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Asian Development Bank (2012) Support for Agricultural Value Chain Development

  • Given the emerging importance of value chains and the renewed interest of ADB in agriculture and food security following the 2009 Operational Plan, this study was conducted to assess ADB’s learning on agriculture value chains (AVCs), considering evaluation findings and lessons that can contribute to future ADB investments in AVCs.
  • The study reviews the project design frameworks of 53 loans and 50 technical assistance operations with commercial agriculture components, approved during 2001–2009. While project completion reports and other documents were mainly used, fieldwork was also conducted in four case study countries (Bangladesh, People’s Republic of China, Lao People’s Democratic Republic, and Nepal).
  • The study assesses the (i) relevance of objectives and design of agriculture projects in support of AVCs and agribusiness, and (ii) effectiveness of support for AVCs and agribusiness, by using nine criteria.
  • The primary contribution of ADB support has been for producers and the supply and production end of value chains, and in most cases led to an increase in production and net benefits for smallholder farmers. On the other hand, in few instances were income increases achieved through links to higher levels in the chain that resulted in value-addition activities or the development of value chains with links to high-value markets. Thus, the potential benefits of a value chain approach were not fully achieved.
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