Workshop on Value Chain Analysis

Chisinau, 5th December 2012

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Objectives of training

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Objective of the workshop

Objectives : Introduce the concept of Value Chain Strengthening institutional capacity Mapping and Assess the selected value chain: Plum

Target: MIC, Departments for production policies and quality regulation, General department for development policies

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Programme

Introduction to value chain concept Plum value chain mapping SWOT of the plum VC Introduction to the SWOT/TOWS tool

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What is a value chain?

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Value chain is a system

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A system is made up of:

a set of components +

a network of functional relationships

which work together to reach a common objective. These components interact through exchange of stimuli, information or other non-specific factors.

Agri-food value chains

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In reality, it is more complicated

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Chain performance

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Performance dimension must be associated with the anaylsis objective; they can be: Competitiveness, as indicated by the relative market

share of a chain in domestic or international markets Competitiveness of a chain’s product against its

substitutes Profitability of chain actors Food security Technical and operational efficiency Equity considerations Consumer satisfaction

Chain coordination

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The process of transmitting Information Stimuli and Controls to guide the movements of players, so that they are consistent with the strategic objectives the chain. We also speak more and more of Value Chain Governance

Chain coordination

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Coordination modalities include spot markets strategic alliances contractual partnerships full vertical integration All of them determine how product flows are regulated in terms of prices, quality, quantity, and delivery specifications We also speak more and more of Value Chain Governance

Mapping a value chain

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STEP 1: Identifying all stakeholders participating to the chain

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Identify, Characterise, quantify stakeholders Input suppliers Primary producers Traders, collectors Packers (packhouses) Processors Wholesalers Exporter Retailers Consumers

STEP 2: Identifying flows of goods and revenue

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1. Description of the flow of goods from input to the consumers. Nature and quantity. Inputs Fresh or raw product for the non-process market Raw material for processing industry Processed products

2. Description of the financial flows between stakeholders

Identifying all stakeholders of the Moldovan Value Chain

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Input suppliers, Primary producers, Traders, collectors, Packers (packhouses), Processors, Wholesalers, Exporter, Retailers, Consumers

One group of stakeholders One Card

Information on the card: Stakeholder type

Nature/characteristic Number of them

Examples

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Small-scale plum producers 0.1 – 0.5 ha of plums /extensive orchards

100’000 – 150’000

Industrial processors Daily capacity: 150 tons /Jams and concentrate

2 processors

The SWOT analysis

A first tool for analyis of the Value Chain

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The SWOT a easy and commonly used tool

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The SWOT tool consist in arrange in a simple matrix strengths, weaknesses, opportunities and threats Used for company, product, regions, sector and VC Easy to understand for all kind of audience, but still need a moderator to clearly distinguish Weaknesses from Threats and Strengths from Opportunities

The SWOT of the Moldovan plum VC

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Please write the S, W, O, and T on the colour papers as follow:

S: Blue W: Yellow O: Green T: Red

ONE S, W, O OR T ONE PAPER

Examples

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Certified quality seedlings

Increased competition from import because of reduction of

import duty due to TCFTA

The TOWS matrix

A tool for the identification of policy measures

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TOWS matrix

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Measure reducing weaknesses

which prevent it from taking

advantage of opportunities

Measures to built upon

strengths and opportunities

Measures to mitigate the

risk or reducing the impact of the

threats

Measures to reduce

weaknesses to mitigate risks and reduce impact of

threats

The interaction matrix

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