Value Chain Analysis and Strategy Design
Step 2 translates understanding into action. It goes beyond describing value chains to identifying the structural bottlenecks and root causes of underperformance. Using a systems-based approach, ASTA combines data, field evidence, and stakeholder insights to inform evidence-based upgrading strategies, investment models, and transformation pathways.
1) Value chain analysis
The analysis combines secondary data, field surveys and consultations with value chain actors. It examines the wider agrifood system, including markets, institutions, governance, diets, socioeconomic factors and environmental dynamics that shape constraints and opportunities.
The functional analysis seeks to understand the structure and dynamics of the value chain by mapping all key actors, services, and the enabling and natural environments, as well as their interactions, behaviours and scale. It focuses on uncovering why actors make specific choices and identifying the root causes of underperformance. The analysis is carried out through a structured, step-by-step process that provides a holistic understanding of the value chain and helps to identify opportunities for upgrading strategies.
The sustainability assessment evaluates value chain performance across economic, social and environmental dimensions to identify key sustainability “hotspots”. It shifts the focus from the ways in which the environment affects the value chain, to how the value chain impacts the environment – including both direct effects and broader externalities. It also assesses resilience, evaluating the vulnerability of the value chain to external shocks such as economic crises, social unrest or natural disasters. The findings are summarized in a heat map that highlights areas of high concern (red), medium concern (yellow) and stable performance (green), providing a clear basis for strategy development and deeper analysis of priority issues.
2) Value chain strategy design
The results feed into structured design tools that support the development of business models, investment models and action plans. Through an inclusive co-design process which involves stakeholders, ASTA ensures that upgrading strategies are nationally owned, grounded in evidence and focused on addressing root causes while strengthening sustainability and resilience.
As the process moves from analysis to design, insights from the SWOT analysis, sustainability heat map and value chain mapping are integrated into a participatory process which defines a shared vision, theory of change and upgrading strategy. This strategy is used to develop detailed interventions across business models, governance and the enabling environment – as well as assessments of their expected sustainability impacts.
It includes four main components: a results framework (logframe), detailed activities and investment plans with financing mechanisms, a facilitation project design, and a risk assessment with mitigation measures.
Developed through a participatory process and validated in a final stakeholder workshop, the plan clarifies who will implement each action, when it will be carried out, and how it will be financed, ensuring alignment among stakeholders and enabling coordinated implementation.
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