Level 2 · Part 3
Where value is lost
Spoilage, delay, poor quality and weak information waste value along the chain.
Value can be lost at every step. Product can spoil or be damaged. Quality can drop because of poor handling. Time can be wasted waiting for transport or buyers. Money can be lost to poor information or weak bargaining.
| Stage | A typical loss | A possible response |
|---|---|---|
| Production | Poor seed or timing leads to low quality | Better planning and advice |
| Harvest and handling | Bruising, heat, dirt, rough containers | Careful handling, shade, clean crates |
| Storage | Moisture, pests, heat | Proper drying, suitable storage, regular checks |
| Transport | Delay, damage, overloading | Agree pick-up times, better packing, shared loads |
| Market | Unsold stock, forced low prices | More than one buyer, planning with buyers |
| Information | Not knowing prices or demand | Ask several buyers, use farmer groups or market information services |
Measure your own losses
How much is lost differs by crop, season, place and practice. General figures from elsewhere may not apply to you. The best information is your own: count and write down what is lost at each step over a season.
Exercise 2.3 · A loss walk
- Go through your chain step by step and ask, 'What is lost here: product, quality, time or money?'
- Mark the step where you think the largest loss happens, and write how you could check it.
- Write one low-cost change that could reduce that loss.
Background reading for this part:
- Developing Sustainable Food Value Chains: Guiding Principles — Food and Agriculture Organization of the United Nations (FAO), 2014