Top PDF Value Chain and Economic Development: the Case of the Colombian Coffee Industry

Value Chain and Economic Development: the Case of the Colombian Coffee Industry

Value Chain and Economic Development: the Case of the Colombian Coffee Industry

formation about international markets to other members of the industry. Subsequently, the evolution of this society led to the establishment of the FNC in 1927 as a private non-profit entity that sought to support members on issues such as technical assistance, access to credit, storage facilities and the improvement of the bargaining power of coffee growers with the main global coffee buyers (Reina, Silva, Samper & Fernández, 2012). At its inception, the FNC established a structure based on three organisational sys- tems: (1) a technology transfer system to provide technical support and thus improve the quality of the grain; (2) an internal (national) and external (international) commer- cialisation system and (3) an international marketing scheme that allows the Colom- bian product to enter new markets and to position the product in the minds of global consumers (Reina et al., 2012). This structure shows that from the beginning, the FNC had the objective of upgrading the value chain to be more competitive and not just contribute to the sales of a commodity.
Show more

16 Read more

Value Chain Financing: The Case of Selale area Dairy Value Chain

Value Chain Financing: The Case of Selale area Dairy Value Chain

Some development organizations developed their own version of value chain. These include different methodologies to map the physical flow of commodities along the chain, output values at different stages of value chains, export market potentials, the regional spread of value chains, inter-firm cooperation, production efficiency, etc. For instance GTZ has a concept called ValueLinks. In its present state, it embraces the generic methodology of value chain promotion. Its application in different industries and in countries with varying degrees of economic development calls for additional situation- specific tools. Of particular interest is its application to business opportunities at the bottom of the pyramid. It is planned to produce sector-specific as well as country-specific versions of ValueLinks that address specific needs. USAID developed its Participatory Value Chain Analysis and it recommended quite extensive studies-based procedures for the design of value chain programmes like that of GTZ.
Show more

63 Read more

Value-added initiatives: distributional impacts on the global value chain for Colombia's coffee

Value-added initiatives: distributional impacts on the global value chain for Colombia's coffee

Several authors agree that the emergence of the specialty coffee industry was a reaction to the supply of identical, anonymous and standardised blends of regular-to-poor quality produced by commercial roasters and available through mainstream brands of coffee in supermarkets and other retail outlets, in North America, in particular, and to a lesser degree, in Europe or Japan (ITC 2002, Ponte 2002, Ponte and Kawuma 2003, Kaplinsky and Fitter 2004, Ponte 2004, Daviron and Ponte 2005, Giovannucci and Ponte 2005, Ponte and Gibbon 2005, Giovannucci, Liu et al. 2008, Pierrot, Giovannucci et al. 2011). Meanwhile, markets have moved to satisfy “consumer awareness” of third world poverty or environmental conditions in coffee growing regions (Neilson 2008: 1608) by using voluntary standards and certifications in a way not foreseen a decade ago. As mentioned above the generic term specialty includes both coffee linked to authenticity of origin (geographical indications), as well as products with high unit prices among others: flavoured and espresso-based coffees and those coffees with a story or narrative behind them such as those labelled as gourmet, exotic or regional (ITC 2002, Lewin, Giovannucci et al. 2004, ITC 2012) available both at sophisticated coffee shops and on the shelves of supermarkets. In the particular case of the concept of sustainability in the context of the speciality coffee industry, it refers to coffee that is grown and is viable economically for farmers, following the criteria of environmental protection and socio-economic fairness (Ponte and Kawuma 2003, Ponte 2004, Daviron and Ponte 2005). Sustainable coffee is sold as certified by independent third parties, while others use verification-based schemes sold under initiatives that are designed by private companies without third party monitoring (Daviron and Ponte 2005, Giovannucci, Liu et al. 2008). Appendix 5 describes the main characteristics of differentiated and conventional markets.
Show more

310 Read more

Value Chain Analysis of Coffee: The Case of Amaro Woreda in Southern Ethiopia

Value Chain Analysis of Coffee: The Case of Amaro Woreda in Southern Ethiopia

Based on the analysis results of determinants in Coffee Value Chain activities of Socio-economic characteristics of sample respondents of all continuous variables had statistically significant mean difference between Coffee Value Chain actors. According to the OLS technique outputs, extension contact variable was factors adversely affecting Coffee Value Chain (CVC) while the remaining 4 variables enhance CVC activities of households. About 4.43% of the variation in Coffee Value Chain is explained by continuous variables in this OLS technique. The following policy implications can be highlighted. Based on the facts find from the study, government and other related stockholders should target at controlling diseases and pests, development of rural infrastructure, work diversification cultures, extension contacts practices, to adopt different technologies, to improve production and marketing through awareness creation by giving trainings and by follow up and creating the market linkages for participant in coffee value chain activities in Amaro Woreda.
Show more

11 Read more

An economic value chain analysis of Namibian diamonds

An economic value chain analysis of Namibian diamonds

Value chain analysis can help in formulating upgrading strategies in these different spheres by describing and analysing sources of competitiveness that arise from factors like local competitors, infrastructure, customers and coordination between companies, given the environmental structures of barriers to entry, trade and rent and governance (Rudenko, 2008). In reference to what parties external to the chain, e.g. government agencies, can do to aid and set in motion the processes of upgrading, Schmitz (2005) states that Business Development Services (BDS) are often used especially in the developing country context. These measures include consulting, training, business planning and funding. There is debate whether these services actually contribute positively to upgrading processes, but it seems that when combined with aid in inter-link coordination and business relationship building, they do have positive effects. Schmitz (2005) does, however, provide critique regarding the limitations of value chain analysis in upgrading. In essence, upgrading has to happen and be initiated by companies within the chain, which sets reservations on whether this will actually happen. Especially when developing country production and value chains are in question and external parties try to push for the development of a chain, barriers, e.g. size of companies, exist. Buyers may not be willing to buy from a multitude of smaller producers even when price and availability issues are not a problem. The core of this argument is that in modern value chains transaction costs play a large role and often arise from larger complexity. If a company cannot trace the origin of its products and govern the chain it is linked to, there are concrete costs in reputation and coordination that make these changes less appealing. An additional concern arises when competitive positions of lead firms are contested by upgrading activities. Lead firms play a very important role in governing the entire chain and determining the effects of upgrading activities. If these activities include functional upgrading, which restructures the mix of activities within the chain, lead firms may block upgrading activities. The role of lead firms in determining changes in value creation and distribution through upgrading activities throughout the chain are also highly relevant in the case of the Namibian diamond industry discussed later in chapter 4.
Show more

141 Read more

COFFEE VALUE CHAIN & P3G ANALYSIS

COFFEE VALUE CHAIN & P3G ANALYSIS

Starbucks has been recognized for many of its achievements with its sustainability initiatives. In 2005, The World Environment Center (WEC) selected Starbucks Coffee Company to receive its 21st Annual Gold Medal for International Corporate Achievement in Sustainable Development within the specialty coffee industry. This leadership was demonstrated by Starbucks development of Coffee and Farmer Equity (C.A.F.E.) Practices, a set of environmentally, socially, and economically responsible coffee buying guidelines created in conjunction with Conservation International that are designed to contribute positively to the livelihoods of coffee farmers while placing an emphasis on environmental conservation and supply chain transparency. The WEC Gold Medal Award is one of the most prestigious ways of recognizing a global company's ongoing commitment to the practice of sustainable development. Only global manufacturing, processing or service corporations that can document well implemented, outstanding and sustained success are eligible to compete for the award. A potential applicant company must demonstrate global vision and a commitment to sustainable development through innovative application of policies, and international economic, environmental, and social responsibilities [20]. In 2010, The Ethisphere Institute, a leading international think-tank dedicated to the creation and sharing of best practices in business ethics, corporate social responsibility, and sustainability, named Starbucks one of the ‘World’s Most Ethical Companies’. The World’s Most Ethical Companies designation recognizes companies that truly go beyond making statements about doing business ‘ethically’ and translate those words into action. The World’s Most Ethical Company designation is awarded to those companies that have leading ethics and compliance programs, particularly as compared to their industry peers. Starbucks was the only recipient of the award in the Restaurant and Café category [21]. Although Starbucks purchases only two percent of the world’s coffee, it is clear that it has used its position in the global marketplace to demonstrate how innovation in combining corporate social responsibility and business strategy can lead to long-term economic and environmental sustainability.
Show more

19 Read more

VIETNAM’S PARTICIPATION IN THE GLOBAL COFFEE VALUE CHAIN

VIETNAM’S PARTICIPATION IN THE GLOBAL COFFEE VALUE CHAIN

Coffee is one of the key agricultural products of Vietnam, with the second-largest coffee export volume in the world. This industry creates many jobs, brings high economic value, creates a stable income for workers and develops the local economy as well as plays a significant part in the development of the country. However, at present, Vietnam is mainly engaged in cultivation - the stage that brings the lowest added value in the global coffee value chain. This is not commensurate with the development potential of Vietnam's coffee industry. Therefore, promoting Vietnam's participation in all stages of the global coffee value chain is always an urgent task for governments, localities as well as coffee businesses. This paper focuses on assessing the status of global value chain participation of Vietnam's coffee industry in the stages of production, processing, consumption and export. From there, the author proposes a number of solutions to improve the participation of Vietnamese coffee in the global value chain.
Show more

17 Read more

Market access and value chain analysis of dairy industry in Ethiopia: The case of Wolaita Zone

Market access and value chain analysis of dairy industry in Ethiopia: The case of Wolaita Zone

There is a belief that currently there might be a change in organizational structure of fluid milk in Ethiopia due to private dairy enterprise development, education sector expansion, growth in per capita income, foreign direct investment and access to promotional activities. Furthermore, through market oriented and liberalized economic policy, Food Aid Program (FAP) and HIV/AIDS related supports, the country has been importing packed fluid milk. On the other hand, annual per capita consumption of unpacked fluid milk decreased from 19kg in 1980 to 17kg in 2000 (FAOSTAT, 2003). This in turn contributed to reduction of unpacked fluid milk consumption from 100% to the current 75% level (SNV, 2008). Thus consumers can make choices among these alternatives fluid milk available. Each consumer is different and for that reason he/she makes different decisions with regard to the consumption of fluid milk. Therefore, household's consumption decisions can be affected by socioeconomic and demographic characteristics and consumers' attitudes and beliefs towards price and health. Household income, education, age, gender, cow ownership, advertisement, health related issues, medical prescription, prices, fattening, number of children under age six, number of household members, and chemical composition are specific factors believed to affect household's decisions among alternative fluid milk. Consumer‟s behavior and decision making processing of households on food consumption were discussed by several authors (Stavkova and Tucinkova, 2005; Melicharova, 2006; Nagyova et al., 2006; Foret and Prochazka, 2007; Stavkova et al., 2008; Kilic et al., 2009).
Show more

115 Read more

Organizational learning in a food industry value chain

Organizational learning in a food industry value chain

Where progress was most evident was within the Supply Chain and Operations Area of the company. The results reported in this Section show that a culture of continuous improvement based on the empowerment of individuals within a framework of cross- functional teams that supports innovation but demands responsibility and accountability was being nurtured. As a consequence, its capacities to create knowledge through collaboration, absorb new ways of doing things into standard operating procedures and execute these procedures had improved and were producing the desired results. These achievements were good examples of what Collins (2001) described as disciplined people applying disciplined thought in a disciplined manner to achieve improved organizational performance.
Show more

220 Read more

A value chain analysis of Malaysia's seaweed industry

A value chain analysis of Malaysia's seaweed industry

A global shortfall in protein supply from capture fisheries has motivated the Malaysian government to revise its aquaculture strategy, focusing on three commodities: seaweed, fish and marine shrimp. However, the performance of the Malaysian aqua- culture sector, particularly seaweed production, is poorly documented. This is the first empirical study to undertake a value chain analysis (VCA) of the Malaysian seaweed sector using stakeholder perceptions and secondary data that encompass members of seaweed farming cooperatives (the Semporna Area Farmers’ Association and the governments’ flagship Seaweed Cluster Project). Fieldwork was conducted between April and June 2015 among seaweed stakeholders involved in the value chain using a mixed methods approach —in-depth interviews with key informants, focus group discussions, household surveys, personal observation and secondary data. Qualitative and quantitative data were collected from both upstream (seaweed farming, mar- keting structure and the Malaysian Good Aquaculture Practices [MyGAP] certification programme) and downstream (seaweed processing) activities involving farmers, intermediaries/middlemen (buyers), processors and officials. Kappaphycus spp. was sold in two forms: (1) dried seaweed to be used as raw materials in carrageenan processing (approximately 90% of total harvest) and (2) fresh seaweed to be used as a source of seedlings (approximately 10% of total harvest). The value chain ended with the carrageenan form, which is exported to international markets. The price of dried seaweed varied according to a combination of seaweed quality, the strength of farmer’s relationships with intermediaries and processors and in response to demand from the carrageenan industry. The prices obtained by Malaysian farmers for dried seaweed and carrageenan remained low, US$ 0.60 and US$ 4.43 per kg, respectively, despite efforts by the government to enhance the value chain by imposing seaweed standards (via MyGAP) for farm management, dried seaweed and semi-refined carrageenan. The VCA was a useful tool to identify and map the market, with the results providing a better understanding of the seaweed sector, which could be helpful in supporting further aquaculture development in Malaysia.
Show more

11 Read more

Organizational learning in a food industry value chain

Organizational learning in a food industry value chain

It was through my involvement on the Advisory Board of the Food Chains Program that I first became aware of the ‘lean supply chain’ project that had been proposed by Golden Circle as a Demonstration Project. I wish to especially thank David Gregory, the Food Chains Program Manager at that time for his encouragement to undertake this study and his keen interest in its outcomes.

9 Read more

Aiding trade: case studies in agricultural value chain development in Cambodia

Aiding trade: case studies in agricultural value chain development in Cambodia

the industry partner to host me within the AQIP project as my first research case study. Although project staff were at first reluctant to allow me access to the resources and time needed to undertake this study, it was recognised by the Team Leader that there were gaps in the understanding of the impact of the project that previous efforts to research had not fulfilled. In addition, an Australian Youth Ambassador for Development had recently joined the project and it appeared that the project staff were unsure how best to deploy her skills. Together the Youth Ambassdor, myself and a young Khmer staff member from the Post Harvest Team set out to undertake this small-scale study. The primary aim was to understand who purchased the seed and who did not; that is to say, which farmers were incorporated into seed commodity relations and which farmers were excluded. Research was conducted in Prey Veng Province, the province with the highest farmer company seed uptake. Within Prey Veng 14 villages were rapidly surveyed to identify villages for further in-depth research (see Appendix 4.4). 26 Out of the 14 villages surveyed, four villages were chosen. The four villages each represented a varying level of AQIP company seed use. They were: Prey Ankoing (non-AQIP seed use village), Prey T’bal (low AQIP seed use village), T’Lor (medium AQIP seed use village) and Chuen Tukor (high AQIP seed use village) (see Figure 4.5). Focus group meetings were conducted in each village with around 15 to 20 farmers, during which inputs, outputs, preference ranking and distribution of paddy were assessed (see Appendix 4.5). Since few farmers purchased improved traditional varieties, the study compared AQIP IR66 with other non-AQIP seed, (unimproved IR66 and unimproved
Show more

438 Read more

ASSESSING THE VALUE OF SHADE COFFEE FOR BIRD CONSERVATION IN THE COLOMBIAN ANDES AT A LOCAL, REGIONAL, AND NATIONAL LEVEL

ASSESSING THE VALUE OF SHADE COFFEE FOR BIRD CONSERVATION IN THE COLOMBIAN ANDES AT A LOCAL, REGIONAL, AND NATIONAL LEVEL

Local studies of birds in secondary vegeta- tion remnants show similar or lower levels of species richness. In ANDES, we found only 23 bird species in Valle’s secondary forests, and 45 and 59 species, respectively, in Santander and Antioquia’s tall secondary vegetation patches. These values represented only 25% to 48% of the species in each region. With higher sam- pling in the less disturbed forests studied in FRAGMENTS, we found 35 to 75 species per fragment, and a total contribution of 192 species in fragments spread over a wide geographical area (Table 1). Shade coffee plots would appear to make local contributions to bird diversity at higher and similar levels as do forest fragments. However, due to higher sampling efforts (num- ber of sites), and because of higher individual detectability of birds in habitats with open veg- etation, the number of individuals (sample size) is much higher for shade coffee than for natural vegetation remnants (Table 1). This may explain the higher species richness we found.
Show more

11 Read more

UPDATING THE COFFEE VALUE CHAIN AND A MARKETING STRATEGY TO RE-POSITION YEMEN IN THE INTERNATIONAL COFFEE MARKETS

UPDATING THE COFFEE VALUE CHAIN AND A MARKETING STRATEGY TO RE-POSITION YEMEN IN THE INTERNATIONAL COFFEE MARKETS

6. Coffee companies around the world abuse Yemen specific brand names. As a result major confusion exists about these names and as long as this situation continues, Yemen will never be able to command top premiums for the for the most revered coffee types such as Mocha, Harras or Matari. Various options are available to initiate legal proceedings to reclaim the intellectual ownership to distinct Yemeni Geographical Indications like “Mocha”. In 2009, the International Trade Center published a well documented “Guide to Geographical Indications” providing various examples of “GI’s” that were successfully registered for Jamaica, Kona and Guatemala; these countries or regions have been able to formalize and legalize the registration of geographic indications for their coffees. 7. Lack of transparency in domestic and international pricing of Yemeni coffee. To buyers it is often a mystery how Yemeni exporters or sellers set their pricing. It is usually not clear how the farmers benefit and what part of the price goes to middlemen. Specialty coffee buyers nowadays command transparency about pricing structures and they require the ability to trace coffee lots back to the production region or preferably to the community where the beans originate.
Show more

79 Read more

The Role of Policy in Supporting Value Chain Development and Value Chain Partnership

The Role of Policy in Supporting Value Chain Development and Value Chain Partnership

7 .Driven by vision and strategy: targeting realistic development goals and as well as particular points and stakeholders in the value chain to be effective.. Focused on upgrading: su[r]

18 Read more

Cross-cultural collaboration for inclusive global value chain: a case study of rattan industry

Cross-cultural collaboration for inclusive global value chain: a case study of rattan industry

essential for underserved communities to allow them to acquire and revamp valuable resources (Braguinsky and Hounshell, 2016). The cross-cultural collaboration requires organizational characteristics like operation and supply chain capabilities, human capital and financial resources (Ibrahim et al., 2015). To employ IGVC, various risks need to be faced, which may come from the location of a new facility (Soni and Kodali, 2013), increasing business fragmentation, unprecedented geographical separation (OECD, 2015) and the lack of capability to deal with technological turbulence (Pratono, 2016). There is also a high potential risk from relationship exploitation (Duffy et al., 2012), while the capability to develop alliance strategy to deal with overloaded information varies greatly (Schilke, 2014). Although the recent policy concerns to deal with forest degradation, relatively little research describes the spatial aspect of the IGVC that provides commercial opportunities for NTFP. Hence, studies on the social mechanisms to support relationships in GVC need to be enhanced (Kano, 2017). The previous studies raise some main research questions, such as how the policy analysis on GVC deals with the changing business strategy of both MNCs and local firms in emerging markets (Thóme and Medeiros, 2016), while another paper calls for futher analysis on how to maintain the existing relationships to generate a global value (Howieson et al., 2016). There is also another specific question about how firms in emerging markets experience transition policies from cost efficiency to innovation in order to gain their competitive advantage (Ding et al., 2016).
Show more

23 Read more

Socio-economic determinants for industry development: the case of Australia's Sydney rock oyster industry

Socio-economic determinants for industry development: the case of Australia's Sydney rock oyster industry

The present age structure of the industry members, the predominantly small-scale and part-time business approach to oyster farming raises a concern about implications for innova­ tion and the attraction of investment. A previous study about primary industries in Australia concluded that the main limi­ tations to the adoption of new technologies were human cap­ ital and knowledge constraints, with farmers not having the necessary skills, incentives or information required for suc­ cessfully integrating innovations into existing farming systems (Nossal and Sheng 20 10). Similar to other primary industries, the SRO industry will remain depended on public investment in research and development iiTespective of the age structure of oyster fanners. However, the ability to drive/support the in­ novation and their translations into industry practise as well as willingness to co-operate with research institutions may likely improve with more young people entering the business.
Show more

9 Read more

Development and Application of a Value Chain Research Approach to Understand and Evaluate Internal and External Factors and Relationships Affecting the Economic Competitiveness in the Textile Value Chain

Development and Application of a Value Chain Research Approach to Understand and Evaluate Internal and External Factors and Relationships Affecting the Economic Competitiveness in the Textile Value Chain

Even though the manufacturing barriers to entry into the apparel industry are low, the ability to successfully enter into export-oriented chains can be quite high, as it requires access to global lead firms. Due to the increasing complexity of global supply chains, there is an increasing need for supply chain coordination and management capabilities. Trading houses have become a key link between producers and retailers, and in some cases exert the governing function within the chain. Coordination between producers and distributors does not always result in upgrading opportunities for producers because relationships tend to be loose and indirect based primarily on arms-length transactions. In most cases, the international distributor holds less market power than the retailers. As a result, distributors are responsible for depressing upstream prices and reducing profit margins for suppliers to increase their own profitability (Farfan, 2005). Even in the technical textile product markets, end-use customers are increasingly confining their major commercial relationships to their “first-tier” suppliers, whose job is then to create and organize a supply chain to produce the required cost-effective innovation for the buyer (David Rigby Associates, 2002).
Show more

364 Read more

Labour Force Participation in Economic Development: Coffee in Rwanda

Labour Force Participation in Economic Development: Coffee in Rwanda

According to the regression Methods, with the student‟s t - test by using software SPSS, we found that the values of t - statistics are (12.310, 4.344, 11.697 and -11.587) as showed in (Table4). At confidence level of 0.95, with the significance level of 0.05, for 7 degrees of freedom (DF=7), the critical value is (Tc = 2.36). Due to the values of t statistics which are highly significant as significant values for two -tailed tests which are also (0.000, 0.012, 0.000, and 0.000), (Table4). Therefore, we reject the null hypothesis (there is no relationship between Coffee Production and Labour Force Participation). Then, there is significant between the two variables and the statistical tests are said to be significant because p-values are all less than the significance level of (0.05). The Coffee Production depend of the Labour Force Participation. With regression, an estimation linear model is determine and could forecast the future Coffee production quantities in different years. The Estimated Model here is linear regression or bivariate called “Vector Auto regression” expressed as: Q t     LFP t  u t , with Q t , Coffee
Show more

13 Read more

Value Chain Analysis Indonesian Animal Husbandry Industry

Value Chain Analysis Indonesian Animal Husbandry Industry

At least until 2017, a very low production capacity coupled with livestock methods that are still traditional causes almost all major livestock commodities in Indonesia to close their deficits through imports. Meat, milk, eggs, and even the skin, all of them still cannot be fulfilled entirely from the country.As much as 83% of raw material for the dairy industry is imported. Leather processing industry, importing raw materials for cow leather by 3 million pieces and 13.5 million pieces (sheep and goat skin). Specifically for beef, it was noted that 2016 was the highest volume of beef imports reaching 132.74 thousand tons. As for eggs in general, the pattern of development of export volume is lower than the rate of imports per year. Data on chicken meat imports and their values during the 2012-2016 period showed quite high values compared to export volumes. Knowledge of industry value chains is needed to explore the gap in the dependence of imported raw materials.The value chain analysis carried out in the livestock base industry chain shows a map of the relationship between a number of livestock industry bases in Indonesia so as to facilitate the breakdown of dependence on raw materials. Analysis carried out on the main chain (livestock base) and joint chain (supporting base). Five farm-based industry value chains have been assembled, namely: 1) beef-cattle base industry; 2) industrial livestock-poultry meat base; 3) dairy-based livestock industry; 4) leather- based industry base; and 5) egg-based livestock industry. Core industries or prime movers namely: a) RPH on beef chains, b) industrial pasteurization in the milk chain; c) tanning industry on leather chains; d) food freezing industry on chicken meat chains; and e) egg packing house on the egg chain. The existence of the core industry greatly determines the position of the raw materials of the downstream industry.
Show more

8 Read more

Show all 10000 documents...