Madagascar Aromatic and Medicinal Plants Value - Microlinks

This value chain approach examines the key businesses in the AMP industry to analyze the relationships between
them and the factors affecting the performance of the industry. The analysis identifies ways to achieve higher levels of
competitiveness through a combination of three strategies: producing and delivering goods and services more
efficiently; differentiating products or services through quality standards and branding; and exploiting new market
demand. Factors include access to and the requirements of end markets; the global, national, regional and local
business enabling environments; vertical linkages between actors that permit the flow of products and services,
learning and benefits; horizontal linkages between like firms to create economies of scale and bargaining power;
sector-specific, cross-cutting business and financial service markets; and opportunities for firm-level upgrading.
Combining these two analytical
frameworks situates fundamental
environmental and social issues within a
broader context of competitiveness and
long-term industry sustainability. From
the VCA perspective, long-term industry
competitiveness necessitates protection
of the resource base on which it is
founded, and social benefits to provide
incentives to stakeholders (including
communities where the plants are
gathered, produced or processed) to
support the industry. From the NHWP
perspective, value chains are assessed for
their potential to address multiple,
interrelated development goals: increased
resource productivity and biodiversity
conservation (Nature), improved
standards of health and nutrition
(Health), economic growth through
development of competitive industry
(Wealth) and local empowerment and
good governance (Power). FRAME and
AMAP experiences highlight key
relationships between producers and
Study sites
consumers, between public and private
actors. These relationships can facilitate
learning and information sharing that
builds greater industry competitiveness, Figure 2: Forest Corridors and Study Sites
while removing barriers to sustainable
use of natural resources and effective NRM. Emphasis is placed on identifying the conditions under which rural
communities may be effectively integrated into the value chain, not merely passive suppliers of raw material but active
participants who are motivated to manage their resources, reinvest and innovate.
A panel of USAID staff and partners selected the AMP sector for this study based upon NHWP- and VCA-related
criteria. The aromatic and medicinal plants sector was considered as a single value chain encompassing diverse
MADAGASCAR AROMATIC AND MEDICINAL PLANT VALUE CHAIN ANALYSIS 12