An Agricultural Value Chain (AVC) is a useful way of understanding the inner workings of the production and consumption of agricultural products. A value chain is a symbolic but real chain that links producers to consumers through all the value-adding steps in the middle.
We are all part of value chains in one way or another. However, farmers are considered to be the first link in an agricultural value chain. In addition, the agricultural value chain includes traders, processors, retailers, banks, governments, and transportation, among other groups.
Importance of Value Chains to Subsistence Farmers
Most subsistence farmers in the world, even in the most remote areas, are part of value chains. These farmers are connected to local markets and traders but usually face low prices for their yield.
In addition, farmers and traders often dispute over prices and even cheat on one another to make more profit. However, the price the small-scale farmer receives for his raw goods is always very low in most cases. Since subsistence farmers grow crops and raise animals individually, they are always disadvantaged in their dealings with the higher ends of the agricultural value chain.
How Agricultural Value Chains Benefit Subsistence Farmers
By taking a more value-chain-centric approach and understanding the value chains in which they already exist, subsistence farmers can reap more benefits and profit from their raw produce. Farmers can upgrade their involvement in the agricultural value chain by becoming crop specialists and understanding the needs of the consumers at the other end of the chain.
