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A value chain is the full range of value-adding activities required to bring a product (a commodity or service) through the different phases of production, including procurement of raw materials and other inputs, assembly, physical transformation, acquisition of required services such as transport or cooling, and ultimately response to consumer demand (Kaplinsky and Morris 2003). It can also be viewed as all the vertically linked, interdependent processes that generate value for the consumer, as well as horizontal linkages to other value chains that provide intermediate commodities and services (Webber and Labaste 2010).
Or simply, it is a system of agreements, arrangements, and contracts that links farmers to consumers of food typically through one or more intermediaries (Barrett et al. 2012). Agricultural value chain actors include producers, traders, processors, and retail merchants; a range of technical, business, and financial service providers including input dealers; and the final markets into which a product or service is sold, whether local, national, regional, or global (ACDI/VOCA 2006, 2).
VCD has its roots in the concept of value chains, which was developed to examine operations within firms. The concept was subsequently expanded to include all the actors and operations both within and across countries, culminating in the notion of global value chains (Gereffi and Korzeniewicz 1994).
Valu chain governance
