TheSustainable Food Value Chain Framework. © FAO: http://www.fao.org

1. www.fao.org/ag/ags
The
Sustainable Food Value Chain
Framework
David Neven
Marketing economist, FAO

2. Sustainable Food Value Chains (SFVC)
• Defining the concept
• Value-added defined
• Sustainability defined
• Analytical framework
• Development paradigm
• 10 Guiding principles
• New knowledge management tools www.fao.org/3/a-i3953e.pdf

3. Defining the concept
What is a sustainable food value chain?
A food value chain consists of all the stakeholders that participate in
the coordinated production and value adding activities that are
needed to make food products.
A sustainable food value chain:
• is profitable throughout (economic sustainability);
• has broad-based benefits for society (social sustainability) and
• shows a positive or neutral impact on the natural environment
(environmental sustainability)

4. The concept of value-added…
Non-labour
cost
Value added
to society
Market
price
Consumer
willingness
to pay
Salaries/
income
Net
profits
Taxes Consumer
surplus
Value added to
VC stakeholders
Negativeexternalities
Positiveexternalities

5. The concept
of
sustainability
…
ECONOMIC
IMPACTS
Profits
Jobs/incomes
Tax revenues
Food supply
SOCIAL
IMPACTS
Added value
distribution
Cultural traditions
Nutrition and health
Workers rights
and safety
Animal welfare
Institutions
ENVIRONMENTAL
IMPACTS
Carbon footprint
Water footprint
Soil conservation
Animal & plant health
Food loss and waste
Biodiversity
Toxicity
Inclusive
growth
Green
growth
Eco-
social
progress
SFVCD

6. International markets
National markets
Environmental
Natural
elements
Sustainability
Societal
Socio-cultural
elements
Organizational
elements
Institutional
elements
Infrastructural
elements
Service
provision
Input
provision
Finance
Distribution
Processing
Aggregation
Production
Economic
Governance
Core value chain
Extended value chain
National enabling environment
Global enabling environment
SFVC
Analytical
framework

7. SFVC development paradigm
Reduce hunger Reduce poverty
Social supportConsumer benefit
Taxes
Enabling environment
Improved food supply
More decent jobs
Salary incomeReturn on assets
Wealth accrual
Investment
loop
Multiplier
loop
Progress
loop
VC
growth
engines
Some
become
“entrepreneurs”
Most
find
jobs
All
benefit
Extreme
poor and
disaster
victims
Emergency
support
Catalytic
support
Catalytic
support
Five pathways to value creation

8. 10 principles in SFVC development
1. Economically
sustainable
(profitable)
4. Dynamic
systems
based
5. Governance-centered
6. End-market
driven
2. Socially
sustainable
(inclusive)
3 .Environmentally
sustainable
(green)
7. Vision/strategy
driven
8. Upgrading
Focused
9. Scalable
10. Multilateral
Sustainability
Principles
Implementation
Principles
Analytical
Principles