The value chain analysis methodology includes both quantitative and qualitative methods.  Although econometric analysis is not part of the approach, because the surveys they require are beyond the scope of the project, a range of quantitative tools are used. The main quantitative analysis relates to profitability assessment of the value chain, from consumer to retailer. Most notably, it includes an application of FAO’s Value Chain Analysis tool, which calculates the overall value-added generated by the value chain and allows for an ex-ante impact analysis of policy changes. In addition, there are many quantitative indicators for the social and environmental analysis, such as food losses and carbon emissions generated by the value chain.

As with all technical work generated by FAO, the methodology will be available to any party interested in using it, as soon as the field testing is completed and the tool is finalized. In the meantime, a methodological brief is available with guidance on how the methodology can be applied. Please contact the FISH4ACP Project Management Unit ([email protected]) for any methodological queries.  

The FISH4ACP methodology treats environmental sustainability holistically, meaning that we measure the impact of the value chain on all dimensions of the natural environment, including biodiversity, carbon emissions, the water footprint, and pollution in its various forms.  

When we talk about primary data collection, it becomes more challenging in countries that do not have sufficient secondary data on the actors involved in the value chain. This can be because large parts of the value chain are informal or where unreliable statistics make it hard to get a picture of the overall dimensions of the value chain. In such countries, primary data collection is even more important but is also more challenging, as it can be difficult to find a representative sample of actors to interview. This applies especially to the middle part of the value chain, the traders and processors between the fisherfolk or aquaculture producers and the consumers. 

The methodology examines the contribution of the commodity to national food and nutrition security, in relation to the nutritional status of the population by looking at the household dietary diversity score survey data. If these are not available, the recommended approach is to do a small sample-size survey as part of the initial analysis to calculate individual dietary diversity scores or to recommend a full study as part of the value chain development plan, if nutritional health appears to be a sustainability hotspot.

The action plans are developed in partnership with all stakeholders and are done on the basis of the value chain analysis, which aims to elicit the specificity of each value chain. This ensures that the action plans are tailormade to fit the specificity of each value chain.

Multi-species capture fisheries do pose a challenge in doing the value chain analysis. A key initial step in the process is to decide the scope of  the value chain and what will be considered external, and not be targeted by the upgrading strategy. If the complexity can be managed, multiple species can be included. Otherwise, multiple value chain studies will need to be undertaken or approaches other than a value chain approach will need to be selected, such as territorial, market system or business model approaches.

Although the value chain approach is typically and more easily applied within national boundaries, if multiple countries in a region want to collaborate, the same approach can be used. However, the willingness for countries to collaborate is an essential prerequisite for this to succeed, as the approach is country-driven and the upgrading strategy would have to be implemented by multiple countries.