Product Value Chain Study

Project Description

Commercial Agriculture Development Project (CADP), under the grant assistance of Asian Development Bank is in operation since August 2007 and will continue until December 2012 where Ministry of Agriculture and cooperatives is the Executing Agency and Department of Agriculture (DOA) is Implementing Agency. The project is being implemented in 11 district of the Eastern Development Region (EDR) with the goal to reduce poverty by increasing (i) employment opportunities in rural areas, (ii) value added of agriculture product, and (iii) rural income. The overall scope of CADP (1) Commercial agriculture investment and management through (a) Community based market infrastructure, and (b) Non-infrastructure investments; (2) Inclusive development of stakeholders by (a) Developing subsistence agriculture stakeholders and , (b) Enhancing semi-commercial agriculture stakeholders and (c) Promoting social inclusiveness among commercial agriculture stakeholders; (3) Market information dissemination; (4) Capacity enhancement of project partners; and (5) Project implementation support. The Commercial Agriculture Alliance (CAA) will implement agriculture investment (Component 1) and other four will be implemented by the DOA/CADP.

The principal objective of this Value Chain Study was to understand the functioning and dynamics of the value chains; identifying key players and proposing possible initiatives for CADP program would undertake to promote increased enterprise income and employment.

The overall scope of this assignment was to carry-out product chain study of ten high valued commodities: vegetables (Cole crops – cabbage, cauliflower; beans, tomato), fruits (banana, mango, citrus), cash crops (cardamom, ginger), and others (tea, nuts). The study project identified 10 potential commodities (for Eastern Development Region) and proposed investment priorities for the identified value chains.

Assignment Description

The following were the details of the work: • Collect, compile and review available secondary data/information • Develop and administer data collection tools, primarily interview schedules, checklists and questionnaires • Develop value chain map • Identify chain actors – from input suppliers to retailers • Identify factors affecting the performance of the value chain • Availability of service providers and their linkage/relationship • Key constraints to and opportunities of the value chain • Possible solution to key constraints for the effective development of market oriented value chains Major activity: • Identification and mapping of commodity value chains • Gaining a view of how the commodity is produced, organized, operates and performs; • Identifying various constraints and opportunities; • Identifying specific market chains that are most appropriate for a client group and investor ; and • Prescribing interventions in the organization, technology and management of the commodity. The study also focused on identifying the best points of leverage within a market chain by investing to improve market chain performance. Such leverage may focus on technology, specific chain actor performance, improving business development services and changing policies.