4. LINK Method: Value Chain Mapping

Learning objectives

By the end of the session, you will be able to:

  • define relationships and interconnections between the value chain actors
  • identify the flow of products, services, information and payments
  • identify entry points or key leverage points to improve the value chain.

Topic: LINK Methodology: the New Business Model principles

LINK Methodology aims to promote the engagement of smallholder producers with markets by guiding a multi-stakeholder process of shaping or upgrading inclusive trading relationships with the potential to create a win-win situation for all actors involved. For that reason, four key tools are designed to kick off, implement and conclude a participatory innovation process in the iterative manner of a ‘design-testcheck-act cycle’.

The value chain map is used to understand the macro context of markets and the businesses that link rural producers with buyers. The value-chain map enables us to visualise:

  • the actors directly involved in the chain
  • the roles and functions of these actors and the interconnections between them
  •  indirect actors and how they support the functioning of the chain
  • links, breaches or blockages between the actors
  • product flow
  • information flow
  • price formation
  • distribution of benefits
  • external influences on the value chain.

Task 16:

List the key characteristics of a value chain.

Task 17:

Draw a value chain based on your business.