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http://www.microlinks.org/print/4183
Why Use the Value Chain Approach to Achieve Food Security Objectives?
There are a number of characteristics of the value chain approach that make it suitable to addressing food security objectives and that add value to other
approaches:
It draws attention to incentives. The value chain approach works to ensure that incentives are in place to promote desired behavior, which is an efficient way to
sustainbly achieve desired results. The value chain approach helps to:
Identify disincentives for the private sector to respond to food supply gaps and invest in food production and processing, such as government-instituted
export bans and price controls that lower potential returns and increase risk.
Identify disincentives for producers to increase their productivity and switch to more lucrative livelihoods, such as inadequate market infrastructure and large
fluctuations in the prices of basic staple foods.
Identify incentives and disincentives for the production and sale of nutritious food, including consumer demand and production costs vis-a-vis less nutritious
options.7
It is market-driven. The value chain approach focuses on linking households to growing markets, so that households can earn income to purchase additional food.
This may diversify their diet and reduce the risk of relying solely on their own production for their food security.
It is a systems approach. By looking at the value chain system, this approach assists in understanding the systemic impacts of project interventions. This helps
identify high-impact interventions that might otherwise be overlooked such as:
Striking the right balance between improving productivity in areas with high agro-ecological potential while ensuring market functionality to improve
availability in food deficit regions, supported by the emphasis on understanding product flows and transaction costs.
Targeting a diverse array of value chains instead of production of a single staple food. This can include non-agricultural value chains to improve food access,
when this is identified as a critical factor to food security.
Strengthening the enabling environment to ensure the right incentives are in place for value chain actors that support food security. Incentives are shaped
through social safety nets, government services, and interventions in food markets, among other areas.
Improving supporting markets for the products and services that are important to value chain actors. Critical supporting markets for food security include
agricultural extension services, appropriate technology such as small-scale irrigation, transportation, storage, access to finance, leasing of farm equipment
and many more.
It seeks sustainable solutions. In the past, the term food security in the development context was often used interchangeably with humanitarian assistance or
food aid.8 These interventions often focused on alleviating short-term needs, and less on creating systems and relationships to sustainably address the underlying
constraints. The value chain approach identifies the underlying causes and works towards sustainable local solutions by leveraging market forces, which leads to
longer-term change.
It emphasizes leverage. By facilitating the actions of market actors rather than providing services directly to beneficiaries, the value chain approach is suited to
reaching greater scale. Opportunities to leverage the investments and relationships of private sector actors can greatly expand the reach of food security
programming.
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http://www.microlinks.org/print/4183
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5/27/2014 1:05 PM