Guidelines For Value Chain Selection

These guidelines offer a holistic and structured approach to value chain selection. They combine four different dimensions of value chains/sustainable development: economic, environmental, social and institutional. Since the four dimensions are interconnected, overlooking any one of them during value chain selection will affect the next phase of value chain analysis and development. Because currently no comprehensive or systematic approach or methodology exists that combines these four dimensions, these guidelines have been developed to fill the gap.

Value chain development can make significant contributions to achieving the Sustainable Development Goals (SDGs) because it is a powerful approach to address root causes and binding constraints that impede the sustainable development of food value chains. The first step in value chain development is selecting those value chains that, when upgraded, can have the biggest SDG impact. This publication provides practical guidelines on how to select value chains for which upgrading is feasible and impactful in terms of the potential for generating positive economic, social and environmental outcomes. The handbook describes a step-by-step process that helps to assess, compare and select value chains in a participatory and evidence-based manner. It presents a toolbox that can be customized to projects with different budgets, scopes and objectives. This publication forms part of a set of FAO handbooks on Sustainable Food Value Chain (SFVC) development, which together provide hands-on guidance for development practitioners, including international organizations, NGOs, regional bodies and national governments seeking to achieve sustainability objectives through agrifood value chain development projects.

These guidelines aim to respond to these questions and support practitioners in translating the Gender-Sensitive Value Chain Framework, developed by the Food and Agriculture Organization (FAO) into action (FAO, 2016a). Building on FAO’s comparative advantage on gender in agriculture and food security, these guidelines are primarily intended to assist practitioners in designing and implementing interventions that provide women and men with equal opportunities to benefit from agrifood value chain development. They offer practical tools and examples of successful approaches to foster a more systematic integration of gender equality dimensions in value chain interventions in the agricultural sector and enhance the social impact of these interventions.

This publication constitutes a practical development tool, which implements the sustainable food value chain framework with a focus on small-scale livestock producers, targeting an audience of project design teams and policymakers. Small-scale livestock producers are important actors in food production, human health and management of landscapes and animal genetic resources. However, they face a number of challenges, which hamper their productivity, access to market, and competitiveness vis-à-vis their larger counterparts. By integrating the concepts of value addition and the three dimensions of sustainability, the sustainable food value chain framework not only addresses questions concerning the competitiveness, inclusion and empowerment of small-scale producers, but also incorporates the cross-cutting issues that are increasingly embedded in development projects. These guidelines take the user through the different steps of value chain development, highlighting the particularities of the smallholder livestock sector, such as multi-functionality, specific production cycles or food safety issues, through concrete examples.

Using sustainable food value chain development (SFVCD) approaches to reduce poverty presents both great opportunities and daunting challenges. SFVCD requires a systems approach to identifying root problems, innovative thinking to find effective solutions and broad-based partnerships to implement programmes that have an impact at scale. In practice, however, a misunderstanding of its fundamental nature can easily result in value-chain projects having limited or non-sustainable impact. Furthermore, development practitioners around the world are learning valuable lessons from both failures and successes, but many of these are not well disseminated. This new set of handbooks aims to address these gaps by providing practical guidance on SFVCD to a target audience of policy-makers, project designers and field practitioners. This first handbook provides a solid conceptual foundation on which to build the subsequent handbooks. It (1) clearly defines the concept of a sustainable food value chain; (2) presents and discusses a development paradigm that integrates the multidimensional concepts of sustainability and value added; (3) presents, discusses and illustrates ten principles that underlie SFVCD; and (4) discusses the potential and limitations of using the value-chain concept in food-systems development. By doing so, the handbook makes a strong case for placing SFVCD at the heart of any strategy aimed at reducing poverty and hunger in the long run.

This publication is intended to assist field practitioners, youth organizations and other stakeholders to identify binding constraints and viable opportunities to youth engagement in value chains that can translate into greater youth inclusion. Considering youth heterogeneity and inequalities, the youth sensitive framework for value chain analysis gives guidance to assess factors that push and pull youth into employment and entrepreneurship in value chains. The youth-sensitive value chain (YSVC) analysis is a starting point for youth-inclusive agricultural value chain development, since it identifies entry points and key actions expected to bring about the desired increase in employment and business opportunities for youth within a more attractive agriculture sector.

The Ex-Ante Carbon-balance Tool for value chains (EX-ACT VC) is a quantitative multi-appraisal tool that evaluates the sustainability of agrifood value chains simultaneously along several environmental, economic, and social dimensions. It analyses greenhouse gas (GHG) emissions along an agrifood value chain, from farm gate to shelf, including GHG fluxes from processing and storage, to packaging and transportation; calculates a set of value-added indicators including gross production value, value-added, and net income; and estimates the number and nature of jobs created along the value chain. It also includes an estimation of food loss at each stage of the value chain; an assessment of gender and youth participation and an SDG tracker. The EX-ACT VC methodological guidelines aim to: 1) provide a comprehensive overview of the tool and help users assess the sustainability of agrifood value chains across environmental, economic, and social dimensions using the tool; 2) describe the various methodological concepts underlying the tool to perform a value chain assessment and calculating several indicators of sustainability; 3) illustrate the structural layout of the tool, explaining data requirements, and providing step-by-step data entry guidance to perform a value chain assessment using EX-ACT VC; 4) discuss the different indicators the tool calculates and how they can be for project and policy evaluation and design. These guidelines are intended to assist potential users of EX-ACT VC including policymakers, project managers, analysts, and researchers.