Level 2

Understanding Value Chains

Follow a product from production to buyer and find where value is created or lost

A product does not travel from the field to the plate by itself. Many people and steps are involved. This level shows you how to draw that journey, understand each actor's role, and find where value is lost or where a new opportunity could start.

Farmers, aspiring processors, traders, cooperative members and anyone who wants to find a place to add value in the food and farming sector.

What you will learn

• Draw the value chain of one product you know, from inputs to the final buyer.
• Describe what each actor does, what risks they carry and why they are paid.
• Find the places where quality, quantity, time or money are lost.
• Suggest realistic ways to improve one stage or fill a gap.
• Explain why value chains need supporting services and trust.

In this level we follow one example, a fresh vegetable, from the field to a household kitchen. The same method works for grains, fruit, roots, livestock or fish. Replace the example with the product you know best.

Parts of this level

1. Part 1What a value chain isThe journey from production to final customer, and the people along it.
2. Part 2Who does what, and who earns whatEach actor does work and carries risk. Understanding this prevents wrong conclusions.
3. Part 3Where value is lostSpoilage, delay, poor quality and weak information waste value along the chain.
4. Part 4Finding opportunities in the chainGaps, weak steps and long chains are where new businesses often begin.

• WorkbookAll exercises from this level in one place, with space to think and a printable layout.
• QuizCheck what you learned. Answers and short explanations are hidden until you choose to show them.

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