value chain actors and their roles

Louw, A., Vermeulen, H., Kirsten, J. Blanc, J. 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. Value chain development for mango - Agriculture & Food Security Results Results indicated that mango value chain is composed of nursery suppliers, mango producers, harvesters and assemblers, processors and traders. 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. However, they are similar to supermarkets and traders in the high likelihood of using purchase agreements (50%), which we also refer to as a primary market function (an OM1 activity) since it may be somewhat more consistent (guaranteed) than the spot market (Fig. Studies in which insufficient information was available to determine whether our criteria for inclusion were met were passed on to the full-text screening phase. Source: Authors calculations. Agric Econ. 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. Behind the scenes of a learning agri-food value chain: lessons from The type of assistance provided to farmers is disaggregated by input suppliers and logistics service providers. 25, 65005 (2016). 31, 209218 (2004). Rural Stud. This is the first stage of the value chain. 97, 12471266 (2015). Tschirley, D., Reardon, T., Dolislager, M. & Snyder, J. For input suppliers alone, these values are 88%, 93% and 94% (N=64 in total). Extended Data Fig. It explicitly evaluated at least one of the following farm-level outcomes: income, food security, technology adoption, practices that improve yields or quality, level of commercialization, yield or price variability. Publishers note Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. The quiet revolution in Asias rice value chains. They may be positioned . Cite Get access to 30 million. Tricco, A. C. et al. In addition, when SME value chain actors provide these services that are beyond their core activities, it is correlated with technology adoption and higher productivity among farmers. Deptartment of Agricultural, Food, and Resource Economics, Michigan State University, East Lansing, MI, USA, Lenis Saweda O. Liverpool-Tasie,Carolina Vargas&Thomas Reardon, Daniel J. Evans School of Public Policy and Governance, University of Washington, Seattle, WA, USA, Research and Academic Services, Carnegie Mellon University, Pittsburgh, PA, USA, Centre for Agriculture and Bioscience International, Delmont, Switzerland, Deptartment of Global Development, Cornell University, Ithaca, NY, USA, Faculty of Health Sciences Library, Aga Khan University, Nairobi, Kenya, International Institute for Sustainable Development, Ottawa, Ontario, Canada, International Livestock Research Institute, Nairobi, Kenya, College of Agriculture and Life Sciences, Cornell University, Ithaca, NY, USA, You can also search for this author in Private-sector platforms that serve as one-stop shops for farmers to secure inputs, training, credit and a guaranteed market are emerging in developing countries. The provision of marketing services alongside input supply (IS2D in Fig. 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. For example, 12% of cases with positive impacts involve the buyers extending some sort of logistical assistance to arrange for transportation of the agricultural products, while this value is just 8% for cases with negative or inconclusive impacts. Extended Data Table 1 Types of assistance provided by input suppliers and logistics service providers. Agric. Perspect. This review confirms that that there has been a rapid development of the midstream and downstream actors in output value chainsprocessors, traders and cooperativesthat buy crops and livestock products from small-scale producers. The number of articles retrieved in the searches and passed each subsequent stage of screening is shown. 1), while in 2530% of interactions with these focal actors, inputs were provided. It's a graphic . & Myers, R. J. See the Methods for full details and Box 1 for a summary. To raise awareness of the complexity of the system in which a value chain operates. 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. This indicates that the final welfare effect of farmers interactions with market channels is a gap in the literature. The value chain stage identifies the various chain actors and their roles in the overall chain's operation. A value chain analysis can reveal linkages, dependencies and other patterns in the value chain. some roles of value chain coordination are primary roles, that is, the roles that directly support actors in the value chain such as producers, processors, distributors, buyers and consumers. Buyers fear side selling while farmers fear product rejection52,53,54. Kizito, A. M. & Kato, E. Does linking farmers to markets work? A brief Dairy Value Chain analysis in the 12 counties in Kenya Where feed the future USAID funded Kenya crops and Dairy Market system activity id implemented. Sci. Information on the nature of the interactions, the outcomes measured and the effects on small-scale producers were recorded. 1. 1331, 106118 (2014). Their role is to provide expert knowledge to help identify best practices for sustainable nutrition efforts and facilitate their implementation 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. 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. The provision of complementary services appears to be instrumental in fostering a positive outcome from farmers interactions with these input and output market channels. Rao, E. J. 39, 784796 (2011). 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). Mutonyi, S. The effect of collective action on smallholder income and asset holdings in Kenya. Purchase agreements can involve farmers being included on a buyers lists or, less formally, repeated transactions between a farmer and an output market channel (Table 3). To achieve competitive advantage, an organization ultimately delivers more value at an equal or lower cost. Major value chain actors and their functions - ResearchGate 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 Introduction to the Value Chain Introduction to the Value hain - UNESCO and N.G. The availability of rural infrastructure, including irrigation, transportation, processing, storage and communications, was noted as a facilitating condition in 23% of the studies. Science 352, 943945 (2016). There is an extremely limited gender and environmental focus in the literature. Food Secur. PDF as a set of roles that foster soft infrastructure development to build Padilla, S., Liverpool-Tasie, L. S. O. crafts, fine arts). The concept was conceived by Harvard Business School Professor Michael Porter in . Reduce double taxation policies and numerous redundant certifications and registrations, known as red tape, that constrain SMEs. The observation level is the included study that mentioned a challenge affecting the transaction between a small-scale producer and a value chain actor. financing by value chain actors. The major actors involved in tomato value. Ann. Minten, B., Reardon, T., Singh, K. M. & Sutradhar, R. K. The new and changing roles of cold storages in the potato supply chain in Bihar. J. Gend. This growth has created huge markets for farmers, along with employment in various supply-chain segments1,2, including food processors, wholesalers and logistics firms. Implement policies that reduce the costs of energy and equipment import and increase property rights and the ease of registration and certification. Main actors and their roles: Those actors who directly deal with the products or services. This yielded a set of studies largely focused on SMEs. 2 Main facilitators of positive interactions. . 21, 91111 (2014). Lu, H., Trienekens, J. H., Omta, S. W. F. & Feng, S. Guanxi networks, buyer-seller relationships, and farmers participation in modern vegetable markets in China. Econ. The observation level is the included study; thus, N=202. Quality as a driver of sustainable agricultural value chains: the case of the relationship coffee model. The facilitators of positive interactions between focal actors and small-scale were classified into ten different groups. 72, 394407 (2015). While the advantages of a value chain financing approach are significant, financing by value chain participants is not a panacea. The main complementary service provided by SME processors (also the second most common for traders) is credit provision. Inputs were provided to farmers in 38% of links with these modern market channels. Faure, G., DHotel, E. M., le Coq, J. F. & Saenz, F. Can Supply Chains Coordination Mechanisms Include Small Holders? The remaining records were imported into Covidence (https://www.covidence.org) for title/abstract and full-text screening. Am. It was published in 2000 or later and in English. Liverpool-Tasie, L. S. O., Okuku, R., Harawa, R., Reardon, T. & Wallace, S. in The Hidden Middle: A Quiet Revolution in the Private Sector Driving Agricultural Transformation (ed. Sitko, N. J. Small and medium enterprises, not just large enterprises, address idiosyncratic market failures and asset shortfalls of small-scale producers by providing them, through informal arrangements, with complementary services such as input provision, credit, information and logistics. The value chain includes five stages: Creation: the originating and authoring of ideas and content (e.g. 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). In Proc. The main challenges impeding the successful interaction between study focal actors and small-scale producers were categorized into 6 groups. with the farmers, a number of actors participated in the value chain of tomato from the production point to the consumer point. Rutherford, D. D., Burke, H. M., Cheung, K. K. & Field, S. H. Impact of an agricultural value chain project on smallholder farmers, households, and children in Liberia. One hundred eighteen of the 202 included studies mention at least one condition that enables interactions with our focal actors to have a positive effect on small-scale producers. 169, 467473 (2018). Based on this, they could then develop strategic partnerships with other value chain actors (inter-organizational). Governments and donors should also incentivize SMEs continued provision of complementary services that benefit small-scale producers. New Global Initiative To Uplift Informal Workers In Plastic Waste Value Wassie, S. B., Kusakari, H. & Masahiro, S. Inclusiveness and effectiveness of agricultural cooperatives: recent evidence from Ethiopia. Cah. 10 reports that contract farming may increase farmer incomes substantially, but this is largely restricted to larger farmers. Geogr. Technologyandinnovation trajectories in theRwandanAgriculturesector Nat. Resour. 172, 4759 (2019). The records were then imported into the screening tool Covidence for screening of titles and abstracts by two independent reviewers. Finally, logistics service suppliers (in 44% of their interactions with farmers) and cooperatives (in 25% of their interactions as input provider) purchased output from farmers. Net. 22, 7093 (2015). 3, 104111 (2015). The observation level is the included study; thus, N=202. Minten, B., Vandeplas, A. The first task in value chain development is chain mapping Fae et al. It focused on the effect of certification on welfare, including fair trade and organic certification, or on the relationship between certification and market channel access. Agric. & Amodio, M. L. Fresh-cut markets and opportunities for income and nutrition security. 3). We searched the following electronic databases: CAB Abstracts (Clarivate Analytics), Web of Science Core Collection, Scopus, EconLit (Ebsco), Dissertations & Theses Global (ProQuest), Africa Theses and Dissertations (http://datad.aau.org/discover) and AgEcon Search (https://ageconsearch.umn.edu). This is consistent with studies that have documented that some truckers also serve as wholesalers or purchase output from farmers on behalf of traders6,16, and this underscores how the provision of complementary services in the midstream and downstream of input and output value chains is well recognized in the private sector. 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. The automotive value chain can be characterized as an automaker-driven network. J. Agric. We acknowledge and appreciate financial support for this work from the Ceres2030 project. Thus, our main recommendation is that these value chain actors be considered as allies of governments (not as competitors or missing) in the provision of key rural services. Of the 241 linkages, 204 were output buyers and 37 were input suppliers or logistics providers. and G.S.A. We filtered for studies that consider supply-chain transactions by value chain actors involving small-scale producers (that is, non-credit input purchase, logistics service purchase and output sales by farmers to/from value chain actors) that are not governed by formal contracts. Reardon, T. et al. 1). World Dev. This accelerated our identification of articles for exclusion, in which records were excluded by a single screener when they clearly did not meet our criteria (for example, published before 2000, not in a low- or middle-income country or focused on a non-food product). However, this requires building synergies and complementarities among actors. T. Sani, and 1D.D. Included studies measured at least one of our primary, secondary or intermediate outcomes, as shown in Fig. 50, 8494 (2017). Market information increases the speed of farm product sales while allowing farmers to bargain more effectively and obtain better prices22,23,24. 13, 1131 (2017). Studies not meeting any of the above criteria were excluded. PDF Profitability of Actors in the Value Chain of Commercial Rice - Archive.org This requires that small-scale producers benefit from the growth and transformation under way in food systems. Providing these services directly supports Sustainable Development Goal 2 by improving farmer welfare through technology adoption and greater productivity. In addition, a study was excluded if: The methodology provided was insufficiently clear to evaluate quality and potential biases. 1, 110128 (2016). Type of assistance is disaggregated by product type of farmer. With aim of giving justification for the identified actors in the chain and roles they undertake, information and financial flows in the chain. Source: Authors calculations. Other forms of evidence synthesis such as systematic reviews are less suitable for addressing the kinds of open-ended, exploratory questions that are often appropriate in agriculture. A scoping review of market links between value chain actors and small-scale producers in developing regions Lenis Saweda O. Liverpool-Tasie, Ayala Wineman, Sarah Young, Justice Tambo,. Strategy Environ. Based on the role they played value chain actors can be grouped under three levels in the study areas. J. Dev. Econ. 83, 7083 (2016). Econ. A value chain refers to the full lifecycle of a product or process, including material sourcing, production, consumption and disposal/recycling processes." Source: WBCSD (2011) Collaboration, innovation, transformation: Ideas and inspiration to accelerate sustainable growth - A value chain approach, p.3 & 5, emphasis added (Accessed 04.07.20). To obtain to be actors of their own development. These findings are instrumental towards achieving the goals of SDG 2. Only by paying greater attention to demand orientation, market intelligence, product profiling, and seed systems development will CGIAR and national breeding programs be able . Exp. This is probably because we excluded formal contract arrangements, typically conducted by larger enterprises. volume3,pages 799808 (2020)Cite this article. 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. We also appreciate support from the US Department of Agriculture National Institute of Food and Agriculture and Michigan AgBioResearch, Consortium of International Agricultural Research Centers (CGIAR), World Bank, International Institute for Sustainable Development (IISD) and Centre for Agriculture and Bioscience International (CABI) with core financial support from its member countries (http://www.cabi.org/about-cabi/who-we-work-with/key-donors/). 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%). Thank you for visiting nature.com. Harou, A. P., Upton, J. Vibrant food systems. South. 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. The past two decades have seen tremendous growth in developing regions. Exp. New actors are shaping the seed value chain in ways that many breeding program have yet to fully understand, especially those programs wedded to outdated impact pathways. Frontiers | Using a Value Chain Approach to Map the Pig Production Compared with traders and cooperatives, supermarkets are less likely to provide credit and inputs but not less likely to arrange for transportation of the product. However, the available literature is heavily tilted towards crop value chains rather than livestock, and towards high-value crops rather than staple crops. The impacts of differentiated markets on the relationship between dairy processors and smallholder farmers in the Peruvian Andes. In this review, we made use of the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) extension for Scoping Reviews65 and guidance provided by Peters et al.67 in designing and reporting the methods. Similarly, more evidence is needed on the conditions that allow both women and men small-scale producers to benefit from SMEs. Evidence from the World Food Programmes Purchase for Progress satellite collection points initiative in Uganda. Background Vegetable production is vital economic activity in the world and Ethiopia particularly. World Dev. 51, 519533 (2020). All of the search strategies used, including a list of databases and grey-literature sources, are available on the Open Science Framework68. 1, this value is 77% for primary outcomes such as income and food security, 67% for intermediary outcomes such as yield and 84% for secondary outcomes such as technology adoption. was introduced by Porter in 1985. More studies on livestock will be important to improve the likelihood of small-scale producers successful participation in value chains with sustainable agricultural practices1,13,14. For a detailed explanation of selection criteria, see the scoping review protocol in Open Science Framework68. Regarding study design, both experimental and observational studies were considered, including quantitative and qualitative work. Extended Data Table 3 Impacts on farmers by outcome category. Thus, efforts to support their operation and their continued and expanded provision of complementary services to small-scale producers should be considered (Box 2). Econ. 25, 322332 (2009). Kilelu, C. W., Klerkx, L. & Leeuwis, C. Supporting smallholder commercialisation by enhancing integrated coordination in agrifood value chains: experiences with dairy hubs in Kenya. in The Hidden Middle: A Quiet Revolution in the Private Sector Driving Agricultural Transformation (ed. We focused on farmers output production and sale and not on their household labour supply as our focus is the farm enterprise. Evidences from the Indo-Gangetic plain of India. Hernandez-Aguilera, J. N. et al. Rev. An individual study could look at multiple focal actors (for example traders and processors), this yielded 241 linkages or focal actor cases. PDF FINANCE IN THE VALUE CHAIN FRAMEWORK - United States Agency for Sci. 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. J. Agric. Qanti, S. R., Reardon, T. & Iswariyadi, A. Triangle of linkages among modernising markets, sprayertraders, and mango-farming intensification in Indonesia. and N.G. 110147 (International Food Policy Research Institute, 2012). 555 outcomes were evaluated in the 202 included studies. Reardon, T. et al. Econ. Studies for which the reviewer remained uncertain after applying the criteria were labelled as uncertain. http://creativecommons.org/licenses/by/4.0/, A sustainable future for Africa through continental free trade and agricultural development, Multi-objective programming and Six Sigma approaches for a competitive pharmaceutical supply chain with the value chain and product lifecycle, Quiet Revolution by SMEs in the midstream of value chains in developing regions: wholesale markets, wholesalers, logistics, and processing, Towards food systems transformationfive paradigm shifts for healthy, inclusive and sustainable food systems, Accelerating evidence-informed decision-making for the Sustainable Development Goals using machine learning. Although our sample size is limited for input suppliers, we find that they also provide additional services, such as credit and training (Extended Data Table 1). Sustainable value chain approach for livestock-based livelihood It focused on changes in perception, confidence or attitude, but with no reference to the outcomes listed in the preceding. J. Agric. In addition, we noted whether a study addressed issues of climate change, environmental sustainability or gender. Few studies consider a primary outcome (such as income, poverty or food security) alongside a secondary or intermediate outcome (such as technology adoption or increased yields). 24, 539551 (2007). We also find more emphasis on high-value crops in 55% of the studies, compared with 39% that look at staple crops (Fig. Thiele, G. et al. By convening and facilitating all value chain actors to adopt harmonized responsible sourcing practices, the initiative has set targets to improve livelihoods for an estimated 50,000 informal waste workers, and secure the commitment of over 25 global brands, investors, recyclers and aggregators by 2025. . Improve trucking regulations to promote safety, and ease constraints on transport investment. Google Scholar. contributed to the writing, evidence interpretation and link to the literature. Sci., 18 January 2022 Sec. Wkly 49, 98108 (2014). 1 PRISMA flowchart of screening. Dries, L., Germenji, E., Noev, N. & Swinnen, J. F. M. Farmers, vertical coordination, and the restructuring of dairy supply chains in central and eastern Europe. CAS tend to go to the male head of household and male value chain actors tend to enjoy greater profits than their female counterparts. 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. sculptors, writers, design companies) and the making of one-off production (e.g. Small-scale producers interact with various actors when they link with markets, including product traders, logistics firms, processors and retailers. Interacting with value chain actors during work hours. 54, 5667 (2014). Papers were ranked as low, medium or high using the following guide. The third includes repetition of transactions between a farmer and buyer. A scoping review comprises five steps: (1) articulating the research question, (2) searching published and grey literature for relevant studies, (3) selecting studies on the basis of pre-defined criteria, (4) extracting and charting the data and (5) collating, summarizing and reporting the results. 2b). In the collaboration among interdependent value chain actors trust plays a key role (Falkenreck and Wagner, 2017), . J. This demonstrates a mismatch between rhetoric and reality in policy debates (which highlight gender mainstreaming and sustainability) and development research. Its objectives include guaranteeing fair wages for . We also find that the majority of outcomes of the transactions are beneficial to small farmers, not exploitative as suggested by the old literature. Guidance for conducting systematic scoping reviews. Food value chain linkages and household food security in Tanzania. For input suppliers, a higher percentage of cases with a positive impact involve the suppliers also purchasing output from the farmers. Dung National Animal Production Research Institute, Ahmadu Bello University, Zaria, Nigeria1 Department of Agricultural Economics, Ahmadu Bello University, Zaria, Nigeria2 Agric. Rapid transformation of food systems in developing regions: highlighting the role of agricultural research & innovations. The growing concern surrounding plastic leakage has directly influenced value chain actors' practices, with some companies taking a more active role in plastic pollution mitigation. There has been a dramatic increase in research interest in the relationship between small-scale producers and our focal actors in the past ten years. These funders were in no way involved in the study design; in the collection, analysis, or interpretation of data; in the writing of the report; or in the decision to submit the paper for publication. Using a staged and participatory, mixed-methods approach, we sought to understand the territorial climate exposure, the structure of the regional value chain and role of different actors in supporting farmer adaptive capacity, and assess the vulnerability of the entire value chain (including other actors in addition to farmers). While interactions are generally positive, the share of total interactions with a positive outcome is higher for studies looking at livestock (87%) compared with crops (83%). J. Punjab Stud. Ton, G., Desiere, S., Vellema, W., Weituschat, S. & DHaese, M. The effectiveness of contract farming for raising income of smallholder farmers in low- and middle-income countries: a systematic review. Campbell Syst. It appears to us that direct public provision would crowd out these midstream enterprises and waste public resources. and JavaScript. It was experimental or observational (case studies, survey-based studies, participant observation). This information can help financial institutions screen for reliability, evaluate profitability and/or assess the risk of default. World Dev. World Dev. 1). Another main finding of this scoping review is that a majority of the recorded interactions between small-scale producers and value chain actors are positive. 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.