCOMs consistently incur losses and are financially unsustainable. Therefore, evaluating the performance of DISCOMs is essential by measuring their efficiency to ensure competition among them and to make reforms successful. This study aimed to identify and compare the performance efficiencies of 48 electricity DISCOMs from 24 states across India between 2015/16 and 2018/19. This study used the integrated DEA-IRP-TOPSIS technique to segment efficient and inefficient DISCOMs. The study recommends that states provide operational and financial autonomy to power Discoms. The study will be helpful for DISCOMs professionals to understand their performance and design suitable strategies based on efficiency assessments and their position concerning their peers. By comparing Indian DISCOMs with their contemporaries, this study contributes new evidence at the policy level and to the literature on the efficiency analysis of Indian DISCOMs.

Resource Nationalism in Zimbabwe: Alternative Visions and Policy Realities

A new wave of resource nationalism washed through southern Africa in the 2000s, driven by rising popular demand for greater local participation in the mining sector value chain, more equitable redistribution of benefits from extractives and strengthened transparency and accountability on the part of local states and foreign-owned mining companies. In the context of heightened political contestation and improved commodity prices, a succession of policy innovations emerged in response to the interventions of diverse mining sector stakeholders and civil society activists. The results have often been disappointing, with the initial promise of an ‘alternative’ form of minerals-fuelled development promoted by non-state beneficiaries seemingly unrealised. To understand the challenges of current policy-making around resource nationalism we consider the case of Zimbabwe, a country which has been host to vibrant mining reform debates and experiments in new policy-making in the 2000s, but has experienced little transformation in resource governance practices. This article assesses the critical factors which have contributed to the generation and subsequent derailing of new approaches to resource nationalism during a period of exceptional growth in the country’s mining sector.

Farmers Perception of Access and Use of Modern Information Communication Technologies in Enhancing Smallholder Tea Production in Kakamega County, Kenya

The smallholder tea sector in Kenya forms the second-largest agricultural exporter after horticulture, contributing 4 percent to the Gross Domestic Product (GDP). Modern communication technologies (MCTS) are key in supporting production, processing and marketing across the tea sector value chain. Despite the availability of all these technologies, their access and use by smallholder tea farmers for production and tea auction price monitoring are still minimal. Further, farmers’ perception of access and use of modern communication technologies is not well known. The objective of this study was to evaluate smallholder farmers’ perceptions on access and use of modern communication technologies in enhancing tea production in Shinyalu subcounty.The study was anchored on diffusion of innovation that emphasizes on the five attributes of an innovation. The study evaluated the farmers’ perception of access and use of MCTs. The study adopted a descriptive research design where fisher’s formula was used to get 162 out of 1,600 smallholder tea farmers who were systematically sampled and interviewed. Data were collected using semi-structured questionnaires. Likert perception test scale was also used test perception statements. The data was cleaned and analyzed in form of frequencies and percentages and chi-square The results established that majority of the tea farmers (36%) had acquired basic literacy levels of education to use modern technologies in tea production. It also established that modern technologies such as smartcard technology 78%, mobile phone text messages 62% and personal digital assistants 61% were the most essential tools for enhancing access to farm inputs, market information and tea management information. However, extension agents 61% played a complementary role in unpacking and linking modern tea technologies from the source to farmers. A positive association was revealed between farmers’ literacy level and the use of MCTs, which influenced access to MCT. The study, recommended re-tooling agricultural information dissemination agents and farmers on the existing MCT to enhance effective communication, promoting tea production yields and accessing market information.

Circular Economy Design towards Zero Waste: Laying the foundation for constructive stakeholder engagement on improving construction, renovation, and demolition (CRD) waste management

The city of Montréal is one of many cities worldwide who strive to cut the amount of waste they generate and advance towards zero waste in an effort to meet the Paris Agreement goals. Construction, renovation, and demolition (CRD) waste is a major contributor to urban waste streams but also an area where waste diversion and innovative waste management approaches could deliver significant reductions in waste. One such promising approach is that of circular economy which envisions a future where CRD waste is designed-out of the built environment by keeping construction materials in use. This paper presents a series of methods used to collect and organize data towards advancing circular thinking within CRD material management decision-making in Montréal and mobilizing engagement with the relevant data. Methods includes a detailed literature review, semi-structured interviews with stakeholders from across the building sector value chain followed by a thematic analysis. Collected data is mapped to the internationally recognized United Nations Sustainable Development Goals (SDGs) framework in an aim to provide globally significant methodologies which cities worldwide can use to showcase contributions to the UN SDGs. Advancing towards zero CRD waste in Montréal will require the input of multiple stakeholders. The work presented in this paper is part of a larger research effort which works to deliver an initial but vital first step in the collection, integration, and dissemination of data towards a circular, more sustainable, built environment.

FOREST PLANTATION DETECTION THROUGH DEEP SEMANTIC SEGMENTATION

Abstract. Forest plantations play an important role ecologically, contribute to carbon sequestration and support billions of dollars of economic activity each year through sustainable forest management and forest sector value chains. As the global demand for forest products and services increases, the marketplace is seeking more reliable data on forest plantations. Remote sensing technologies allied with machine learning, and most recently deep learning techniques, provide valuable data for inventorying forest plantations and related valuation products. In this work, deep semantic segmentation with U-net architecture was used to detect forest plantation areas using Sentinel-2 and CBERS-4A images of different areas of Brazil. First, the U-net models were built from an area of the Centre-East of Paraná State, and then the best models were tested in 3 new areas that present different characteristics. The U-net models built with Sentinel-2 images achieved promising results for areas similar to the ones used in the training set, with F1-score ranging from 0.9171 to 0.9499 and with Kappa values between 0.8712 to 0.9272, demonstrating the feasibility of deep semantic segmentation to detect forest plantations.

Value Chain Analysis of Eucalyptus Wood Products in the Blue Nile Highlands of Northwestern Ethiopia

Eucalyptus wood products contribute significantly to the income of smallholder growers in many parts of Ethiopia. This has incentivized smallholders to convert arable lands to Eucalyptus plantation. Given the limited attention and availability of empirical evidence, this study examined the Eucalyptus wood products value chain in terms of the actors engaged, the type and importance of channels, margins analysis and the overall value chain governance in the main Eucalyptus growing areas of the Blue Nile highlands of Northwestern Ethiopia in 2019/2020. Sources of data were randomly selected 388 Eucalyptus grower households and 166 Eucalyptus wood traders, complemented by an interview with key informants, group discussions and direct observations. The results reveal that a total of 2,051,114.75 m3 of Eucalyptus wood was produced in the study area and Eucalyptus plantations are expanding over crop lands at a rate of 102.35 ha a year on average. Many actors involved handle a large volume of wood in eight main channels with a high disparity in the shares of the margins. We found that Eucalyptus is the main source of cash earning, contributing about 45.76% to the total annual income of smallholder growers. Little policy attention, a lack of sectoral integration, missing infrastructure and an absence of modern wood processing factories are among the key challenges impeding the performance of the wood sector value chain. There are however existing opportunities for the development of the wood sector value chain such as favorable growing conditions and the spectacular growing demand for wood products. The study provides valuable insights about the wood sector value chain and actions towards ensuring sustainable value chains and the commercialization of the sector.

Value chain analysis of wheat in Duna district, Hadiya zone, Southern Ethiopia

Wheat is a source of food and income for Ethiopian farmers in general, and the Duna district in particular. Despite the district's high wheat production potential, a number of constraints impede the wheat sector's and value chain's development. This study, thus, analyzed the wheat value chain in Duna district, Hadiya zone, Southern Ethiopia. Descriptive statistics, marketing margin, and a multiple linear regression model were used to analyze data from 149 respondents. The result showed that the actors in the wheat value chain have a shaky relationship. According to the findings, flour wholesalers had the highest market margin (18.36%), followed by flour processors (17.70%). The estimated multiple linear regression result revealed that wheat supply is influenced by the quantity of wheat produced, household education level, farming experience, frequency of extension contact, and lagged market price. Furthermore, wheat producers identified climate variability and low wheat prices as the top two problems in wheat production and wheat marketing, respectively. Hence, the government and other concerned bodies should focus on productivity increasing technologies in the study area in order to boost productivity and thus increase wheat market supply. In addition, to solve the marketing problem, the promotion of value-added practices and the formation of wheat cooperatives are suggested.

Evaluating Knowledge, Attitudes and Practices of Livestock Value Chain Actors on Climate Smart Agriculture/Livestock (CSA/L) in Kajiado County, Kenya

The livestock sector is a major contributor to food security and is mainly practiced by the rural poor but faces climate related threats. While there are many natural occurrences impacting the average global temperature and consequently livestock production, human activities in the sector continue to be a main contributing factor to climate change as a result of greenhouse gas emissions. However there has been little attention paid to integration of climate smart initiatives into livestock production and beyond into the value chains especially in ASALs where 80% of livestock production is found. A mixed method approach was used to evaluate KAP (knowledge, attitudes and practices) of the Livestock value chain actors (MSMEs). Linking Climate Smart Agriculture (CSA) to MSMEs within the livestock sector value chains is imperative to producers’ engagements within the livestock value chain, reducing climate risks and increasing resilience. The study revealed that actors relate climate change to weather variability, extreme weather conditions and drought and CSA/Livestock as a concept is not well understood; there is a general knowledge of climate change albeit with low understanding on its relationship with livestock, and concern among the value chain actors on the impacts of climate change on productivity and the willingness to take part in actions aimed at protecting the environment and mitigating climate change. There is need to provide context-based CSA technologies, innovation, and management practices (TIMPs) tailored to pastoral livestock production and ASALs value chains, strengthening of peer-to-peer learning and improving extension services to increase awareness, trainings and enhance adoption of CSA since most actors interact with extension officers, and with each other along the chains.

Services Growth: Productivity, Formalization, Redistribution or Exports? A Developing Economy, Segmented Markets Model

This study attempts to understand the growth of services & informal sector’s capital formation, by modelling the formal-informal sector value chain in an economy with goods, asset and labour market segmentation. It considers a developing economy with a large informal sector and splits the services’ production into high-end & low-end services, produced in the formal & informal sectors respectively. It contributes by modelling low-end services (produced in the informal sector with consumer durables as capital) as inputs for internationally traded high-end services and monitors the impact of productivity shocks, and policy changes on services’ growth & the informal sector’s capital formation, income and consumption. Simulation results show that formalization of an economy and manufacturing’s productivity improvement have the largest impact on services’ growth and informal sector’s capital formation. Similarly, redistribution of incomes from the formal to informal households or higher exports of internationally traded services, benefit the services sector but have lower elasticities. Productivity improvements in sectors producing non-traded goods/services have no overall impact except price adjustments of that non-traded output.

A meta-analysis understanding smallholder entry into high-value markets

Abstract Who participates in modern agricultural value chains (henceforth high-value markets [HVMs]) and what determinants inform HVM participation remains a question of interest to researchers and policymakers. This issue is noteworthy because of the positive welfare effects of HVM participation. In this article, we review the empirical literature on determinants influencing HVM participation. We use quantitative descriptive statistics and meta-regression analysis to investigate a related unexplored question. What and to what extent do contextual factors (or moderators) affect the relevance of these determinants? We find that certain determinants are more relevant in specific regions. For example, access to credit, extension services, additional sources of income, and gender have greater relevance in Africa compared to Asia and South America, whereas membership in collective groups and access to irrigation facilities are important in Asia. We show that several moderators, most notably temporal factor, the econometric estimator employed by the primary study, the market coordination instrument and type of HVM channel either enhance or diminish the relevance of the determinants. Our findings show clearly that different regions require different policy interventions to encourage smallholder HVM participation. We discuss and frame this issue around which public and private sector value chain stakeholders are best positioned to minimise the costs and maximise the benefits and sustainability of such interventions.

Agricultural sector value chain and government policy in Nigeria: issues, challenges and prospects

PurposeThis paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line with the structural transformation of the sector and the Nigeria's vision 20:2020. The study also suggest strategies to upgrading various segments of the agricultural value chain and argue that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Design/methodology/approachThe authors systematically present evidences and data from the Central Bank of Nigeria (the apex monetary authority of Nigeria) and Nigerian Bureau of Statistics (oversees and publishes statistics for Nigeria) to estimate the impact of Government agricultural policies on the value chains system.FindingsThe study discovers that the various recent government policy interventions to tackle the austere challenges in the agricultural sector are yet to yield much significant solution. Given to the dwindling performance of the sector, the Nigerian agricultural value chain is somewhat affected with systemic and services gaps which underpin the market failures (missing markets and weak markets), although the agricultural value chain has the potential of triggering economic growth in a higher scale with a trickle-down effect to other sectors of the Nigerian economy.Practical implicationsOverall, the findings indicate strategies to upgrading the production and processing segments of the agricultural value chain and argues that Nigeria's agricultural sector requires huge investments and innovative ideas to increase production and create value addition across the most profitable areas of the value chain.Social implicationsThe study proves that enhancing value addition in the agricultural sector is imperative to achieving triple-benefits of increasing productivity by building resilient systems that leverage on finance opportunities, deepening economic inclusive growth and achieving great milestones.Originality/valueThis study is the first attempt to focus on agricultural value chain system in line with the structural transformation and the Nigeria's vision 20:2020.

Use of the Value Chain in the Process of Generating a Sustainable Business Strategy on the Example of Manufacturing and Industrial Enterprises in the Czech Republic

This paper presents a method of generating a business strategy using value chain analysis. There were 186 manufacturing and industrial enterprises from the Czech Republic. The analysis was carried out using mathematical–statistical methods (dimensional reduction, logit regression and its transformation in order to objectify the opinion level of the managers) and with a neural network in terms of validation of the results of the mathematical–statistical methods. The aim was to determine the significance of different parts of the value chain in terms of their impact on the profitability of an enterprise and to demonstrate its important role in the process of generating business strategy. The significance for the profitability of the enterprises was statistically proven in the area of scientific and technological development, input logistics and human resource management. These parts were identified by the authors as the golden triangle of manufacturing and industry. Purchasing and output logistics were identified as the parts with a negative impact to the profitability of the enterprises. Strong underestimation of scientific and technological development by the top managers of the manufacturing and industrial enterprises is seen as a very negative finding. Neural networks showed higher statistical sensitivity compared to the mathematical–statistical methods (dimensional reduction and logit regression). They defined the value sector chain with the following structure (ranked from the highest degree of positive impact on the profitability of the enterprise): human resource management, scientific and technological development, production, input logistics, purchasing, material management, output logistics, enterprise infrastructure, marketing and sales, service and other supporting services. In conclusion, it is stated that the sector value chain of manufacturing and industrial enterprises will be further decomposed into value chain models of specific industries of the production and industry, such as engineering and construction, intended for direct use in different business entities to generate their unique value chains and corporate strategies.

Labour Share Developments in OECD Countries Over the Past Two Decades

[eng] Over the past two decades, real wage growth in many OECD countries has decou¬pled from labour productivity growth, as labour income shares have declined. This paper analyses the drivers of labour share developments using a combination of industry- and firm-level data. Technological change in the investment goods-producing sector and greater global value chain participation have compressed labour shares, but the effect of technological change has been significantly less pronounced for high-skilled workers. Countries with falling labour shares have witnessed both a decline at the technological frontier and a reallocation of market shares toward “superstar” firms with low labour shares. The decline at the technological frontier mainly reflects the entry of firms with low labour shares into the frontier rather than a decline of labour shares in incumbent frontier firms, suggesting that thus far this process is mainly explained by technological dynamism rather than anti-competitive forces.

Management of authentic digital accounting records in an enterprise resource planning system in the public sector of Botswana

Enterprise Resource Planning (ERP) systems are often implemented in the public sector value chains for purposes of improving business processes. In 2004, the government of Botswana implemented the Government Accounting and Budgeting System (GABS), an ERP to facilitate improved management of financial records. The custodian of the system is the Accountant General’s Department (AGD) in the Ministry of Finance and Economic Development (MFED). This descriptive study adopted a qualitative approach and collected data through interviews and documentary analysis. The study sample was selected purposively from six (6) departments with the mandate of each as a determining factor in relation to answering the research questions. The collected data were analysed thematically in accordance with research objectives. The main purpose of this study was to investigate records management practices related to the management of authentic digital accounting records generated and stored in GABS to support the audit process in Botswana’s public sector. The study revealed that although there is a national legislative and policy framework in place, it has not been operationalised through guidelines and procedures to guide the management of digital records generated by the system. Furthermore, records retention and disposal through the system have not been catered for, resulting in the system being clogged by old records since it was commissioned in 2004. Amongst others, this study recommends the development and implementation of guidelines and procedures to guide the management of records produced by the system.

Formulating strategic interventions for the coloured gemstone industry in Namibia by utilising the logical framework approach

Namibia has been unable to develop an internationally competitive coloured gemstones and related industry due to poor coordination between key stakeholders in the sector. In addition, a large amount of practice-informed knowledge is not documented or publicly shared. Furthermore, the contribution of the Namibian coloured gemstones industry to the national development of the economy is not fully maximised and the sector value chain in Namibia does not function in a way that would benefit the communities and local government. Since the sector is beset with many challenges, this study focused on the means to address these challenges while simultaneously attempting to limit the flow of illicit, raw gemstones, thereby helping to secure maximum benefits for the country. A baseline study was conducted to analyse the current situation and characterise the industry, including a SWOT/TOWS analysis. A Logical Framework Approach (LFA) was used to formulate the interventions to move the coloured gemstone industry in Namibia from a cost-based sector to a high value-added and competitive brand in the global market. The five key strategic interventions areas were identified by the stakeholders and these are primary production and input supply, transformation and technology, product distribution and trade, service delivery and business environment.

Large-scale forest-based biofuel production in the Nordic forest sector: Effects on the economics of forestry and forest industries

Forest-based biofuel is a promising solution to increase the share of renewable and sustainable energy in the transportation sector. Large-scale implementation of biofuel, however, not only affects the energy and transportation sectors, but also the forest sector value chains. This study uses a partial equilibrium forest sector model to quantify how large-scale production of forest-based biofuel would affect forest owners and forest industries in the Nordic countries. In a scenario assuming that forest-based biofuels cover a 0–40% share of the current Nordic road transportation and domestic aviation fuel consumption, the model results show that the sawmill industry increases their profit slightly due to increasing prices for their sawmilling residues. The traditional pulp and paper industries, on the other hand, see a reduced profit by up to 3.0 billion €, corresponding to 8% of their annual turnover, due to the increase in the price of pulpwood. Due to the increasing wood prices, the forest owners benefit significantly from biofuel investments. According to the model, their gross revenue from harvesting increases up to 31% without the need to increase the harvest more than 15%. The overall profit in the traditional forest sector is reduced by 400–600 million €. The decrease in profit is largest when the biofuel production volume covers 20%–30% of the liquid fuels in the Nordic countries. The reduction in overall profit is lower at 40% biofuel implementation, owing to the significant increase in revenue for the forest owner and the fact that the main reduction in pulp and paper industries happens at between 0% and 30% biofuel implementation. The study shows substantial economic spill-over effects from large-scale biofuel implementations to other parts of the forest sector.