Establishing commodity-based value chains not only empowers farmers to shift from subsistence farming to an entrepreneurial business, it gives them the tools they need to take ownership of the process and build sustainable markets.

Market-oriented agriculture encourage farmers to invest in their fields in order to increase yields while decreasing production costs. The input value chain encompasses those involved in the steps leading up to the harvest. These might include agro-dealers, who sell farmers agro-inputs and provide information on their use or producer organizations that help farmers learn more effective farming techniques. The output value chain encompasses all the steps that an agricultural product takes, from its point of origin to the consumer.

Also of interest: “Agricultural Value Chains 101″

Credit: Adapted from the ACDI/VOCA World Report Fall 2006: The Value Chain Approach; Strengthening Value Chains to promote Economic Opportunities and the UK’s DFID “Research into use” project website