Promoting Agricultural Value Chains
In the OIC Member Countries
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The high growth rates of emerging and developing economies therefore put the spotlight
increasingly on regional market development, including intra-regional and South-South
trade.
However, many barriers continue hindering farmers and other value chain actors to
participate more profitably in regional or global trade. Tariff barriers, in particular, tend to
remain higher for agricultural products than for manufactured goods. Other market
interventions and non-tariff barriers, such as phytosanitary measures, further complicate
obtaining market access. Reports confirm that addressing tariff barriers would have
significant pay-offs. For instance, a study by Moise et al. (2013) finds that a decrease of
tariffs by 10 percent would lead to an increase of agricultural trade volume by about 3.7
percent. In light of the negative impact of tariffs on agriculture, trade policy, including
different forms of regional and international cooperation, has been identified as critical in
establishing reliable systems for moving goods.
Table 1-1 Framework used to analyse agricultural value chains
Dimension Indicators
1. Institutional framework
and public policies
 National strategy for agricultural development
 Strategic focus on certain commodities/products
 Support to chain actors and organisations, e.g. extension, research,
credit facilities, etc.
 Specific governmental organisations that develops and promote the
subsector
 International programs to support and develop agricultural value
chains
2. Standards  Quality standards and control
 Health & safety standards
 Sector codes of conduct
 Sustainability standards
 Multi-stakeholder initiatives
 Government support to help producers comply with international
market requirements, e.g. standards, MRLs, etc.
3. Infrastructure and logistics  Opportunities and barriers in terms of existing infrastructure
 Targeted investments by private and public actors
 Electricity and water
 Cold chain facilities, transport, processing facilities
4. Governance and value
chain actors
 Actors involved in the value chain
 Linkages between actors
 Marketing channels and markets
5. Trade  Exports and imports
 Value adding activities
 Trade related obstacles (tariff barriers) and opportunities (tax
exemptions; preferential trading areas, free trade agreements)
 Non-tariff barriers to trade (e.g. phytosanitary standards, etc.)