Knight-Jones, Theodore J.D.

CGSpace

Uses of the value chain approach in livestock and beef Theo Knight-Jones  Animal health challenges to Southern Africa–EU beef export trade  Gaborone, Botswana  8-9 September 2015 Value chain approach What is it & when is it used? Different for different people • Ask an economist • A veterinary epidemiologist • Development sociologist  Who has participated in a value chain workshop/analysis? 3 Economist “The value chain describes the full range of activities required to bring a product or service from conception, through production (involving physical transformation and inputs of services), delivery to final consumers, and final disposal after use.” A handbook for value chain research. Prepared for the IDRC by Raphael Kaplinsky and Mike Morris 4 A handbook for value chain research. Prepared for the IDRC by Raphael Kaplinsky and Mike Morris Forestry, timber and furniture value chain  For livestock -Activities in the value chain add value to the product -Private sector actors do so to make an individual profit -Public sector to benefit overall economic wellbeing (facilitate trade, comply with trade standards, certification, taxation, regulation) Products $$$ Borders Consumption centre Production  Cluster Movement Corridor Quarantine Station Abattoir Market Road Economic analysis – Understand process, strengths, weaknesses, opportunities, considering the dynamic response of people & environment Value chains –  chains that link production systems, markets and consumers  Simplistic Inputs Services Regulation  (national/international) Political climate Who benefits Who loses out Power relationships …… 6 PSDP: CDE/ITC project on value chains – Botswana beef value chain, Chatterji &  - Hatzipetros, 2014 FAO-MoA Botswana agricultural value chain project, van Engelen, Malope, Keyser & Neven, 2013 Botswana beef value chain 7 FAO-MoA Botswana agricultural value chain project, van Engelen, Malope, Keyser & Neven, 2013   No stone unturned - 172 pages  8 Identifies & investigates: - Bottlenecks - Holistic strategies for upgrading - Assesses how value in an end market is created by activities conducted by actors supported by service providers  - How actors are influenced by the business environment in which they operate - Goes beyond linkages between suppliers and buyers - Dynamic, evolving & reacting - Focus on key growth and upgrading opportunities Value chain analysis - purpose 9 Value chain analysis - purpose Outputs 10 For each step - Separate different aspects - Supply (inbound logistics, operations, outbound logistics, marketing & sales, after sales) - Transformation of inputs into outputs (production, logistics, quality & improvement) - Support services (strategy, human resources, management, technology development & procurement)  Assess costs and profitability at each step Porter’s value system   11 Porter’s value system   - Identify core competences -> outsource where not competitive - Improve efficiency - Identify where you have a competitive edge and maximise profits - Identify other parties whose behaviour affects success - Efforts to improve efficiency will not affect parts of chain in the hands of others - Also true for national economic management – improving efficiency of a few firms may be unsuccessful if sector/economy wide inefficiencies  Requires: 1. Value chain analysis - Understand livestock production systems - Who are stakeholders and how do they behave  2. Risk analysis - Evaluate disease risks and control measures within livestock production systems - Identify risk hotspots to target control efforts  FAO, 2011, A value chain approach to animal diseases risk management – Taylor & Rushton Value chain and risk analysis Who is most important in the  control spread of FMD? Where to focus limited control resources for maximum impact? Common grazing Animal market Other value chain approaches - Value chain approaches also used for food safety assessment - Chain of actors involved in creation of final product - All can impact on quality of final product - Safety/quality related to input costs (margins/profits?) - Regulation important - Dynamic 16 Food safety and animal disease risk management along beef value chain Commodity based trade Thomson & Penrith, 2015, Guidelines for implementation of a value chain approach to management of FMD risk for beef export enterprises in Southern Africa. WCS-AHEAD Are actors likely to act as you would like? What governs this? Are incentives sufficient?  Is regulatory enforcement adequate? How will compliance be recorded & demonstrated to trading partners?  17 - A (comprehensive) approach to assess a production process - Involves consideration of inputs, services, actors involved in the process and the environment they operate in - Understand how actors (consumers, regulators, producers, services) behave & why -  and estimate how they would respond to changes - Assess costs, efficiency and competitiveness of steps and how this effects final product value and profits - May use value chain approach to assess other things (hazards & risks) Value chain approach Conclusions 18 Questions? 19 

Uses of the value chain approach in livestock and beef

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Uses of the value chain approach in livestock and beef

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