A m s t e r d a m U n i v e r s i t y P r e s s
Linking Local Producers from Developing Countries to International MarketsMeine Pieter van Dijk & Jacques Trienekens (eds. ) All rights reserved. Without limiting the rights under copyright reserved above, no part of this book may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the written permission of both the copyright owner and the author of the book.
EADI -the European Association of Development Researchand Training Institutes -is the leading professional network for development and regional studies in Europe (www.eadi.org).
An Overview of the Issues and Concepts
Meine Pieter van Dijk and Jacques Trienekens
IntroductionGlobal value chains are about linking local producers from developing countries to international markets. Th ey link the raw-material producer and the fi nal consumer. Which organizations are involved in this process and how important are they? According to a Chinese consultant quoted in the Chinese journal China: "Processing on order will only land a company at the bottom end of the industrial chain". However, "developing a full range of products under a respected brand puts a producer in a diff erent league from traditional manufacturers" (October 2010: 29). Th is is "trying to climb the value chain" or "progression up the economic value chain". Th is is also what "upgrading value chains" is all about and in this book seven case studies of developing local and global value chains are presented from that angle. Th e book provides a combination of theoretical and empirical studies, which may inspire other researchers to develop more case studies in this important fi eld of research, using the theoretical insights presented in the diff erent chapters. 1 We start with two theoretical chapters concerning global value chains, besides this introductory chapter.In this chapter we discuss the issues concerning the development of global value chains. The case of biofuels will be taken as an example since it is a relatively new value chain and a large number of issues related to value chain development play a role. The case will come back in chapter 5. Then a number of important theoretical concepts concerning value chains are discussed, before giving an overview of the book.
Biofuel chains start in developing countriesMany African countries are setting ambitious production targets for value chains and provide support both at country and regional level for these initiatives. Bio- Meine Pieter van Dijk and Jacques Trienekens fuels are a good example. The conditions for growing biofuels are good in many African countries. Most countries have a good climate, good soils, abundant land (e.g. only 14 of arable land in Zambia is currently under cultivation) and an enormous potential market exists at national and international level. A division of labor is possible between the local/village level (the farm activities), the n...