25 Guiding Questions for Designing & Implementing

Agroindustry Projects

GROUP 3
Mukesh Kunwar (16325)
Pradeep Poudel (16331)
Kritika Thapa (16337)
PRO-POOR VALUE CHAIN
Income improvement of poor groups

Overcome entry barriers for poor agro producers and providers

Technical as well as social benefits

Required:

Solid design process targeting both areas

Collaboration with partners for complementary interventions

SECTIONS COVERED BY THE
MANUAL

Selection / Validation of Value Chain

Functional Value Chain Analysis

Social Value Chain Analysis

Project Design

Implementation
VALUE CHAIN SELECTION &
VALIDATION
1.1 IS VALUE CHAIN DEVELOPMENT THE RIGHT APPROACH

Social issues not addressed by commercial approaches

Indispensability of value chain

Commercial approaches can have negative externalities

Considerations:

Scope of activities

Direct vs. Intended benefits

Functioning of entire value chain

VALUE CHAIN SELECTION &
VALIDATION
1.2 ARE APPROPRIATE CRITERIA BEING USED

Value chain selection can be based on practical or opportunistic

considerations

Considerations:

Build on existing demand and supply for value chain products

Stakeholders agreement on criteria

Inclusive choice of criteria

VALUE CHAIN SELECTION &
VALIDATION
1.3 HAS THE VALUE CHAIN BEEN SELECTED BASED ON EVIDENCE
AND METHODOLOGICALLY?

Information should comply with set of selected criteria

Considerations:

Sector analyses

Market studies

Publication of statistical data

Field visits and interviews

VALUE CHAIN SELECTION &
VALIDATION
1.4 IN CASE OF PRE-SELECTED VALUE CHAINS, HAS VALIDATION
BEEN CARRIED OUT?

Confirming the choices or suggest alternatives

Clarifying the aim of intervention towards development goals

Considerations:

Previous two questions

Positive impacts of the intervention

VALUE CHAIN SELECTION &
VALIDATION
1.5 HAVE STAKEHOLDERS PARTICIPATED IN THE SELECTION /
VALIDATION PROCESS

Creation of ownership among stakeholders

Leverage their support for the initiative

Considerations:

Consultative meetings (separately, multiple times)

Reflect all stakeholder interests

FUNCTIONAL VALUE CHAIN
ANALYSIS
2.1 ARE THE NATURE AND DIVERSITY OF THE END PRODUCTS
SUFFICIENTLY UNDERSTOOD

End products determine the shape of value chain

Considerations:

Product sophistication

Degree of transformation

Avoid being too narrow or two broad

Further analysis required, since same end product can be obtained

through various process

FUNCTIONAL VALUE CHAIN
ANALYSIS
2.2 WHICH FUNCTIONS AND ACTORS ARE INVOLVED IN
GENERATING THE END PRODUCT

Better understanding of actors and the functions they fulfill

Ensure overall success

Considerations:

Identify different actors

Define categories of actors

Conduct interviews and make required assumptions

FUNCTIONAL VALUE CHAIN
ANALYSIS
2.3 ARE THE PREVAILING PRODUCT FLOWS AND RELATED
BUSINESS INTERACTIONS SUFFICIENTLY UNDERSTOOD?

Proper contractual arrangements help reduce risks

Engage in forward planning

Considerations:

Identify product flow

Contractual relationships between actors

Influence of power actors in some cases

FUNCTIONAL VALUE CHAIN
ANALYSIS
2.4 IS THE INFORMATION ADEQUATELY VISUALIZED?

Making decisions (freely or dependently)

Reap benefits of such decisions

Considerations:

Dominant actor

Thorough data collection and interviews with actors

Literature review of value chain governance

FUNCTIONAL VALUE CHAIN
ANALYSIS
2.5 DOES THE ANALYSIS BUILD ON EXISTING DATA?

Value chain analyses could be incomplete or outdated

Considerations:

Primary data from interviews and focus groups

Sampling of chain actors

Creativity and spotting of opportunities

Identify changes and collect data on new situations

SOCIAL VALUE CHAIN ANALYSIS

3.1 ARE REWARDS AND RISKS ADEQUATELY CAPTURED?

Defining the benefits, both inside and outside the value chain

Considerations:

Rewards for all actors

Incorporate improvements in human, social and natural capital

Rewards should not be too low

Balance between various rewards and risk scenarios

SOCIAL VALUE CHAIN ANALYSIS

3.2 ARE POVERTY ISSUES ADEQUATELY COVERED?

In-depth look at poverty issues

Considerations:

Engagement of small and poor farmers

Compliance with standards and regulations

Consideration of rewards and risks for all engaged in value chain

Make necessary interventions

SOCIAL VALUE CHAIN ANALYSIS

3.3 ARE WORKING CONDITIONS SUFFICIENTLY EXAMINED?

Improving working conditions

Considerations:

Employer-employee relationships

Conditions of employment

Incentives to improve working conditions

Challenges:

Absence of regulatory agencies

Ensure compliance with standards

SOCIAL VALUE CHAIN ANALYSIS

3.4 IS YOUTH BEING CONSIDERED IN VALUE CHAIN

DEVELOPMENT?

Engagement of youth

Considerations:

Encouraging young boys and girls for participation

Supporting educations institutes

On-the-job training

Start-up packages

Negotiate with micro-finance institutions

SOCIAL VALUE CHAIN ANALYSIS

3.5 ARE GENDER BASED CONSTRAINTS ADEQUATELY

UNDERSTOOD?

Making gender integral part of value chain

Considerations:

Access to assets

Social roles

Laws, policies and regulatory institutions

Risk profile

Detailed understanding through empathy and exploratory interviews

DESIGN OF VALUE CHAIN
INTERVENTIONS
4.1 WERE VALUE CHAIN DEVELOPMENT STRATEGIES IDENTIFIED
IN A SUFFICIENTLY RIGOROUS MANNER?

Carefully craft value chain development strategies

Considerations:

Rigorous screening

Process, product and volume improvement

Change and/or add functions

Improve value chain coordination

Review all identified possible strategies

DESIGN OF VALUE CHAIN
INTERVENTIONS
4.2 HAVE THE IDENTIFIED STRATEGIES BEEN ADEQUATELY
EVALUATED?
Scrutinize against criteria of feasibility and likelihood of success

Reality check and feasibility check

Considerations:

Use evaluation tool

Distinguish between:

Identifying constraints and opportunities

Developing a strategy

Evaluating a strategy
DESIGN OF VALUE CHAIN
INTERVENTIONS
4.3 WERE PRACTICAL ACTION POINTS DEFINED?

Boiling down strategies to concrete activities

Considerations:

Analyze questions related to practicality and relevance of the value

chain project that incudes:

Brief description of activities

Responsibilities for implementation

Planned start and completion dates

Activity-specific expenses
DESIGN OF VALUE CHAIN
INTERVENTIONS
4.4 ARE ADEQUATE COMPETENCES BUILT INTO THE PROJECT?

Hiring qualified managerial and technical staff

Considerations:

Engage knowledgeable and creative minds

Ensure mix between professional staff and consultants

Generalists should be part of the team

DESIGN OF VALUE CHAIN
INTERVENTIONS
4.5 HAVE STAKEHOLDERS PARTICIPATED IN PROJECT DESIGN?

Ensuring buy-in from stakeholders

Creative identification of development opportunities

Considerations:

Series of consultations

Engage a skilled moderator

Consider existing power structures

Cooperate with key stakeholders

IMPLEMENTATION
5.1 IS THERE SUFFICIENT FLEXIBILITY TO REORIENT THE
PROJECT?

Changes might need to be integrated

Reaction to changing market conditions and production contexts

Considerations:

Adopt an adaptive planning mode

Decide on abandoning/continuing the project

Ensure partner commitments

Partner with single/multiple actors as per requirement

IMPLEMENTATION
5.2 IS STAKEHOLDER ENGAGEMENT MAINTAINED?

Continuously inform and engage stakeholders

Considerations:

Communicate about:

Progress

Benefits to be gained from engagement

Role of partners

Find new partners or change the strategies

Discover new means to incentivize existing partners

IMPLEMENTATION
5.3 IS TRUST BEING BUILT AMONG PROJECT PARTNERS AND
VALUE CHAIN ACTORS?

Promotion of stable business relationships between actors

Considerations:

Reduce information asymmetries and uncertainty

Include facilitation

Create an environment for interaction

Provide necessary training

IMPLEMENTATION
5.4 HAS THE BASELINE BEEN ESTABLISHED TO MONITOR CHAIN
DEVELOPMENT?

Account for the changes

Considerations:

Select few impact indicators

Concentrate on a large set of outcome indicators

Adjust outcome indicators to selected value chain development

strategy
IMPLEMENTATION
5.5 DOES MONITORING AND EVALUATION FOCUS ON THE MOST
RELEVANT IMPACTS OF VALUE CHAIN DEVELOPMENT?

Focusing on impacts on poverty and human development

Justifying project activities before donors and government

Providing information to orient the project on how to do things better

Considerations:

Holistic view of the value chain

Reduce amount of indicators to accommodate budget constraints