Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact
Diego Naziri | Sarah Mayanja | James Ssemwanga | Jason Donovan
Value chain development (VCD) with smallholders forms a central element of the poverty reduction strategies of governments and NGOs in developing countries. Nevertheless, too little is known about how VCD interventions are designed and implemented, the approaches and tools used, and the challenges faced in the process. This paper helps to fill this gap with evidence from six cases in Uganda. For each case, data was collected from interviews with NGOs, government organizations, buyers, and smallholder business organizations. Results indicate that use of available VCD guides and tools facilitated productive partnerships among chain actors, engagement with support organizations, and feedback mechanisms on intervention processes. Results also challenge NGOs, government agencies, and researchers to better understand the circumstances of resource-poor chain actors, the implications of VCD on gender relations, and the cultural and business context when designing and implementing VCD. This calls for stakeholders to employ a broader approach to VCD, using a combination of available and new tools, and to seek out deeper collaboration with key actors within and outside the value chain.Bernet, T., Thiele, G. and Zschocke, T. (2006) Participatory Market Chain Approach (PMCA): User Guide, Lima: International Potato Center (CIP) <http://cipotato.org/publications/pdf/003296.pdf> [accessed 14 April 2017].
Donovan, J. and Poole, N. (2014) ‘Partnerships in fairtrade coffee: close-up look at buyer interactions and NGO interventions’, Food Chain 4(1): 34–48 <http://dx.doi.org/10.3362/2046-1887.2014.004>.
Donovan, J., Franzel, S., Cunha, M., Gyau, A. and Mithöfer, D. (2015) ‘Guides for value chain development: a comparative review’, Journal of Agribusiness in Developing and Emerging Economies 5(1): 2–23 <http://dx.doi.org/10.1108/JADEE-07-2013-0025>.
Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools and persistent gaps’, Enterprise Development and Microfinance 28(1–2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.
Even, B. and Donovan, J. (2017) ‘Value chain development in Vietnam: a look at approaches used and options for improved impact’, Enterprise Development and Microfinance 28(1–2): 28–43 <http://dx.doi.org/10.3362/1755-1986.16-00034>.
GIZ (2012) Growing Business with Smallholders: A Guide to Inclusive Agribusiness [pdf], Eschborn, Germany: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) <www.endeva.org/wp-content/uploads/2014/11/Guide-Growing_Business_with_Smallholders_large-2.pdf> [accessed 25 November 2017].
Humphrey, J. and Navas-Alemán, L. (2010) Value Chains, Donor Interventions and Poverty Reduction: A Review of Donor Practice [pdf], Brighton: Institute of Development Studies (IDS) <http://www.ids.ac.uk/files/dmfile/rr63.pdf> [accessed 23 May 2017].
IFAD (2014) Commodity Value Chain Development Projects: Sustainable Inclusion of Smallholders in Agricultural Value Chains [online], Rome: IFAD <https://www.ifad.org/documents/10180/43d9cf7a-e86c-47e9-a7b3-906e0b1be055> [accessed 20 December 2016].
Lundy, M., Becx, G., Zamierowski, N., Amrein, A., Hurtado, J.J., Mosquera, E.E. and Rodriguez, F. (2012) LINK Methodology: A Participatory Guide to Business Models that Link Smallholders to Markets, Bogotá: Centro Internacional de Agricultura Tropical (CIAT).
Orr, A., Donovan, J. and Stoian, D. (2015) Smallholder Value Chains as Complex Adaptive Systems: A Conceptual Framework [online], ICRISAT Socioeconomics Discussion Paper Series 36 <https://cgspace.cgiar.org/handle/10568/69549> [accessed 1 April 2017].
Shepherd, A. (2016) Including Small-Scale Farmers in Profitable Value Chains: Review of Case Studies on Factors Influencing Successful Inclusion of Small Farmers in Modern Value Chains in ACP Countries [online], Wageningen, Netherlands: Technical Centre for Agricultural and Rural Cooperation <http://hdl.handle.net/10568/77059> [accessed 24 May 2017].
Stoian, D., Donovan, J., Fisk, J. and Muldoon, M.F. (2012) ‘Value chain development for rural poverty reduction: a reality check and a warning’, Enterprise Development and Microfinance 23(1): 54–69 <http://dx.doi.org/10.3362/1755-1986.2012.006>.
Bernet, T., Thiele, G. and Zschocke, T. (2006) Participatory Market Chain Approach (PMCA): User Guide, Lima: International Potato Center (CIP) <http://cipotato.org/publications/pdf/003296.pdf> [accessed 14 April 2017].
Donovan, J. and Poole, N. (2014) ‘Partnerships in fairtrade coffee: close-up look at buyer interactions and NGO interventions’, Food Chain 4(1): 34–48 <http://dx.doi.org/10.3362/2046-1887.2014.004>.
Donovan, J., Franzel, S., Cunha, M., Gyau, A. and Mithöfer, D. (2015) ‘Guides for value chain development: a comparative review’, Journal of Agribusiness in Developing and Emerging Economies 5(1): 2–23 <http://dx.doi.org/10.1108/JADEE-07-2013-0025>.
Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools and persistent gaps’, Enterprise Development and Microfinance 28(1–2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.
Even, B. and Donovan, J. (2017) ‘Value chain development in Vietnam: a look at approaches used and options for improved impact’, Enterprise Development and Microfinance 28(1–2): 28–43 <http://dx.doi.org/10.3362/1755-1986.16-00034>.
GIZ (2012) Growing Business with Smallholders: A Guide to Inclusive Agribusiness [pdf], Eschborn, Germany: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) <www.endeva.org/wp-content/uploads/2014/11/Guide-Growing_Business_with_Smallholders_large-2.pdf> [accessed 25 November 2017].
Humphrey, J. and Navas-Alemán, L. (2010) Value Chains, Donor Interventions and Poverty Reduction: A Review of Donor Practice [pdf], Brighton: Institute of Development Studies (IDS) <http://www.ids.ac.uk/files/dmfile/rr63.pdf> [accessed 23 May 2017].
IFAD (2014) Commodity Value Chain Development Projects: Sustainable Inclusion of Smallholders in Agricultural Value Chains [online], Rome: IFAD <https://www.ifad.org/documents/10180/43d9cf7a-e86c-47e9-a7b3-906e0b1be055> [accessed 20 December 2016].
Lundy, M., Becx, G., Zamierowski, N., Amrein, A., Hurtado, J.J., Mosquera, E.E. and Rodriguez, F. (2012) LINK Methodology: A Participatory Guide to Business Models that Link Smallholders to Markets, Bogotá: Centro Internacional de Agricultura Tropical (CIAT).
Orr, A., Donovan, J. and Stoian, D. (2015) Smallholder Value Chains as Complex Adaptive Systems: A Conceptual Framework [online], ICRISAT Socioeconomics Discussion Paper Series 36 <https://cgspace.cgiar.org/handle/10568/69549> [accessed 1 April 2017].
Shepherd, A. (2016) Including Small-Scale Farmers in Profitable Value Chains: Review of Case Studies on Factors Influencing Successful Inclusion of Small Farmers in Modern Value Chains in ACP Countries [online], Wageningen, Netherlands: Technical Centre for Agricultural and Rural Cooperation <http://hdl.handle.net/10568/77059> [accessed 24 May 2017].
Stoian, D., Donovan, J., Fisk, J. and Muldoon, M.F. (2012) ‘Value chain development for rural poverty reduction: a reality check and a warning’, Enterprise Development and Microfinance 23(1): 54–69 <http://dx.doi.org/10.3362/1755-1986.2012.006>.
Bernet, T., Thiele, G. and Zschocke, T. (2006) Participatory Market Chain Approach (PMCA): User Guide, Lima: International Potato Center (CIP) <http://cipotato.org/publications/pdf/003296.pdf> [accessed 14 April 2017].
Donovan, J. and Poole, N. (2014) ‘Partnerships in fairtrade coffee: close-up look at buyer interactions and NGO interventions’, Food Chain 4(1): 34–48 <http://dx.doi.org/10.3362/2046-1887.2014.004>.
Donovan, J., Franzel, S., Cunha, M., Gyau, A. and Mithöfer, D. (2015) ‘Guides for value chain development: a comparative review’, Journal of Agribusiness in Developing and Emerging Economies 5(1): 2–23 <http://dx.doi.org/10.1108/JADEE-07-2013-0025>.
Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools and persistent gaps’, Enterprise Development and Microfinance 28(1–2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.
Even, B. and Donovan, J. (2017) ‘Value chain development in Vietnam: a look at approaches used and options for improved impact’, Enterprise Development and Microfinance 28(1–2): 28–43 <http://dx.doi.org/10.3362/1755-1986.16-00034>.
GIZ (2012) Growing Business with Smallholders: A Guide to Inclusive Agribusiness [pdf], Eschborn, Germany: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) <www.endeva.org/wp-content/uploads/2014/11/Guide-Growing_Business_with_Smallholders_large-2.pdf> [accessed 25 November 2017].
Humphrey, J. and Navas-Alemán, L. (2010) Value Chains, Donor Interventions and Poverty Reduction: A Review of Donor Practice [pdf], Brighton: Institute of Development Studies (IDS) <http://www.ids.ac.uk/files/dmfile/rr63.pdf> [accessed 23 May 2017].
IFAD (2014) Commodity Value Chain Development Projects: Sustainable Inclusion of Smallholders in Agricultural Value Chains [online], Rome: IFAD <https://www.ifad.org/documents/10180/43d9cf7a-e86c-47e9-a7b3-906e0b1be055> [accessed 20 December 2016].
Lundy, M., Becx, G., Zamierowski, N., Amrein, A., Hurtado, J.J., Mosquera, E.E. and Rodriguez, F. (2012) LINK Methodology: A Participatory Guide to Business Models that Link Smallholders to Markets, Bogotá: Centro Internacional de Agricultura Tropical (CIAT).
Orr, A., Donovan, J. and Stoian, D. (2015) Smallholder Value Chains as Complex Adaptive Systems: A Conceptual Framework [online], ICRISAT Socioeconomics Discussion Paper Series 36 <https://cgspace.cgiar.org/handle/10568/69549> [accessed 1 April 2017].
Shepherd, A. (2016) Including Small-Scale Farmers in Profitable Value Chains: Review of Case Studies on Factors Influencing Successful Inclusion of Small Farmers in Modern Value Chains in ACP Countries [online], Wageningen, Netherlands: Technical Centre for Agricultural and Rural Cooperation <http://hdl.handle.net/10568/77059> [accessed 24 May 2017].
Stoian, D., Donovan, J., Fisk, J. and Muldoon, M.F. (2012) ‘Value chain development for rural poverty reduction: a reality check and a warning’, Enterprise Development and Microfinance 23(1): 54–69 <http://dx.doi.org/10.3362/1755-1986.2012.006>.
Bernet, T., Thiele, G. and Zschocke, T. (2006) Participatory Market Chain Approach (PMCA): User Guide, Lima: International Potato Center (CIP) <http://cipotato.org/publications/pdf/003296.pdf> [accessed 14 April 2017].
Donovan, J. and Poole, N. (2014) ‘Partnerships in fairtrade coffee: close-up look at buyer interactions and NGO interventions’, Food Chain 4(1): 34–48 <http://dx.doi.org/10.3362/2046-1887.2014.004>.
Donovan, J., Franzel, S., Cunha, M., Gyau, A. and Mithöfer, D. (2015) ‘Guides for value chain development: a comparative review’, Journal of Agribusiness in Developing and Emerging Economies 5(1): 2–23 <http://dx.doi.org/10.1108/JADEE-07-2013-0025>.
Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools and persistent gaps’, Enterprise Development and Microfinance 28(1–2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.
Even, B. and Donovan, J. (2017) ‘Value chain development in Vietnam: a look at approaches used and options for improved impact’, Enterprise Development and Microfinance 28(1–2): 28–43 <http://dx.doi.org/10.3362/1755-1986.16-00034>.
GIZ (2012) Growing Business with Smallholders: A Guide to Inclusive Agribusiness [pdf], Eschborn, Germany: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) <www.endeva.org/wp-content/uploads/2014/11/Guide-Growing_Business_with_Smallholders_large-2.pdf> [accessed 25 November 2017].
Humphrey, J. and Navas-Alemán, L. (2010) Value Chains, Donor Interventions and Poverty Reduction: A Review of Donor Practice [pdf], Brighton: Institute of Development Studies (IDS) <http://www.ids.ac.uk/files/dmfile/rr63.pdf> [accessed 23 May 2017].
IFAD (2014) Commodity Value Chain Development Projects: Sustainable Inclusion of Smallholders in Agricultural Value Chains [online], Rome: IFAD <https://www.ifad.org/documents/10180/43d9cf7a-e86c-47e9-a7b3-906e0b1be055> [accessed 20 December 2016].
Lundy, M., Becx, G., Zamierowski, N., Amrein, A., Hurtado, J.J., Mosquera, E.E. and Rodriguez, F. (2012) LINK Methodology: A Participatory Guide to Business Models that Link Smallholders to Markets, Bogotá: Centro Internacional de Agricultura Tropical (CIAT).
Orr, A., Donovan, J. and Stoian, D. (2015) Smallholder Value Chains as Complex Adaptive Systems: A Conceptual Framework [online], ICRISAT Socioeconomics Discussion Paper Series 36 <https://cgspace.cgiar.org/handle/10568/69549> [accessed 1 April 2017].
Shepherd, A. (2016) Including Small-Scale Farmers in Profitable Value Chains: Review of Case Studies on Factors Influencing Successful Inclusion of Small Farmers in Modern Value Chains in ACP Countries [online], Wageningen, Netherlands: Technical Centre for Agricultural and Rural Cooperation <http://hdl.handle.net/10568/77059> [accessed 24 May 2017].
Stoian, D., Donovan, J., Fisk, J. and Muldoon, M.F. (2012) ‘Value chain development for rural poverty reduction: a reality check and a warning’, Enterprise Development and Microfinance 23(1): 54–69 <http://dx.doi.org/10.3362/1755-1986.2012.006>.
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