Value chains and innovation

Market opportunities are increasing at a rapid pace for livestock products, fuelled by rising incomes, globalisation and urbanisation, particularly in the developing world. At the same time, these opportunities bring increased complexity in the supply channels that market, distribute, organise and govern high-value products. This begs the questions on the ability of smallholder producers to contribute to this complex process. This chapter utilises the rubric of value chain analysis to unpack the different dimensions behind smallholder participation in emerging and growing livestock markets. Concepts and drivers behind value chain analysis and development are discussed and further elaborated in the context of three case studies from Africa. Issues of input supply and animal health emerge prominently from the analysis as areas needing specific attention within the value chain. Governance and organisational aspects are not only crucial in driving value chain-level interventions, they also provide equitable opportunities for smallholders to engage and benefit from market participation.