Value Chain Analysis Presentation, AFE, Lusby and Panlibuton, 2004

Description
This SEEP Annual General Meeting presentation describes value chain analysis as complementary to sub-sector analysis, providing additional analytical elements that help improve the program design process and building on the foundation of a sub-sector analysis.

Sub-sector analysis provides an understanding of product markets and trends and the relationships between participants; identifies constraints and opportunities; and maps the sub-sector to determine inter-relationships and identify interviewees.

Value chain analysis comprises geographic coverage that considers activities at all levels - national, regional, and global; global benchmarking with competing countries and to learn from buyers; inter-firm cooperation to understand the level and degree of interaction and structure of transactions; and governance structures - market, balanced, directed, or hierarchical.

Methods for info gathering
In-depth, guided interviews with key informants, SEs, and providers; focus group discussions; meetings with stakeholders

Summary of results
Value chain analysis can help to:
- Reveal links between producers, exporters, and global markets;
- Identify constraints all along the chain to competing in the market place;
- Clarify relationships in the chain from buyers to producers; and
- Highlight the distribution of benefits among buyers, exporters, and producers.

USAID's Accelerated Microenterprise Advancement Project hypothesizes that greater participation of SMEs in value chains can contribute to improved enterprise performance and household well being as well as growth and competitiveness of the value chain.