CIAT's Method for Value Chain Assessment

This tool describes a strategy developed by CIAT’s Rural Agroenterprise Development (RAeD) project, to address the entrepreneurial development needs of institutions that support rural communities. The methods, tools, learning approaches and research agenda described, were developed as a result of many collaborative projects undertaken over the past 10 years in Latin America, Africa and South East Asia. These methods focus on realizing new agroenterprise opportunities. Key elements in the strategy include ways to: 1. Develop partnerships, evaluate project site resources and prepare joint plans. 2. Evaluate market trends, demand and identify market opportunities. 3. Develop business plans to foster rural enterprises, and business support services. 4. Assess project performance and introduce mechanisms for scaling up. 5.Share knowledge and effect institutional change towards market oriented innovation systems. 6. Advocate for improved marketing and trade policies The agroenterprise approach was developed in response to demands from partners requiring a methodical process for shifting from a focus on increasing production of a specific commodity, to identifying and responding to market demands. The aim was to enable service providers to assist communities in increasing the competitiveness of existing products and to facilitate a systematic approach for diversification into alternative and higher value products. The approach is designed to promote a “market chain” perspective that can support the development of new productive enterprises and new services and also strengthen business relationships between producer groups and higher order market chain actors rather than only focusing “on farm”. The methods emphasis the need for a continual process of innovation as a means to tackle the dynamic nature of markets and to use collective action and clusters of groups as a means to shift from pilot projects to scale, in a competitive manner.