Overview of Cassava Value Chain Analysiscassavavaluechains.net/wp-content/uploads/2017/12/... ·...
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Overview of Cassava Value Chain Analysis The classic definition most often applied to value chains is that the term value chain refers to “the full range of activities that are required to bring a product (or a service) from conception through the different phases of production to delivery to final consumers and disposal after use” (Kaplinsky 1999 1 ). Value chain analysis can be utilized in a narrow sense to refer to activities within a single firm to bring a product to market. However, it is more common to take a broader view and define a value chain as looking at the complex range of activities implemented by various actors (primary producers, processors, traders, service providers) to bring a raw material through a chain to the sale of the final product. This broad view starts from the production system of the raw materials and moves along the linkages with other actors and enterprises engaged in trading, assembling, processing, etc. In addition, value chain analysis is concerned with the characteristics of backward and forward linkages between actors in the chain. Value chain analysis takes a holistic approach to analysis and includes consideration of direct actors, indirect actors and external influences. Direct actors are defined as those who are directly involved in the processes of bring the product from production to consumption – generally meaning those who take ownership and possession of the product. Indirect actors are those who have an influence on the value chain, but who so not take direct ownership and possession of the product. External influences that impact on the value chain include economic, environmental and socio-cultural forces. 1 Kaplinsky, R. (1999). “Globalisation and Unequalization: What Can Be Learned from Value Chain Analysis.” Journal of Development Studies 37(2): 117-146.
Transcript of Overview of Cassava Value Chain Analysiscassavavaluechains.net/wp-content/uploads/2017/12/... ·...
OverviewofCassavaValueChainAnalysisTheclassicdefinitionmostoftenappliedtovaluechainsisthatthetermvaluechainrefersto“thefullrangeofactivitiesthatarerequiredtobringaproduct(oraservice)fromconceptionthroughthedifferentphasesofproductiontodeliverytofinalconsumersanddisposalafteruse”(Kaplinsky19991).Valuechainanalysiscanbeutilizedinanarrowsensetorefertoactivitieswithinasinglefirmtobringaproducttomarket.However,itismorecommontotakeabroaderviewanddefineavaluechainaslookingatthecomplexrangeofactivitiesimplementedbyvariousactors(primaryproducers,processors,traders,serviceproviders)tobringarawmaterialthroughachaintothesaleofthefinalproduct.Thisbroadviewstartsfromtheproductionsystemoftherawmaterialsandmovesalongthelinkageswithotheractorsandenterprisesengagedintrading,assembling,processing,etc.Inaddition,valuechainanalysisisconcernedwiththecharacteristicsofbackwardandforwardlinkagesbetweenactorsinthechain.Valuechainanalysistakesaholisticapproachtoanalysisandincludesconsiderationofdirectactors,indirectactorsandexternalinfluences.Directactorsaredefinedasthosewhoaredirectlyinvolvedintheprocessesofbringtheproductfromproductiontoconsumption–generallymeaningthosewhotakeownershipandpossessionoftheproduct.Indirectactorsarethosewhohaveaninfluenceonthevaluechain,butwhosonottakedirectownershipandpossessionoftheproduct.Externalinfluencesthatimpactonthevaluechainincludeeconomic,environmentalandsocio-culturalforces.
1Kaplinsky,R.(1999).“GlobalisationandUnequalization:WhatCanBeLearnedfromValueChainAnalysis.”JournalofDevelopmentStudies37(2):117-146.
Figure1:Actorsandinfluencesinvaluechainanalysis(Source:LINK2.0Methodology,CIAT,2014)
KaplinskyandMorris(20012)highlightfouraspectsofvalue-chainanalysiswhichmakeitaparticularlyusefultechniquetoapplytoagriculturaldevelopment.SystematicMapping-Value-chainanalysissystematicallymapstheactorsparticipatingintheproduction,distribution,marketing,andsalesofaparticularproduct(orproducts).Thismappingassessesthecharacteristicsofactors,profitandcoststructures,flowsofgoodsthroughoutthechain,employmentcharacteristics,andthedestinationandvolumesofdomesticandforeignsales.DistributionofBenefits-Value-chainanalysiscanplayakeyroleinidentifyingthedistributionofbenefitsbetweenactorsinthechain.Thatis,throughtheanalysisofmarginsandprofitswithinthechain,itispossibletodeterminewhobenefitsfromparticipationinthechainandwhichactorscouldbenefitfromincreasedsupportororganisation.Upgrading-Value-chainanalysiscanbeusedtoexaminetheroleofupgradingwithinthechain.Upgradingcaninvolveimprovementsinqualityandproductdesignordiversificationintheproductlinesserved,allowingproducerstogainhighervalue.Ananalysisoftheupgradingprocessincludesanassessmentoftheprofitabilityofactorswithinthevaluechainaswellasinformationonlimitationsthatarecurrentlypresent.Governance-Value-chainanalysishighlightstheroleofgovernanceinthevalue-chain,whichcanbeinternalorexternal.Governancewithinavalue-chainreferstothestructureofrelationshipsandcoordinationmechanismsthatexistbetweenactorsinthevalue-chain.Governanceisabroadconceptwhichbasicallyensuresthatinteractionsbetweenchainparticipantsareorganised,ratherthanbeingsimplyrandom.Valuechainanalyseswereconductedateachofthesiteandconsistedoftwointerlinkedcomponents:(i)valuechaintraining;and(ii)fieldwork(farmerfocusgroupdiscussionsand2Kaplinsky,R.andM.Morris(2001).AHandbookforValueChainResearch.Brighton,UnitedKingdom,InstituteofDevelopmentStudies,UniversityofSussex.
valuechainparticipantsurveys).Thevaluechainanalyseswererelativelyrapid,witharound6-7daysallocatedpersite.ValueChainTrainingValuechaintrainingwasundertakenovera1.5–2dayperiodineachsite(inCambodiaandVietnam)orinacentrallocation(IndonesiaandLaoPDR).Thekeyobjectivesofthevaluechaintrainingexercisewere:(i)participantsgainunderstandingofbasicprinciples,theoryandapplicationofvaluechainanalysis;(ii)participantscompletebasicvaluemappingoftargetCassavavaluechainsandfilluppreviouslymissinginformation;(iii)participantsidentifymissinginformationandprioritizekeyinformationforcollectionduringfieldwork;and(iv)participantsfinalizeorganizationforfieldworkincludingfinalidentificationofkeystakeholdersandinformationtobegathered.Thekeytrainingresourceutilizedwasthethirdeditionofthetoolbook“MakingValueChainsWorkBetterforthePoor”developedundertheMakingMarketsWorkBetterforthePoorProject,supportedbyADBandDFID3.Giventhelimitedtimeavailability,thetrainingconcentratedonthetoolbookPart1ConceptsandPart2Tool1ValueChainMapping.Thetrainingalsocoveredgenderandsocialinclusioninvaluechainanalysis.Whilethetrainingequippedstudentswithabasictheoreticknowledgeofvaluechainanalysisthroughtraditionalclassroomteaching,agreaterconcentrationwasputonstudentlearningthroughpracticalvaluechainmappingexercises.Thiswasgreatlyfacilitatedbythemixofstudentsinthetraining,includingteammembersfromcentrallevelresearchinstitutesanduniversitiesandrepresentativesfromthelocallevel,includingfarmers,extensionworkersandlocalgovernmentofficers.
3Purcell,T.,Gniel,S.,vanGent,R.,Johnson,A.andSmith,D.(2008)MakingValueChinasWorkBetterforthePoor: AToolbookforPractitionersofValueChainAnalysis,DFID/ADBOctober2008.
Figure2:Handsonvaluechaintrainingactivitiesundertakeninfivelocationsinfourcountries(Clockwisefromtopleft:SonLa,Vietnam;KotaBatu,Indonesia;Vientiane,LaoPDR;DakLak,VietnamandKratie,Cambodia)
Themainpracticaltrainingactivitiesforparticipantswerethepreparationandpresentationoffourinterrelatedvaluechainmapsbasedonthecassavavaluechainsinthelocalarea.Thesefourmapsprovideafirstpictureofthecassavavaluechainsandformthebasisofplanningofthesubsequentfieldwork,includingfieldworklocations,farmergroupsandtargetedvaluechainactors.Thevaluechainmapswererefinedafterthefieldworktotakeintoaccountadditionalinformationobtainedinfarmerfocusgroupsandvaluechainactorsurveys.GenderandSocialInclusionMappingGenderandsocialinclusionmappingofthevaluechainisundertakentohighlighttheheterogeneousnatureofactorsatvariousstagesofthevaluechainandtoexplorethedifferingcharacteristicsofproduction,powerrelationsandthedifferentialimpactofchangebetweensocialgroups.Thefirstpartofthemappingexerciseistoidentifydifferentiatedsocialgroupswithinavaluechainactorcategory.Forexample,ratherthanusingahomogenousgrouping(cassavafarmers),heterogeneousclassificationscouldbedevelopedbasedonsocialgrouping–femaleandmalefarmers;poor,mediumandbetter-offfarmersorgroupingsbasedonethnicity.Oncethegroupingsaredeveloped,thecharacteristicsofproductionforeachgrouparediscussedandrecorded.Keycharacteristicsinclude–landsize,varietytype,contracts,
laboursource,fertilizeruse,landpreparation,creditaccessandcreditprovision,typeofproductsoldetc.Powerrelationsbetweendifferentsocialgroupingsandalsobetweenthesocialgroupandothervaluechainactors(forexamplebetweenpoorfarmersandinputsuppliersvs.better-offfarmersandinputsuppliers)arediscussedandrecorded.Finally,likelychangescenariosareelaborated(e.g.declineincassavaprice,openingofnewfactory)andthepotentialimpactoneachsocialgroupisdiscussedandrecorded.Figure3showsthebasicmatrixutilizedforgenderandsocialinclusionmappingandsomeexamplesfromDakLakareshowninFigure4.
Group1 Group2 Group3
CharacteristicsofProduction
Powerrelations
ImpactofChange
Figure3:Matrixforgenderandsocialinclusionmapping
Figure4:SocialinclusionmappingfromDakLak(left–farmersdifferentiatedbyethnicgrouping;right–farmersdifferentiatedbypovertystatus)
ProcessMappingProcessmappingisthecoreofanyvaluechainmappingexerciseandisawayofrepresentingthekeycharacteristicsofthevaluechainandvaluechainactorsinanaccessibleformat.Processmappingincludesthefollowingkeyinformation:
Processes–thecoreprocessesthatoccurfrominputstorawmaterialthroughtofinalconsumptionofendproducts.Typicalprocesseswouldincludeinputsupply,production,collection,trading,processing,wholesalingandretailingActors–thesearethepeopleinvolvedinthevaluechain.Eachprocessidentifiedwillhavesomeactorsassociatedwiththatprocess.Thecharacterizationofactorscanberelativelysimple(e.g.“farmers”)ormorecomplex(e.g.“poorfarmers,mediumfarmers,better-offfarmers”).Thelevelofcomplexityofcharacterizationofactorscanbeguidedbytheresultsofthegenderandsocialequitymappingabove.Activities–theactivitiesarewhatisactuallydonebytheactorsateachprocess.Thisshouldbeasdetailedaspractical–ratherthan“cassavafarming”asanactivity,itispreferabletonote“landpreparation,planting,weeding,fertilizing,harvesting”.Iftherearemorethanonegroupofactorsdefinedforavaluechainprocess,thendifferentiatedactivitiesshouldalsobedefinedforeachgroup.Inputandoutputform–theformofthecoreproductattheinputandoutputstageofeachofthecoreprocessesofthevaluechain.Forexample,theinputformofcassavatostarchprocessingisfreshcassavarootandtheoutputformisstarchandby-products,includingfibre.Externalservices–anyexternalservicesthatareprovidedtovaluechainactorsateachprocesslevelwithinthevaluechainshouldbeidentified.Wherepossible,differentiatedservicescanbeidentifiedfordifferentsocialgroups.Mappingtheseexternalservicescanidentifypotentialentrypointsforvaluechaininterventions.Constraintsandpotentialsolutions–variousconstraintsexistatallprocesseswithinavaluechain.Forexample,therecouldbeconstraintstoincreasedproductivity,constraintstoupgradingorconstraintstosustainableinvolvementofthepoor.Theidentificationoftheseconstraintsandinitialbrainstormingaroundpotentialsolutionsisanimportantpartofidentifyingpotentialinterventionstrategiesfortheproject.Process Process1 Process2 Process3 Process4….
Actors
Activities
InputForm
OutputForm
ExternalServices
Constraints
PossibleSolutions
Figure5:Matrixforprocessmapping
Figure6:ProcessmapforcassavavaluechaininKrongBong,DakLak.Processesare:inputs,production,collection/trading,processingandexport.
Flow,valueandrelationshipmappingMappingtheflowofproductsthroughavaluechaingivesaclearpictureofthemovementofproductthroughthechain.Whenconstructingaflowmap,thevaluechainisgraphicallyrepresentedasaseriesofconnectedboxeswithlinksbetweeneachbox.Theproportionsofproductflowingalongeachofthelinkscanthenbeadded.Oncetheactorsandrelativevolumesofproductsaremapped,thenextstageistoaddtheunitvaluesofbuyingandsellingateachactoralongthevaluechain.Thiscangiveaneasyindicationofthegrossmarginsforeachactor.Figure7showsatypicalexampleofaflow/valuemap.
Figure7:Exampleflowandvaluemap
Theflow/valuemapcanbefurtherenhancedbyincludinginformationabouttherelationshipsbetweenthevaluechainactors.Atthemostbasicleveltherelationshipcouldbedescribedasbeingeitherapersistentrelationshiporaspotmarketrelationship.Persistentrelationshipsarerelationshipswhereactorsundertakenumeroustransactionswitheachotheroveraperiodoftimeandhavebuiltuptrustandmutualunderstanding.Thismayinvolveaformalized,writtencontractbetweenthetwoparties,butthisdoesnotalwayshavetobethecase.Spotmarketrelationshipsarerelationshipsthatexistforaspecifictransaction.Actorsmakeatransaction(includingagreementonpriceandotherrequirements)purelyforthedurationandscopeofthatspecifictransaction.Thesedifferingrelationshipscanberepresentedonthemapbydifferentlinetypes,asshowninFigure8.
Figure8:Examplerelationshipmap
Figure9:Flow,valueandrelationshipmap,EaKar,DakLak,Vietnam
GeographicMappingOncethesocialinclusion,processandflow,valueandrelationshipmapsarecompleted,itisrelativelyeasytotransfertheinformationtoageographicmapofthestudyregion.Thephysicallocationsofthevariousactorsandkeyprocessescanbemarkedonthemap,aswellasanindicationofthekeyproductflowroutes.Havingthekeyinformationaboutthevaluechainonageographicmapgreatlyfacilitatestheorganizationofthesubsequentfieldworktocollectadditionalinformation.Figure10showsageographicvaluechainmapfromCambodia.ThemapincludesanindicationofkeycassavaproductionareasaswellasidentificationofcollectionpointsoperatedbytradersandthekeytransportroutesforcassavarootandchipexporttoVietnam.ThismapwasveryusefulinplanningthefieldworkactivitiesinKratie.
Figure10:Geographicmapofcassavavaluechain,Kratie,Cambodia
FieldworkThefieldworkportionofthevaluechainanalysiswasundertakenafterthecompletionofthetraining.Fieldworkineachsitewasundertakenover4-5daysandconsistedoftwointerlinkedactivities:FarmerFocusGroupDiscussionsandValueChainActorSurveys.Thetwoactivitieswereconductedsimultaneouslybytwoseparateteams.Theteamswereabletoshareinformationanddiscusstheiractivitiesattheendofeachfieldworkday.Theoverallobjectivesofthefieldworkwereto:(i)gatherrelevantprimaryinformationfromkeyinformantsatvariousstagesinthevaluechain;(ii)finalizevaluechainmappingandanalysisofrelationshipsandlinkagesbasedondiscussionsintheworkshop/trainingandinformationgatheredinthefieldwork;and(iii)basedontheabove,identifyandprioritisepotentialentrypointsforprojectinterventioninthevaluechain.FocusGroupDiscussionsFocusgroupdiscussionswereundertakenwithgroupsofaround20farmersinanumberofcommunitiesineachsite.Thefocusgroupdiscussionswererunbyateamofaround5facilitatorsandreportersandconcentratedon9keyinformationgatheringactivities:
Activity1BasicVillageInformation-gatheringbasicsocio-economicandagronomicinformationaboutthevillageandbasicinformationonanyfarmergroupsoperatinginthevillage.Activity2LivelihoodActivities-gatheringinformationonagriculturalactivities,off-farmincomeandnon-farmactivitiesandremittances.Asfaraspossible,theinformationgatheredisdisaggregatedbypovertystatusandbymaleandfemalehouseholdmembers.Activity3HistoryofCassavaProductionintheVillage-gatheringinformationonkeyvillageeventsincludingthestartofcassavaproductionwithafocusonchangesincassavaproductionandmarketingarrangements.Activity4Seasonalcalendar-gatheringmonth-by-monthinformationonrainfall,foodavailability,keycroppingactivitiesforcassavaandothercrops(e.g.Paddyrice,uplandrice,maizeetc.),keyactivitiesforlivestockraisingandkeylabourstressperiodsforbothmenandwomen.Inaddition,detailedgenderrolesforeachofthekeycroppingandlivestockactivitieswerecollected.
Figure11:Farmerfocusgroupdiscussionsgatheringinformationoncroppingcalendar(left)andcassavaproductionbudget(right),Kratie,Cambodia.
Activity5Cassavaproductionbudget-gatheringinformationoncostsoflandpreparation,varieties,seedsystem,fertilitymanagement,weedmanagementandpost-harvestaswellasinformationonintercropping,cassavayieldsandpricesofrootsandchips.Activity6Cassavautilisationandvaluechain-gatheringinformationontheuseofcassavachainonfarm(ownconsumption,feedingtolivestock),whatproductsaresold(roots,chips),whomakesdecisionsaboutselling,whoandwheretheproductissoldto,whatcontractualorotherrelationshiphavetothebuyer.Activity7Rankingofimportanceofactivities-gatheringinformationontherelativeimportanceofvariousactivitiesintermsofhouseholdfoodsecurity,householdcashincomeanduseoflabour.Disaggregatedinformationwasgatheredforbetteroffandpoorhouseholds,andinadditionthefarmergroupwassplitintomaleandfemalesub-groupsforthisactivity.Activity8Problemsandconstraints-gatheringinformationonthemajorconstraintsorproblemswithcassavaproduction,includingaccesstoplantingmaterial,labouravailability,soilfertility,soilerosion,pestsanddiseaseandaccesstocredit.
Activity9Potentialinterventionsandranking-gatheringinformationonfarmers’opinionsonpotentialinterventionstoenhancethesustainabilityofcassavaproduction,includingnewvarietiesforconsumptionorprocessing,providinginformationonappropriatefertilizerrates,soilconservationoptions,intercroppingandpost-harvesttechniques.ValueChainActorSurveyThevaluechainactorsurveytargetedkeyparticipantsinthevaluechainasinitiallyidentifiedbyparticipantsduringthevaluechaintrainingexercise.Furtheractorstobeincludedinthesurveywereidentifiedduringinitialinterviews.Theseadditionalactorswereincludedintheschedulewherepossible,giventimeconstraintsandchallengeswithgainingpermissionforinterviewsatshortnotice.Thevaluechainactorsurveywasundertakenbyasmallteam(2-3people),withoneteammemberadministeringaformalsurveyandtheotherteammemberstakingnotes,draftingproductflowmapsandclarifyingresponses.Between4and12surveyswereundertakenateachsiteovera4-5dayperiod.PaperbasedsurveyswereusedinLaoPDRandCambodiaandelectronicsurveysusingtheCommcareapp4onandroidtabletswereutilizedinIndonesiaandVietnam.
Figure12:Administeringpaper-basedandelectronicversionsofthevaluechainactorsurvey(left:Cambodiaandright:Indonesia)
Theformalsurveyconsistedof12sections,ofwhichthefirst6sectionsaredirectlyrelatedtoinformationgatheringforvaluechainmappingandcharacterizationandtheremaining6sectionsgathertechnicalinformationrelatingtopotentialinterventionsundertheproject.Section1ActorInformation–gatheringbasicdemographicandbusinessinformationaboutvaluechainactorSection2Purchasing–gatheringinformationaboutproducttypespurchased,quantitypurchased,purchaseprice,relationshipwithsellers,informationflowsandchallenges.Section3Buying-gatheringinformationaboutproducttypessold,quantitysold,sellingprice,relationshipwithbuyers,informationflowsandchallenges.Section4CostStructure–gatheringinformationonkeyelementsofvariableandfixedcostsinordertobeabletoaccuratelyestimategrossandnetmargins.Section5Accesstocreditandprovisionofcredit–gatheringinformationonamountsandconditionsofloanstakentoconductbusinessandprovisionofcredittosuppliers.
4AvailableforandroiddevicesontheGooglePlayStore
Section6Accesstoinformationandtraining–gatheringinformationonthesourcesandqualityofinformationavailabletovaluechainactors.Section7CassavaVariety–gatheringinformationonexistingcassavavarietyuse,sourcesandknowledgeandinterestinobtainingnewvarieties.Section8FertilizerUse-gatheringinformationonexistingfertilizeruse,sourcesandknowledgeandinterestinparticipatingintrialsofimprovedfertilizeruse.Section9LandPreparation-gatheringinformationonknowledgeandpracticerelatingtolandpreparationandinterestinparticipatingintrialsofimprovedlandpreparationtechniques.Section10SoilConservation-gatheringinformationonknowledgeandpracticerelatingtosoilconservationandinterestinparticipatingintrialsofimprovedsoilconservationtechniques.Section11PestandDiseaseManagement-gatheringinformationontheextentofknowledgeofexistingpestanddiseasesandcurrentmanagementtechniques.Section12WeedControl-gatheringinformationonknowledgeandpracticerelatingtoweedcontrolandinterestinparticipatingintrialsofimprovedweedcontroltechniques.Atthesametimeastheadministeringoftheformalsurvey,otherteammemberswereutilizingtheDrawexpress5apptopreparemapsofthevaluechainactorsbuyingandsellingproductflowsbasedontheinformationgatheredintheformalsurvey.Thismapwasthenpresentedtothevaluechainactorforverificationbeforebeingfinalized(seeFigure13).
Figure13:Examplemapofproductflowsdevelopedduringvaluechainactorsurveyandcheckedpriortofinalization
5AvailableforandroiddevicesontheGooglePlayStoreandasDrawExpressDiagramforIOSdevicesfromAppleAppstore.
LessonsLearned- Participationofbothnationallevelpartnersandlocallevelkeyinformants- Handson/practicalanalysisofvaluechainisbetterthantheoreticalwork- Translationofslides,toolbook,FGDmaterialandvaluechainactorsurvey- Havingseparateteamsforfocusgroupdiscussionsandvaluechainactorsurveysis
moreefficientinthefield,butitcanleadtoalackofinformationsharing- Tabletsaregenerallyveryefficientforinformationcollectionandespeciallyfordata
entry.Enthusiasmwashighfrombothyoungerandmiddle-agedresearchers.Tabletsworkbestformultiplechoiceandnumericquestions.Theyarefarlesssuitableforopen-endedquestions.
- UsingtheDrawexpressapptocreatevaluechainmapsduringinterviewsisaquickwaytodoublechecktheaccuracyofcollectedinformationaboutvaluechainparticipants,productflows,volumesandprices.
