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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