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Open Access
Article
Publication date: 18 May 2015

Jason Donovan, Steven Franzel, Marcelo Cunha, Amos Gyau and Dagmar Mithöfer

In recent years, governments, donors, and NGOs have increasingly embraced value chain development (VCD) for stimulating economic growth and combating rural poverty. In…

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Abstract

Purpose

In recent years, governments, donors, and NGOs have increasingly embraced value chain development (VCD) for stimulating economic growth and combating rural poverty. In line with the rise in interest, there has been a proliferation of guides for VCD. The purpose of this paper is to present the results of a review of 11 guides for value chain along six different dimensions, ranging from objectives and value chain definitions to monitoring impact. The paper concludes with suggestions for the use of guides based on local needs and context, and recommendations for future guide development.

Design/methodology/approach

The review compares the concepts and methods endorsed and it assesses the strengths and limitations of the guides for steering development practice.

Findings

Overall, the guides provide a useful framework for understanding markets and engaging with chain stakeholders, with a strong emphasis on strengthening institutions and achieving sustainability of interventions. However, the guides often lack discussions on the conditions necessary at different levels for VCD to advance development objectives and achieve that sustainability. The guides are designed to be implemented largely independently of the specific context, in which the chain is situated, despite the major implications context has for the design of interventions and overall success of the chain. Attention to mutual learning, whether related to tool design or the outcomes and impacts of VCD interventions, is limited.

Research limitations/implications

More critical reflection and debate is needed on the design of guides for VCD. The authors suggest three areas for this reflection and debate: concepts, methods, and tools for addressing the needs of the poor in value chains; tools for addressing variations in the context; and mechanisms for mutual learning on the design and implementation of VCD.

Originality/value

The paper concludes with various recommendations for guide authors and donors that support VCD.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 5 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 12 March 2018

Andre Devaux, Maximo Torero, Jason Donovan and Douglas Horton

The purpose of this paper is twofold: first, to take stock of the current state of knowledge about inclusive value-chain development (VCD) in the context of international…

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20161

Abstract

Purpose

The purpose of this paper is twofold: first, to take stock of the current state of knowledge about inclusive value-chain development (VCD) in the context of international agricultural research; and second, to draw out the implications for future research and action.

Design/methodology/approach

This paper is based on a review of recent research papers authored by professionals affiliated with international agricultural research centers and their partners in Africa, Asia, and Latin America.

Findings

The studies reviewed in the paper identify the opportunities emerging from new and expanding markets for agricultural products and challenges to smallholder participation in these markets. It identifies key attributes of successful value-chain interventions, emphasizing the importance of combining value-chain approaches with other approaches, including those emerging from innovation systems and rural livelihoods frameworks. Methods are offered for evaluating complex value-chain interventions.

Research limitations/implications

The paper summarizes the state of knowledge as of early 2016 in a dynamic field. Important contributions to knowledge may have been made since then.

Originality/value

The paper summarizes the state of knowledge in the field, and identifies emerging issues and policy implications, knowledge gaps, and priorities for future applied research.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 17 January 2020

Do Xuan Luan

The purpose of this paper is to investigate borrowing motivation, credit access barriers and their impacts on income of smallholder farmers engaging in cinnamon value chain

Abstract

Purpose

The purpose of this paper is to investigate borrowing motivation, credit access barriers and their impacts on income of smallholder farmers engaging in cinnamon value chain development in Northwestern Vietnam.

Design/methodology/approach

A multistage sampling technique using a structural questionnaire and in-depth interviews was applied for collecting primary data from farmers and relevant stakeholders. The Propensity Score Matching was employed to analyze access barriers and examine whether relaxing these barriers can improve farmer income. To deal with the issue of model uncertainty and further increase the robustness of results, Bayesian model average and the bootstrapping approach were applied.

Findings

To fulfill the certain quality standards of cinnamon products which are later used in the medicinal and food industry, farmers as primary producers need credit for intensive investment to increase the value of their products. Still, there are 25.36 percent of farmers who have access constraints to formal credit. In the credit received group, 24.56 percent have not received full credit as demanded. Access problems are relevant to lack of collateral, lack of bank account holdings, inconvenient access to roads, weak chain linkage and limited organic farming. Removing credit access barriers can improve the income for farmers from cinnamon farming activities.

Research limitations/implications

More detailed information on the conditions under which credit serves a more important role in creating value addition for cinnamon products can help the government establish more effective credit policies.

Social implications

Great attention should be paid to smallholder farmers as primary producers in the chain for sustainable value chain development in developing and emerging economies. Policy interventions should facilitate access to bank accounts, speed up the process of granting residential land use certificates, certify organic farming and upgrade the road system. Strengthening the chain linkage can enhance smallholder farmers’ capacity to obtain credit through value chain lending development.

Originality/value

Empirical studies on agricultural credit from the perspective of value chain development remain scarce. A better understanding of credit access constraints allows for the positing of recommendations for policy makers to facilitate value chain lending and a medicinal plant-based agro-forestry system in similar situations.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 10 no. 2
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 13 May 2014

Katie D. Ricketts, Calum G. Turvey and Miguel I. Gómez

The purpose of this paper is to look at the ever-popular, “value-chain approach” for linking smallholder farmers to high value export markets. Conventional wisdom says…

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1463

Abstract

Purpose

The purpose of this paper is to look at the ever-popular, “value-chain approach” for linking smallholder farmers to high value export markets. Conventional wisdom says that value chains undertaken for development purposes redistribute risk and provide benefits and services to participants that are otherwise difficult or impossible to obtain. The authors take a farmer-centric approach and ask farmers participating in these higher value chains if they perceive greater, or different risks and compare results to their conventional counterparts. The authors also ask what benefits they associate with participation and if they believe they believe those benefits are exclusive to value chain participation.

Design/methodology/approach

The authors collect data from growers in three different cocoa value chains in Ashanti, Ghana. These chains include one focussed on certified production practices (Rainforest Alliance), one that focussed on high-value product characteristics (Fine Flavor) and a conventional chain, which serves as counterfactual.

Findings

The paper finds differences in perceptions of participation risks and benefits – particularly among price risks – that appear to filter based on value chain membership. However, for many risks, value chain participation seems to do little to redistribute potential production shocks. With some exceptions, growers report that many of the benefits they enjoy as a result of participation could feasibly be accessed by other sources.

Research limitations/implications

The limitations of this paper are related to sample size. This was managed from a statistical perspective.

Social implications

The authors explore how these results might impact the sustainability of the value chain approach and encourage donors and development agencies to be thoughtful and critical about measuring how farmers perceive new market opportunities.

Originality/value

The authors believe that this is the first paper prepared to critically investigate the perceived benefits of value chains.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 4 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 26 September 2019

Kirt Hainzer, Talitha Best and Philip Hugh Brown

The purpose of this paper twofold: first, to review the current state of knowledge regarding local value chain (LVC) interventions in the context of international…

Abstract

Purpose

The purpose of this paper twofold: first, to review the current state of knowledge regarding local value chain (LVC) interventions in the context of international agricultural research and development; and, secondly, by synthesising the empirical findings from LVC projects, to provide guidance for future research and intervention design.

Design/methodology/approach

This paper utilises systematic review and qualitative meta-synthesis guidelines to review and synthesise recent research papers and case studies dealing specifically with the development of LVCs, authored by professionals affiliated with development agencies and international research consortiums.

Findings

The paper identifies a novel two-phase characterisation of LVC interventions. Phase 1 identifies opportunities for interventions, which are characterised as typologies and presented upon a spectrum of value chain functionality from underdeveloped to mature. Phase 2 is the selection and implementation of strategies to achieve the identified opportunities from Phase 1, and the paper characterises these strategies per the domain of value chain functionality which they target.

Research limitations/implications

The interaction between context, socio-economic constraints and intervention strategies is still a poorly understood feature of value chain interventions, and the paper posits that a greater understanding of these interactions is crucial to the success of value chain interventions.

Originality/value

The paper provides the first synthesis of LVC interventions, while outlining research priorities and knowledge gaps required to design interventions which are consummate to the context and functionality of a prioritised chain.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 9 no. 4
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 12 March 2018

Jason Donovan, Nigel Poole, Keith Poe and Ingrid Herrera-Arauz

Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the…

Abstract

Purpose

Between 2006 and 2011, Nicaragua shipped an average of US$9.4 million per year of smallholder-produced fresh taro (Colocasia esculenta) to the USA; however, by 2016, the US market for Nicaraguan taro had effectively collapsed. The purpose of this paper is to analyze the short-lived taro boom from the perspective of complex adaptive systems, showing how shocks, interactions between value chain actors, and lack of adaptive capacity among chain actors together contributed to the collapse of the chain.

Design/methodology/approach

Primary data were collected from businesses and smallholders in 2010 and 2016 to understand the actors involved, their business relations, and the benefits and setbacks they experienced along the way.

Findings

The results show the capacity of better-off smallholders to engage in a demanding market, but also the struggles faced by more vulnerable smallholders to build new production systems and respond to internal and external shocks. Local businesses were generally unprepared for the uncertainties inherent in fresh horticultural trade or for engagement with distant buyers.

Research limitations/implications

Existing guides and tools for designing value chain interventions will benefit from greater attention to the circumstances of local actors and the challenges of building productive inter-business relations under higher levels of risk and uncertainty.

Originality/value

This case serves as a wake-up call for practitioners, donors, researchers, and the private sector on how to identify market opportunities and the design of more robust strategies to respond to them.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Open Access
Article
Publication date: 4 January 2022

Meine Pieter van Dijk, Gigi Limpens, Julius Gatune Kariuki and Diederik de Boer

This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone…

Abstract

Purpose

This article explores the potential of an emerging group of farmers in Kenya, namely the growing segment of urban-based medium-size farmers, often called “telephone farmers”. To what extent do they benefit from an emerging ecosystem to support them in operating their farms, and what does that mean for the Hidden middle of agricultural value chains, the actors between the farmers and consumers? Unlocking the potential production of telephone farmers will require more services from collectors, traders, transport firms, the storage facilities, wholesalers and processing units and retailers. Ultimately, optimized telephone farm production benefits the business of Hidden middle value chain actors, increases incomes and jobs and improves food security.

Design/methodology/approach

Based on a survey and in-depth interviews a profile of the telephone farmers is given and their role as innovators is analyzed. The Latia Resource Centre (LRC) provides assistance to medium-size farmers, like the telephone farmers, helping them to prepare business plans and use modern technology and contributing to an emerging ecosystem providing support to all farmers.

Findings

The article analyzes the medium-size telephone farmers. It documents the contributions of this new agricultural actor to developing value chains and a dynamic ecosystem. The paper profiles the telephone farmers first and then identifies what they need and the support they receive. The emerging innovative ecosystem impacts agricultural productivity and production and hence the development of value chains. Small farmers gain access to opportunities offered by telephone farmers, working for them as outgrower or farm worker.

Research limitations/implications

The authors used a small sample of 51 farmers and covered only a two-year period.

Social implications

Small farmers are being helped through the emerging eco-system and farm labor acquire skills, which they can also you on another or their own farm.

Originality/value

Based on the analysis an even more effective ecosystem is suggested and policy recommendations are formulated before the conclusion is drawn that these medium-size farmers contribute to innovation diffusion, inclusive value chain development and food security and are becoming part of this expanding, innovative ecosystem. Following the debate on food security the results suggest to pay more attention to the development of telephone farmers given their role in developing agricultural value chains and innovative ecosystems.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 16 March 2020

Michael Oluwaseun Olomu, Moses Clinton Ekperiware and Taiwo Akinlo

This paper systematically reviewed the contributions of the recent Nigerian government agricultural policies and the impacts on the agricultural value chain system in line…

Abstract

Purpose

This 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/approach

The 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.

Findings

The 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 implications

Overall, 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 implications

The 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/value

This 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.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 2 June 2021

Prabal Barua, Syed Hafizur Rahman and Maitri Barua

This paper is designed to assess the sustainable value chain approaches for marketing channel development opportunities for agricultural products in coastal Bangladesh to…

Abstract

Purpose

This paper is designed to assess the sustainable value chain approaches for marketing channel development opportunities for agricultural products in coastal Bangladesh to combat climate change through an approach of community-based adaptation options.

Design/methodology/approach

The study was designed to select the potential value chain candidate and to analyze and establish a value chain map to benefit the crop farmers. In this connection, the resources of the whole context were evaluated. The approach uses few tools to generate three outputs, the last of which are the final list of value chains selected for in-depth assessment to design interventions as community-based adaptation practices of the study to combat climate change in the study areas.

Findings

The study demonstrated that the difference in the institutional circumstances of the end markets of the agriculture products is connected to the different categories of harmonization and control of the facilitating environment throughout the supply chains. National and local networks improve the value chain in terms of the value addition of the agriculture products, technology improvement, market access and profitability of the products. Strengthening the weak financial structure, focus more on formal financial systems and resolving sociocultural and climate change-induced hazard concerns are the major concerns on the development of value chains in the countries. Apparently, guarantee for good governance, checking illegal and unregulated market contexts, proper mitigation measures to climate change are some paramount important issues for the sustainable management of livelihood, yield, income and development.

Practical implications

All kinds of stakeholders of the agriculture product value chain should focus on competitiveness and productivity and look for and exploit multiple ways to add value once initial success has been attained with a single deal. Ensuring sustainability within the value chains is an important feature to cater to the challenges and changing demands of the age.

Originality/value

The study will help to established a sustainable value chain approach in response to climate change, which process will help to existent opportunities for firms to manage the issue of climate risk by codeveloping and employing adaptation options that may be more preferred or accepted by consumers across the entire chain for the sustainable management of livelihood, yield, income and development.

Details

Modern Supply Chain Research and Applications, vol. 3 no. 2
Type: Research Article
ISSN: 2631-3871

Keywords

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Article
Publication date: 12 March 2018

Alastair Orr and Jason Donovan

The purpose of this paper is to introduce a new conceptual framework for smallholder value chains based on complex adaptive systems.

Abstract

Purpose

The purpose of this paper is to introduce a new conceptual framework for smallholder value chains based on complex adaptive systems.

Design/methodology/approach

The authors review the application of the framework to three case studies and explore their implications. The authors reflect on the value of a framework based on complex adaptive systems compared to alternative frameworks.

Findings

The authors argue that the dynamics of smallholder value chains have received insufficient attention.

Research limitations/implications

By focusing on these dynamics and on the capacity for adaptation among value chain actors the framework provides a new perspective on smallholder value chains.

Originality/value

Complex adaptive systems provide a useful framework for analyzing value chain dynamics.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

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