Incorporating Finance into Value Chain Analysis – Case study: Ataulfo Mango Value Chain in Chiapas, Mexico
This case study describes one approach to incorporating analysis of financial aspects of value chains into broader value chain analysis. The document is a companion to the Ataulfo mango value chain analysis1 that the Mexico-based AFIRMA2 project conducted along with the AMAP3 Financial Services Knowledge Generation project, both projects funded by USAID.
Finance is not always part of a solution to the issues that value chains face; access to finance often does not make the top of the list of immediate bottlenecks, as was the case in the Ataulfo chain in Chiapas. However, value chain analyses sometimes treat finance as an afterthought, or as an input at one level of the chain, rather than as an issue that cuts across the chain often with profound (though not always obvious) influence on chain dynamics at various levels. The approach described here examined financial aspects throughout the value chain analysis.
The goal of the case study is to contribute to the growing body of literature on value chain analysis that USAID, its partners, and others are building, by documenting how the AFIRMA project and FSKG incorporated finance into analysis of the Ataulfo mango value chain. The authors hope this case study is useful in informing similar efforts.
The report has five sections including this introduction. The following section describes the approach the team took to address financial aspects within the broader analysis. The third section provides some of the finance-specific approach and findings that may be relevant for other such efforts. The fourth section describes the initiatives that the AFIRMA project is planning, indicating where finance plays a role. The final section offers conclusions and key insights.