Value chain analysis
Increasing competition in the agricultural sector has forced a number of non-profit organizations and enterprises to closely examine the way they do business and bring goods to market. By undertaking value chain analysis through several non-profit organizations, such as United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO) and United States Agency for International Development (USAID), many industrial and agricultural institutions have managed to work more efficiently, reduce costs, generate larger revenues, and employ more people.
Why value chain
Value chain analysis is a significant tool that helps a company understand how it can add value to its products or services, thereby generating a wider profit margin. Several non-profit organizations have been analyzing the value chains of some, Labor and Social Protection Specialist for the Middle East and North Africa Region at the World Bank. Another objective would be competitiveness, through reducing the cost of the product and enhancing its quality, as well as increasing productivity. “Value chain is also a guide for where to invest, [how to] avoid duplication, and misuse of resources,” said , Senior Livelihood and Local Economic Development Coordinator at UNDP. UNDP has conducted value chain analyses for six products, pointing out the difficulties these sectors are facing and the support required to improve their productivity and quality. Fair Trade Lebanon (FTL), a non-profit organization that works with food processing cooperatives, is analyzing the value chain of five types of vegetables in Akkar including tomatoes, mouloukhiah, and peppers. “The study’s objective is [to] increase the competitiveness of these vegetables,” said , Project Coordinator at FTL. FTL chose these vegetables because they are raw materials for several processed foods. “The current quality and price of these products means they cannot compete locally or abroad, for this reason a lot of effort should be made to improve their situation,” he said. Mouloukhiah, chili paste, dried tomatoes, and other items are in high demand in Europe, “So there would be large potential if we worked on enhancing the quality in compliance with global standards,” Salha said.
