1 The Value chain approach. 2 Strategic goal: Strengthen productive capacities to promote...

1

The Value The Value chain chain

approachapproach

2

Strategic goal:

Strengthen productive capacities to promote sustainable and equitable economic growth.Reduce poverty and food insecurity.

Methodology:Commodity value chain development to enhance competitiveness, flexibility and productivity

Technical assistance & interventions along a

3

Major Opportunities:

-Abundance of resources-Market (D&I)

Constraints-Access to appropriate technology-Supply capacity-raw material /finished goods-Quality/-TBT

4

• Selection of specific sectors that have comparative advantage

• Grouping of regions (across borders) with commonalities in terms of commodities of economic importance

• Based on feasibility studies, development of business plans for each selected product

• Development of regional master plans for the development of each selected commodity

• Development of regional program/s

Possible Immediate Follow Up Activities:

5

• Policies– Regional policy review/development (agricultural policies, investment, trade etc)– Harmonization of national policies with regional requirements

• Institutional Capacity Building– Establishment/rehabilitation of centers of excellence for selected commodities.– Support for the establishment of regional/national quality infrastructure

• Industrial upgrading at the enterprise level– Diagnostic assessments of enterprises in selected sectors– Selection of enterprises with existing potential for growth– Technical assistance to upgrade selected enterprises –technology transfer and

skills upgrading– Creation of backward,forward and horizontal linkages

Potential Programme Focus Areas:

6

Stakeholders:

• Policy makers• Support institutions• Individual chain actors

7

COMMODITIES

LeatherTextile

WoodMachines

Food

8

Possible interventions along a commodity value

chainRaw materials Processing 1,2,3

etcMarket

Capacity to supply

Quality

Agricultural policies

Agricultural inputs

Water resource

management

Agricultural tools/machiner

y

labor

Outputs

Inputs

Capacity to supply

Quality

competitiveness

Investment policies

Manufacturing inputs

New product development,

product diversification,by product utilization

(COE’s)

Management skills

Technical skills

Appropriate technologies

Meet specific regulations HACCP

Access/develop markets

Increase market share

Aggressive promotion of

products

Niche market identification

Trade policies

9

Connect to the markets

Developcompetitive

manufacturingcapability

Prove conformity with

market requirements

Compete Conform Connect

MA

RK

ETS

PR

OD

UC

TS

Productdesign and

development

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Examples of possible interventions

10

Productdesign and

development

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

• Value creation• Enhancing quality of industrial products• Effective communication of product

values to consumers

Definition:

11

Services:

• Introduction and promotion of products featuring market requirements (food, leather, textiles)

• Improve market access and competitiveness• Adapting/developing products to consumer needs

Productdesign and

development

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

12

• Value addition• Lower share of rejects and higher value • Upgraded marketing capabilities resulting in

an increased number of products and increased participation in global trade

• Farmers/entrepreneurs have access to efficient and quality agricultural equipment

Results:

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

13

Definition:

Physical and intellectual facilities

• specialized on given industrial activities • capable of identifying and transferring

appropriate manufacturing techniques;• providing technical assistance;• generate and disseminate technical

information;• rendering specific services (e.g.

laboratory testing and quality assurance) and

• imparting training.

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

14

• Support and advice on technology-related analyses to identify technical choices and related development options and related policies and strategies

• Capacity building in the agro industry and related institutions

• Establishment and/or strengthening of professional education and training institutes

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

15

• Reveal features, advantages and benefits of the proposed technology;

• Exhibit (pre)conditions and infrastructural requirements for adopting or adapting the transferred technology;

• Provide prospective users with factual and authentic information and example(s).

• Demonstrate sound enterprise and business management practices.

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

16

Results:

• Enhanced product value chain • Improved technical skills • (Sub)sectoral training and support centers • Innovative technologies transferred

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

17

Services:

• Technology upgrading and product quality improvement;• Assistance and advice on modern technologies • Introduction of improved technology, smoother production

flow, improved quality, upgraded skills • Process optimization contributing to reduction of pollution,

waste minimization and by-products’ utilization • Advisory services to promote and develop the Agro

Machinery Industrial System (AMIS) • Establishment or strengthening professional (trade)

associations

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

18

Results:

• Improved processing technologies • Optimized processes • Improved technical skills • Higher level of value-added, sustainable use of natural resources;• Rural artisans/blacksmiths produce standardized equipment

responding to local needs;• Upgraded production methods for enhanced productivity;• Generation of employment and income in remote rural areas for

vulnerable groups.

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

19

Definition:

• Evaluation of competitiveness• Determining baseline data• Establishing feasibility of development

programmes or investments• Analyzing global trends• Conducting techno-economic surveys

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

20

Applications:

• Assessment of food industries• Assessment of textile and garment industries• The UNIDO Leather and Leather Products Industry Panel • Wood industry advisory expert group.

Techno-economic

assessments

Technologycentres

Demonstrationunits/operations

Productdesign and

development

21

Sectoral coverage:

• FoodFood processingprocessing• Agricultural machineryAgricultural machinery, tools and

chemicals production and supply;• Fiber processing (technology):

• Textile Textile and garment industry;• LeatherLeather processing and leather products

(footwear, leather goods, gloves, leather garment, sports goods) manufacturing;

• WoodWood and non-wood forest products manufacturing (including paper and pulp);

22

FISHERIES IN LAKE VICTORIA

Food Unit

Example

Example

23

Post harvest system in the food sectorMachineryUnit

Agro

-

24

DRYING FRUITS AND VEGETABLES IN BURKINA FASO

Food Unit

Example

Example