A value chain assessment is the process of evaluating the degree of engagement of every actor in a specific industry from producing the basic raw materials to delivering a final product to the consumer.
The goal of the VCA is to determine where farmers are located along the several value adding opportunites in the value chain, and how they can improve their income generation activities.
In fruits and vegetables, a value chain begins up stream with the production of goods by individual farmers, cooperatives or farming corporations, and broadens downstream as the product is transformed or repacked to be sold either through retailers or be served in restaurants where the final consumer is reached.
Experience has shown in several parts of the world that the vast majority of horticultural entrepreneurs are not part of a value chain. They continue to join traditional supply chains with a strong focus on cost and price, and not on value and long term profit. Joining value chains is difficult for them because in most cases, well organized value chains will require higher levels of coordination, minimum plot sizes to supply agreed volumes, and higher focus on adding value and differentiation to the products than on non-differentiated commodities.
Because of this situation, better off farmers (larger, better endowed, better connected to the value chain actors) are more likely to be part of the value chain philosophy. PFID-F&V's approach takes this reality into consideration and plans for the long-term involvement of more farmers by opening opportunities with the most advanced farmers first. The concept is not new as there are several private-sector models around the world that work this way through out grower schemes. PFID-F&V's innovation concentrates on developing partnerships that will ultimately facilitate access to the "next in line" after the top tier farmers have entered the value chain and continue opening the breach for others. The following graph illustrates this dynamics.
Advantaged Growers Lead the Way
