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Economic and Social Department Seminar: Value Chain Analysis for Assessing Socio-Economic and Environmental Policy Impacts

Lorenzo Giovanni Bellú, Policy Officer in ESA, will be presenting a discussion on Value chain analysis for policy making.

What is value chain analysis (VCA)?
Value chain analysis is the assessment of a portion of an economic system where upstream agents in production and distribution processes are linked to downstream partners by technical, economic, territorial, institutional and social relationships.

Why value chain analysis is important for policy-making?
The effects of policies targeting specific production processes extend their primary impacts in the economic system according to the same path as the main inputs and outputs. Therefore, analyzing impacts of policy options through value chains provides decision-makers and other stakeholders with anticipated evidence on likely changes directly induced by policies.

How can value chain analysis support FAO’s Strategic Objectives?
There is a high demand for value chain analysis as many countries adopt value chain-based policies and investment programmes to promote effective and equitable food systems, zero hunger and sustainable rural development. FAO has a historical and deeply rooted experience in assisting member countries in this domain, including, Burkina Faso, Kenya, Mali, Nigeria, Syria, Tajikistan and Viet Nam. The FAO-VCA software tool, available since 2005, has been widely used and appreciated.

What is available to carry out a value chain analysis?
To support value chain analysis FAO has recently prepared:

  • Methodological guidelines for quantitative value chain analysis;
  • FAO-VCA Tool software version 3.1 and User manual, to calculate value added, Policy Analysis Matrices (PAMs), incentives to producers, competitiveness and protection indicators, compare policy scenarios and monitor value chain performance.

    This material is available on FAO’s publishing platform EASYPol [resources for policy making]www.fao.org/easypol.