APPROACHES AND METHODS OF VALUE CHAIN ANALYSES IN AGRICULTURAL SECTOR OF CENTRAL ASIAN COUNTRIES
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1 APPROACHES AND METHODS OF VALUE CHAIN ANALYSES IN AGRICULTURAL SECTOR OF CENTRAL ASIAN COUNTRIES Mgr. Kairat Itibaev
2 CONTENT OF PRESENTATION Background & methodology Approaches & data collection Methods & Techniques
3 JUSTIFICATION ON VALUE CHAINS PROMOTION Contributions into development Economic capacity and sustainability of development: Ensures better quality and more public goods or services Systemic competitiveness via cooperation Increases the efficiency, productivity of VC actors and regional economy Coordination of public and local authority activities: Enables entrepreneurship development on the micro level and institutional enhancement on the meso and macro levels of VC
4 JUSTIFICATION OF VALUE CHAIN PROMOTION non-coordinated and ineffective transactions Traditional market of commodities are fragmented Small producers have a low access to the quality services, information and inputs Lack of trust Producers focused on short term benefits Consequences: High transactions cost Low prices Low value add Weak stimulation of innovations
5 BACKGROUND ON VALUE CHAINS PROMOTION IN CENTRAL ASIA Program interventions of the international agencies on development: Helvetas Swiss Corp UNDP ADB GIZ
6 METHODOLOGY OF VALUE CHAIN PROMOTION Identification scope of project Strategy formulation Implementation Monitoring Decision on involvement in VC development Analysis of selected VC Strengthening business linkages PPP Monitoring and measuring of impact VC selection for development Strategy for VC development Improving services for VC Quality standards introduction Facilitation action plan for VC development Access to financing Improving VC BIZ environment `
7 HOW TO START VCA? Chosen subsector in accordance with selection criteria VCA: identification challenges and opportunities Outcomes of VC development based on program activity There should be several performance indicators 7
8 CONTENT OF PRESENTATION Background & methodology Approaches & data collection Methods & Techniques
9 APPROACHES OF VALUE CHAIN ANALYSIS DEEP SSA VC A LBC EXTERNA L FR GENERA L VCA value chain analysis SSA- sub-sectorial analysis FR- field research LBC Local business center RMA Rapid market appraisal FAST RM A
10 Macro Meso Micro MICRO, MESO, MACRO LEVELS OF VCA Functions holders or operators involved directly in VC Inputs Production Processing Logistics & trading Consumption supporting functions Market information Researches & Consultation Financial services Cooperation with associations Advocacy of common interests Trade fairs, joint sales Public policy enabling sustainable development of business environment Infrastructure Legislation Stimulations & incentives
11 INFORMATION BLOCKS FOR VCA Public policy Macroeconomic drivers Taxation External impact Industry information Clusters Value Chain operators Labor Skills Technology BIZ environment Legislation and regulations Capital Materials Society, community and culture Equipment Supporting organizations 11
12 financial services Non financial services VALUE CHAIN OPERATORS AND SUPPORTING ORGANIZATIONS consumption retails wholesales processing production 12
13 GAP ANALYSIS FOR THE PROJECT INTERVENTION 13
14 DIFFERENT LEVELS OF IMPACT Alongside of VC: Company level Worker level* Household level* Supporting organizations Influencing authorities * UN SDGs 14
15 CONTENT OF PRESENTATION Background & methodology Approaches & data collection Methods & Techniques
16 METHODS OF RAPID MARKET APPRAISAL PEST SWOT Selling points audits RMA
17 EXAMPLE OF FUNCTIONAL ANALYSIS ON FRESH BEEF Export Import breeding cattle Trading fattening Slaughtering Wholesales Retails KZ CH KG Breeding Vaccination 1-Sale Purchase Transporting Purchase Vaccination Fattening 2 Sale Slaughtering Storing Selling Delivery Wholesales Resale to consumer Consumption Identification of operators of the value chain on fresh beef Farmers Traders Fatteners Slaughtering points Wholesalers Retailers Traders
18 Competitor VC FIELD STUDY Consumers Market information Industry data VC operators Production information Producers 18
19 EXAMPLE: TREE OF PROBLEMS Consequences Absence of beef import from Kyrgyzstan Absence of big meat processor companies Low attractiveness for beef importers Source of raw material Problems Low export potential Absence of special meat strains of cattle Reduction of cattle livestock Bad epizootic situation, low strains of cattle Causes small-scale commodity production individual farmers High capital investment Absence of frontier sanitary control Low strains of cattle Absence of quality fodder base Illegal slaughter houses Backwardness of livestock sector Lack of finance Backwardness of veterinary
20 EXAMPLE: TREE OF OBJECTIVES Objectives Sale and beef export Growth large beef farmer producers Increase attractiveness of the Kyrgyz beef for importers Raw materials export Increase export potential Launch new processing companies Attracted investments Favorable epizootic situation Enhance and use meat strains of cattle of the own selection Availability of modern techniques and technologies Common frontier sanitary control among Kazakhstan, Russia and other CIS countries Availability of qualified specialists High value of labor resource Legal slaughter houses Means Improve livestock sector Availability of finance Support and development veterinary
21 SYMBOLS OF MAPPING Without coordination Consumers Retailers Other operators Contracts and agreements 21
22 THANK YOU VERY MUCH! QUESTIONS??? BEST REGARDS!!! Mgr. Kairat Itibaev,
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