Value Chains for improved livelihoods

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Value Chains for improved livelihoods

• Or how to speak like you have an MBA in one easy
  lesson.

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Supply Chain

• All the actions and actors needed to produce and
  bring to consumers a product.
• Value, power and information are distributed
  throughout the supply chain, but not necessarily
  equitably.
• Few opportunities for actors with little power,
  information or value to change their place and
  role in the chain.

Consumption
Transport/Marketing
Production / Transformation
Raw Materials
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Value Chains, So What?

• Systems approach that recognizes the
  interdependence of Production Transformation
  -Marketing and Consumption
• Opportunities to intervene at different levels to
  improve the distribution of power, information
  and ultimately VALUE in the chain.

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Supply Chains into Value Chains
Consumption
Chain Activity Integrator
Co-owner Of the chain
Transport/Marketing
Vertical Integration
Production / Transformation
Partner in The chain
Actor in The chain
Horizontal Integration
Raw Materials
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Feasibility of increased NTFP and agricultural
marketing in the Salonga-Lukenie-Sankuru
Landscape DRC

• A Value Chain Approach

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Objectives

• Analyse the potential for the marketing of
  agricultural products, fish and non-timber forest
  products (NTFP) from the Salonga Landscape from a
  Value Chains perspective.
• Make recommendations on the development of value
  chains in a CBNRM process.

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Tools

• PRA (PLA) Participatory approach focused on the
  products, production systems, marketing,
  constraints and opportunities.
• Key informant interviews (producers, traders,
  transporters, leaders, etc.).
• Focus Groups to better understand relationships
  and qualitative aspects of the area.
• TRIANGULATION

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Data Collection at the community level

• History of production.
• Actual products and their production systems.
• Subsistence vs. commercialisation.
• Products imported and exported.
• Productivity, transformations, prices, costs,
  etc.
• The marketing of products
• Transportation systems (costs)
• Sales (returns)
• Potential products.

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Data Collection at Provincial Markets

• The products coming from and going to the Salonga
  landscape.
• Costs, volatility, seasonality, necessary
  transformations, product consumers, etc.
• Linkages with Salonga.
• Transport
• Market share, perceived quality of the product,
  etc.
• Product marketing systems.
• Potential partners (private sector, NGOs, etc).
• Potential products.

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Value Chain Analysis

• Choose 5 products (actual or potential) for
  study.
• Profitable, replace destructive activities,
  reinforce conservation, reasonably easy to
  produce and transport, transformation possible
  locally.
• What are the market segments of the market for
  the products?
• Level of volatility (price fluctuation)?
  Seasonality of prices?
• Necessary transformations and services in the
  chain (resource inputs, labor, transport,
  storage, etc.).
• Who are the participants, their roles and their
  level of power in the chain?
• What is the role of information in the chain?
• Analyze the potential for integrating producers
  into the chain both horizontally and vertically.
• Potential conflicts.
• Roles of women, youths and other disadvantaged
  groups in the chain.
• Identification of potential partners to support
  implementation/development of value chains.

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Results

• Incredibly isolated villages with almost no cash
  economies.
• Historically much more prosperous.
• Corn, manioc, bananas, being produced, but little
  export.
• NTFP mushrooms, caterpillars, copal, leaves for
  food packaging, natural fibers
• Recommendations?

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Start small and grow

• Pick one or two particularly profitable NTFP
  (mushrooms and caterpillars).
• Find transporters interested in partnering with
  communities.
• Link with traders at regional level to ensure
  reasonable prices.
• Initially will need to reduce risk for all
  involved but will need to move towards
  self-sufficiency.

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Thanks for your attention.