VALUE CHAIN

ANALYSIS

VALUE CHAIN PLAYERS OR ACTORS

VALUE CHAIN

Full range of
activities that
are required
to bring a
product or
service from
its conception
to its end use,
including all
the market
channels
available to
all firms

Enabling
Environmen
t
Sector
specific
providers
Cross-cutting
providers
Financial
(cross
cutting)

Global
Retailers
National
Retailers
Exporters

Wholesale
rs

Processors
Producers x
Producers
Input Suppliers

MAIN THRUST OF A VALUE CHAIN ANALYSIS

To identify ways to
contribute to three
objectives:
Improving the
competitiveness of value
chains with the gainful
participation of large
number of smallholders and
MSEs
Improving chain wide
resource productivity (and
environmental performance)
Expanding the depth and
breadth of benefits
generated across all
functions in the chain

SOME OF THE COMMON QUESTIONS

CONSTRAINTS ROOTED IN MARKET SYSTEM

ELEMENTS THAT AFFECT THE PERFORMANCE OF A CHAIN

FIRM LEVEL
UPGRADING

HORIZONTAL/VERTICAL
LINKAGES/
RELATIONSHIPS/
GOVERNANCE

SUPPORT
MARKETS

MARKETS

COMPETITIVENESS
INCLUSIVENESS
RESILIENCE

ENABLING
ENVIRONMENT

VCA METHODOLOGY AND FRAMEWORK

MARKET ANALYSIS
1. Analysis of existing
data
2. Identification of data
gaps
3. Primary and secondary
research
Identification of market
opportunities

Competitiveness
Strategy

Interventions/Investmen
ts

FOUNDATION DATA
ANALYSIS

VALUE CHAIN ANALYSIS

1. Analysis of existing
data
2. Identification of
data gaps
3. Primary and
secondary research

1. Production data
2. Vulnerability and
Site Suitability
Assessment
Identification of focal
areas

Identification of
constraints and
opportunities

Adapted from USAID VCA Framework

VCA METHODOLOGY
Mapping and
understanding
of actors,
functions,
and
relationships
Collect Data

End Market
Analysis

Analyz
e Data

Opportunities
and
Constraints

Vet
Findings

INTERLINKED COMPONENTS