usaid module 1: understanding value chains presentation session 3

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Global Rules National / Local / Informal Rules Cross-cutting non- commercial systems Sector- specific commercial systems Cross-cutting commercial systems Input Supply Wholesale National Retail Export Global Retail Buyer/ Processing End Markets Vertical Relationsh ips Productio n Horizontal Relationshi ps Interconnect ed Systems Module 1 Session 3: Value Chain System

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Global Rules

National / Local / InformalRules

Cross-cutting non-commercial systems

Cross-cutting non-commercial systems

Sector-specific commercialsystems

Sector-specific commercialsystems

Cross-cutting commercial systems

Cross-cutting commercial systems

Input SupplyInput Supply

WholesaleWholesale

National Retail

National Retail

ExportExport

Global RetailGlobal Retail

Buyer/ProcessingBuyer/Processing

End Markets

Vertical Relationships

ProductionProduction

Horizontal Relationships

Interconnected Systems

Module 1 Session 3: Value Chain System

Value Chain Systems are Inter-connected

Rice Value Chain

Ag Equipment Value Chain

Farmer

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To meet changing market requirements, the interactions of inter-dependent market actors will be guided by:

RELATIONSHIPS - how they perform both vertical and horizontal functions in a value chain system

RULES - political, economic and social values or customs, either formal or informal norms and practices.

INTER-CONNECTED SYSTEMS - sector-specific commercial or cross-sector commercial or noncommercial services integral to but not directly part of the value chain

Value Chain System – Core Principles