Synthesis documents

Shaping Value Chains for Development: Global Value Chains in Agribusiness, GTZ, Humphrey 2005

    Description
    One of the key challenges for development is to reduce rural poverty in developing countries through increasing production and export of agricultural products. However, changes in the nature of markets and trade for these products in recent years have created new challenges. Addressing these requires initiatives at multiple levels, in both developing and developed
    countries and within the system of international regulations governing trade.
    The new challenges arise in the areas of markets and competition and also from the increasing importance of public and private standards in regulating trade:
    1. The increasing importance of large buyers in global food value chains.
    2. Increasing concentration at various points in the value chain, including input suppliers, processors and retailers.
    3. The increasing importance of both public and private standards in food industry.

    This study analyses these challenges from a global value chain perspective, examining their implications for policies at both the micro and meso levels (technical assistance, local institutional capabilities, producer organisations, etc.) and the broader, macro level of the framework of institutions and policies that regulate agricultural production and trade,
    including standards-setting, intellectual property rights and global competition policy, as well as trade capacity building and trade promotion initiatives.

    This paper is divided into five sections. Section one is the introduction. Section two discusses the major trends in agricultural markets. Section three explains how these trends can be understood through the application of global value chain analysis. Section four examines the implications for micro and meso-level interventions. Section five considers the insights from global value chain analysis for policy in the areas of standards setting, intellectual property rights and competition policy.