Analysis and Upgrading of Value Chain

The contemporary concept of value chains has evolved from many disciplines and directions by creating a complex and multidisciplinary body of knowledge. The value chains consist of structural and dynamic components of a system. The structural components refer to all participants within a chain that, through marketfocused collaboration, execute a sequence of activities that add value. The dynamic components relate to management and relationships among participants, and the ability of the value chain to remain competitive by improving the system. The main activities of a value chain analysis are: end-market analysis, value chain mapping, the analysis of network structure and governance, as well as economic analysis. The results of the analysis are the input for the upgrading strategies. Types of upgrading in value chains are: the upgrading of a product, process, functional and intersectoral upgrading. The paper focuses on the value chains in agribusiness and especially to small agricultural producers.