Agricultural Value Chains in Developing Countries A Framework for Analysis

The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain-network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain.