Valuechain User Manual

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Frequently Asked Questions

• Why do we need a value chain thinking manual?

  This manual helps trainers to teach Value Chain Thinking principles and decision-making processes, and provides a structure for participants to develop an Action Plan which draws together their skills in production, postharvest activities and Value Chain Thinking.

• Who are the players in a value chain?

  Wholesalers, agents, and/or traders are involved at different stages throughout the value chain. They are, but not always, included in diagrams of value chains. These players in the sectors are those with financial capabilities and resources ready to pick these products from the farm.

• Which is the first step in a value chain analysis?

  The first step of a value chain analysis is the so-called mapping. In order to do so, the boundaries to other chains need to be defined. The main idea is initially to identify the actors and then to ‘map’ the traced product flows within the chain including input supply, production, processing, and marketing activities.

• How is a part of a value chain sold?

  The distribution component of the value chain is separated into three parts. First, a part is sold to end-users either in the vicinity of the farm or through wholesales marketers to local markets or processors. Processors get their suppliers directly from the farmers or the dealers.

• Why do we need a value chain thinking manual?

  This manual helps trainers to teach Value Chain Thinking principles and decision-making processes, and provides a structure for participants to develop an Action Plan which draws together their skills in production, postharvest activities and Value Chain Thinking.

• Who is the founder of value chain analysis?

  The term value chain analysis was coined in 1985 by Michael Porter, a Harvard Business School professor. His book “ Competitive Advantage ” introduced the basic concept, outlining how businesses can identify primary and supporting activities and create value for their customers.

• What are the activities in a value chain?

  These activities include: Inbound/outbound logistics: Receiving, storing and distributing products, goods and services. This activity takes into account practical processes like storage, deliveries, stock and transport needs and costs. Operations: Anything that falls under the banner of machinery costs, product assembly and packaging.

• What are the two levels of value chain analysis?

  The two levels of value chain analysis To conduct a value chain analysis, businesses need to split the chain into two levels: primary activities and support activities. A primary activity is anything that directly impacts the input, output or distribution of products or services.