1 Organized Symposium: Issues in the development of dairy value chains in developing countries Session rationale:Value chain analysis (VCA) has gained popularity as an approach in development economics. VCA can not only provide answers to questions such as whether a supply chain is creating value and how that value is distributed amongst participants, but also recognise that different segments of the chain are interrelated. Furthermore, VCA can, in many instances, determine the factors constraining the development of one or more parts of the chain. The information gained through value chain analyses can guide policy interventions leading to the reallocation of resources and support programmes for the benefit of the most vulnerable groups within a chain. Therefore, VCA is a valuable tool for investigating the role that value chains play in achieving specific development policy objectives, such as poverty alleviation, sustained growth, inequality reduction and/or to improvements in food security and food quality. The purpose of this session is to discuss the findings from six value chain analyses applied to smallholder dairy sectors in developing countries (two in Africa, three in Asia and one in Latin America). The focus on dairy value chains is due to the multiple benefits that, when operating properly, they can provide to small-scale farmers. Smallholders are important as they produce the great majority of milk in developing countries. Benefits may include, for instance, a more reliable and substantial source of income that is generated every day; and also improved food security both directly through increased economic access to food, and indirectly because milk is a balanced, nutritious food. The case studies to be presented in the session address several common issues facing the dairy sector in developing countries including: low and volatile prices paid to farmers; market access; concerns about milk quality due to lack of appropriate infrastructure to deal with perishability, poor management practices and adulteration; logistic bottlenecks; opportunities to increase domestic supply; and relationships between different agents along the chain (e.g., farmers and processors or processors and supermarkets). However, each case addresses topics relevant to other countries and possibly other sectors. For example, solutions to combat the effects of climate change while also improving the livelihoods of smallholders (e.g., use of carbon credits in the dairy sector).
2 Names and contact information for the organizers: Cesar Revoredo-Giha Senior Economist and Team Leader of Food Marketing Research Scotland’s Rural College (SRUC)King’s Buildings, West Mains Road, Edinburgh EH9 3JG, UKTel: +44 131 535 4344 Skype: crevoredo-giha E-mail: [email protected]Nadhem Mtimet Senior Agricultural Economist - Policy, Trade and Value Chains International Livestock Research Institute (ILRI) PO Box 30709, 0100 Nairobi - Kenya Tel: +254 20 422 3482 Skype: indonadhem E-mail: [email protected]Key participants