Author:

Keywords:

Science & Technology, Social Sciences, Life Sciences & Biomedicine, Agricultural Economics & Policy, Economics, Food Science & Technology, Nutrition & Dietetics, Agriculture, Business & Economics, Value chain development, Market access, Impact evaluation, Aquaculture, Smallholder, Food security, SMALLHOLDER MARKET PARTICIPATION, FARM HOUSEHOLD INCOME, TRANSACTIONS COSTS, LINKING SMALLHOLDERS, TECHNOLOGY-TRANSFER, COLLECTIVE ACTION, PROPENSITY SCORE, ADOPTION, PRICES, IMPACT, 0908 Food Sciences, 1605 Policy and Administration, 3006 Food sciences, 3801 Applied economics, 4407 Policy and administration

Abstract:

Agricultural productivity and farmer welfare in developing countries is constrained by a multitude of market imperfections. Value chain development (VCD) is receiving much attention as a market-based policy instrument that can potentially address multiple of these constraints simultaneously. This paper provides a conceptualization of VCD and discusses how VCD can be used as a policy instrument. As an illustration, the paper describes the VCD project “SAFAL,” which uses an integrated approach to directly intervene in aquaculture, horticulture, and dairy value chains in South-West Bangladesh. The strategy is to first identify a demand downstream in the value chain and then to identify and reduce the constraints experienced by value chain actors upstream to meet this demand. Using a matched difference-in-difference methodology, this paper estimates farm household participation in SAFAL increases farm income and shortens the hungry season.