Key questions t
What are the main stages in the value chain for the product?
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Who are the main actors at each point in the value chain?
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What are the flows of the product (and by product) between different actors?
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Where and to what degree is value added, or value lost, as the product moves along the chain?
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Which stages of the value chain are most profitable for which actors?
Facilitation guidance The simplest technique is to draw the value chain diagram on paper (Box 5.1). The exact process used for this activity and the factual accuracy of the output depend critically on two issues: (a) whether the output is primarily for analytical purposes or primarily to catalyse stakeholder dialogue; and (b) how much information about the value chain is available from existing research papers and other sources.
Box 5.1 Workshop process: Mapping the value chain Preparing content: Collect existing information on the functions, product flows and economic actors in the value chain (reports, transcripts of interviews and other sources). Preparing for the workshop: Stick together flipchart pages or brown paper to make large charts to work on (e.g. 2m by 2m). Set up areas to work with wall space and flipcharts. In the workshop: • Identify relevant functions of the value chain—these can be used to structure the diagram. • Identify economic actors within each function. • Write actors onto coloured cards (if wanted, colour-code actors according to their value chain function or other criterion). • Arrange cards on large charts and connect with arrows to show product flows (tip: start with either the production end and work forwards, or the consumption end and work backwards). • Keep a flipchart on one side to record key issues, notes on directions of change, side comments, unresolved questions and differences. • Record the diagram. • If wanted, add further information to the diagram, either on the paper version or on a version captured onto computer software. Materials: Flipchart pads, flipcharts, coloured cards, marker pens, adhesive to stick pages together and on the wall. Camera and/or computer to record the diagram(s). Time: Allow 2-3 hours to construct a (draft) value chain diagram in a group setting.
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METHODOLOGY IN PRACTICE: A STEP-BY-STEP GUIDE