Madagascar Aromatic and Medicinal Plants Value - Microlinks

IV. STRENGTHENING THE AMP
VALUE CHAIN
A. STRATEGIC ISSUES & ORIENTATION
Madagascar is well positioned to expand domestic AMP markets and to increase its presence in global markets by
strengthening aspects of the value chain. Moreover, given the nature of the raw material, the large number of rural
poor participants and the direct links with health, the growth of this sector can promote equity, empowerment,
conservation and health goals. In this section, we provide an overview of strategic issues to help orient the approaches
of USAID and its partners to strengthening the AMP value chain. Section B presents a more detailed summary of
constraints and opportunities in the value chain, and Section C suggests priority actions. Ultimately, responsibility for
improving the competitiveness of the AMP value chain rests with the actors themselves. Section D presents a
stakeholder-led action plan that was developed by participants in the July 26-27, 2006 AMP value chain workshop.
Value chain strengthening should be oriented around five key themes:
(1) Emphasize AMP in natural resource management and biodiversity conservation practices and
training. The AMP sector’s livelihood depends on sustainable management of specific plants. Biodiversity per
se is an important resource in the search for new products, a repository of genetic material. Madagascar’s rich
biodiversity favors it as a source for innovation, yet unpredictable export markets can lead to over-harvesting
and resource depletion in some cases. If accompanied by appropriate training, the promotion of AMP
cultivation in ecologically complex forest gardens will contribute to sustainable management and biodiversity
conservation.
(2) Establish and diffuse AMP norms, standards and certification. End markets increasingly demand that
AMP products conform to specific norms and standards, including health and sanitary, certified organic,
sustainable harvest and fair trade. To protect its competitive advantage, the AMP private sector (large,
medium and MSE) in collaboration with concerned ministries (Commerce, Health, Agriculture, Forest) must
accelerate the process already started by establishing equitable norms, standards and certification. Once
formulated, these must be widely diffused among all segments of the value chain, with a mechanism to
continually update to take market shifts into consideration.
(3) Support mainstreaming of traditional medicine. The Malagasy Ministry of Health and Family Planning,
the Medical Association and the Traditional Healers’ Association recently adopted a new policy that
recognizes traditional medicine and integrates AMP into the modern healthcare system. This initiative needs
to be supported through advocacy and health policy projects. Mainstreaming traditional medicine will increase
accessibility of healthcare for the rural poor and further legitimatize traditional and herbal medicine.
(4) Mainstream “informal” processors, collectors, distributors. The general quality of AMP products
remains low, especially by international standards, because of the “informal” nature of many participants.
Improving quality requires upgrading skills and providing up-to-date equipment and technologies for actors
(MSE) at the margin of their profession. Skill upgrading is already provided by several large export firms
through backward linkages and can be reinforced through supplier contracts. Offering the opportunity to
mainstream those who want upgrading will improve vertical and horizontal relations as it will reduce a major
MADAGASCAR AROMATIC AND MEDICINAL PLANT VALUE CHAIN ANALYSIS 44