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"Strengthening Fisheries Management in ACP Countries"

REGIONAL TRAINING ON VALUE CHAIN ANALYSIS

Project ref. N SA-4.1-B20

Manual on Value Chain Analysis and Promotion


Region: SOUTHERN AFRICA Country: MAURITIUS

By David Russell and Satish Hanoomanjee

September 2012

Assignment by: PESCARES ITALIA ITALIA SRL

Project Funded by the European Union .

This pub ication has been produce ith the assistance This publication has been produced with ! the assistance of the o" the European The contents o " this are pubthe ication European Union. Union. The contents of this publication sole are the so e resonsibi ity o" #Pescars $ta ia responsibility of Pescares Italia and can in no way be taken !ay be ta%en to e" ect the &ie!s o"th e European Union.#
to reflect the views of the European Union. views of the concerned governments. The content of o" this document does dos not n necessarily reflecty the The content this document ot necessari re"

MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

Table of Contents
LIST OF TABLES, FIGURES AND BOXES .................................................. 4 LIST OF ACRONYMS.............................................................................. 5 PART A CONCEPT OF VALUE CHAIN ANALYSIS ................................... 6
'. ). +. (ac%ground .................................................................................................................................................... 3
*&er&ie! o" regiona "ish supp y and demand .............................................................................................. 5 ,hat is &a ue chain ana ysis- ........................................................................................................................ 7

+.' +.) +.+ +.0 +.2 +.3 +.5 +.7 +.8 +.': +.'' +.') 0. 2.

Comparing &a ue chains....................................................................................................................... ': .easons "or promoting &a ue added production................................................................................. '' .e&erse /a ue Chain Ana ysis .............................................................................................................. ')

The buyer1dri&er approach .................................................................................................................. '+


Customer and pub ic perception about your business................................ business........................................................................ '2 4etting sea"ood to mar%et and the need "or care"u hand ing ........................................................... '2 6o! do consumers decide on &a ue- .................................................................................................. '3

Fish mar%eting systems in de&e oped &s de&e oping countries .......................................................... '5
9ey cha enges o" "ish &a ue chains ...................................................................................................... '7 Cha enges "or de&e oping country supp iers ...................................................................................... '8

.educing &a ue osses .......................................................................................................................... '8


So !here does the money go- ............................................................................................................ '8

Ca cu ating monetary gains a ong the &a ue chain ...................................................................................... )+

Eco1 abe e;amp es !ithin the /a ue Chain................................................................................................. )2 2.' 2.) 2.+ 2.0 2.2 2.3 The objecti&es o" eco1 abe ing are< ..................................................................................................... )3
Marine Ste!ardship Counci =MSC> Certi"ication ................................................................................ )3 Comparison study on "isheries eco1 abe s ........................................................................................... )5

South A"rican ha%e ? an MSC success story ........................................................................................ )8 Eco ? abe ed @i e PerchA TanBania ...................................................................................................... )8 Eco Mar% A"rica ? promoting sustainab e "isheries ............................................................................. +:

3. Conc usions on the &a ue chain ...................................................................................................................... +'

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

PART B.
'. '.' '.) '.+ '.0 '.2 '.3 '.5 '.7

VALUE CHAIN ANALYSIS IN POLICY PLANNING ..................32


*bjecti&es o" po icy< ............................................................................................................................ ++
$mportance o" po icy and best practice< .............................................................................................. +0 Steps to conduct a /CA "or po icy p anning......................................................................................... +0 $mpro&ing competiti&enessA impro&ing e;ce ence ............................................................................. 02 Customer demand< the dri&er o" change............................................................................................ 03 $denti"ying areas in need o" impro&ementA impro&ementA using &a ue chain ana ysis as a too ................................ 03 4aining mar%et access< ,hat is the po icy prob em-......................................................................... 05

Po icy de&e opment through &a ue chain ana ysis ...................................................................................... ++

Ci&ersi"ying customers and mar%ets ................................................................................................... 05

). Using po icy to upgrade oca enterprise capabi ities ..................................................................................... 07

+.

Sta%eho der con" ict ..................................................................................................................................... 07 +.' +.) +.+ +.0


Dabour issues in the mar%et................................................................................................................. 08 Dabour impro&ement strategies< ......................................................................................................... 08 The &a ue chain and impro&ing emp oyment standards ..................................................................... 08 Po!er p ayers in the &a ue chain ......................................................................................................... 2:

0. /a ue chain ana ysis as a means to introduce po icies to impro&e impro&e internationa "ish trade and "ood security "or sma 1sca e "isheries in de&e oping countries ................................................................................... 2' 0.'. 0.). 0.+. 2. 3.
Project objecti&e< impro&ed %no! edge o" &a ue chain dynamics ...................................................... 2)

Case studies ......................................................................................................................................... 2)


Cissemination o" resu ts ...................................................................................................................... 2)

The po icy strategy....................................................................................................................................... 2+ .e"erences ................................................................................................................................................... 20

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

List of Tables, Figures and Boxes


Tab ! "# F$%& '()%*+,-$() $) SADC '(*)-.$!% ..................................................................................................................... 9 Tab ! 2# C(+,a.$%()% (/ b!)!/$-% 0!.%*% $+$-a-$()% (/ 0a *! '&a$)%.................................................................................."9 Tab ! 3# Ca '* a-$)1 -&! +a.2!- ,.(/$- a ()1 -&! 0a *! '&a$) -( !a'& %-a2!&( 3!. /(. -&! ,.$+a.7, %!'()3a.7 a)3 .!-a$ +a.2!-% /(. -&! /$%& 4H$ %a5 $) Ba)1 a3!%& ................................................................................................................24 Tab ! 4# H(6 -( '( !'- a)3 a)a 7%! $)/(.+a-$() ...............................................................................................................4"

F$1*.! " T&! %!a/((3 $)3*%-.7 0a *! '&a$). S(*.'!# G $-)$. Ba)2 ........................................................................................"< F$1*.! 2 C(+,a.$%() (/ 0a *! '&a$)% $) /(*. '(*)-.$!%. ......................................................................................................"< F$1*.! 3 I)-!..! a-$()%&$,% $) 0a *! '&a$) a)a 7%$%. ............................................................................................................"2 F$1*.! 4 R!0!.%! 0a *! '&a$) a)a 7%$% ................................................................................................................................"3 F$1*.! 5 A %'&!+a-$' 0a *! '&a$) $) /$%&!.$!% ....................................................................................................................."4 F$1*.! 6 P.$'! / *'-*a-$()% a ()1 -&! 0a *! '&a$) ..............................................................................................................."8 F$1*.! 8 Va *! a33!3 /(. ()! 2$ (1.a++! (/ N$ ! ,!.'& /$ !- $) -&! Ta):a)$a N$ ! ,!.'& /$%&!.7 .......................................2< F$1*.! 9 T&! +a.2!-$)1 3$%-.$b*-$() '&a$) /(. La2! V$'-(.$a N$ ! ,!.'& /.(+ Ta):a)$a ......................................................2" F$1*.! ; T&! 0a *! '&a$) /(. La2! V$'-(.$a N$ ! ,!.'& /.(+ Ta):a)$a .................................................................................2" F$1*.! "< R!0!)*! 3$%-.$b*-$() -&.(*1& -&! %!a/((3 0a *! '&a$) /(. I'! a)3$' '(3 /$ !-% %( 3 -&.(*1& U)$-!3 S-a-!% .!%-a*.a)-% ................................................................................................................................................................22 F$1*.! "" T&! 0a *! '&a$) /(. +a.2!-$)1 (/ -&! /$%& 4H$ %a5 $) Ba)1 a3!%&, $ *%-.a-$)1 -&! +()!-a.7 .!-*.)% -( 3$//!.!)%-a2!&( 3!.% a ()1 -&! '&a$).....................................................................................................................................23 F$1*.! "2 S-!,=b7=%-!, 3!%'.$,-$() () 'a '* a-$() +()!7-a.7 1a$)% a ()1 -&! 0a *! '&a$) ................................................25 F$1*.! "3 F$%&!.$!% $+,.(0!+!)- ,.(>!'-% .........................................................................................................................28 F$1*.! "4 ?*a)-$-a-$0! '(+,a.$%() (/ !'(= ab! % ...............................................................................................................29 F$1*.! "5 Va *! C&a$) A)a 7%$% %-!, ...................................................................................................................................35 F$1*.! "6 G!)!.$' @(.2%&!!- '.(%%$)1 /*)'-$() 6$-& ,a.-$'$,a)-%Aa'-(.% ..........................................................................39 F$1*.! "8 P.('!%% () VCA = !Ba+, ! ..................................................................................................................................3;

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

List of Acronyms
AEM A4*A (CS C$F EEE EMA FA* FAFs F$P 4CP $HF MC MM MP MSC @*.AC PP .FM* .FU SACC SP TAC /CA ,,F A"rican Eco1 abe ing Mechanism A"rican 4ro!th and *pportunities Act (usiness Ce&e opment Ser&ices CostA insurance and "reight inc uded in sa es price E;c usi&e Economic Eone Eco1Mar% A"rica Food and Agricu ture *rganisation o" the United @ations Fisheries Administrations G Authorities Fishery $mpro&ement Project 4ross Comestic Product $ndi&idua y Huic% FroBen Mar%et Cost Mar%et Margin Mar%et Pro"it Marine Ste!ardship Counci @or!egian Agency "or Ce&e opment Co1operation Purchase Price .egiona Fisheries Managment *rganisations ACP Fish $$ .egiona Faci itation Unit Southern A"rican Ce&e opment Community Sa es Price Tota a o!ab e catch /a ue Chain Ana ysis ,or d ,i d i"e Fund

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

Part A

Concept of Value C!ain Analysis

/a ue chain ana ysis =/CA> pro&ides go&ernment po icy ma%ers and "ishing company management !ith a systematic too !hich a o!s them to understand the processes in the industryGcompanyA and especia y %no! the costs re ated to the &arious steps in the chain. The concept o" the &a ue chain simp y in%s a the steps in productionA processingA and distributionA together 1 and a o!s us to ana yBe each step in re ation to the preceding steps and the steps that "o o!. $t inc udes aspects such as< physica A economic and socia ogistics bet!een ra! materia input and consumptionI the supp y chain and " o! o" payment inc uding &a ue adding marginsI and a o!s Fisheries Administration and "ishing industry personne to address &a ue chain issuesA so as to ma;imise &a ue !ithin their commercia operations.

Part A o" this manua see%s to e;p ain to you the %ey e ements re ated to &a ue chain ana ysis.

1.

Bac ground

/a ue chain ana ysis is particu ar y use"u "or ne! producers entering both domestic and g oba mar%etsA to ensure sustainab e income gro!thA through understanding the &a ue chainA "rom the time the "ish is caughtA ti it reaches the "ina customer. $n re ation to the end consumer it a so in&o &es de&e oping an understanding o" "ood preparation and pre&ention o" oss o" proteinA particu ar y "rom a sma sca e "ishery "ood security perspecti&e. $ts use is a so as an ana ytica too "or Fisheries Administrations in understanding the po icy en&ironment !hich pro&ides "or e""icient a ocation o" resources !ithin the domestic economy to ma;imise &a ueA pre&ent post1har&est ossesA and ensure e""ecti&e management is in p ace to promote sustainab e uti isation o" the resource. 4 oba mar%ets "or sea"ood are argeA manyA &ariedA and comp e;. $t is not easy to si"t through a the in"ormationA to read and ana yse the mar%etA to ta%e appropriate decisions "or ma;imiBing our pro"its. That is !hy !e need a systematic approach ? a mode that !e can use to guide us in co ectingA absorbing and ana yBing in"ormation in a meaning"u !ay. ,e start out by obser&ing rea ity 1 a &ast amount o" "acts. Sorting through the "actsA !e see a pattern emergeA and this a o!s us to sort the "acts into simi ar groups. The &a ue chain ana ysis conceptua mode is a systematic approach to hand ing the in"ormationA ana ysing itA and ma%ing the right decisionsA adapted to suit the actua conditions o" the p ace and country.
Fisheries in Southern A"rica &ary "rom the sma 1sca e G artisana "isheries in countries such as Ango aA Ma a!iA MoBambiJue and EambiaI to the arge commercia concerns in the $ndian *cean =Mauritius and Seyche es>Fs tuna industry or the commercia "isheries sector o" @amibia. The region a so inc udes important in and "isheries such as Da%e Ma a!iA Da%e Tanganyi%aA Da%e 9aribaA EambeBi .i&er (asin and the *%a&ango Ce taA !here Ti apiaA Uta%a and 9apenta species are predominant. Fisheries contribute di""erent y to the countryFs 4CPA &arying "rom

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

:.::)K in (ots!ana to around 2 K in @amibia.


Fisheries resources are important to nationa and regiona economic de&e opmentA and o"ten "ish trade represents an important pi ar o" the economy. This necessitates po icies that sa"eguard the interests o" sma 1 sca e producers 1 by enab ing them to contribute to "ood security !ith products !hich supp y nutritiona Jua ity "or consumersA that are pro"itab e "or the producerA as !e as access internationa mar%ets !here possib eA but a so to obtain prices and margins "or ong1term sustainabi ity "rom an economicA socia and bio ogica resource perspecti&e. The objecti&e o" this manua is to assist Fisheries Administrations =FAs> in "ormu ating and e;ecuting &a ue chain ana ysisA to ma;imiBe &a ue addition o" "ish and "ish products through the app ication o" the &a ue chain approach and particu ar y "raming o" po icies to assist producers in participating e""ecti&e y in the g oba economy. This manua is not intended to be comp e;A but rather to demonstrate bui ding b oc%s to app y &a ue chain ana ysis in speci"ic conte;ts< The purpose# o" this manua is as a guide ine "or po icy p anning sta"" in Fisheries Administrations. A too "or "ishing industry peop e to address &a ue chain issuesA so as to ma;imise &a ue !ithin their commercia operations. This manua is compi ed on the basis o" training needs assessment carried out prior to the .egiona Training on /a ue Chain Ana ysis ,or%shop =)+ to )5 Lu y ):')> in MauritiusA and a so ta%ing into account issues raised by participants "rom the &arious countries present during the !or%shop.

".

#$er$ie% of regional fis! supply and demand

SpainA France and $ta y are the argest importers o" A"rican "isheries productsA purchasing around ha " o" A"ricaFs e;ports. A"rican "ish products e;ported internationa y ha&e tended to be sent as re ati&e y unprocessed commodity# products. Further processing has tended to occur in EuropeA thus bene"itting the Europeans in terms o" jobs and greater pro"it. *n y recent y has more emphasis been been p aced on &a ue addition and producing &a ue added# "ish products !ithin A"rica. /a ue addition a so creates a !ho e ne! ser&ice sector in terms o" emp oyment and s%i s de&e opmentA strengthening the economic base o" A"rican countries. 6enceA the need "or more &a ue addition and &a ue chain ana ysis in the region and in A"rica in genera . $n spite o" its great potentia A A"rican aJuacu ture production has been sma . To "ace the "uture A"rica needs a ne! paradigm on acce erated aJuacu ture gro!thA rea rea ising "ai ures o" past e""orts. Though go&ernment support has been noted in many countries ="or socio1economic gains>A there is sti d!ind ing supp ies o" "ish "rom traditiona sources =capture "isheries>. This cou d ser&e as a good basis to de&e op the sector and acJuiring better understanding G %no! edge on aJuacu ture and impro&ed net!or%ing G e;change o" in"ormation through

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

a more commercia y oriented approach =6anoomanjeeA S. et.a . Lanuary )::8>.

A"ricaFs productionA according to the FA* is e;pected to sho! signi"icant gro!thA "rom about 7 mi ion tonnes today to about '' mi ion tonnes in ):)2. A though most o" this gro!th !i come "rom aJuacu tureA some gro!th is a so e;pected in the capture sector =6empe A Eri% et.a . Cecember )::5>. The FA* has a so "orecast that demand "or "isheries products !or d!ide is e;pected to rise in the "uture. (ased on current demandA another )5 mi ion tonnes o" "ish !ou d be needed to maintain the present e&e o" per capita consumption in ):+:. The "orecast is "or greater urbanisation in de&e oping countriesA !here the popu ation is projected to increase "rom 2.3 bi ion in )::8 to 5.8 bi ion by ):2: and an additiona )2: mi ion to +': mi ion peop e !i be urbaniBed by ):'2 ? this is e;pected to be the main dri&er o" "uture consumption gro!th. This can be an opportunity to increase "ish trade.
The current a&erage per capita consumption o" "ish across A"rica is 7.+%gA and in Europe it is ):.5%g. ,or d!ide the annua a&erage per capita consumption o" "ishery products products has increased "rom ''.2%g in the '85:FsA to '3.2%g in the ):::s =FranBA @ico eA Apri ):':>.

Tab ! "# F$%& '()%*+,-$() $) SADC '(*)-.$!%

9gGcaputGyear Source< FA*


Country Angola Botswana Congo DR Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland Tanzania Zambia Zimbabwe Africa average World average 1961 7.4 0.7 10.1 3.9 10.9 4.0 9.1 47.6 5.5 0.0 6.4 8.3 1.5 5.0 9.0 1971 14.3 1.5 9.8 12.7 10.3 5.0 7.9 56.6 7.9 0.0 12.3 14.6 1.7 7.0 11.0 1981 14.4 3.8 7.1 7.5 18.7 3.5 10.0 74.5 10.4 0.1 11.9 7.2 2.7 8.9 11.9
1991 13.3 8.4 7.1 6.6 19.4 2.4 10.3 68.0 9.2 0.1 12.0 8.4 2.1 7.9 13.1

2003 15.7 2.8 5.8 4.6 18.7 5.0 13.3 61.0 7.3 2.4 7.0 6.4 1.2 8.2 16.5

&.

'!at is $alue c!ain analysis(

A &a ue chain is a chain o" acti&ities !here products pass through a acti&ities o" the chain in seJuenceA and at each acti&ity the product gains some &a ue. The chain o" acti&ities gi&es the products more added &a ue than the sum o" added &a ues o" a acti&ities. $t is important not to mi; the concept o" the value o" the product !ith the

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costs o" producing it. The &a ue chain ana ysis< A o!s the companyA indi&idua A or other sta%eho ders such as go&ernment po icy ma%ersA to understand the parts o" its operations that create &a ue and those that do not. Is a template that companies or individuals use, to: understand economic approachI and identi"y mu tip e means that might be used to "aci itate imp ementation o" a chosen business strategy. The concept o" the &a ue chain simp y in%s a the steps in productionA processingA and distributionA together 1 and a o!s us to ana yBe each step in re ation to the preceding steps and the steps that "o o!. The value chain describes the "u range o" acti&ities reJuired to bring a product or ser&ice "rom the sourceA through the di""erent phases o" production =in&o &ing a combination o" physica trans"ormations and inputs o" &arious producer ser&ices>A de i&ery to "ina consumers and "ina disposa a"ter use. /a ue chain ana ysis pro&ides a systematic and ana ytica too that can he p management see and understand the processes in the companyA and especia y %no! the costs re ated to the &arious steps in the chain. E;perience teaches that proper cost contro is crucia . *ne must %no! the costs at e&ery e&e A and !or% continuous y to reduce costs !here possib eA !hi e not compromising on Jua ity and sa"ety.
The most important imp ication o" app ying the &a ue chain approachA ho!e&erA is that a decisions made at one step in the processA ha&e conseJuences "or the "o o!ing steps 1 and such decisions may be irre&ersib e. For e;amp eA i" you %i and dress the "ish !hen you catch itA this means you cannot se it as a i&e "ish aterM

The &a ue chain consists o" primary activities such as creating and de i&ering a product = e.g. producing "ish "i ets>I support activities that are not direct y in&o &ed in productionA but are i%e y to increase the e""ecti&eness or e""iciency =e.g. research and de&e opment>. A soA some primary and support acti&ities can be outsourced.

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&.1

Comparing $alue c!ains

First y etFs see !hat the g oba "ish &a ue chain oo%s i%e.
F$1*.! " T&! %!a/((3 $)3*%-.7 0a *! '&a$). S(*.'!# G $-)$. Ba)2

$n studies underta%en respecti&e y by the FA* FA* and by 4 itnir (an%A it !as e&ident that the majority o" bene"its generated throughout the &a ue chainA are captured by the retai G !ho esa e G secondary processing sector o" the industry. This trend is sho!n both in de&e oping and de&e oped countriesF countriesF "isheries. $t is use"u to compare &a ue chain ana ysisA pro&ided !e on y "ocus on the net &a ue added at each e&e . A study' o" "our &a ue chains has high ighted important in"ormation about sea"ood &a ue chainsA inc uding that the share o" "ishers becomes re ati&e y o!er as the product becomes more processed. There are a so essons about potentia pit"a s. The study sho!ed that good "isheries management is essentia to ensure that "ishermen !i reap the bene"its "rom higher e;port prices. ,ithout proper management in p aceA increased prices can ead to increased "ishing pressures and hence threaten the sustainabi ity o" the resource and pro"itabi ity o" "ishing companies.
F$1*.! 2 C(+,a.$%() (/ 0a *! '&a$)% $) /(*. '(*)-.$!%.

'

.e"< AscheA Fan% et a .A FA* )::3.


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Fishing is based on a natura resource !hich can " uctuate dramatica y o&er time. $nternationa trade he ps sea"ood companies in di&ersi"ying these ris%s by opening up access to di""erent sources o" ra! materia . This again he ps stabi iBe mar%ets and increased stabi ity he ps in operating sea"ood businesses. Doo%ing at the graph abo&eA !e see that $ce andic and Moroccan "isheriesA !here good management practices are in p aceA imited the tota catch to sustainab e e&e s. As a resu tA price changes did not threaten the resourceA but simp y had a direct impact on the income "ishermen recei&ed. $n MoroccoA increased prices "orce processors to import ancho&ies "rom other countries but !hen prices dropA they buy on y "rom domestic sources. This sho!s ho! internationa trade can actua y he p re ie&e the pressure on "ishing grounds !hen prices become &ery high due to increased demandA or !hen catches dec ine through natura " uctuations. (y contrast it shou d be noted that the ana ysis o" the &a ue chain "or sma 1sca e "ishingA as !e as !or%ing to!ards ma;imising &a ue to the "ishermanA is geared to!ards "ood security.

&."

)easons for promoting $alue added production

6igher pro"its. More stab e mar%et conditionsA as prices "or consumer products products sho! ess &ariation than commodity prices. Lob creation. Ci&ersi"ication o" products and mar%ets. Co!n1stream economic bene"its through industry support sectors becoming more in&o &ed. *ur strategic position shou d be one o" ma;imising o&era &a ue.

R!+!+b!.# T&! %*+ (/ -&! 0a *! '&a$) %&(* 3 '.!a-! a 0a *! -&a- $% 1.!a-!. -&a) -&! %*+ (/ !a'& $)3$0$3*a a'-$0$-7, $) (-&!. 6(.3%, $- %&(* 3 '.!a-! a ,.(/$- +a.1$).

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F$1*.! 3 I)-!..! a-$()%&$,% $) 0a *! '&a$) a)a 7%$%.

Source< PorterA Michae A '872.

&.&

)e$erse Value C!ain Analysis

$n the "isheries industryA one may describe the &a ue chain as consisting o" se&en in%s in this case. The "ishing &esse catches the "ish and brings it to the anding site or portA !here there there is some primary processing ? such as "or e;amp e sorting and "reeBing or chi ing ? ta%ing p ace. From here the "ish is transported to secondary processingA such as "or e;amp e "i eting and "reeBing. The product is then shipped to the !ho esa erA !ho distributes it "urther to the retai er be"ore it ends up !ith the consumer @o!A etFs "or a moment oo% at the &a ue chain "rom the opposite direction ? instead o" starting !ith the ra! product and ending up !ith the customerA etFs oo% at the customer "irst.

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F$1*.! 4 R!0!.%! 0a *! '&a$) a)a 7%$%

,e "irst as% ourse &es !hat the customer !antsA ho! they !ant itA and at !hat price. A"ter a A i" !e create the !rong product "or the !rong mar%etA !e do not ha&e a businessM $t does not matter i" !e produce the !or dFs "inest productA i" nobody !ants to buy it. ThatFs !hy e&ery business p an starts !ith the customerA !ith mar%et research. ,e ha&e "ish ? a &a uab e ra! materia A but is there a mar%et "or it- $n !hat "orm does the customer !ant this product- The Juestions !e as% at the &arious steps in the &a ue chain he p guide the mar%eting and business p anning process. .emember that buyers and se ers remain connected a ong the &a ue chain<

/a ue chain ana ysis he ps to e;p ain the connection bet!een a actors in the chain o" production and distribution $t pro&ides producer1buyer in%s in !hich a parties can act "ree y $n abour intensi&e industriesA the po!er can shi"t "rom producers to traders or retai ers Pressure on eading companies o" g oba &a ue chains can impro&e !or%ing conditions amongst supp iers.

&.*

T!e buyer+dri$er approac!

The buyer1dri&er approach ho!e&erA is not on y about putting the best "or!ard "or buyers to i%e and support your business. $t is a so about being seen as a caringA socia y responsib e emp oyer. Peop e i%e to thin% they are supporting a good causeA e&en in !hat and ho! they buy.

$n recent yearsA the buyer1dri&en approach and this socia consciousness idea ha&e mo&ed emp oyment practices up the agenda.

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There are a "e! points to %eep in mindA though. Fe!er codes is a better approach ? it generates more e""iciency and minimise con"usion. (uyer reJuirements o"ten send a mi;ed messageA due to pressures o" management and abour prob ems in the !or% en&ironment. Supp iers are o"ten as%ed to con"orm to their buyersF abour code andA at the same timeA are under pressure to o!er their prices and speed up de i&ery. Pressure "rom retai ers and brand companiesF o!n supp y1chain purchasing practices can undermine the &ery abour standards that they c aim to support. *rganiBationa yA this is a management prob em that is easy to e;p ain< company sta"" dea ing !ith abour standards are rare y in charge o" actua sourcing decisions. This brings about di""icu di""icu ty in the intra1company di&ision o" abour to imp ement ethica sourcing. Competition in "ina mar%ets is o"ten "ierceA particu ar y !ith abour1intensi&e products. $n some mar%etsA retai ers may "ind that they ha&e itt e option but to pass these pressures on do!n the supp y chain.

(ut a top1do!n approach !here abour codes are imp emented on y by "orce has been sho!n to be insu""icient.
F$1*.! 5 A %'&!+a-$' 0a *! '&a$) $) /$%&!.$!%

Source< NoungA LimmyA Apri ):':.

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&.,

Customer and public perception about your business

Supp iers are more ab e to pro&ide high Jua ity and respond at greater speed i" their !or%ers are treated !e Companies are concerned about the threat to the image o" the corporation and damaged reputation o" being associated !ith e;p oitati&e !or%ing conditions.

A)3 -&$% $% 6&!.! -&! 0a *! '&a$) 'a) b! *%!3 -( &! , !)/(.'! regulations and standards C b(-& %-a)3a.3% (/ 6(.2, a)3 &!a -& a)3 %a/!-7 %-a)3a.3%. /a ue chain ana ysis is thus used to impro&e !ages and !or%ing conditions in oca supp ier enterprises<

As an important ne! instrumentA but !ith imitations De&erage is strongest !here reputation about !or%ing conditions matters to companies (uyer pressure "rom abo&e does not ma%e !or%er pressure "rom "rom be o! redundantA and oca !or%er organisation remains important Co ecti&e negotiation is not the on y !ay to impro&e emp oyment practices (est to ha&e a iance o" oca 1g oba p ayers inc uding buyersA enterprise associationsA trade unionsA @4*s.

&.-

.etting seafood to mar et and t!e need for careful !andling

The main emphasis here is the need "or good Jua ity products !hich in turn promote rea isation o" a better price at mar%et. Hua ity assurance starts right "rom the time the "ish is caught ti it reaches the consumer. The need "or mar%et in"ormation and mar%et research are a so &ery important. /a ue to products reJuires us to<

/a ue *U. product 9no! *U. ro e Maintain high standards 9no! *U. customer Communicate !ith each step in the &a ue chain.

.ememberA the !ay the "ish is hand ed immediate y a"ter being ta%en out o" the !aterA determines its u timate she " i"e. FishA once it is caught by the "ishermanA needs to be seen as a &a uab e "ood itemA !hich has to be oo%ed a"ter care"u y "or customer "ood sa"ety reasonsA and to achie&e the best prices. *n board "ishing &esse s that produce chi ed "ishA an ice s urry =being a mi;ture o" sea!ater and " a%e or crushed ice> shou d be used "or rapidA e""ecti&e chi ing o" "ish. The temperature o" a s urry is about 1' degrees C to 1'.2 degrees C. Chi ing is rapid because the "ish are tota y surrounded by !ater at the abo&e temperatureA and heat trans"er is much "aster than in air. Fish must be p aced in a ice s urry immediate y a"ter anding on the boatA and must remain in the s urry unti thorough y chi ed.

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T!o or more ice s urry sma tan%s are pre"erab e to one arge tan% because<

They can be cyc ed. They a o! "or more precise judgement o" the time "ish ha&e been in the s urry. They a o! "or sma er Juantities o" s urry to be made in times o" o! catch rates.

,hen "ish is sto!ed in direct contact !ith ice a"ter s urryA the chi ing process is ab e to continue. There"ore the time reJuired in s urry needs on y be ong enough to reduce the temperature temperature o" the centre o" the "ish to 2 degrees C. From this point chi ing in ice !i occur at about the same rate as in s urry. .ememberA there must a !ays be some ice e"t co&ering the "ish !hen it is anded to %eep it "rom !arming up.

&./

0o% do consumers decide on $alue(

.emember that<
Price is a %ey "actorA but most consumers do not buy on price a one Hua ity is assessed to determine &a ue /a ue O Hua ity G Price Price is the money charged and costs incurred =con&enienceA ocation etc.> Hua ity is mu ti1"aceted and &ariab e.

Price " uctuation is another aspect that in" uences the per"ormance o" the &arious steps in the &a ue chain. ,hen !e study price " uctuations in the di""erent parts o" the &a ue chainA !e notice that prices " uctuate more dramatica y at the beginning o" the &a ue chainA at the e&e o" the "ishermanA than at the end o" the &a ue chainA i.e. the consumer e&e . $n the supermar%etA !e see the same prices "or canned tunaA day in and day out ? !ith perhaps price changes once or t!ice a yearA and maybe a supermar%et specia o""er once in a !hi e. (ut in genera A prices in the supermar%et are re ati&e y stab e. The prices "or "roBen tunaA on the other handA &ary "rom day to dayA and sometimes great yA and this is a %ey characteristic o" a commodity productA as it is a based on current bu % supp y and demand mar%et "orces. This is because supp y and demand come into p ay 1 and at the supp ier e&e A this is more pronounced than at consumer e&e . A soA it !ou d create a too unstab e business business en&ironment "or the retai er i" prices to the consumer &aried too much. The "act that prices tend to be more stab e at the end o" the &a ue chainA shou d sho! us that !e shou d try to be in&o &ed "urther into the &a ue chain. $n "actA it is one good reason reason to de&e op &a ue additionA since it brings more stabi ity and predictabi ity into our business.

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F$1*.! 6 P.$'! / *'-*a-$()% a ()1 -&! 0a *! '&a$)

The potentia margin sometimes decreases and issues to be considered in our operations a ong the &a ue chain are< the higher the ris%A the higher the pro"it potentia A but a so the higher the ris% o" "ai ure.

&.1

Fis! mar eting systems in de$eloped $s de$eloping countries

S$+$ a.$-$!% %*'& a%#


(oth ha&e to "ace the same basic cha enge o" pro&iding sa"e "ood o" the right type and Jua ityA to the right p ace to !i ing customers !ho can pay Mar%et is composed o" mi;ture o" oca and imported "ish and "ishery products Comp e; mi;ture o" actorsA enterprises and institutions in the industry .o e o" supermar%ets important in "ish and "ishery product retai ing Presence o" hote restaurant and institutiona channe s as "ood ser&ice supp iers $ncreasing ro e o" regu ations and standards

D$//!.!)'!% %*'& a%#


/ast y di""erent sca e at system and enterprise e&e Do!er percentage o" product hand ed in ess de&e oped countries $n ess de&e oped countries more "resh# &ersus processed or manu"actured product compared to emerging or de&e oped countries Supermar%et share rising "ast in ess de&e oped countriesA to detriment o" sma er retai ers and !ho esa e mar%ets.

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&.2

3ey c!allenges of fis! $alue c!ains

/a ue chains are ho!e&er not a magic !ord to so &e a a companyFs prob ems. An a!areness o" common cha enges that most "isheries businesses "ace up to at some stageA he ps to position a company to con"ront its o!n particu ar giants. Among these %ey cha enges are<

Ci""erent ocations o" "ish resources and mar%ets Comp e; g oba trading in%s and patterns o" e;change Ci&erse ra! materia s reJuire trans"ormation and a ocation to specia ised &a ue chains satis"ying &aried mar%et needs Chains P acti&ities are interdependent and ha&e a mutua impact Ce i&ered Jua ity e&e s and &a ue adding options depend upon ear ier chain acti&ities /ertica communication net!or%s and chain management Consumers are the u timate determinant o" &a ue.

Tab ! 2# C(+,a.$%()% (/ b!)!/$-% 0!.%*% $+$-a-$()% (/ 0a *! '&a$)%

B!)!/$-% (/ 0a *! '&a$) E//!'-$0! $) -.a'$)1 ,.(3*'- / (6%

L$+$-a-$()% (/ 0a *! '&a$)

A'-(.% (/-!) (,!.a-! 6$-&$) %!- .* !% D!.1 -.a3! .* !%E a)3 b ('2a1!% S&(6% 0a *! a33$)1 %-a1!% Va *! '&a$) a)a 7%$% %&(* 3 b! 6! $)/(.+!3 ab(*- .* !% a)3 %-a)3a.3% .!F*$.!+!)-% I3!)-$/$!% 2!7 a'-(.% a)3 .! a-$()%&$,% 6$-& (-&!. D$//$'* - -( +a2! $)/(.+a-$() %,!'$/$' a)3 a'-(.% $) -&! '&a$) +!a)$)1/* E//!'-$0! $) -.a'$)1 ,.(3*'- / (6% T.a)%a'-$() '(%-%# B*7!. .! *'-a)'! -( b*7 /.(+ +* -$-*3! (/ %*,, $!.% S&(6% 0a *! a33$)1 %-a1!% C()/ $'- 6$-& b*7!.%G (6) '(+,!-!)'!# b*7!.% b* () 7 '()-.$b*-! -( /*.-&!. (6) $)-!.!%-% I3!)-$/$!% 2!7 a'-(.% a)3 .! a-$()%&$,% 6$-& (-&!. a'-(.% $) -&! '&a$)

Some o" these imitations ha&e manageab e so utions< Transaction costs and buyer re uctance to buy "rom a mu titude o" supp iers can be so &ed by sma producers organising horiBonta y so that buyers interact !ith one co ecti&e organisationA e.g. a cooperati&e society. =Cooperati&e societies ha&e the added bene"it o" purchasing in bu % "or its members at reduced costA thus o!ering the production costs>.

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&.14

C!allenges for de$eloping country suppliers

Ce&e oping countries a so ha&e additiona di""icu ties speci"ic to economic rea itiesA inc uding<

Choosing bet!een commodity and specia ty mar%ets .etaining and e;panding mar%et access 4aining and ho ding a position in ucrati&e &a ueGsupp y chains PenetratingA ho dingA e;panding better mar%ets .aising producti&ity and competiti&eness $ncreasing &a ue added Cea ing e""ecti&e y !ith emerging standards

&.11

)educing $alue losses

.educing &a ue osses a ong the &a ue chain then reJuires anticipating and minimising prob emsA and p anning ahead to ma;imise &a ue. Some strategies inc ude<
Cecrease product &ariabi ity $mpro&e product Jua ity Stream ine administration .educe hand ing and mo&ement $mpro&e p ant ayout *ptimise the use o" eJuipment and inputs $mpro&e sta"" producti&ity .educe damage and the"t.

&.1"

5o %!ere does t!e money go(

Doo%ing at !e estab ished industries operating in a modernA competiti&e en&ironment =such as $ce and>A !here they operate a ong much o" the ength o" the &a ue chainA !e get a Juite a di""erent picture to the situation in de&e oping en&ironments. DetFs consider the case o" TanBanian @i e Perch "i ets. (e o! is a depiction o" the distribution o" retai &a ueA o" @i e perch in TanBania<

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F$1*.! 8 Va *! a33!3 /(. ()! 2$ (1.a++! (/ N$ ! ,!.'& /$ !- $) -&! Ta):a)$a N$ ! ,!.'& /$%&!.7

Source< .e&enue distribution through the sea"ood &a ue chain# by Fran% Asche et a .A FA* Fisheries Fisheries Circu ar @o. ':'8A .omeA )::3

The TanBanian @i e perch industry has de&e oped o&er the past ': to '2 yearsA and the industry is dominated by on1shore processors and tradersA and by importers and distributors in Europe. Processing o" @i e perch is done in TanBania at on1shore processing p ants. Processors get a re ati&e y sma share. The big !inner in the @i e perch industry is the retai sectorA inc uding mar%etingA transportationA storage and pac%aging. This sector gets o&er 3:K o" the tota retai &a ue. This is re" ected in the distribution o" &a ue !ithin the &a ue chain. The "ishermen get about '2K o" the &a ue o" the retai price "or @i e perch !hi e "ish co ectors obtain about 2K o" the retai &a ueA the same share as the $ce andic cod "ishermenA a itt e ess than ):K.

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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

F$1*.! 9 T&! +a.2!-$)1 3$%-.$b*-$() '&a$) /(. La2! V$'-(.$a N$ ! ,!.'& /.(+ Ta):a)$a

F$1*.! ; T&! 0a *! '&a$) /(. La2! V$'-(.$a N$ ! ,!.'& /.(+ Ta):a)$a

Source< 6empe A Eri%A @o&ember ):':.

MechaniBed industria "ishing !as prohibited in '880. Fishers !ith itt e capita use canoes prope ed by padd es and sai s. *n y a "e! re ati&e y rich "ishers use outboard engines and can reach distant "ishing grounds. Their "ishing boats are to!ed by a mother "ishing boat !hose engine o!ner is paid "or to!ing a " eet o" canoes to and "rom the "ishing grounds. 4i nets and ong ines are used as the major "ishing gear "or catching @i e perch "or e;port purposes.

The second group o" "ishers ha&e a modern "aci ities "or commercia sma sca e "ishing. Their boats ha&e hygienic "ish ho ds and are po!ered by engines ? carrying up to 2 tonnes. The standard practice "or processing @i e perchA is to and the "ish at one o" many anding stations dotted a ong the shore ineA and on the numerous is ands in the a%e. Co ector boats a so co ect the "ish direct y "rom "ishers at "ishing groundsA and "erry it direct y to "ish processing p ants !ithout passing through the anding sites. The "ish processing estab ishment "orms the third segment in the " o! diagram. This segment recei&es a "ish =ra! materia > co ected "rom segments ' and )A intended "or oca and regiona mar%ets. The ra! materia s come "rom "ish rejected by the e;porter as being o" poor Jua ityA by1products or i ega y caught "ish seiBed by

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authorities and ater so d as o! grade "ish.

The "ina mar%et segment is the e;port mar%et. mar%et. Usua yA "ish is so d in bu % to EU importersA !hich in turn se the "ish to !ho esa ersA supermar%etsA processorsA etc. The "i ets are a so re1e;ported straight a!ay =!ith the same or di""erent identity> to other destinations such as USAA Austra ia and South America. Fi ets are a so so d to "actories "or "urther processing. DetFs no! return to I'! a)3.

F$1*.! "< R!0!)*! 3$%-.$b*-$() -&.(*1& -&! %!a/((3 0a *! '&a$) /(. I'! a)3$' '(3 /$ !-% %( 3 -&.(*1& U)$-!3 S-a-!% .!%-a*.a)-%

Source< .e&enue distribution through the sea"ood &a ue chain# by Fran% Asche Asche et a .A FA* Fisheries Circu ar @o. ':'8A .omeA )::3

The retai e&e contributes about ++K o" the &a ue added to the product ? inc uding e&erything needed to pro&ide the customer !ith the productA such as "aci ities and ser&ices.
2 The ne;t e&e is !ho esa e and G or secondary processing. processing. Products imported "rom $ce and as $HF "i ets are most y processed "urther as breaded or battered "i ets. This e&e a so pro&ides a sa es net!or% and distribution o" the products to the retai e&e . The !ho esa e e&e has about '8K o" the tota &a ue added in the &a ue chain.

The third e&e is processingA done !ithin $ce and in the "orm o" cutting the "i et "rom !ho e "ishA and c eaningA s%inningA cutting and "reeBing the "i et. This primary processing contributes about )8K o" the tota &a ue added in this &a ue chain.

$HF re"ers to indi&idua y Juic% "roBen


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$n most casesA processing "aci ities are a so operated by the "ishing &esse sA har&esting cod "or and based "actoriesA and these "ishing acti&ities contribute about '8K to the tota &a ue.

*.

Calculating monetary gains along t!e $alue c!ain&

To be ab e to ca cu ate monetary gains a ong the &a ue chain you "irst y need "inancia data "or the "ishing industry being studied. A (ang adesh company has done an interesting study in&o &ing their nationa nationa "ishA the 6i sa ="enualosa ilisha> that i ustrates the monetary returns to di""erent sta%eho ders a ong the &a ue chain. This is the countryFs most important sing e species. 6i sa "isheries comprise +:K o" the nationa "isheries production in (ang adeshA and 77K o" the catch is mar%eted "or domestic consumptionA !ith just ')K e;ported to ethnic mar%ets. A though traditiona A the "ish mar%eting system is comp e; and not &ery competiti&e.

F$1*.! "" T&! 0a *! '&a$) /(. +a.2!-$)1 (/ -&! /$%& 4H$ %a5 $) Ba)1 a3!%&, $ *%-.a-$)1 -&! +()!-a.7 .!-*.)% -( 3$//!.!)- %-a2!&( 3!.% a ()1 -&! '&a$)

Source: De Silva, D.A.M., April 2 ! .

Mar%eting "inancia data !as gathered "rom each o" the %ey &a ue chain sta%eho ders as i ustrated in the abo&e " o! diagram. The pro"it to each sta%eho der !as then ca cu ated using the "o o!ing simp e "ormu as<

(ased on &a ue chain ana ysis ? Hilsa marketing, Bangladesh


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Mar%eting Margin =MM> O Sa es Price =SP> minus Purchase Price =PP> Mar%eting Pro"it =MP> O Mar%eting Margin =MM> minus Mar%eting Cost =MC>

Tab ! 3# Ca '* a-$)1 -&! +a.2!- ,.(/$- a ()1 -&! 0a *! '&a$) -( !a'& %-a2!&( 3!. /(. -&! ,.$+a.7, %!'()3a.7 a)3 .!-a$ +a.2!-% /(. -&! /$%& 4H$ %a5 $) Ba)1 a3!%&

Primary market Purchase price (PP) 0.88 Marketing costs (MC) 0.05 Sales price (SP) 1.02 0.14 (8%) Market margin (MM=SP-PP) Marketing profit (MP=MM-MC)0.09

Secondary market Purchase price (PP) 1.02 Marketing costs (MC) 0.07 Sales price (SP) 1.39 0.37 (23%) Market margin (MM=SP-PP) Market profit (Mp=MM-MC) 0.30

Retail market Purchase price (PP) 1.39 Marketing costs (MC) 0.04 Sales price (SP) 1.61 0.22 (14%) Market margin (MM=SP-PP) Market profit (Mp=MM-MC) 0.18

,hat "o o!s is a step1by1step description to he p better understand understand ho! to ca cu ate the monetary gains a ong the &a ue chain. For some &a ue chains it may simp y be an artisana "isherman !ho catches the "ishA and se s it on the beach or at the oca mar%et. ,hether a simp e or comp e; &a ue chainA the princip es are the same. Nou are identi"ying a the costs against the sa es price to obtain the pro"itA at each stage a ong the &a ue chain.
$n this &a ue chain e;amp e be o!A there are a number o" p ayersA starting !ith the primary producers# o" the initia ra! materia produced. They then on se to the primary mar%et#A !hich in this case is a primary processor#A !ho produces "ish portions cut to their c ientFs speci"ications. The secondary mar%et# c ient is a secondary processor# !ho ma%es breaded "ish "ingers !hich !hich he bo;es in retai pac%s and then on se s to the retai mar%et# being a retai er#. The "ina p ayer in the chain is the consumer !ho purchases the product "rom the retai erA and then consumes it. For simp icity sa%e it is assumed that the sa es price is standardised a a ong the &a ue chain on the basis that the buyer pays a C$F price "or the product !hich inc udes the cost o" the productA insuranceA and "reight to the buyer. The "inancia data be o! is "or demonstration purposes on y and is not based on a rea i"e e;amp e.

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F$1*.! "2 S-!,=b7=%-!, 3!%'.$,-$() () 'a '* a-$() +()!7-a.7 1a$)% a ()1 -&! 0a *! '&a$)

,.

6co+label examples %it!in t!e Value C!ain

Eco1 abe ing is &o untary product abe ingA con&eying en&ironmenta en&ironmenta in"ormation to consumers that see%s to create a mar%et1based incenti&e "or better management o" "isheries. The concept behind eco1 abe schemes is to pro&ide economic incenti&es to producers and the sea"ood industry to adopt more sustainab e "ishing practices !hi e sa"eguarding or enhancing access to consumer mar%ets. Eco abe s a""irm that the "ish or "ish product in Juestion comes "rom a sustainab e "ishery. The &arious eco1 abe s each ha&e their o!n speci"ic standards that they operate byA con"irming to di""erent degreesA the sustainabi ity o" the resource and the best practices used at capture.

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,hat is dri&ing the mar%et "or sustainab e sea"ood.esource scarcity Changing ethics @4* Campaigns Corporate Socia .esponsibi ity Media attention Mar%eting and sa es

,.1

T!e ob7ecti$es of eco+labelling are8


better managedA more responsib e "isheries consumers to be educated and in"ormed about the sea"ood choices a&ai ab e.

Consumers may as% Juestions about sourcingA !hich may inc ude sustainabi ity ity or responsib e sourcing. Many are !i ing to pay a premium "or eco1 abe ed products. Sea"ood may become part o" a Qbas%etF o" more responsib y sourced productsA as it may appea to a certain type o" conscious shopper. A these "actors may in" uence more more commitment into responsib e sourcing and de&e opment o" po icy on sourcing or ha&ing minimum sustainabi ity criteria !hich may e;c ude some QbadF "isheries "rom being ab e to se . A o" this shou d u timate y app y QpressureF or at east send a signa that QgoodF "isheries appea to consumers and that they ha&e a better chance to gain mar%et access or share.

,."

9arine 5te%ards!ip Council :95C; Certification

The MSC represents a g oba non1pro"it organisationA estab ished in '885 to he p trans"orm the sea"ood mar%et to a sustainab e basis. MSC is internationa y recognised as the "isheries eco1 abe that is most consistent !ith best practice. $t is partnership based =industryA go&ernment P @4*s> and !or%s on the basis that !i d1capture "isheries are measured against a rigorous en&ironmenta standard.
,hen does the MSC consider "isheries to be sustainab e-

'. ).

Fish stoc%s are sustainab e !hen Sea"ood popu ations in source countries are hea thy @o o&er1"ishing .eproducti&e capacity is maintained There is pre1cautionary management =.e conser&ati&e Juotas> Minima en&ironmenta impacts

(y1catch "ish species

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+.

Shar%sA turt es SeabirdsA marine mamma s Sea1bottomA cora s E""ecti&e management< 4ood a!s and regu ations Adherence to internationa agreements 4ood po icing G sur&ei ance ="isheries patro sA inspectionsA etc.>
F$1*.! "3 F$%&!.$!% $+,.(0!+!)- ,.(>!'-%

Compare the fishery to the MSC standard (preassessment)

MSC Full Assessment

Fishery Improvement Project

@@F SFP O-&!. NGO%

MSC Full Assessment

6a&ing identi"ied "isheries to !or% !ith ? some "isheries can go direct "rom pre1 to "u 1assessment A !hi e others ha&e to go through the F$P5 process. Most regiona "isheries may need to go through the F$P processA !here @4*Fs such as ,or d ,i d i"e Fund =,,F>A assist the "ishery to bring itFs "isheries management systems into comp iance !ith MSC Certi"ication reJuirements reJuirements so that the "ishery can underta%e MSC Fu AssessmentA con"ident that they !i pass certi"ication.

,.&

Comparison study on fis!eries eco+labels

4i&en the pro i"eration o" eco1 abe s current y a&ai ab e in the mar%etA one one o" the big Juestions "acing marine "isheries certi"ication is ho! can !e increase positi&e y the impact and impro&e "ishery and marine ecosystem

A pre assessment is usua y carried out prior to a "u assessment to determine !hich criteria needs impro&ement. A pre1 assessment is con"identia to the c ientA gi&ing the "isheries sector c ient the opportunity to decide !hether or not to go ahead !ith "u assessmentA the atter being open to pub ic scrutiny. 2 F$P Fishery $mpro&ement Project
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hea th through identi"ying a credib e and practica eco1 abe - The 4uide ines on Eco1 abe ing o" Fish and Fishery Products "rom Marine Capture Fisheries# =FA*A )::2>A are the recogniBed acceptab e minimum standard "or credib e "isheries eco1 abe s. *n the basis o" thisA ,,F in )::8 undertoo% a comparati&e study through the "irm Accenture. The study oo%ed at !e %no!n eco1 abe sA and assessed them on the basis o" the "o o!ing assessment criteria< G(0!.)a)'!, S-.*'-*.! a)3 P.('!3*.!% =ho! the scheme is go&erned and operated>

Topic ' ? Standard setting structures and procedures Topic ) ? Accreditation and certi"ication structures Topic + ? Accreditation and certi"ication procedures C()-!)- (/ S-a)3a.3% Topic 0 ? Eco ogica criteria Topic 2 ? Fishery management system Topic 3 ? Traceabi ity.

F$1*.! "4 ?*a)-$-a-$0! '(+,a.$%() (/ !'(= ab! % Source: Accenture Development #artners, Decem$er 2

%.

Quantitative Comparison of Eco-labelling Schemes by WWF

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Car% b ue O Marine Ste!ardship Counci A comp iantI ye o! O @atur andA semi1comp iantI red O Friend o" the SeaA semi1comp iantI green O 9ra&A semi1comp iantI purp e O A$CCPA non1comp iantI ight b ue O MED1LapanA non1 comp iantI pin% O Southern .oc% DobsterA non1comp iant.

The study re&ea ed that o" the eco1 abe s assessedA eco1 abe sustainabi ity programmes use many good initiati&es to "oster eco ogica sustainab e "ishing and management practices. 6o!e&erA the MSC is the on y eco1 abe that is structured to ha&e the greatest impact on the sustainabi ity o" "isheries and marine ecosystems themse &es =as depicted in Figure '+ abo&e>. $t !as obser&ed that e;cept "or MSCA eco1 abe s are not !e ba anced across a si; segments to the e;tent reJuired to support sustainab e "ishing.

,.*

5out! African !a e < an 95C success story

South A"rican ha%e o""ers a Southern A"rican success storyA !hereby SA ha%e has e;panded into ne! mar%etsA strengthening its position in other QMSC1"riend yF mar%ets =U9A USA 4ermanyA @ether ands etc.>.

The can bene"it o" thisA inc uded Juota reductions so as to rebui d stoc%s and ensure stabi ity in annua tota a o!ab e catches =TACs>.
Acti&ities reJuiredA inc uded ring "encing o" "ishing grounds to protect the en&ironment outside the "ishing groundsA "ish by1catch management so that other species outside the management regime are not e;p oitedA and reduced seabird interactions !ith "ishing gear. As !e as strengthening "isheries management o" South A"ricaFs A"ricaFs ha%e stoc%A the South A"rican ha%e industry as a resu t o" MSC eco1 abe ing certi"icationA has been ab e to e;pand its product mar%ets internationa y. This is promoting greater o&era pro"its as MSC "riend y mar%ets genera y pre"er products that ha&e undergone greater &a ue addition a ong the &a ue chainA and in a !or d !here many countries are no! su""ering "rom economic hardshipA tend to pay better prices "or the product.

,.,

6co <labelled =ile Perc!, Tan>ania

Through a 4erman "unded 4TE projectA the @atur and eco1 abe !as app ied to @i e Perch in TanBania. The @atur and Standards consist o" ') 4enera Standards addressing eco ogica A socia and economica sustainabi ity. Through the project '3 supp iersA 2: co ectorsA 5'+ "ishermenA )5+ "ishing boatsA and )2 co ection boats !ere in&o &ed G certi"ied. /ic"ish produces about 0A:::mt o" certi"ied @i e Perch.

This @atur and eco1 abe project c ear y i ustrated ho! management directed to!ards the mar%et chain has impro&ed comp iance to ru esA increased transparency o" the management systemA bui t mutua trust bet!een cre!A &esse o!nersA "ish co ectors and "ish "actory managersA and impro&ed in"ormation " o! "or management. This !as possib e because each sta%eho der in the mar%et chain bene"ited bene"ited economica y "rom the business

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partnership "orged !ithin the chain.

,.-

6co 9ar Africa < promoting sustainable fis!eries

The A"rican Eco1 abe ing Mechanism =AEM> !as created to promote sustainab e consumption and productionA !hi e "ostering intra1A"rican trade across &arious sectors. $t has a !ebsite< !!!.ecomar%a"rica.com AEM a!ards the EcoMar% A"rica =EMA> eco1 abe to sustainab e A"rican producers and ser&ice pro&iders. AEM is< based on a pan1A"rican po itica structure to ensure go&ernmentsF supportA thereby gaining credibi ity and egitimacy across the continentI pro&ides the technica "rame!or% "or a!arding the EMA abe on the basis o" sector1speci"ic standardsI !i be the standard1setting body as !e as the o!ner o" the EMA StandardsI !i ensure certi"ication carried out through accredited third1party con"ormity assessment bodiesI is current y being institutiona ised as an independent ega entity.

E;isting "isheries certi"ication schemes bene"it by<

Using EMA eco1 abe to comp iment their systems by "i ing gaps =e.g. regarding processingA socia criteria>A thereby tai oring their schemes to speci"ic A"rican conditions !hi e maintaining emphasis on their A"rican origin.

Fisheries bene"it by< Using EMA as a mar%eting too !hich enhances their mar%et access at internationa A and especia y at continenta e&e . EMAFs "ocus on sma 1sca e "isheriesA pro&iding them a speci"ic support in app ying sustainab e har&esting and processing practices.

4o&ernments bene"it by< Using EMA as a co1regu atory too to achie&e their po icy objecti&es regarding sustainabi ity. Transparent y pro&ing their "isheries industriesF sustainabi ity per"ormance. Enhancing their pro"i e !ith de&e opment partners and the internationa internationa community. Dearning "rom EMA processes so as to in"orm their o!n ega and management systems.

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-. Conclusions on t!e $alue c!ain



/a ue chains conceptua iBe ra! materia trans"ormation irrespecti&e o" sca eA i.e. sma sca e or industria "isheries. /a ue chain thin%ing is a systematic !ay to plan the businessA both "rom a commercia and go&ernmenta perspecti&eA impro&ing bene"its through better po icies. /a ue chains determine areas o" comparati&e ad&antage in supp ies and mar%ets. /a ue chain ana ysis can he p ma'imi(e pro&its but it can a so identi"y acti&ities that are necessary $ut not pro&ita$le . Doca and regiona net!or%s enhance &a ue addition< di""erent institutiona end1mar%ets are in%ed to di""erent "orms o" coordination and contro o" &a ue chains. @eed to de&e op &ision on< s%i s trainingA trainingA in&estmentA mar%et accessA sa esA and e;ports. Ensure that po icy en&ironment is "a&ourab eA but donFt assume that !i be enough. Ta%e a c uster approach on y as the starting point "or &a ue chainsA chainsA not as an end in itse ". Concentrate on competiti&eness and producti&ity. Doo% "or and e;p oit mu tip e !ays to add &a ue once initia success has been pre iminari y attained. $denti"y and support promising &a ue chains !ith assistance at %ey points in the supp y chain based on co aborati&e ana ysis o" cha engesA joint de"inition o" prioritiesA and e;pert assistance "rom industry1 e;perienced peop e. .ecogniBe that some %eys to success reJuire main y pub ic sector inter&entionA others on y pri&ateA and some a mi;ture o" the t!o. 4o&ernment sector po icy ma%ers shou d see% pri&ate sector a iances at a stages o" supp y and &a ue chains.

,ith e&erything !e ha&e earnt about the &a ue chainA etFs no! "ocus on po icy de&e opment.

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Part B.

Value C!ain Analysis in policy planning

/a ue chain ana ysis is use"u "or ana ysing "isheries and aJuacu ture industries in A"ricaA and through the app ication o" this approachA ne! insights may be gained and &a uab e ne! strategies de&e opedA both at the micro1economic =company> e&e and at the macro1economic =nationa > e&e . /a ue chain ana ysis can be app ied to pure descripti&e studiesA !here the purpose is to describe a process and "or e;amp e to a ocate portions o" the costs to the &arious e ements. (ut it can a so be used as a mode in more ana ytica studiesA !here re ationships and mechanisms are described. /a ue chain ana ysis is a so o" particu ar use in business in&estment ana ysisA !here it can pro&ide "irmer ground "or ma%ing decisions about in&estment opportunities. Understanding &a ue chains reJuires oo%ing at a the %ey socio1economic e ements a ong the &a ue chain "rom the time the "ish is caught ti it is purchased by the "ina consumer. The intention behind doing so is to ma;imise &a ue "rom a pro"it perspecti&e at a commercia company e&e A as !e as an indi&idua "isher e&e . And "rom a Fisheries Administration perspecti&eA to promote competiti&e macro1economic industry de&e opmentA !hich through &a ue chain ana ysis a o!s one to gain a c earer perspecti&e on the comp e;ity o" nationa economicsA pub ic !e "areA "oreign e;change earningsA and other considerations. From a po icy de&e opment perspecti&eA some o" the reasons !hy &a ue chain ana ysis is so use"u is that it high ights means to achie&e<

6igher pro"its More stab e mar%et conditionsA as prices "or consumer products as a resu t o" &a ue additionA sho! ess &ariation than commodity prices Lob creation Ci&ersi"ication o" products and mar%ets Food security .eduction in post1har&est osses Ma;imising sustainab e management o" "isheries Co!n1stream economic bene"its through industry support sectors becoming more in&o &ed through de&e opment o" c uster re ationships.

$t must be remembered that &a ue chain ana ysis as a too is not on y use"u in he ping the richA but a so the poor. $ts princip es app y across industria A semi1industria A and sma 1sca e "isheries. Many o" the poorest peop e g oba y i&e in rura areas in Sub1Saharan A"rica. A"rica. They are poor because they are not e""ecti&e y incorporated into the socia A economicA and po itica mainstream. There is an important ro e "or go&ernment po icy to reduce po&erty through reducing ris%A encouraging sustainab e "isheriesA education and s%i s etc. 6o!e&erA rura po&erty !i on y be reduced signi"icant y i" o!1 income rura communities engage more success"u y !ithin the mar%et. A &a ue chain "rame!or% is he p"u because it a so a o!s us to understand !hy poor participants are not current y bene"iting "rom their producti&e acti&ities and !hat can be done to impro&e the success o" this engagement.

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Poor peop e in rura areas are un i%e y to ma%e a success"u transition to g oba y competiti&e industria production in many p aces. $n this case !e need to consider products appropriate to oca and regiona mar%ets rather than the g oba mar%et. And go&ernment structures re ated to the organisation o" production and in%ages !ith traders rather than the mu ti1 atera trading systemA so that the rura poor can "ind their true competiti&e ad&antage =Mitche A Lonathan et.a . ):''>.
The competiti&eness o" the oca or regiona economy depends on the "unctioning o" the entire chain. For Fisheries Administrations to pursue a strategic approach in bui ding up the competiti&eness o" their "isheries sectorsA they need a simp e !ay o" sho!ing !here the %ey prob ems are and !here inter&ention is reJuired. /a ue chain maps are a use"u !ay o" identi"ying these points and sharing the in"ormation !ith a concerned. This "orms a basis "or discussing and deciding !here oca institutions can reso &e prob emsA and !here assistance "rom donor agencies is reJuired. Adopting this chain approach ma%es it more i%e y that oca and "oreign contributions comp iment and rein"orce each other.

Part ( o" this manua pro&ides a step1by1step approach to underta%ing a /a ue Chain Ana ysis.

1.

Policy de$elopment t!roug! $alue c!ain analysis

Po icy is the set o" guiding princip es that maps a course o" action "or an organiBation. $t gi&es guide ines and procedures ? a strategy "or achie&ing the goa s and objecti&es o" the organiBation. Ce&e oping good economic po icyA appropriate to the e&e o" de&e opment in an industry and countryA reJuires an understanding o" ho! oca enterprises "it into the g oba economy. *"ten these mar%ets are not "ree1"or1a open spacesA but the spaces are coordinated by g oba buyers !ho source di""erent parts and ser&ices "rom around the !or d. There is increasing "unctiona integration bet!een internationa y dispersed acti&ities. The outsourcing o" manu"acturing and ser&ice acti&ities "rom the high !age to the o! !age economies acce erates this trend. $n some mar%ets it remains possib e to de&e op a uniJue design and brandA ma%e the product to your o!n speci"icationA and then e;port it direct y.

1.1

#b7ecti$es of policy8

Po icy de&e opment at organiBationa and company business e&e is aimed at<

impro&ing earning opportunities repositioning the company in the g oba economy dea ing !ith concerns about "oreign competition threats impro&ing the per"ormance o" oca producers con"orming !ith g oba abour and en&ironmenta standards reducing po&ertyA by he ping sma and arge businesses

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s!itching "rom the o! to the high end o" achie&ing competiti&eness.

Pub ic po icy aimed at pri&ate sector tries to in" uence decisions to impro&e per"ormanceA to !hich entrepreneurs o"ten respond !ith scepticism. (ut entrepreneurs do isten to customersA and this is a tip "or po icyma%ers to engage !ith pri&ate sectorM
Programmes aimed at impro&ing the capabi capabi ities o" enterprises entai upgrading in critica areasA inc uding< managementA eJuipmentA Jua ity systems and training.

1."

?mportance of policy and best practice8

Abo&e !e ha&e e;p ained !hat po icy is and !hy it is important. (est practice di""ers in that this is a set o" procedures and practice that ha&e been de&e oped !ithin an organisationA "ie d o" industry or !or%p aceA !here through training and earning "rom o!n and shared e;periencesA a set o" !or% practices ha&e resu ted to guide !or% !ithin a set conte;t. (est practice thenA is the tradition o" !or% practices deri&ed atA !hich !ere "ound to !or% best !ithin the gi&en conte;t. Po icy and best practice are important to<

6e p oca entrepreneurs compete in the g oba economy A@C impro&e earning earning opportunities and !or%ing conditions o" oca communities. Focus on !hat oca entrepreneurs specia ise in Consider ho! the g oba mar%et "or these products is organised Understand the &a ue chains in the industryA so that po icyma%ers can pro&ide re e&ant and appropriate support.

1.&

5teps to conduct a VCA for policy planning

Some suggestions to be ta%en into account initia y<

'. .ememberA to proper y ma;imiBe "isheries &a ue chainsA Fisheries Administrations must !or% in partnership !ith the Pri&ate Sector. ). Uti ising Part A o" this manua in a step1by1step manner to identi"y issues re e&ant to your priorities. +. Update your %no! edge on e ements o" "isheries &a ue chains in re ation to po icy de&e opment through reading trade and business journa sA entrepreneuria entrepreneuria seminar materia sA pro"essiona association ne!s etters and on ine resources "or state and oca go&ernment regu ations. @et!or% !ith peersA inc uding pro"essiona counterparts "rom simi ar businesses 1 or de&e op your o!n net!or% o" simi ar y1 situated e;perts !ho may be de&e oping their o!n po icies "or &a ue chain ana ysis. Authoritati&e "isheries journa s and database sites that may guide youA inc ude but are not imited to< Fishing @e!s $nternationa I Fish Farming $nternationa I Sea"ood $nternationa $nternationa I $n"o"ish $nternationa I $n"o"ish Trade @e!sI 4 obe"ish 6igh ightsI 4 obe"ish European Fish Price .eportI the FA* !ebsiteI FA* FishStat database =internet>I and internet "ishing ne!s !ebsite !!!."is.com
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0. Ma%e sure< !hat the noted "isheries research institutions in your region areI regiona "isheries management organiBation =.FM*Fs>I Fisheries Administrations !ithin your regionI "ishing industry associationsI and "isheries donor and training organiBationsI and in% in% up !ith those that are re e&ant to you to ensure that the po icy that resu ts "rom your e""ortsA is re e&antA current and !i be used !ide y. ,e can no! "ocus on a step1by1step approach to de"ine the main %ey points to conduct a /CA and address "isheries po icies =Source< /a ue Chain Ce&e opmentI http<GGapps.de&e ebridge.netGamapGinde;.phpG/a ueRChainRCe&e opment>
First yA "rom a po icy ma%erFs perspecti&eA the goa o" &a ue chain ana ysis is to enab e pri&ate1sector sta%eho ders to upgrade their "irms and co ecti&e y create a competiti&e &a ue chain that contributes to economic gro!th !ith po&erty reduction. The ro e o" the po icy ma%er together !ith possib e donor in&o &ementA is to "aci itate and support imp ementation o" the competiti&eness strategy by the pri&ate sector in such a !ay that ensures that de&e opment objecti&esSeconomic gro!thA po&erty reduction and other concerns such as sustainab e natura resource managementSare a so met.
F$1*.! "5 Va *! C&a$) A)a 7%$% %-!,

/a ue Chain Ana ysis is a process that reJuires "our interconnected steps< data co ection and researchA &a ue chain mappingA ana ysis o" opportunities and constraintsA and &etting o" "indings !ith sta%eho ders and recommendations "or "uture actions. These "our steps are not necessari y seJuentia and can be carried out

simu taneous y. '. The &a ue chain team co ects data through primary and secondary sources by !ay o" research and inter&ie!s.

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). The team compi es a &a ue chain mapA !hich he ps to organiBe the data. +. (y using the &a ue chain "rame!or%A the co ected data is "urther organiBed and ana yBed to re&ea
opportunities and constraints !ithin the chain.

0. The resu ting ana ysis o" opportunities and constraints is &etted !ith sta%eho ders and used to design a
strategy "or the &a ue chain to impro&e competiti&eness and to agree on upgrading in&estments.

S-!, O)!# Da-a C( !'-$()


4ood &a ue chain ana ysis begins !ith good data data co ectionA "rom the initia des% research to the targeted inter&ie!s. The &a ue chain "rame!or%Sthat isA the structura and dynamic "actors a""ecting the chainS pro&ides an e""ecti&e !ay to organiBe the dataA prioritiBe opportunities and p an inter&entions. The des% research consists o" a rapid e;amination o" readi y a&ai ab e materia . The aim is to "ami iariBe the ana yst !ith the industryA its mar%et and the business en&ironment it operatesA as !e as to identi"y sources "or additiona in"ormation. $n"ormation such as statistics on e;portsGimportsA consumption reportsA g oba trade "iguresA etc.A can be obtained through the $nternetA phone ca s and documents "rom tradeA commerce and industry ministriesA specia iBed industry journa sA and pro"essiona and trade association ne!s etters. *nce the des% research is conductedA an initia &a ue chain map can be dra"ted "or re"inement during the primary research phase. $nter&ie!s are conducted !ith '> "irms and indi&idua s "rom a "unctiona e&e s o" the chainA and )> indi&idua s outside the &a ue chain such as economists. $n addition to pro&iding in"ormation about the mo&ement o" product and the distribution o" bene"itsA the inter&ie!s shou d in"orm on &a ue chain actorsF current capacity to earnI ho! in"ormation is e;changed among participantsI "rom !here they earn about ne! production techniJuesA ne! mar%ets and mar%et trendsI and the e;tent o" trust that e;ists among actors. $nter&ie!s can he p to identi"y !here chain participants see opportunities "or "or and constraints to upgrading. Missing or inadeJuate pro&ision o" ser&ices necessary to mo&e the &a ue chain to the ne;t e&e o" competiti&eness can be identi"ied oca yA regiona y or nationa y. $n addition to indi&idua inter&ie!sA "ocus group discussions discussions are a use"u !ay to e;p ore conceptsA generate ideasA determine di""erences in opinion bet!een sta%eho der groups and triangu ate !ith other data co ection methods. The group may consist o" 51': peop e !ho per"orm the same or a simi ar "unction in the &a ue chain. 4uided discussion better captures the socia interaction and spontaneous thought processes that in"orm decision ma%ingA !hich is o"ten ost in structured inter&ie!s. The Jua itati&e data gathered !i re&ea dynamic "actors o" the &a ue chain such as trendsA incenti&es and re ationships. To comp ement thisA Juantitati&e ana ysis o" the chain is necessary to pro&ide a picture o" the current situation in terms o" the distribution o" &a ue1addedA pro"itabi ityA producti&ityA production capacity and benchmar%ing against competitors. Ana yBing these "actors high ights ine""iciencies and areas "or reducing cost.

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S-!, T6(# Va *! C&a$) Ma,,$)1


/a ue chain mapping is the process o" de&e oping a &isua depiction o" the basic structure o" the &a ue chain. A &a ue chain map i ustrates the !ay the product " o!s "rom ra! materia to end mar%ets and presents ho! the industry "unctions. $t is a compressed &isua diagram o" the data co ected at di""erent stages o" the &a ue chain ana ysis and supports the narrati&e description o" the chain. The purpose o" a &isua too in the ana ysis process is to de&e op a shared understanding among &a ue chain sta%eho ders o" the current situation o" the industry. The mapping e;ercise pro&ides an opportunity "or mu ti1 sta%eho der discussions to re&ea opportunities and bott enec%s to be addressed in subseJuent stages o" the project cyc e. Maps a so he p to identi"y in"ormation gaps that reJuire "urther research. The Process o" Ce&e oping a /a ue Chain Map<

$t is recommended that &a ue chain mapping be conducted in t!o phasesI a> an initia basic map a"ter the co ection o" initia data i ustrating participants and "unctionsA and b> adjusted mappingA !hich is conducted "o o!ing additiona and "o o!1on inter&ie!s. The detai e&e o" the map depends on mission objecti&es and reJuirements estab ished at the outset.
The steps "or putting together a &a ue chain map are as "o o!s<

'. Co ect data "rom secondary sourcesA %ey in"ormant inter&ie!s andGor sur&eys ). Use a "unctionGparticipant !or%sheetA !hich inc udes the "o o!ing e ements< input supp y production assemb y processing !ho esa e e;port
These e ements he p to organiBe %ey in"ormation about !ho is doing !hat in the &a ue chain. Fi ing out the mode tab e be o! can great y "aci itate dra"ting the &a ue chain map. =@ote< An actor can accomp ish more than one "unction.>

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F$1*.! "6 G!)!.$' @(.2%&!!- '.(%%$)1 /*)'-$() 6$-& ,a.-$'$,a)-%Aa'-(.%

+. Cra! the map using the basic map "ormat. There There are no rigid ru es to &a ue chain mappingA but to "aci itate in"ormation sharingA the "o o!ing are suggested presentation guide ines< Dist end mar%ets across the top o" the map. Dist "unctions do!n the e"t side o" the map. Fi in participantsGactors according to their "unctions and mar%etsA presented as b oc% "orms !ith inserted te;t in each entry. $" participantGactors are in&o &ed in more than one "unction or mar%etA e;tend the b oc% to reach the re e&ant "unctionsGmar%ets. $" their "unctions are not consecuti&e in the chainA the s%ipped "unction b oc% is presented !ith dotted ines. Actors shou d be grouped by categories o" "irms rather than indi&idua "irms by name. Cra! the in%ages bet!een participant b oc%s !ith arro!s in the direction o" the product " o!. Ce"ine c ear y mar%et channe s in a &ertica manner cu minating at end mar%ets at the top o" the map. 0. $nc ude additiona in"ormation re e&ant to the chain ana ysis. E;amp es inc ude< $denti"y categories or speci"ic supporting ser&ice pro&iders on the right side o" the map. Present &a ue chain go&ernance by di""erent types o" connecting arro!s sho!ing a &ariant go&ernance patterns associated !ith separate mar%et channe s. 2. Add data o&er ays !hen re e&ant and he p"u "or the chain ana ysis. *&er ays are represented by< @umber o" "irms !ith @ =@ ORR> Sa es !ith S =SO RR> Emp oyment !ith D =DORR> /o ume !ith / =/ORR>
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MANUAL ON VALUE CHAIN ANALYSIS AND PROMOTION

The samp e basic &a ue chain map be o!A de&e oped "or a horticu ture ana ysis in TanBaniaA sho!s mar%et channe di""erentiation "rom the producer e&e on up to either an e;port or a domestic consumer mar%et.

F$1*.! "8 P.('!%% () VCA = !Ba+, !

Mapping is a simp e too I !hi e it is importantA it has imitations<

$t does not sho! &a ue chain dynamicsA dynamicsA changes and trends o" the chain. (y de"initionA the map is a static snapshot o" the &a ue chain structure and cannot adeJuate y represent "actors that in" uence the conduct o" indi&idua &a ue chain participants. $t does not sho! end mar%et reJuirements reJuirements and opportunities. The map indicates "ina product mar%etsA and at timesA segmented mar%et channe sA but this does not e;p ain the structure or dynamics o" end mar%ets. $t on y pro&ides super"icia in"ormation on supporting mar%ets. The map genera y on y sho!s generic categories o" support ser&ice pro&iders such as "inancia ser&ices" and says itt e about access to these ser&ices. $t does not pro&ide in"ormation on the enab ing en&ironment. Mapping is too simp istic a too to describe the business enab ing en&ironment and its impact on &a ue chains. There is a tendency to spend too much trying to re"ine the map and trying to reach agreementA rather than using the map as one o" se&era too s to identi"y constraints to mar%et opportunities.

Project Funded by the European Union

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A project implemented by Pescares Italia

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