Value Chain Analysis Framework Research Articles

Developing the coconut value chain in central Luzon, Philippines: A case study of coco geonets in aurora

The study aimed to assess the status of the coco geonet in Central Luzon, particularly Aurora, which comprises more than 90% of the region’s production. The study utilized a participatory method, and a value chain analysis framework was used to examine the roles of different key players. The value chain comprises input provision, farm production, processing, and marketing. Based on the results of the study, coco geonet processors received the biggest share in terms of both value addition and total cost. Nearly all coconut farmers initially obtained planting materials from other coconut farmers whose farms exhibited high-quality characteristics. These farmers utilize simple farming methods that have not changed in many decades. Coco geonet production consists of two processing stages: coco-coir production and coco-geonet weaving. The primary constraint for coco geonets is the lack of access to the institutional market. Customers for the coco geonets produced by Aurora’s value chain are currently scarce. Marketing links are necessary to add value to the husks. It is therefore recommended that the products be promoted, their market be developed, and their marketing potential be tapped to allow the industry to become lucrative. Inter-agency support is needed for the value chain to perform efficiently and effectively.

Blockchain as a Reinforcement for Traceability of Indonesian Halal Food Information through the Value Chain Analysis Framework

This research is to offer the use of blockchain for the traceability of information about halal food as a form of developing a traceability system that ensures and maintains the quality of halal food and drinks in Indonesia. This research departs from the rampant counterfeiting of products, which also continues to increase, especially in relation to food and beverages. This causes huge losses from an economic standpoint, both for companies and producers, has an impact on the country's economy, and erodes consumer confidence due to unclear information, especially regarding confusing halal traceability. This research is a literature review developed through the Value Chain Analysis Framework. A value chain analysis framework that supports blockchain in reminding companies to focus on development that will help achieve the Indonesian halal industry supply chain in accordance with government standards engaged in the Indonesian halal industry. This study develops the concept of a halal value chain that strengthens the role of blockchain technology and pays attention to the finances in each block needed by the supply chain.

Assessment of Milk Quality and Food Safety Challenges in the Complex Nairobi Dairy Value Chain.

Food networks present varying food safety concerns because of the complexity of interactions, production, and handling practices. We investigated total bacteria counts (TBCs) and total coliform counts (TCCs) in various nodes of a Nairobi dairy value chain and identified practices that influence food safety. A value chain analysis framework facilitated qualitative data collection through 23 key informant interviews and 20 focus group discussions. Content thematic analysis identified food safety challenges. Cow milk products (N = 290) were collected from farms (N = 63), collection centers (N = 5), shops/kiosks (N = 37), milk bars (N = 17), roadside vendors (N = 14), restaurants (N = 3), milk vending machines (N = 2), mobile traders (N = 2) and a supermarket (N = 1). Mean values of colony-forming units for TBC and TCC were referenced to East African Standards (EAS). Logistic regression analysis assessed differences in milk acceptability based on EAS. The raw milk from farms and collection centers was relatively within acceptable EAS limits in terms of TBC (3.5 × 105 and 1.4 × 106 respectively) but TCC in the milk from farms was 3 times higher than EAS limits (1.5 × 105). Compared to farms, the odds ratio of milk acceptability based on TBC was lower on milk bars (0.02), restaurants (0.02), roadside vendors (0.03), shops/kiosks (0.07), and supermarkets (0.17). For TCC, the odds that milk samples from collection centers, milk bars, restaurants, roadside vendors, and shops/kiosks were acceptable was less than the odds of samples collected from farms (0.18, 0.03, 0.06, 0.02, and 0.12, respectively). Comparison of raw milk across the nodes showed that the odds of milk samples from restaurants, roadside vendors, and shops/kiosks being acceptable were less than the odds of samples collected the farm for TBC (0.03, 0.04, and 0.04, respectively). For TCC, the odds of raw milk from collection centers, restaurants, roadside vendors, milk bars, and shops/kiosks being acceptable were lower than the odds of acceptability for the farm samples (0.18, 0.12, 0.02, 0.04, and 0.05, respectively). Practices with possible influence on milk bacterial quality included muddy cowsheds, unconventional animal feed sources, re-use of spoilt raw milk, milk adulteration, acceptance of low-quality milk for processing, and lack of cold chain. Therefore, milk contamination occurs at various points, and the designing of interventions should focus on every node.

Global Environmental Value Chain Embeddedness and Enterprise Production Efficiency Improvement

The rapid development of the labor division system of the global value chain not only improves the technological level of developing countries but also creates opportunities for developed countries that dominate the global value chain to transfer pollution-intensive production links to developing countries. When faced with the pressure of environmental governance, the production efficiency of enterprises in the value chain may change significantly. Therefore, this study establishes a global value chain analysis framework, considering environmental factors, that is, the global environmental value chain (GEVC). It discusses the impact of the embeddedness of enterprises in the GEVC on their production efficiencies. Based on the consolidated data from 2000 to 2006 in the China Industry Business Performance Data and the China customs database, the following conclusion is drawn: The embeddedness of enterprises in the GEVC reduces the production efficiency of enterprises, but the changes of production efficiencies of enterprises with different profitability in the GEVC are significantly different. Specifically, the embeddedness of enterprises with positive earnings in the GEVC can improve production efficiency, while that of enterprises with negative earnings in the GEVC will reduce production efficiency. Furthermore, the learning effect and the competition effect reinforce the positive effect of GEVC on enterprise production efficiency, while the "capture effect" weakens this effect, and the scale effect is insignificant. Moreover, foreign-funded enterprises benefit more from the improvement of production efficiency that resulted from GEVC embeddedness.

Why Nepal’s main agricultural export product, large cardamom, does not reach the world market

While subsistence agriculture dominates in Nepal, certain high-value crops have shown great promise as export crops in recent years. Large cardamom is one such high-value crop, constituting about 5% of total exports from the country. Although development of agricultural value chains has connected smallholder farmers from developing countries to world markets, export of Nepali large cardamom is confined to India only. This paper has examined the factors that constrain the distribution of Nepali large cardamom to world markets beyond India. Primary data was collected from Ilam and Jhapa districts in eastern Nepal. Interviews and consultations were conducted with 54 purposively selected research participants including farmers, intermediaries, traders, and stakeholders. Data analysis was based on Trieneken’s agricultural value chain analysis framework for developing countries. Findings revealed that increased large cardamom distribution to world markets is constrained by Nepal’s landlocked geography, limited access to Indian transport infrastructure, strict food safety regulations, high tariffs, and complexities in customs clearance procedures. Nepal’s poor market infrastructure, characterised by a lack of accredited laboratories, platforms for auctions, and warehouse facilities, has further weakened the country’s export capacity. Moreover, that the same trade code is used for all types of cardamom in world markets has put Nepali traders at a disadvantage as they lack specific information regarding prospective markets and trade volumes outside India. This paper, therefore, calls for a large cardamom market study together with capacity-strengthening measures for institutions, the facilitation of export constraints, and a review of the existing export strategy.

The modernization of the rice value chain in Senegal: A move towards the Asian Quiet Revolution?

AbstractMotivationThe modernization of domestic food chains in India, Bangladesh and the People’s Republic of China is characterized by technological change and the integration of the collection function by the midstream segment. This has improved product quality and resulted in increased value added for value chain (VC) actors. In Africa, since the first world food crisis, governments have endeavoured to develop domestic value chains.PurposeThe purpose of this article is to review the dynamics of the rice value chain in Senegal in order to see the extent to which it follows the same trends as in Asia.Approach and methodsWe have completed the paradigm of Structure‐Conduct‐Performance with the Global Value Chain analysis framework, which highlights the influence that one stakeholder in a steering position can have on the distribution of tasks, skills and margins among the actors in the chain. We conducted 154 qualitative interviews to understand changes in governance. We also used data about 913 stakeholders to assess the competitiveness of the value chain.FindingsWe found that the Senegalese rice value chain is undergoing modernization as in Asia. Nevertheless, in Senegal, (a) midstream actors already carried out paddy collection through spot transactions with a trend towards relational governance, (b) credit policies contributed directly to the shift in governance towards integration, and (c) the modern rice VC was able to compete in terms of cost with imports thanks to state intervention.Policy implicationsIn order to improve the competitiveness of this value chain, we recommend the inclusion of small‐scale processors in the modernization process through improved access to credit. We also suggest carrying out feasibility studies relating to the use of small‐scale mechanization.

Value chain analysis and sanitary risks of the camel milk system supplying Nairobi city, Kenya

The camel milk trade in Kenya has evolved significantly from a small-scale business undertaken in local villages to its current status involving a large number of different stakeholders supplying urban towns, particularly Nairobi City. Despite the evident growth pattern, the supply of camel milk to Nairobi has largely remained informal, with minimal enforcement of regulations. The aim of this study was to characterise the camel milk system supplying Nairobi and assess its governance, main challenges and the potential food safety risk practices.A value chain analysis framework was used to carry out data collection between August 2014 and July 2015. Qualitative and quantitative data were collected through focus group discussions and key informant interviews with stakeholders operating in different nodes of the value chains.Three milk value chains supplying Nairobi were identified and mapped: the Isiolo chain, the Kajiado chain and the camel milk processing company chain. Overall, the results indicate that 94% of the milk supplied to Nairobi city is informally traded (traded without any effective regulation), while 6% originates from a formal milk processing company. In the informal chains, milk traders (mostly women) were reported to play a pivotal role in the organisation and daily functioning of the chains. The processing company had partly integrated activities and reported exporting 5% of their products to regional and international markets.Food safety themes identified were associated with i) lack of cold chain, ii) gaps in hygiene practices, particularly at farm and market levels, iii) consumption of raw camel milk, and iv) lack of food safety training, among other issues. Low level involvement by government agencies in enforcing stipulated food safety measures were reported in the informal chains, as these concentrate efforts in the regulation of dairy milk chains. Isiolo milk traders were identified as the dominant group, setting milk prices and providing sanctions.The framework and findings obtained can help future research and policy makers to reach informed decision about what to regulate, where to target and importantly how to make the camel milk value chain more efficient and safer.

An Ecosystem Service Value Chain Analysis Framework: A Conceptual Paper

Modern day societies and economies are becoming increasingly vulnerable to the continued erosion of the stocks and flows of essential ecosystem services. Thus, the management of complex socio-economic systems to effectively provide these essential services has become a global priority policy and academic research area. Understanding how underlying processes and functions contribute towards the provision of final ecosystem services can facilitate improved dissemination of credible, legitimate and salient information to decision-makers. This paper presents an ecosystem service value chain analysis framework that applies basic system dynamics modelling in the form of causal loop diagrams to facilitate an alternative analysis of ecosystem service value chains. A scoping application of the framework is applied to a case study for flood attenuation services in the Baviaanskloof catchment in South Africa. The framework enables the identification of forward linkages and ripple effects in individual value chains of final ecosystem services as well as the identification and assessment of challenges and opportunities within individual causal pathways. Ultimately, providing the potential to advance strategies for improving the efficiency and effectiveness of final ecosystem service provision.

Contracting and gender equity in Tanzania: using a value chain approach to understand the role of gender in organic spice certification

AbstractValue chain development (VCD) initiatives within the horticultural and organic sectors in Africa are promising strategies to improve smallholder welfare. Contracting institutional arrangements are a common feature of VCD initiatives and are increasing in number in sub-Saharan Africa as a way to source organic products from smallholder producers. The objective of this study is to better understand men and women's participation in spice producing households that sell under contract and in conventional market chains in the East Usambaras, Tanzania. We draw on New Institutional Economics, political economy and the value chain analysis framework to assess the potential role of contracting to promote gender equity among smallholder organic horticultural producers. We describe intra-household decision making over resources and marketing, access to benefits of contracting, and labor distribution between men and women in contracting and non-contracting households. We then extend the gender analysis to evaluate the role of gender in contracting and conventional value chains operating within the community and district. Using a cross-sectional research design and data collected through 13 focus group discussions, 54 personal interviews and 156 household questionnaires, we show that contracting reduces transaction costs in the chain compared with the conventional trade. However, norms in the wider political economic context give rise to gendered patterns of participation in both household and chain activities in contracting and non-contracting households. Our findings suggest that contracting does not provide significant opportunities for women in married households to participate and benefit based on limited participation in decision-making and access to trainings. Divorced women and widows gain access to contract employment opportunities to earn income. This study highlights the importance of understanding gender relations in the household and community to guide the development of gender equitable VCD initiatives and contracting approaches.

Examining preparedness of food actors for value chain development: a vegetable chain case study

From a value chain (VC) development perspective, the readiness of prospective actors and stakeholders to engage in VC development is a core strategic capability. VC analysis has been used in the past to achieve strategic improvement by identifying opportunities and constraints in existing chains, but there is little evidence of VC analysis being used to explore the readiness of actors and stakeholders to participate in VC development processes, especially in the developing countries. This study examines the preparedness of actors and stakeholders of tomato VC in Nepal to develop rural-urban interfaces. A framework for VC analysis was developed to explore VC actors readiness to participate in VC development from the VC management, strategic management and development literature. Data used in the analysis were collected in 2010 and 2011. Data included desktop reviews, memos recorded during the walking-the-chain observations and semi-structured interviews with actors and stakeholders in case study chains. Relevant responses from semi-structured interviews and memos were analysed using a template approach to coding. The study found that actors and stakeholders in the case study VCs were underprepared for VC development. Based on the findings, ways to prepare these actors and stakeholders for the journey of VC development are suggested. The implications of this study are that it develops and tests a framework of VC analysis that can be used to understand the readiness of VC actors and stakeholders to participate in VC development.

Conceptual framework for value chain analysis for poverty alleviation among smallholder farmers

ABSTRACTDespite volumes of research and substantial investments by government, the financial performance of smallholder farmers in South Africa remains poor. The past decade saw little change in the general behaviour of smallholder farmers, and the stumbling blocks faced by smallholder farmers who want to participate in commercial agri-food chains. A possible reason may be that researchers tend to focus on the current behaviour and performance of the farmers while neglecting the influence of the incentive structure on their behaviour. The aim of this paper is to develop a conceptual framework that allows for a more holistic analysis of farmers and their value chains to better understand the reasons underlying current behaviour, and to identify potential solutions to change the behaviour of the farmers and relevant role-players to better match the requirements for successfully participating in competitive agri-food chains. The integrated value chain, New Institutional Economics – Structure-Conduct-Performance framework, does allow for a comprehensive analysis of the incentive structure embedded in the social, physical and institutional environment within which the farmers operate. Special attention is also awarded to the relationship between the farmers and their buyers to identify the appropriate coordination strategy that will minimise transaction costs.

Still Watching Other People's Programmes? The Case of Current TV

In this article, the authors adapt a value chain analysis framework used in the music industry and apply it to the television industry, in order to probe the television value creation and distribution mechanisms and examine how they were affected by technology. More specifically, they examine how viewers can effectively become producers by repositioning themselves in the value chain and the implications of such a shift. Their discussion takes place in the context of a case study, that of Current TV, in order to illustrate in practice the opportunities and implications for the content producers, the broadcasters, and the viewers themselves.

GETTING THE MEASURE OF THE ELECTRONIC GAMES INDUSTRY: DEVELOPERS AND THE MANAGEMENT OF INNOVATION

The electronic games industry has grown within the space of a decade to a $40bn global industry. Yet, at least in the UK, the management of innovation in the software development sector reflects the industry's bedroom origins. Visits to major buyers in the US by UK games developers show that publishers increasingly require more sophisticated management procedures from developers, including that with respect to the management of innovation. This paper reports on the development of industry-specific indicators to be used in processes of innovation management, benchmarking innovation practices and performance within the framework of value chain analysis. This provides the sector with a framework for more routinised innovation practices, and is also of relevance to the management of innovation in other software-intensive sectors.

Grassland improvement in Latin America

The camel milk trade in Kenya has evolved significantly from a small-scale business undertaken in local villages to its current status involving a large number of different stakeholders supplying urban towns, particularly Nairobi City. Despite the evident growth pattern, the supply of camel milk to Nairobi has largely remained informal, with minimal enforcement of regulations. The aim of this study was to characterise the camel milk system supplying Nairobi and assess its governance, main challenges and the potential food safety risk practices.A value chain analysis framework was used to carry out data collection between August 2014 and July 2015. Qualitative and quantitative data were collected through focus group discussions and key informant interviews with stakeholders operating in different nodes of the value chains.Three milk value chains supplying Nairobi were identified and mapped: the Isiolo chain, the Kajiado chain and the camel milk processing company chain. Overall, the results indicate that 94% of the milk supplied to Nairobi city is informally traded (traded without any effective regulation), while 6% originates from a formal milk processing company. In the informal chains, milk traders (mostly women) were reported to play a pivotal role in the organisation and daily functioning of the chains. The processing company had partly integrated activities and reported exporting 5% of their products to regional and international markets.Food safety themes identified were associated with i) lack of cold chain, ii) gaps in hygiene practices, particularly at farm and market levels, iii) consumption of raw camel milk, and iv) lack of food safety training, among other issues. Low level involvement by government agencies in enforcing stipulated food safety measures were reported in the informal chains, as these concentrate efforts in the regulation of dairy milk chains. Isiolo milk traders were identified as the dominant group, setting milk prices and providing sanctions.The framework and findings obtained can help future research and policy makers to reach informed decision about what to regulate, where to target and importantly how to make the camel milk value chain more efficient and safer.