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Projects featured

Value Chain Development

More and more value chain development is instrumental in facilitating pro-poor economic development, particularly in the agri-food sector.

‘Value Chain’ refers to all activities that take a product from initial production to end use in a particular industry. Generally this includes input supply, production, processing, wholesale and retail. During these stages value is being added to the product.

A value chain approach looks at the dynamics of inter-firm relationships and coordination mechanisms in a particular industry. It examines other factors as well that influence overall chain performance, including access to and requirements of end-markets, the regulatory and policy environment, the supplying industry and the availability and quality of support services such as financial services.

Unlike traditional marketing systems, producers in a value chain marketing system are linked to the needs of consumers and work more closely with suppliers and processors to produce the specific goods demanded by end consumers. This approach ensures a continuous feedback between various stages along the value chain which can enhance farmers’ market power and profitability. Well functioning value chains are considered to be more efficient in bringing products to consumers. Therefore all participants and particularly smallholder farmers are expected to benefit from value chain development.

ProAfrica provides support to organizations and governments to improve chain performance by identifying and addressing constraints and opportunities faced by farmers and producers, processors, traders and other businesses along value chains. More specifically, ProAfrica facilitates improved market access, providing access to better or cheaper inputs, ensuring a more efficient product flow, provision of market information and strengthening the delivery of financial and business services. Moreover, ProAfrica through its network is able to bring in partners that can provide specialist technical know-how for any industry within the agri-food sector.