The second objective is look at how commodity chain analysis can be used to examine the above issues, thereby contributing to both ntfp and commodity chain analysis literature. A value chain and market integration analysis of the cassava market in the democratic republic of congo by. The brand was a pioneer in bringing environmental and social issues to the heart of a consumer brand. Purpose and scope of the technical guidance sheet the overall purpose of this technical guidance sheet tgs is to gain a basic understanding of how the value chain analysis vca of specific staple food commodities can benefit food security. At one end of the agricultural value chain are the producers the farmers who grow crops. Our analysis of industrial upgrading in asia suggests that mexico will have to move beyond assembly production and establish a fullpackage or oem model in order to promote an integrated north american commodity chain. Commodity chain analysis is the inter related series of activities that involve production, trading and marketing and it also covers all activities from the processing of raw materials, the intermediate activities involved in valued addition of the semi finished good to the transportation of the final product to the market rodrigue 2011b. This is often at the core of important questions raised by environmental justice ej scholars and political ecologists. Dowding, university of connecticut, stamford ct usa abstract this paper examines starbucks corporate strategy of sustainable efforts in ethiopia, particularly in the sustainable sourcing arabica coffee. Global commodity chains and global value chains oxford. Commodity chain analysis cca is a method that has been widely employed in the social sciences most commonly in sociology, geography, and economics in the last two decades.
It consists of quantitative analysis of inputs and a. Econometric value chain analysis is widespread in the field of impact assessment of value chains. An analysis of three commodity value chains in cambodia. The second is the francophone filiere tradition, which has. Pdf the importance of value chain analysis vca for. It viewed the shift in organizational terms and went beyond the limitations of neoclassical explanations of relative prices to incorporate the concept of market power. There are many ways to gather data relevant for value chain analysis.
Where does your coffee dollar go the division of income. As the process of globalization expands and the global economy grows cca provides a method to understand complicated economic and social relations by a tracing a single. Commodity chain analysis food and agriculture organization. The faovca software tool carries out valuechain analyses for agricultural and rural development policies. International trade and industrial upgrading in the apparel. The initial production of coffee beans including farming, collecting, and processing is labor intensive and as a result is. The agricultural sector remains highly vulnerable value chain analyses assist in informing policy dialogue. The agricultural sector remains highly vulnerable value chain. Nontimber forest products, gender, and households in. Tomato commodity chain analysis report 716 adeni project organization of the commodity chain flowchart the chain is characterized by somewhat complex interrelationship and interaction between various actors and enterprises involved in the tomato production, distribution, and processing and consumption chain.
Pdf commodity chain analysis, derived from worldsystems theory, is a useful heuristic for organizing thought and shaping research on global political. The second is the francophone filiere tradition, which has been applied mostly to agricultural commodities originating from former french colonies. It can be applied to analyze the effects of standards e. Constructing the commodity chain functional analysis and flow. The gcc analysis has emerged as a framework to map and analyse the spatially dispersed and organizationally complex production networks that are an important as pect in economic globalization 11. A commodity chain is a process used by firms to gather resources, transform them into goods or commodities, and finally, distribute them to consumers. The purpose of this tool is to provide guidance on how to conduct a practical value chain analysis of food commodities whose production, processing, commercialization, and consumption is crucial for household food security. These chains are seen to have been globalised some time. Global commodity chain gcc analysis essentials of gcc analysis the beginning of gcc analysis as a relatively coherent paradigm can be traced to a collection edited by gereffi and korzeniewicz 1994. Since the mid 1990s, the concept has drawn a great deal of attention from scholars and policy makers who have grappled with comprehending the changing global economy. Constructing the commodity chain functional analysis and. Our intention in producing a handbook on researching value chains is to try and comprehensively cover as many aspects of value chain analysis as possible so.
The changing nature of the global production structure and implications for international political. The first steps in conducting the value chain analysis are to break down the key activities which involve in the frame work. How to do commodity value chain development projects 1 introduction most newly designed projects at ifad are either value chain projects or include a value chain v c development component. Second, the role of each of the big buyers retailers, marketers and manufacturers in forging global sourcing networks in the apparel commodity chain will be highlighted. Geog 123jsis 123 introduction to globalization summer 2018 1 commodity chain analysis project worksheet 1 due sunday, june 24 by 11. Investment in the sector is considered risky by different chain actors, and is limited as a result of the overall noncompetitiveness of the sector. Feb 08, 2011 the first is the global commodity chain gcc approach, which has been developed primarily for the analysis of industrial commodities. Integrating life cycle assessment and commodity chain. Commodity chain analysis financial analysis 1 1 summary this module provides a presentation of the way to develop a financial analysis using a commodity chain. Judged on these criteria, many papers fell short of presenting a value chain analysis of a given cropcommodity. Many who turned to commodity chain analysis as a datagathering strategy argued that it was well suited to capturing the complex transactions of an.
Until the late 1980s, coffee growers and producing states retained over a third of the total income and about half of the total surplus that was available. Global commodity chain analysis and the french filiere approach. Staple food value chain analysis can improve understanding of. In particular, i examine the ways in which the application of global commodity chain analysis to global care chains obfuscates and devalues the social relations of caring and care work involved in global care chains. The first is the global commodity chain gcc approach, which has been developed primarily for the analysis of industrial commodities. Commodity and product identification for value chain analysis. Pdf origins and orientations of commodity chain analysis. Review of guidelines and manuals for value chain analysis for. Commodity chain analysis cca was developed by french research institutions. Each of the value chains assessed begins with an end market analysis to.
Global commodity chain analysis and the french filiere. Global commodity chain analysis has been developed primarily for industrial commodity chains. The global commodity chain analysis was subsequen tly replaced with a more general term, global value chain gvc analysis 8,12. Gereffi and korzeniewicz 1994 put forward the theory of global comm odity chain gcc in the book of commodity chains and global capitalism based on the analysis of american retailing value chains and the com bination of value chain model and indusfrial organization. It belongs to a set of modules which discuss how to proceed stepbystep on commodity chain analysis. Pdf value chain analysis of dryland agricultural commodities.
Pdf on sep 23, 20, reddy aa and others published value chain analysis of dryland agricultural commodities find, read and cite all the research you need. As the study of commodity chains became both more interdisciplinary and. Ntfp commodity chains, and the ways in which this division influences how important these products are to household income and conservation. These chains are seen to have been globalised some time between 1960 and 1980, and thus to be related to processes normally discussed under the rubrics of globalisation andor postfordism. First, the global commodity chains framework will be outlined, with an emphasis on the structure and dynamics of buyerdriven chains. This includes a perspective on the forces and systems of localization in the world economy in raising questions where the commodity chain geographically touches down in the local economy and how. The agroexceptionalist perspective helps to identify the differential rates. Commodity chain analysis, derived from worldsystems theory, is a useful heuristic for organizing thought and shaping research on global political economy. A vc approach is based on a comprehensive look at the entire commodity chain, from producers to endmarket consumers. The development of global value chains gvcs and their economic impact on. This paper assesses the achievements and limitations of commodity chain research as it has evolved over the last decade. A value chain and sustainability initiatives analysis melissa murphy, university of connecticut, stamford ct usa timothy j.
In 1999, only 3 per cent of projects included vc development interventions. International trade and industrial upgrading in the. A value chain and market integration analysis of the. Commodity production touches down in local communities and has differential impacts on human bodies, communities, and ecosystems. The desired scope of the scan, in terms of geography, food commodity, and supply chain stages. Value chain analysis vca can explain the globilisation of the production paradigm, describe the value of each step in the production chain and offer choices for example to mncs, states that 1 lawton and michaels exploding the value chain. The importance of value chain analysis vca for understanding the globalisation of production.
It is a series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market. Value chain analysis methodologies in the context of. Review on csr issues based on value chain model and its. A global commodity chain analysis fieldwork report audrey denvir project overview there is arguably no clearer expression of the power imbalance between consumers in the global north and producers in the global south than through the analysis of globally traded commodities. A commodity chain refers to a network of labor and production processes whose end result is a finished commodity hopkins and wallerstein 1986. First, i highlight an important but generally unacknowledged break between the original worldsystemsinspired tradition of commodity chain research and two subsequent chain approaches, the. Cgiar research program on aquatic agricultural systems. At the same time, this research also aims to contribute to food system debates in order to more fully inform our understanding of the social and developmental dynamics of contemporary capitalism at the.
A value chain and market integration analysis of the cassava. Using commodity chain analysis, the research project will examines political, economic and environmental dimensions of the instant noodles boom. Where does your coffee dollar go the division of income and. Evaluation of commodity in industryindustry capabilities and trends top suppliers in the industry and key capabilities competition dynamics identify industry cost and performance drivers quality, level of technology, flexibility, timeliness, etc. World bank, rapid agricultural supply chain risk assessment. Published by the tropical commodity coalition for sustainable tea coffee and cocoa. Data are drawn from 56 field interviews and 150 survey interviews with actual producers and professionals from local institutions in western turkey. Commodity chain analysis narrows in on individual commodities and analyzes the organizational. Palm oil value chain analysis in sierra leone the value chain context agriculture accounts for almost half of sierra leones gdp and is the largest source of employment, engaging more than threequarters of the population. Commodity chain analysis cca has opened new theoretical and empirical opportunities to examine how power and social relations coalesce around commodities, their modes of production, transformation and consumption bair, 2009. If fullpackage supply does succeed in mexico, however, it will utilize very different kinds of networks than those.
Market analysis toolhow to conduct a food commodity value chain analysis. The authors explain that commodity chain analysis begins at the end of the chain with an ultimate consumable item. The experiences and challenges of doing the commodity chain analysis myanmarchina. The analysis focuses on value chains, which may span multiple geographical areas.
Geog 123jsis 123 introduction to globalization autumn 2017 1 commodity chain analysis project step 1 due friday, october by 11. The technical guidance sheet lists a variety of tools for data collection, including. Although the book starts with the discussion of the grain trade in sixteenth century europe hopkins and wallerstein 1994, gereffi and his. Industry direction and trend consolidation, pricing, etc. A green job in one part of the world could be complicit with the. Emerging mainly from world systems theory, commodity chains were defined by hopkins.
How to conduct a food commodity value chain analysis. Global care chains, commodity chains, value, care 1. Tomato commodity chain analysis in kano river irrigation. This module deals with the use of commodity chain analysis. Methodology and value chain analysis open knowledge repository. Global care chains, commodity chains, and the valuation of.
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