value chain actors and their rolesvalue chain actors and their roles

Furthermore, supportive marketing and trade policy reforms (liberalization of input and maize markets) have been found to lead to increased input use and crop productivity34. Extended Data Fig. contributed to screening at all stages, contributed to the development of the data extraction template and to data extraction, led the data cleaning and analysis and contributed to the writing. Indian J. Agric. Inadequate managerial and organizational skills can lead to collective action failure, and poor coordination in fulfilling agreements with buyers can limit market opportunities for the entire group39,40,41. PubMedGoogle Scholar. More specifically, we recommend the following: Provide SMEs with incentives to offer complementary services to small-scale producers facing market failures and to expand their operations to reach remote farmers (with even higher transaction costs), with special attention to youth, women and disadvantaged castes and ethnic groups. PDF 3. Characteristics of automotive value chains - ESCAP Governments should promulgate policies and regulations that reduce the SMEs transaction costs for both start-up and operation and that increase their capacity to manage supply-chain risks13,70. Assessing local and regional food aid procurement through case studies in Burkina Faso and Guatemala. We acknowledge and appreciate financial support for this work from the Ceres2030 project. Roles of chain actors - Value chain analysis and mapping for - 1Library PDF Introduction to the Value Chain Introduction to the Value hain - UNESCO This was noted in 65% of the instances where positive enabling conditions were mentioned. High meant there was a clear description of the sampling methods used (for methodology) and a clear justification of the selection of the research site(s), research design and/or methods used to collect and analyse the data used (for methodology justification). Value Chain Analysis of Wheat ( Triticum Aestivum ) in Dembecha 13, 141146 (2015). (2) Positive outcomes can derive from access to infrastructure. The highest percentage of the profit share goes to exporters (25.04%), followed by wholesalers (21.61%). They are referred to as the hidden middle because, though they constitute 40% of the average food supply chain, they are often missing from policy debates3. Supplementary Table 1 is the data extraction form, which includes details about the information extracted from each study. Ngeno, E. K. Dairy farmer households farm gate milk price heterogeneity in Kericho County, Kenya. the value chain includes direct actors who are commercially involved in the chain (producers, traders, retailers, consumers) and indirect actors who provide services or support for. Womens experiences of cassava commercialization in Nigeria and Malawi. J. Agric. 51, 519533 (2020). Science 352, 943945 (2016). J. Int. Planning for Adaptation: A System Approach to Understand the Value Buyers fear side selling while farmers fear product rejection52,53,54. Small-scale producers interact with various actors when they link with markets, including product traders, logistics firms, processors and retailers. J. Impacts of smallholder participation in high-quality coffee markets: the Relationship Coffee Model. 110147 (International Food Policy Research Institute, 2012). In addition to easing the provision of complementary services, access to transportation (road infrastructure) enables farmers to gain better price terms from both informal and formal market channels29,30, and cold storage infrastructure, which reduces food wastage, has been found to increase producers sales and generate higher prices in the off season17,31,32. (PDF) Value Chain Analysis: A Brief Review - ResearchGate Fish value chain and the determinants of value addition decision Most studies were scored as being of high quality using the criteria explained in the Methods; just 15.5% (quantitative) and 20% (qualitative) of the studies were scored as being of low quality, usually because the study lacked sufficient details on its methodological approach. This indicates that the final welfare effect of farmers interactions with market channels is a gap in the literature. Google Scholar. Net. 25, 65005 (2016). A total of 130 farm households, 30 traders, 2 bakers, 1 processor, 4 cooperatives and 10 consumers were used to collect the data. Liverpool-Tasie, L.S.O., Wineman, A., Young, S. et al. Inputs were provided to farmers in 38% of links with these modern market channels. Thus, SMEs (which are more accessible to small-scale producers than are formal contract arrangements) play an important role in facilitating inclusive growth as food systems transform in developing regions. Afr. Hernandez-Aguilera, J. N. et al. Cah. This value is 81% for output intermediaries, 96% for input suppliers (largely cooperatives and agro-dealers) and 100% for providers of logistical services (although there are just nine cases in the latter group). Econ. 169, 467473 (2018). Focal actors are categorized on the basis of their transactional role as a supplier of farm inputs (for example, chemical fertilizer: IS1) or service (for example, warehouse rental: L1) or a buyer of farm output (OM1). 10 reports that contract farming may increase farmer incomes substantially, but this is largely restricted to larger farmers. The extracted data included bibliographic information, information about the study design, sample size, producer characteristics and information about the focal actors and their interactions with producers. Publishers note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Contrary to our expectations, it is not more common for cases with positive outcomes to include informal purchase agreements compared with cases that have negative or inconclusive outcomes. Largely missing from the literature is evidence on (1) whether and how much value chain actors provide resources and services to farmers when the relation does not involve a formal contract and (2) whether interactions with these enterprises benefit small-scale producers in the absence of a formal contract. The contents are the responsibility of the authors and do not necessarily reflect the views of any donor or donor country. Polit. (PDF) Moringa Value Chain: Mapping the Linkage between Actors Multi-stakeholder platforms for linking small farmers to value chains: evidence from the Andes. In addition, a study was excluded if: The methodology provided was insufficiently clear to evaluate quality and potential biases. Rev. Forsythe, L., Posthumus, H. & Martin, A. led the search process and contributed to the title and abstract screening. Ansah, F. A., Asare, G. O. Giessen, 2017). Journal impact factors for studies published in peer-reviewed journals were retrieved from Journal Citation Reports (Clarivate Analytics). In 35% of interactions with cooperatives (19% for processors) that purchased products from small-scale producers, the buyer also offered some sort of training (OM2A in Fig. PDF Study on commitments pledged under the EU Code of Conduct on The services most frequently cited were capacity building and training (extension) for farmers (mentioned in 23% of the included studies) and the provision of credit (mentioned in 16%). Resour. Their rise is important to small-scale producers because they are the farmers proximate interface with the market, through which farmers sell their products, receive logistics and intermediation services and buy farm inputs. Interviewswith relevant value chain actors and a review of reports and scientic literature were used to explore this question.Empirical ndings show that value chain structural organization can be an entry point to mainstream technology andinnovation. The authors declare no competing interests. Exp. & Madevu, H. Securing small farmer participation in supermarket supply chains in South Africa. Reardon, T.) 112 (AGRA, 2019). Several frameworks have emerged and have been used to. Value chain analysis of Mung Bean - Agriculture & Food Security L.S.O.L.-T. identified the overall research question and liaised with S.Y. Although important, contracts constitute a very small share of smallholder market interactions. A crop of ones own? South. For input suppliers alone, these values are 88%, 93% and 94% (N=64 in total). Agric. The literature has explored primarily how large firms interact with farmers through formal contracts and resource provision arrangements. Then we analysed whether the outcomes of these economic relations were positive for small-scale producers, as well as what explained any positive or negative outcomes (Fig. By considering 3 Main challenges in focal actor interactions with farmers. 134, 785842 (2018). Studies that clearly did not meet this were considered to be of low quality. This is the first stage of the value chain. Reardon, T. et al. whole value chain, etc. Extended Data Table 1 Types of assistance provided by input suppliers and logistics service providers. Dev. and Australia. Relevant information from each included study was extracted by at least one review author and included an assessment of the quality of the studies methodology description and justification. a The unit of analysis in this table is the outcome evaluated in a given study and by a given focal actor. Extended Data Fig. Kilelu, C. W., Klerkx, L. & Leeuwis, C. Supporting smallholder commercialisation by enhancing integrated coordination in agrifood value chains: experiences with dairy hubs in Kenya. World Dev. 13, 1346 (2017). Int. Quality as a driver of sustainable agricultural value chains: the case of the relationship coffee model. Negi, D. S., Birthal, P. S., Roy, D. & Khan, M. T. Farmers choice of market channels and producer prices in India: role of transportation and communication networks. https://doi.org/10.1038/s41893-020-00621-2, DOI: https://doi.org/10.1038/s41893-020-00621-2. 37, 17421758 (2009). Liverpool-Tasie, L. S. O., Sanou, A. Moringa value chain was mapped in different dimensions to dope out the actors involved in the chain, the core processes that took place along the chain, activities undertaken by each. S.Y. Table 4 : Description of value chain actors and their roles PRISMA extension for scoping reviews (PRISMA-ScR): checklist and explanation. Rural Stud. Andersson, C. I., Chege, C. G., Rao, E. J. T. Sani, and 1D.D. For a detailed explanation of selection criteria, see the scoping review protocol in Open Science Framework68. Mojo, D., Fischer, C. & Degefa, T. The determinants and economic impacts of membership in coffee farmer cooperatives: recent evidence from rural Ethiopia. Nairobi, 2017). 3.1 Actors in the value chain and their linkages. Thus N=226. Nat Sustain 3, 799808 (2020). The Supplementary Information presents the search strategy used in CAB Abstracts, and all of the search strategies used are available on the Open Science Framework68. For example, the percentage of cases where an output buyer provided a purchase agreement is much higher for high-value crops (34%) compared with staple crops (22%). Ten percent are working papers published in grey-literature outlets, 7% are conference papers, and book chapters and theses/dissertations each account for 5% of the included studies. Outcomes of the transactions for the farmer are determined by the terms and conditions of the transactional role plus any complementary services. Particularly in developing countries in Africa and South Asia (where small-scale producers dominate), the growth and transformation of food systems drives a proliferation of midstream SMEs which, our results show, can be a force inclusive of, and beneficial to, small-scale producers. Based on the role they played value chain actors can be grouped under three levels in the study areas. This will enhance their ability to support small-scale producers with the relevant complementary services to enable them to upgrade their practices and improve their welfare. 3). & Jayne, T. S. Exploitative briefcase businessmen, parasites, and other myths and legends: assembly traders and the performance of maize markets in eastern and southern Africa. We included studies that assessed impacts on small-scale producers of food crops, fish, dairy and livestock in low- and middle-income countries in Africa, Asia and Latin America. In both steps, studies were screened by two independent reviewers, and conflicts were resolved by a third reviewer. Are middlemen facilitators or barriers to improve smallholders welfare in rural economies? Fung, W., Liverpool-Tasie, L. S. O., Mason, N. & Oyelere, R. U. Finding that SME value chain actors provide complementary services shifts the debate on their role in markets. These activitiesIS2, OM2 and L2 in Fig. Resour. Tricco, A. C. et al. Interacting with value chain actors: What to do when your research Because so many of these observations are of buyers, the values for buyers alone are very similar (at 77%, 63% and 82% for primary, intermediary and secondary outcomes, respectively). This table presents the distribution of services provided for input suppliers and logistics providers only; thus, N=37. A value chain analysis can reveal linkages, dependencies and other patterns in the value chain. The enabling and constraining connections between trust and 1 PRISMA flowchart of screening. J. Int. Moreover, a lack of trust between cooperative members and their leadership could result in failure to deliver on agreements28,45,46,47,48. It focused on the effect of contract farming on small-scale producers. Agric. Mung bean value chain actors include input suppliers, producers, collectors, retailers, wholesalers, exporter and consumers. J. PDF FINANCE IN THE VALUE CHAIN FRAMEWORK - United States Agency for The concept was conceived by Harvard Business School Professor Michael Porter in . Food Policy 81, 106121 (2018). Econ. In order of importance (that is, the number of studies that mentioned a factor), the main inhibitors were capacity constraints, lack of trust between farmers and the focal actors, high transaction costs, non-inclusiveness, financial constraints and market power (Extended Data Fig. Fischer, E. & Matin, Q. Extended Data Table 2 Types of assistance provided by product type of farmer. 2.5.1. Value Chain Finance | Marketlinks High-value crops are defined here to include horticulture and cash crops. The study location was in a low- or middle-income country in Asia, Africa or Latin America. Improve trucking regulations to promote safety, and ease constraints on transport investment. 14, 100099 (2019). Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. Vibrant food systems. Activities of main actors in tomato value . Included studies were coded to tabulate the focal actor linkage that was captured within the study. Thiele, G. et al. Extended Data Table 3 Impacts on farmers by outcome category. Roles of chain actors In document Value chain analysis and mapping for groundnuts in Uganda, Socioeconomics Discussion Paper Series Number 14 (Page 85-95) Seed dealers: Although this study did not consider this stage, empirical studies have documented the actors and their roles in groundnut value chain. Noma, F. Assessment of Food Reserve Policies in West Africa: Case Study of Benin Grain Reserve Policy Design and Impacts (Univ. The other type are enabling roles, which are roles that value chain coordinators perform to provide support and enable the VCCEs ability to provide the . The midstream and downstream of the food output and input supply chains have emerged as a growing field of research4,5,6. The other modern market channels (agro-export companies, marketing platforms and high-value chains) also tend to provide services for farmers in addition to an output market. 2b). However, the available literature is heavily tilted towards crop value chains rather than livestock, and towards high-value crops rather than staple crops. The remaining records were imported into Covidence (https://www.covidence.org) for title/abstract and full-text screening. Small enterprises comprised 75% of the cases for traders and almost 90% for processors. Implement. The observation level is the included study; thus, N=202. The availability of rural infrastructure, including irrigation, transportation, processing, storage and communications, was noted as a facilitating condition in 23% of the studies. These intermediaries can directly support zero hunger and improved welfare through the inclusion of small-scale producers that otherwise would have been excluded. Included studies measured at least one of our primary, secondary or intermediate outcomes, as shown in Fig. Bus. B., Lentz, E. C., Barrett, C. B. Mason, N. M. & Myers, R. J. Zambian Smallholder Behavioral Responses to Food Reserve Agency Activities Policy Synthesis 49 (Food Security Research Project Zambia, 2011). 25, 322332 (2009). 1, 110128 (2016). Seto, K. C. & Ramankutty, N. Hidden linkages between urbanization and food systems. Agric. Int J. Soc. and N.G. Geogr. Disbursement/Repayment of Loans: Value chain actors may play a direct role in loan transactions. was introduced by Porter in 1985. Mutonyi, S. The effect of collective action on smallholder income and asset holdings in Kenya. Adjei-Nsiah, S. & Klerkx, L. Innovation platforms and institutional change: The case of small-scale palm oil processing in Ghana. This yielded 241 linkages or focal actor cases. Background Vegetable production is vital economic activity in the world and Ethiopia particularly. Austin, J. E. Agroindustrial Project Analysis (Johns Hopkins Univ. Chagwiza, C., Muradian, R. & Ruben, R. Cooperative membership and dairy performance among smallholders in Ethiopia. Among all outcomes assessed in these studies, the study focal actors produced a positive outcome for farmers in 77% of the cases (Extended Data Table 3). Reardon, T.) 146165 (AGRA, 2019). 53, 187208 (2017). It made clear reference to a link/interaction or potential link/interaction in terms of exchange (physical and/or monetary) between small-scale producers and the studys focal actors (value chain actors across the midstream segments of agri-food trade, processing and logistics). Financing is mostly in the form of short-term loans. The Effects of Feed Costs and Increased Energy Needs on Broiler Farm Productivity: A Dynamic Programming Approach Research Paper 130 (Feed the Future Innovation Lab for Food Security Policy, 2019). Different actors involved directly or indirectly between producers and final consumers in tomato value chain. Improve transport infrastructure and conditions to help traders and logistics firms; reduce road-related corruption (via illegal roadblocks) and high fines, as well as costs of electricity, fuel and vehicle imports. Regulations, brokers, and interlinkages: the institutional organization of wholesale markets in India. The studies were then screened in three phases. Thus, N=57. Sci. 27, 179198 (2018). Herrmann, R., Nkonya, E. & Fae, A. 53, 269287 (2017). the best experience, we recommend you use a more up to date browser (or turn off compatibility mode in Across product types, the share of focal actor cases where complementary services were provided is higher for links with livestock farmers compared with crop farmers (Extended Data Table 2). Francesconi, G. N. & Ruben, R. Impacts of Collective Action on Smallholders Commercialisation: Evidence from Dairy in Ethiopia (European Association of Agricultural Economists, 2007). A.W. This pattern is consistent with the mechanism (OM2 in Fig. Value chain analysis is the method for determining the critical path to enhance customer value while reducing costs. ), as well as helping formulate and advocating for the . Wassie, S. B., Kusakari, H. & Masahiro, S. Inclusiveness and effectiveness of agricultural cooperatives: recent evidence from Ethiopia. Moreover, there has also been a proliferation of value chain actors in input supply chains (agro-dealers) that supply inputs as well as services (such as training and logistics arrangements) to small-scale farmers. If material is not included in the articles Creative Commons license and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The observation level is the included study that mentioned a challenge affecting the transaction between a small-scale producer and a value chain actor. Screening Borrowers: Value chain actors may have useful information about potential borrowers. This review leverages a data science framework to accelerate the work within each of the individual steps as described in the following. These modern market channels are therefore similar to the main output market channels in providing these additional services. An individual study could look at multiple focal actors (for example traders and processors). 1. Gow, H. R. & Swinnen, J. F. M. Up- and downstream restructuring, foreign direct investment, and hold-up problems in agricultural transition. Nat. J. Blanc, J. CAS Sign up for the Nature Briefing newsletter what matters in science, free to your inbox daily. 27, 628646 (2015). 68 Mapping of beef cattle value chain actors in selected states of North- West Zone, Nigeria 1Rekwot ,G. Z .2Abdulsalam, Z., 1R. It focused on efficacy of a technology or service. More surprisingly, this is not restricted to large enterprises but is widespread among SMEs. Singla, N., Singh, S. & Dhindsa, P. K. Fresh food supermarkets in the Indian Punjab: organisation and impacts. The low technical capacity of cooperatives and traders (the two major focal actors documented in the literature) limits their ability to support farmers6,35,36,37,38. We also find that the majority of outcomes of the transactions are beneficial to small farmers, not exploitative as suggested by the old literature. 46, 614630 (2019). Importantly, we did not include credit as an input here. The detected lack of trust might reflect the prevalence of informal contract arrangements in the included studies. A list of all studies that met the inclusion criteria can be found in Supplementary Table 2. Instead, the agencies tend to focus on their primary role of buying farmers output (OM1). & Roy, D. Why Market Institutions Disfavor Smallholder Farmers Compliance with International Food Safety Standards: Evidence from Kenya, Zambia and Ethiopia (International Association of Agricultural Economists, 2009).