Diagnostics for Industrial Value Chain Development

Value chain development is currently a top priority for many government, private sector and development agencies. Through the development of value chains such agencies expect to reduce poverty and foster the generation of additional income and employment for different groups who engage along the value chain. Value chain development builds on entrepreneurial dynamics that reach out for improved competitiveness and value addition. While integrated sustainable development and poverty reduction constitute the goals, the means to this end, clearly, are improvements in business development in production, processing and sales.
Making the link between the two—business development and broader development goals—is in part what this guide aims to achieve.

This document offers a tool for diagnosing industrial value chains. It provides guidance on defining the elements necessary for the development and upgrading of entire value chains, not just parts of them. The focus is on industrial value chains, meaning those that engage in the processing and transformation of primary products into consumable goods and thereby generate value added. Unlike conventional value chain analysis, this tool places particular emphasis on the processing and manufacturing segment with its downstream (market) and upstream (supplies) relationships. It adds to the existing literature on value chain analysis1 by introducing the “industrial perspective” and complements other value chain analysis tools that centre on “primary production” and “market orientation”.

This guide is organized as follows:

  • Part 1 introduces the analytical framework of the diagnostics.
  • Part 2 guides the reader through an initial mapping of the value chain.
  • Part 3 introduces parameters and indicators for the seven diagnostic dimensions and gives recommendations on collecting data and developing statements about the current status of the chain. Finally, it provides guidance on hypothesis testing and logical deduction allowing analysts to predict how any development in the chain will affect the different development goals.
  • Part 4 explains how to use the information from Part 3 in the context of strategies to implement and finance interventions for value chain promotion and development.

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For printed copies in English and further information, please email: publications@unido.org

For further information about "Diagnostics for Industrial Value Chain Development" and UNIDO's programmes in agribusiness please contact:

Frank Hartwich
UNIDO Project Manager
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Philippe Scholtès
Director, Agribusiness Development Branch, UNIDO
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For more information about UNIDO, please contact:

Mikhail Evstafyev
UNIDO Advocacy and Communication Coordinator
Telephone: (+43-1) 26026-5021
Mobile: (+43-699) 1459-7329

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