1 The Value chain approach

2 Strategic goal: Strengthen productive capacities to promote sustainable and equitable economic growth. Reduce poverty and food insecurity. Methodology: Commodity value chain development to enhance competitiveness, flexibility and productivity Technical assistance & interventions along a

3 Major Opportunities: -Abundance of resources -Market (D&I) Constraints -Access to appropriate technology -Supply capacity-raw material /finished goods -Quality/-TBT

4 Selection of specific sectors that have comparative advantage Grouping of regions (across borders) with commonalities in terms of commodities of economic importance Based on feasibility studies, development of business plans for each selected product Development of regional master plans for the development of each selected commodity Development of regional program/s Possible Immediate Follow Up Activities:

5 Policies –Regional policy review/development (agricultural policies, investment, trade etc) –Harmonization of national policies with regional requirements Institutional Capacity Building –Establishment/rehabilitation of centers of excellence for selected commodities. –Support for the establishment of regional/national quality infrastructure Industrial upgrading at the enterprise level –Diagnostic assessments of enterprises in selected sectors –Selection of enterprises with existing potential for growth –Technical assistance to upgrade selected enterprises – technology transfer and skills upgrading –Creation of backward,forward and horizontal linkages Potential Programme Focus Areas:

6 Stakeholders: Policy makers Support institutions Individual chain actors

7 COMMODITIES Leather Textile Wood Machines Food

8 Possible interventions along a commodity value chain Raw materials Processing 1,2,3 etc Market Capacity to supply Quality Agricultural policies Agricultural inputs Water resource management Agricultural tools/machine ry labor Outputs Inputs Capacity to supply Quality competitiveness Investment policies Manufacturing inputs New product development, product diversification,by product utilization (COE’s) Management skills Technical skills Appropriate technologies Meet specific regulations HACCP Access/de velop markets Increase market share Aggressive promotion of products Niche market identification Trade policies

9 Connect to the markets Develop competitive manufacturing capability Prove conformity with market requirements Compete Conform Connect MARKETS PRODUCTS Product design and development Techno- economic assessments Technology centres Demonstration units/operations Examples of possible interventions

10 Product design and development Techno- economic assessments Technology centres Demonstration units/operations Value creation Enhancing quality of industrial products Effective communication of product values to consumers Definition:

11 Services: Introduction and promotion of products featuring market requirements (food, leather, textiles) Improve market access and competitiveness Adapting/developing products to consumer needs Product design and development Techno- economic assessments Technology centres Demonstration units/operations Product design and development

12 Value addition Lower share of rejects and higher value Upgraded marketing capabilities resulting in an increased number of products and increased participation in global trade Farmers/entrepreneurs have access to efficient and quality agricultural equipment Results: Techno- economic assessments Technology centres Demonstration units/operations Product design and development

13 Definition: Physical and intellectual facilities specialized on given industrial activities capable of identifying and transferring appropriate manufacturing techniques; providing technical assistance; generate and disseminate technical information; rendering specific services (e.g. laboratory testing and quality assurance) and imparting training. Techno- economic assessments Technology centres Demonstration units/operations Product design and development

14 Support and advice on technology-related analyses to identify technical choices and related development options and related policies and strategies Capacity building in the agro industry and related institutions Establishment and/or strengthening of professional education and training institutes Techno- economic assessments Technology centres Demonstration units/operations Product design and development

15 Reveal features, advantages and benefits of the proposed technology; Exhibit (pre)conditions and infrastructural requirements for adopting or adapting the transferred technology; Provide prospective users with factual and authentic information and example(s). Demonstrate sound enterprise and business management practices. Techno- economic assessments Technology centres Demonstration units/operations Product design and development

16 Results: Enhanced product value chain Improved technical skills (Sub)sectoral training and support centers Innovative technologies transferred Techno- economic assessments Technology centres Demonstration units/operations Product design and development

17 Services: Technology upgrading and product quality improvement; Assistance and advice on modern technologies Introduction of improved technology, smoother production flow, improved quality, upgraded skills Process optimization contributing to reduction of pollution, waste minimization and by-products’ utilization Advisory services to promote and develop the Agro Machinery Industrial System (AMIS) Establishment or strengthening professional (trade) associations Techno- economic assessments Technology centres Demonstration units/operations Product design and development

18 Results: Improved processing technologies Optimized processes Improved technical skills Higher level of value-added, sustainable use of natural resources; Rural artisans/blacksmiths produce standardized equipment responding to local needs; Upgraded production methods for enhanced productivity; Generation of employment and income in remote rural areas for vulnerable groups. Techno- economic assessments Technology centres Demonstration units/operations Product design and development

19 Definition: Evaluation of competitiveness Determining baseline data Establishing feasibility of development programmes or investments Analyzing global trends Conducting techno-economic surveys Techno- economic assessments Technology centres Demonstration units/operations Product design and development

20 Applications: Assessment of food industries Assessment of textile and garment industries The UNIDO Leather and Leather Products Industry Panel Wood industry advisory expert group. Techno- economic assessments Technology centres Demonstration units/operations Product design and development

21 Sectoral coverage: FoodprocessingFood processing Agricultural machineryAgricultural machinery, tools and chemicals production and supply; Fiber processing (technology): TextileTextile and garment industry; LeatherLeather processing and leather products (footwear, leather goods, gloves, leather garment, sports goods) manufacturing; WoodWood and non-wood forest products manufacturing (including paper and pulp);

22 FISHERIES IN LAKE VICTORIA Food Unit

23 Post harvest system in the food sector Machinery Unit Agro-

24 DRYING FRUITS AND VEGETABLES IN BURKINA FASO Food Unit