Due to globalisation agricultural im- and exports are increasing and worldwide farmers are facing ever stronger competition, even on their national markets. Large price fluctuations make small farmers even more vulnerable. Margins on bulk products are low.
To get better margins requires adding more value to the produce through grading, packing, processing, etc.This means that more stakeholders get involved. Farmers, traders, input suppliers, processors and exporters increasingly become interdependent. And all depend on support services like research and extension, certification systems and access to financial services. In this context major investments (of donor programs or companies) have to be based on a Value Chain Analysis that explores the competitiveness of the particular value chain on the final market.
I did this in Afghanistan, Albania, Ethiopia, Georgia, Kenya and Kosovo, using the method for Value Chain Analysis and Development that can be downloaded here.
