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Beyond the Value Chain: Sector Governance Improves Performance

Do you feel that your value chain investments are undermined by poor sector governance? Do you recognize the symptoms of continuous market uptake of poor quality produce, poor security of supply in short term and long term? Are you concerned about high costs, donor dependency and the temporary nature of value chain projects? Are your islands of success failing to result in a sea of change?

Putting a new perspective on sector transformation, Jan Willem Molenaar (Aidenvironment) and Bill Vorley (IIED) presented the results of a study on sector governance models at the Leadership Summit of the Sustainable Food Lab in Tanzania (November 2016). They showed how various examples of multi-stakeholder platforms, public driven quality regulation and price setting and price stabilization mechanisms drive transformation. A coordinated sector governance approach achieves sector-wide impacts. Impacts on value capture by farmers, on price stabilization and higher quality. Impacts that could not be achieved in a fully free market economy.

The high level discussion that followed was a clear indicator of support and echoed the notion that creating a sea of change, requires more than replicating islands of success in value chain projects.
The Leadership Summit was unanimous in its call to continue the research. Jan Willem, Bill as well as Emma Blackmore from IIED will do so, with strong support from the Sustainable Food Lab. Watch this space for more results.

The presentation may be downloaded here.

Check out our website for more information soon. 

For more information, please contact Jan Willem Molenaar.