Value chains and cluster development – Improved access to local, regional and global markets

80% of the global trade in goods currently takes place along value chains in which each link represents a different task. Better integration and positioning within local, regional and global value chains can help producers in developing and transition countries to participate more in markets and increase their benefit from the added value created in the chain.

SDC focus

SDC applies the value chain approach and cluster development in order to analyse the market access options available to producers in its partner countries, identify entry barriers and potential, and on this basis formulate specific supporting measures. Examining a value chain or cluster as a whole enables a better understanding of the competitive conditions and structural integration of economic activities. The objective is to identify promising market potentials and promote them through development measures.

SDC activities focus on the development of local and regional value chains and clusters in rural regions in which poor farmers, as well as small and medium-sized enterprises, can participate. In addition to providing support for producers, this often necessitates intervention at various points along the value chain and within the cluster, as well as measures to improve institutional, political and legal frameworks. SDC supports its partners in the following ways:

  • Improving the transparency of markets, in particular by analysing value chains and facilitating access to market information.
  • Encouraging the creation of manufacturer associations and the initiating business contacts.
  • Supporting the development of clusters of micro, small and medium enterprises and their participation in local, regional and global markets.
  • Establishing and expanding competitive services for investment projects, technical improvements, quality management and qualification.
  • Providing advice to governments and the private business sector on issues related to market development and regulation as well as to the introduction of quality standards.

Background

Within the next 25 years the world gross domestic product is set to double. The benefits will be derived by countries and regions whose businesses succeed in integrating local, regional and global value chains, leveraging markets as well as cost and specialisation advantages, and learning from technological innovation processes. At present, many producers in developing countries are either completely excluded from value chains or obliged to compete with products that offer only few opportunities for local added value – typically agricultural products.

Current challenges

The value chain concept covers the interrelated stages of product manufacturing, processing, trading and retail or exports. Within the context of private sector promotion in developing and transition countries, the value chain approach aims to improve the access of businesses to value chains and their position within such chains through targeted promotional measures. The aim is to strengthen their economic position by ensuring ways of adding more local value, diversification into higher-value products, quality management and secured market access. The point of entry is the use of small producers’ competitive advantages in labour-intensive and niche products.

One way of strengthening the performance and competitiveness of small producers and downstream businesses in a specific region is cluster development. Typically, clusters consist of a geographical concentration of companies (producers, suppliers, specialised service providers etc.) operating within the same sector or related sectors. Cluster development aims to improve the performance and efficiency of the sector as a whole. This involves measures promoting cooperation to achieve economies of scale, strengthening state and private institutions, mobilising local capital or promoting joint learning and innovation processes.

Documents

Current projects

Object 1 – 12 of 44

Supporting livestock traceability in the South Caucasus

The image shows a close-up of a calf with an identification tag in its right ear.

15.06.2016 - 30.11.2020

Identifying where animals have come from and recording information about their health is essential in modern agriculture to prevent the spread of diseases and stop products from diseased animals reaching the market. A system to ensure traceability will help to improve the incomes of farmers in the South Caucasus by increasing both herd productivity and the producers’ access to markets.

Country/region Topic Period Budget
South Caucasus
Agriculture and Food Security
Agriculture value-chain development
MULTISECTOR or CROSS-CUTTING
Rural development

15.06.2016 - 30.11.2020


CHF 5'935'000



IFAD: International Fund for Agricultural Development – Core Contribution

01.01.2016 - 31.12.2018

The International Fund for Agricultural Development (IFAD) is a specialised agency of the United Nations mandated to enable poor rural women and men to improve their food security and nutrition, raise their incomes and strengthen their resilience. Its mandate therefore dovetails with the priorities of Switzerland's development policy.

Topic Period Budget
Environment
Agricultural production (incl. management of natural resources)
Agriculture value-chain development
Adaptation to the effects of climate change
AGRICULTURE
MULTISECTOR or CROSS-CUTTING
GENERAL ENVIRONMENTAL PROTECTION
Agricultural development
Rural development
Environmental policy and administrative management

01.01.2016 - 31.12.2018


CHF 45'087'000



Appui aux économies locales des collectivités de Youwarou et de Niafunké (PACY) Programme de Soutien aux Economies Locales du Delta intérieur du Niger (PSEL-DELTA)

01.07.2015 - 30.06.2019

Dans les régions du delta intérieur du Niger, au centre et au Nord du Mali, les populations rurales sont confrontées à des crises structurelles multiformes dont l’insécurité alimentaire. La DDC appuie les autorités locales avec des projets économiques dans les filières agricoles porteuses pour assurer la sécurité alimentaire et réduire la pauvreté d’au moins 150'000 personnes. En plus, elle accompagne les municipalités de cette zone dans la maitrise d’ouvrage du développement territorial et la gestion pacifique des ressources naturelles.

Country/region Topic Period Budget
Mali
Rule of Law - Democracy - Human rights
Agriculture and Food Security
Agriculture value-chain development
Decentralisation - local governance - democratization (incl. accountability)
Adaptation to the effects of climate change
MULTISECTOR or CROSS-CUTTING
GOVERNMENT AND CIVIL SOCIETY
GENERAL ENVIRONMENTAL PROTECTION
Rural development
Decentralisation and support to subnational government (incl. accountability)
Environmental policy and administrative management

01.07.2015 - 30.06.2019


CHF 9'445'000



Livestock Development in the South of Armenia

Armenian Farmer with his calf

01.09.2014 - 31.08.2020

In the provinces of Syunik and Vayots Dzor in southern Armenia, the agricultural sector mostly comprises subsistence farming where farmers are barely able to support their households. This project aims to help farmers increase their milk and meat production, and thus their incomes, by supporting local veterinary services (to improve animal health), facilitating access to milk and meat markets, and promoting the sharing of know-how among farmers.

Country/region Topic Period Budget
Armenia
Economy and Employment
Agriculture value-chain development
Small and medium-sized enterprises (SME) development
Agricultural production (incl. management of natural resources)
MULTISECTOR or CROSS-CUTTING
INDUSTRY
AGRICULTURE, FORESTRY, FISHING
Rural development
Small and medium-sized enterprises (SME) development
Agricultural development

01.09.2014 - 31.08.2020


CHF 10'000'000



Thin lines that change lives

Women carrying baskets walk on a trail bridge.

01.08.2014 - 31.07.2019

In Nepal, trail bridges are vital for rural mobility. Almost 80 of them were severely damaged or destroyed during the earthquakes of 2015, jeopardizing access to education, health services and local markets for thousands of inhabitants in the mountainous regions. The SDC joined the reconstruction efforts, basing its intervention on the long-standing expertise it has in the country. 

Country/region Topic Period Budget
Nepal
Agriculture and Food Security
Rural infrastructure
Agriculture value-chain development
TRANSPORT AND STORAGE
MULTISECTOR or CROSS-CUTTING
Transport policy and administrative management
Rural development

01.08.2014 - 31.07.2019


CHF 10'998'000



Programme d’Appui à la Formation Professionnelle

01.01.2014 - 31.12.2018

Le marché du travail au Mali est caractérisé par une main d’œuvre peu qualifiée. Dans ce contexte, 300'000 jeunes arrivent chaque année sur ce marché sans compétences. L’offre de formation par domaine et/ou filière est en deçà des attentes du secteur productif. La formation professionnelle e 40'000 personnes dont 50% de femmes à l’horizon 2017, améliore la qualité des ouvrages et augmente la compétitivité des entreprises en contribuant à l’augmentation des revenus dans les régions prioritaires de la DDC et de la coopération danoise.

Country/region Topic Period Budget
Mali
Education
Agriculture and Food Security
Vocational training and skills development
Labor market development
Agriculture value-chain development
EDUCATION
EDUCATION
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
EDUCATION
MULTISECTOR or CROSS-CUTTING
Vocational training
Advanced technical and managerial training
Employment policy and administrative management
Education facilities and training
Rural development

01.01.2014 - 31.12.2018


CHF 16'957'000



Contribution aux programmes d’investissement des collectivités territoriales pour le développement régional et local au Mali

01.10.2013 - 31.12.2018

Région la plus arrosée du Mali, Sikasso peine à assurer son rôle de grenier du pays. Le Conseil régional de Sikasso (CRS), avec l’aide de la DDC, veut surmonter ce paradoxe par un programme de coordination du développement local et de valorisation des potentialités agropastorales. Pour ce faire, elle entend renforcer le CRS dans la mise-en-œuvre du volet agro-pastoral de son plan stratégique de développement économique régional.

Country/region Topic Period Budget
Mali
Rule of Law - Democracy - Human rights
Agriculture value-chain development
Decentralisation - local governance - democratization (incl. accountability)
Rural infrastructure
MULTISECTOR or CROSS-CUTTING
GOVERNMENT AND CIVIL SOCIETY
TRANSPORT AND STORAGE
Rural development
Decentralisation and support to subnational government (incl. accountability)
Transport policy and administrative management

01.10.2013 - 31.12.2018


CHF 5'300'000



Modernising vocational education and training related to agriculture in Georgia

The image shows the VET college student Medea getting hands-on instructions in the Senaki College greenhouse on growing vegetables.

01.01.2013 - 31.12.2018

Georgia’s vocational education and training (VET) system does not correspond to the needs of the transition to a market economy which the government has sought to bring about since the country gained its independence. The SDC is helping the Georgian government to develop a more modern VET system that integrates theory and practice and allows a long-term increase in farm productivity and rural incomes.

Country/region Topic Period Budget
Georgia
Economy and Employment
Education
Agriculture and Food Security
Agricultural production (incl. management of natural resources)
Vocational training and skills development
Agriculture value-chain development
Small and medium-sized enterprises (SME) development
EDUCATION
AGRICULTURE, FORESTRY, FISHING
INDUSTRY
MULTISECTOR or CROSS-CUTTING
Vocational training
Agricultural development
Small and medium-sized enterprises (SME) development
Rural development

01.01.2013 - 31.12.2018


CHF 6'547'000



Economic prospects for young people in rural areas

Farmers are being trained on the vertical tomatoes planting techniques which double their production. ©DDC

01.01.2013 - 31.12.2018

The SDC project in rural Aswan Governorate in Egypt aims to improve the economic prospects of local young men and women. The SDC promotes enterprises in the agricultural, livestock breeding and fisheries sectors to create new jobs and provide young people with an alternative to migrating to urban centres.

Country/region Topic Period Budget
Egypt
Agriculture and Food Security
Education
Economy and Employment
Labor market development
Agriculture value-chain development
Vocational training and skills development
Agriculture value-chain development
Vocational training and skills development
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
AGRICULTURE, FORESTRY, FISHING
EDUCATION
AGRICULTURE, FORESTRY, FISHING
MULTISECTOR or CROSS-CUTTING
EDUCATION
MULTISECTOR or CROSS-CUTTING
Employment policy and administrative management
Agricultural services
Vocational training
Agricultural development
Rural development
Vocational training
Rural development

01.01.2013 - 31.12.2018


CHF 5'020'000



Core Contribution to icipe (International Centre of Insect Physiology and Ecology)

01.01.2017 - 31.12.2020

icipe is a pan-African organisation for the development of arthropod pests to help ensure food and nutritional security and better health for people and livestock. SDC considers icipe’s work crucial for Africa’s development because icipe delivers world-quality science, contributes to regional and national food and health policies and produces biological products that help farmers to get better crop harvests. SDC supports icipe’s research for development efforts with a core contribution for the successful implementation of its strategic plan until 2020.


Programme d’appui à la valorisation des produits forestiers non ligneux, phase 2 (PFNL2)

15.12.2016 - 31.12.2020

Au Burkina Faso, les produits forestiers non ligneux[1] (PFNL) constituent une importante source alimentaire pour les populations des zones affectées par les chocs climatiques et déficitaires sur le plan alimentaire. Les PFNL font partie de l’alimentation de plus de 43,4% des ménages ruraux et procurent de l’emploi et des revenus. Le programme  contribue à l’accroissement de la sécurité alimentaire, nutritionnelle et des revenus des ménages ruraux et périurbains[2] par la valorisation et la gestion durable des PFNL.



[1] Les PFNL s’entendent par « tout bien d’origine biologique autre que le bois et la faune à l’exception des insectes, dérivé des forêts et des arbres hors forêts, constitués de végétaux spontanés, domestiqués, et ceux destinés au reboisement ». (Source FAO)

[2] Le périurbain est un espace rural au sens où l’essentiel des sols est attribué à des activités agricoles; mais c’est aussi un espace urbain au sens où la majorité de la population active qui y habite travaille dans une ville, en effectuant des migrations alternantes. Le milieu périurbain connait une très forte compétition entre usage agricole et non agricole des ressources: terres, main-d'œuvre, etc. La production agricole est orientée principalement pour le marché du centre urbain.

 


African Risk Capacity (ARC)

01.12.2016 - 31.08.2019

The African Risk Capacity is a specialised agency of the African Union to help African countries improve their capacities to better respond to extreme weather events such as droughts and floods, therefore protecting the food security of their populations. It uses modern finance mechanisms such as risk pooling to create pan-African climate response systems. SDC co-finances the expansion of this insurance scheme to new countries, including the development of contingency plans that will allow insurance pay-outs to countries in case of drought or floods related catastrophes.

Object 1 – 12 of 44