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Module 1 Session 3:
Value Chain System
Global Rules
National / Local / Informal
Rules
Sector-specific
Sector-specific
commercial
commercial
systems
systems
Cross-cutting
Cross-cutting
commercial
commercial
systems
systems
Cross-cutting
Cross-cutting
non-commercial
non-commercial
systems
systems
Interconnected
Systems

Global Retail
Global Retail

End Markets
National
National
Retail
Retail

Export
Export

Wholesale
Wholesale

Buyer/Processing
Buyer/Processing

Vertical
Relationships
Horizontal
Relationships

Production
Input Supply
Input Supply
Value Chain Systems are
Inter-connected
Farmer

Rice Value Chain

Ag Equipment
Value Chain
Value Chain System – Core Principles
3

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

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USAID Module 1: Understanding Value Chains Presentation Session 3

  • 1. Module 1 Session 3: Value Chain System Global Rules National / Local / Informal Rules Sector-specific Sector-specific commercial commercial systems systems Cross-cutting Cross-cutting commercial commercial systems systems Cross-cutting Cross-cutting non-commercial non-commercial systems systems Interconnected Systems Global Retail Global Retail End Markets National National Retail Retail Export Export Wholesale Wholesale Buyer/Processing Buyer/Processing Vertical Relationships Horizontal Relationships Production Input Supply Input Supply
  • 2. Value Chain Systems are Inter-connected Farmer Rice Value Chain Ag Equipment Value Chain
  • 3. Value Chain System – Core Principles 3 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