Value Chains Studies and their Contribution to Rural Livelihoods

Exploring the questions that are typically addressed in a Value Chain Study and the approaches to conduct such a study, the article dwells on how these studies can be used to inform the engagement of livelihood practitioners.

I n PRADAN’s approach to livelihood engagement, once communities have been mobilized, we engage with them to understand their context, resources and assets base as well as their aspirations with respect to livelihoods. To complement these discussions, we also conduct local area studies, which help us understand the household and village contexts, and the local markets for goods and services, and help us generate potential livelihood options. A local area study, in combination with community engagement, enables our professionals to generate a comprehensive set of livelihood options for a given community, and understand which of these have the highest potential in contributing to improving lives and livelihoods.

Once these high potential livelihoods have been clarified, the next step is to conduct a Value Chain Study. In this article, we explore the questions that are typically addressed by a Value Chain Study, the approaches to conduct such a study and how these studies can be used to inform the engagement of livelihood practitioners.

What is a Value Chain Study?

A value chain is reflective of the complete range of activities required to produce and add value to a product or service, from its production through delivery to the final consumer. The details of value chains are all unique to their corresponding product or service but would typically include consideration of its conception/design, inputs, financing, production, packaging, transportation, marketing and distribution, as well as value addition at all stages. The objectives of a Value Chain Study may vary, depending on the context; however, in PRADAN’s context, there are three things we typically hope to accomplish in conducting such an analysis.