Income-Generating Activities - Action Against Hunger

Field handbook • Scientific and Technical Department
II. The study of the value chain in the market
The process of creating value occurs within what we refer to as the market. An
analysis of the different dimensions of the value chain and the interaction between
them can be a very useful approach. A study of the production units (IGA) will complete
the analysis.
This type of analysis can be carried out at different levels, and it is recommended
to start with the activities that are already developed by the vulnerable population or
those that have already been identified for initiation. These studies will help understand
the functioning of the IGA in their larger context, making possible to evaluate
the viability of promoting and supporting them.
II.I. The market
The dimensions of the market include:
• Supply and demand: the dimension in which all transactions between producers,
intermediaries, processors and the final consumer are found.
• Contextual aspects: the various norms and regulations that define the framework
within which the transactions are carried out.
• All types of required services: financial, transport, etc.
To understand the market it is useful to analyze:
• The structure of supply and demand, by looking at:
– Relative quantity from the producers (capacity or ability) up to the consumers
(unsatisfied demand).
– Type of consumers, evolution of demand.
– Evolution of prices (seasonality, stability, etc.).
– Technology applied.
– Cost of production, of processing.
– Tax system.
– Transaction costs.
• Access to services:
– Financial: credit, insurance, etc.
– Information about the market.
– Training and education: technical, management, etc.
– Provision of goods and materials for production.
INCOME GENERATING ACTIVITIES: A KEY CONCEPT IN SUSTAINABLE FOOD SECURTIY
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