One village one product and value chain development -Cases from China Case Presentation to ASEAN 10 +3 Village Leader Exchange Program-2016, Shanghai, China One village one product and value chain development -Cases from China Prof. Liu Yonggong College of Humanities and Development China Agricultural University, Beijing 100193

Major contents Review on the evolution and development of “OVOP” in China Success of “OVOP” in China How can “OVOP” model be replicated in poor communities Value Chain Development for “OVOP”

1. Evolution and development of “OVOP” in China Japan: Concept and movement of OVOP was first time advocated and initiated in 1979 by Mr. Mirihiko Hiramatsu, a Japanese Politician and Scholar. Since 1980s, the concept was widely adopted by China, South Asian Countries, European Countries;

1. Evolution and development of “OVOP” in China In 1983, Mr. Hiramatsu introduced OVOP to China while his official visit to Shanghai Municipality; From 1990s to 2015, OVOP expo is organized every year in different provinces of China for promoting the OVOP market ; In 2009 Ministry of Agriculture issued an official document for promoting the development OVOP program national-wide Until now 1922 villages and townships are listed in the national catalogue by Ministry of Agriculture as OVOP products.

1. Evolution and development of “OVOP” in China The OVOP villages cover all 31 provinces and autonomous regions in Mainland China According the Ministry of Agriculture, until 2015 China has already 11,000 villages engaged in OVOP.

1. Evolution and development of “OVOP” in China Year Registered Number of OVOP villages/townships 2010 322 2012 326 2013 328 2014 324 2015 306 2016 316 Total 1922

1. Evolution and development of “OVOP” in China The products cover: Crops, vegetable, herb plants, cash crops; Livestock/poultry products Forest products; fruits; non timber forest products Fishery and aquaculture Rural tourism; leisure agriculture Handicrafts; Other products

2. Success of “OVOP” in China Until 2014, through more than 20 years development, OVOP significantly contributed to farmer’s income increase in more than 55,000 OVOP villages; Of which 2419 OVOP villages achieved more than 100 million CNY production value; 214 OVOP villages with more than 1.0 billion CNY Farmer’s per capita net income of OVOP reached 11650 CNY, 18% higher than the non OVOP villagers.

2. Success of “OVOP” in China OVOP promoted the cooperative development in the OVOP villages. According to MOA, 67% OVOP villages set up farmer’s cooperatives; OVOP extended the value chain of agro-products, promoted the connection of OVOP villages with dragon head enterprises and the super-market OVOP increased the quality of products, product branding, organic products. in 2014 ca. 23,000 OVOP villages are certified as green and organic products www.ovop.com.cn www.1c1p.com

2. Success of “OVOP” in China Case of Shaanxi Province: OVOP villages and townships registered by MOA: 101 (2016) Products produced by OVOP villages: 860 Provincial OVOP demonstration villages: 4973; demonstration townships: 296 Benefited households: 1.42 million HH Labors engaged in OVOP: 4.35 million

2. Successful Cases of “OVOP” in China Major cluster industrialized products: apples, kiwis, taro, tea and silkworm Greatly contributed to the Shaanxi regional economic development www.1c1p.com

2. Successful Cases of “OVOP” in China

2. Success of “OVOP” in China From OVOP to “One Township One Sector-OTOS” （一乡一业），”One Cooperative One Product-OCOP”

3. How can “OVOP” model be replicated in poor rural villages Selection of the products based on the local natural resources and ecosystem Initiated by the village leaders, driven by cooperatives/dragon head enterprises/supermarkets/outside investors Market development/value chain development Organization of small farmers, skill training for farmers; Combining OVOP concept with Governmental Poverty Reduction Program

4. Value chain development for “OVOP” Extending the value chain from production to post harvest processing, branding, storage, marketing is the precondition of success of OVOP Village leaders should play a decisive role in value chain development for the selected products.

4. Value chain development for “OVOP” Steps of value chain development for OVOP Selecting the village products from the existing products; Conducting value chain analysis for the selected products, identifying the gaps and weak points in the existing market value chain; Formulating the value chain development actions, particularly focus on the post harvest sections of the value chain, storage, grading and processing, marketing channels, marketing facilities, branding, quality (green and organic) certification, etc.

4. Value chain development for “OVOP” Steps of value chain development for OVOP （4） Identifying and selecting the stakeholders related to the value chain sections; （5）Formulating the value chain development project proposal; （6） Applying governmental supports; （7） Inviting investors who are interested in the project proposal; （8）Implementing the value chain development projects

How to select the products Identifying local products Estimating and searching the market demands on these products, local, regional and global market demands and changes of the market prices Governmental sector development policies Resource endowment, ecosystems for the production of the products and sector development

Alternative market channel development for Agro-products Brokers Wholesale market Cooperatives Retail market Producer Market channels Aro-Enterprises Consumers E-commerce

Value Chain Map for Agro Products Pre-Production Production Processing Marketing Consumers Inputs Produced Products Processed Products Wholesale, retail proudcts Commodity Suppliers HH, Cooperatives Cooperatives, Enpterpriese Whole salers retailers Consumers

Analysis matrix for VC improvement Value chain Constraints Solutions /actions Pre-production Production Post-production Marketing

Thanks for your attention !!! Contact : Prof. Liu Yonggong College of Humanities and Development China Agricultural University Email: Liuyg@cau.edu.cn