VALUE CHAIN ANALYSIS FOR DECISION-MAKING ON THE MOUNTAIN AND NORTHWEST RURAL REGION

OF THE STATE RIO DE JANEIRO, BRAZIL

Master’s Thesis ColloquiumJuliana Minetto Gellert Paris

Supervisor Prof. Dr. Sabine Schlüter01 October 2015

Institute for Technology and Resources Management in the Tropics and Subtropics

LIST OF TOPICS

1. Introduction2. Objectives3. State of the Art4. Research Areas5. Methodology6. Results and Discussion Coffee7. Results and Discussion Horticulture8. Recommendations9. Key Messages

INTRODUCTION• INTECRAL Project• WP 2 - Good agricultural practices and Participate Planning • Sustainable Rural Development• Value Chain Analysis• Rio de Janeiro (demand > production)

Coffee Value Chain Northwest Horticulture Value Chain Mountain

Photos taken by the author

OBJECTIVES Identify: Bottlenecks hindering development, misalignments in value

chains

Opportunities for improvement, adequate

technologies

Governance: Insights into the decision making targeting vulnerable

groups

Value Chain AnalysisQuantitative and Qualitative Approach

STATE OF THE ARTFamily Farming Value Chain Analysis (VCA)

Source (IBGE, 2006)

Seed suppliers

Farmers

Traders

Processors

Exporters/Importers

Retailers

Consumers

Adapted from Hellin & Meijer, 2006

RESEARCH AREAS

Value Chain A:Coffee

Value Chain B:Horticulture

Source: INTECRAL Project (unpublished), 2015

METHODOLOGY: METHODS

VCASocioeconomic Analysis

Demand Profile Analysis

Institutional Set-up Analysis

Input / Output Market Analysis Functional

Analysis

Economic Analysis

Market Map Framework

Value Chain Analysis for policy making (Bellú, 2013); Guidelines for value chain analysis (Hellin & Meijer, 2006)FAO tools for decision-making, published by the EasyPol

METHODOLOGY: TOOLS AND INSTRUMENTSVCA Sampling• Farmers• Intermediaries (middleman)• Wholesalers & Retailers• Processing plants• Cooperatives• Institutions, governments and

other organizations

Data Analysis• 6 analytical steps (Bellù, 2013)• Wizard (2015)• UNSTATS (EU-commission 2011)• Lucid Chart (2015)

Collection Methods• Literature review• Stakeholder expert’s consultation• Fieldwork• Participant observation• Semi-structured interviews• Focused group meetings

(COGEMs)• Questionnaires Bellù (2013); Hellin & Meijer (2006); Bockel & Tallec (2005); Gilbert (2005)

RESULTS AND DISCUSSION: COFFEE

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

50

100

150

200

250

300

350

400

450

Harvested Area (ha) Production (thousand bags of 60kg)

Tota

l Har

vest

ed a

rea

(ha)

Tota

l pro

ducti

on K

bag

s (6

0kg)

THE FLUMINENSE’S COFFEE

(IBGE, 2015e; FAERJ, 1999)

INSTITUTIONAL SET-UP AND MARKETPLACE

• Labor and Environmental Laws – Sharecropping• Farmer’s Association – Politics and Deception• COOPERCANOL – COGEM

TECHNOLOGY – FUNCTIONAL ANALYSIS

ECONOMIC RESULTS

Boa Ventura Degredo MB1 Santa Cruz I (=MB2)

Roaster Broker-3%

13%

6%

42%

28%

14%

RESULTS AND DISCUSSION: HORTICULTURE

FLUMINENSE’S HORTICULTURE

Source: CEASA-RJ Data information Centre of the State Rio de Janeiro (2004) IN Seabra & Marafon

DEMAND & SUPPLY SYSTEMWholesale CEASA System

Retailer Sector – Supermarket network and specialized retailers

Direct Sale – street market

Consumer Trends

Photos taken by the author and M. Paris

HORTICULTURE MARKET AND OPPORTUNITIES

Conventional Producer

Organic Producer

Ceasa Grande-Rio

Ceasa Mercado Produtor Nova Fribrugo

COOPFEIRA

Tuttifruti

Vale Verde

Street Market

$0.50 $5.50 $10.50 $15.50 $20.50

beetroot parsley Chinese Cabbage LettuceGreen bean Cauliflower Tomato

Photos taken by the author

ECONOMIC RESULTS

Average conventional Producer

Organic Producers

CEASA trader

Small wholesale trader

Middleman

Mini-processing

Specialized retailer distributor

2%

2%

11%

1%

2%

37%

44%

RECOMMENDATIONSCOFFEE HORTICULTURE

KEY MESSAGES

• Vulnerable Groups: Rio Onça; Barracão dos Mendes and Santa Cruz

• Modernize commercialization• Facilitate access to technology - minimum

threshold• Equalization of wealth – reasonable

distribution of value added• Governance – coordination and organization