Value Chain Analysis: Overview and Context for Development

Abstract

The term “value chain” as well as the method of value chain analysis have their origins in two concepts: the francophone term of “filiére”; and the anglophone term of “commodity chain”. In the last two decades, value chain analyses have been widely used by public and international agencies in their programs and projects for development, mainly in the agricultural sector, as it involves many poor people. The use of value chain analysis will continue to grow because it is a very useful tool. However, the framework of such analyses depends on the objectives and the context (which determine the nature of the analysis – qualitative and/or quantitative), the focus (products, activities, or actors), the policy-option evaluations, and whether or not the goal is to assess environmental dimension(s) (impact measuring). In the present study, three value chain analyses were analyzed: FAO – value chain analysis; Value links manual and the recent Value Chain Analysis for Development. The last of these was found to be the most updated, because it includes in its own structure a qualitative and quantitative analysis, providing a robust and detailed environmental and social dimension evaluation, and reflects a concern about the sustainability of the value chain.