ValueLinks Module 11

Managing data and monitoring

ValueLinks 2.0

Setting Chain VC upgrading Monitoring

boundaries analysis solutions
and strategy

1 Scope of 2 Value chain 5 Business

11 Managing
value chain analysis models data
development & monitoring
6 Business
3 Value chain linkages
strategies
7 Services
4 Programs
and projects 8
VC Financing

9 Quality and
Solutions for standards
improving
the value chain
2
10 Policy
instruments
 Monitoring the impact of value chain
projects

Contents

1 Data collection and management

2 Monitoring value chain development impact

3 Managing for development results

Principles of data collection

Need to quantify the value chain putting numbers into value chain
maps.
Economic, environmental and social analyses of value chains
underpin strategic considerations with quantitative data and
provide a basis for project monitoring.
Collecting the right data and assuring reliability and consistency
are key issues for project analysis and follow up on progress and
1 impact.
The challenge is to concentrate on the data actually needed.
Economize the effort by using the same information for several
clients and different purposes (from planning to statistics).

4
 Data: Determining the numbers
Per capita Fresh Amla Processed
consumption Amla Market
Market
No. of markets

Retail trade Retail shops,

Open market
supermarkets
No. of traders
Distribution Loss % Wholesale Wholesale
traders distributors
powder, jam
No. companies
juice , candy Amla Food
Transforma-
1 production
tion rates
companies
Ave. Capacity

Fruit trade Rural traders

(at the local mandi)

Local
Bulking Collector
Types of farmers

Primary Average farm size

production Yield / ha Farms w/ Small
5 plantations producers
Number of farmers

Data collection sheet

Table summarizing statistical data, technical parameters and prices

Data Assessment of
Description Metric Source of information
(years) reliability
Whole value chain
Volume of end product (S, C) t National statistics ?
Retail price / end product (P) $ / t
Value generated (C) $
1. Primary production – statistical data S / parameters P / composed data C
1
Farmers, type 1 (S) number Low
Farmers, type 2 (S) number Low
. per type of farmer
Average Farm size (P) ha High
Cultivated area / farm (P) ha Medium
Yield of raw product (P) t / ha e.g. FAOSTAT High – medium
Loss at farm (storage) (P) % High
Farm gate price /raw product $ / t High
Farm production t / year
6 Produce actually sold % Low - medium
 Excel sheet to compile VC data
Rice in Burkina Faso as example
Paddy Farm rice production
Area Yield Cycles Farmers
production size milling rate 60%
ha t/ha t ha number t

Irrigated 8.650 5,0 1,8 77.850 0,8 10.813 46.710

Biz model 1
(RMG) 600 5,0 1,8 5.400 1,0
Biz model 2 4.050 5,0 1,8 36.450
Biz model 3 4.000 5,0 1,8 36.000

Lowland,
1 improved 50.000 2,5 1,0 125.000 0,35 142.857 75.000
Biz model 4
(local) 2,5
Biz model 5 2,5
Biz model 6 2,5

Lowland,
traditional 22.750 1,75 1,0 39.813 0,175 130.000 23.888

Upland 16.500 1,25 1,0 20.625 0,55 30.000 12.375

Total 97.900 2,69 263.288 313.670 157.973

Monitoring the impact of value chain

projects

Contents

1 Data collection and management

2 Monitoring value chain development impact

3 Managing for development results

8
 OECD-DAC criteria used in project evaluations

Relevance To what degree do the programme’s objectives remain valid?

Are the programme’s activities and outputs consistent with its
key goals and attainment of objectives?
Are the programme’s activities and outputs consistent with its
intended impacts and effects?
Effectiveness To what degree were the programme’s objectives achieved, or
are anticipated to be achieved?
What chief factors were responsible for the achievement or
failure of the objectives?
Efficiency How cost-efficient were programme activities?
Were objectives achieved on time?
2 How efficient was the programme implementation compared to
alternatives?
Impact What occurred as a direct result of the programme/project?
What real difference was made to the beneficiaries as a result
of the activity?
How many people were affected?
Sustainability To what degree did the programme’s benefits persist following
the end of donor funding?
What were the major factors
9 What chief factors were responsible for the achievement
or failure of the programme’s overall sustainability?

Elements of a results monitoring system

The results monitoring system of GIZ includes

six steps:
1. Examine/adjust the results model
2. Clarify the requirements to be met by the Results-Based Monitoring
(RBM) system
3. Make results measurable
4. Devise monitoring plan and monitoring tool
2 5. Collect and analyse data
6. Use RBM findings

10
 Common impact terms

(Aggregate Impact)

Impact Impact pathway

Outcome

(Use of Output)

Output (of the project)

11

Impact pathway and value chain

Poverty Impact

Growth Impact Income Price Volume

Raw Material Trans-

Production Trade
Outcome Supply formation
Chain Upgrading Input Primary Final Sales
2 providers producers
Industry
Points

Use of Output Support Business

(e.g. by service providers) agency association

Output of Project

12
 Four impact hypotheses

Poverty Impact
4. The poor receive part of the additional income
generated and thus pass beyond the poverty
threshold (1 US$ per day and person)
Growth Impact
3. Chain upgrading leads to a greater
competitiveness, additional value-added and
higher chain income
Outcome
Impact on value chain
2 2. Partners and clients invest to realise the
agreed chain upgrading strategy, individually
and as a business community
Use of Output
(incl. those of service providers)
1. The interventions and services of the project
are accepted by the chain actors
Output of the Project

13

Monitoring chain upgrading

Criteria for observing structural change

New outlets for the products exist (e.g. export).
A new or different technology is in use.
New or improved products are sold to final costumers.
Product standard has been agreed upon and is being implemented.
A new producer association or BMO has been founded.
Criteria for observing gradual change
Change in productivity parameters or cost of production in typical enterprises
Number of producers / enterprises using critical inputs and services
2 Percentage of produce sold in different channels of the value chain
Criteria for attributing the change to chain promotion projects
The upgrading is in line with a strategy that has been agreed upon in the
framework of the project.
The improvements have been realized by firms and associations who either
cooperate with the project directly, or receive support services from partners.

14
 Prototype impact model

Aggregate Impact Pro-poor growth

Higher income, more jobs, better

distribution along the VC (share of the
Growth impact value-added remains with poverty groups)

Improved competitiveness of the value

chain (growing value / new, better products
Outcome / higher productivity / new markets)

Coordinated investment / upgrading of

Outcome producers, Industry, traders and supporters

2
Outcome / Mutually advantageous Better know-how, technology, market institutions and
business linkages capital etc. (using services) standards are in line with
Use of Output business needs

Actors organize Service demand articulated, Government and Sector

Service supply is appropriate
Use of Output themselves to find
business partners and affordable
organizations agree on
rules and standards.

Influence Government on
Output Promotion of producer Promotion of demand
issues of economic
associations, business and supply of VC
15 of the Project matchmaking services policy and regulation

New GIZ results model

Result

Result

Objective Result

Result Result

2 Result

Result Result
Result
Result Result

16
GIZ Monitoring and Evaluation Unit 2014
 Impact chains and the attribution gap

Impact

Outcome

Use of
Outputs

Outputs Poverty
Alleviation

Activities

17

Formulating indicators

Expected impact:
Small farm households improve their income from the
sales of a commercial product.

Indicator A
Greater sales contribute
to a higher income of
2 farm households
Indicator B
In the year 20XX, a
number X of families sell
at least a total volume of
X, with prices increasing
by at least X %.

18 18
 Monitoring the impact of value chain
projects

Contents

1 Data collection and management

2 Monitoring value chain development impact

3 Managing for development results

19

Principles of managing for development results

Focusing the dialogue on results at all phases of the development

process
Aligning programming, monitoring and evaluation with results
Keeping measurement and reporting simple
Managing for, not by, results
Using results information for learning and decision making

M&E feeds into:

3 Short-term operational management
Strategic management, and
Reporting

20
 Data collection and timeline

Data The formulation of indicators should take the initial VC

analysis as a baseline.
collection
Either the secondary data available in partner systems
are used as sources of verification, or primary data are
collected using qualitative or quantitative collection
methods.
Cooperation with other donors in the same VC.
Each indicator must state the source of information or
method by which the data are collected.

3 Timeline If no baseline data are available at the start of the

project, they
must be collected within the first year of implementation.
GIZ project progress review missions usually take place
9 months before the end of the project.

21

Summary: Main lessons to remember

VC development needs quantitative data throughout the strategy and

implementation processes. Data-intensive tasks include VC analysis and
strategy formation, and the quantitative analysis of business models and
financing (ValueLinks modules 5 and 8). VC analysis, strategy formation
and monitoring require he same types of data
Analysts have to accept the fact that many data are rough estimates that
can only be determined within a range. The task and the challenge is to
produce a consistent set of data based on the best available information.
This is achieved by collecting and triangulating data systematically,
gradually improving data quality.
Monitoring builds on the strategic considerations for VCD and the data
sets generated during the planning and implementation process. The
decisive point is to “reconstruct” the impact hypotheses of the VCD
strategy and verify to what extent they have worked.
The results of VC analyses, strategic considerations and monitoring not
only need to be useful; they have to be utilized in all stages of the VCD
processes. The data collection effort should correspond to the
22 information actually needed to conduct VC development.