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Rice value chain in Ghana – Prospective analysis and strategies for sustainable and pro-poor growth









Ouédraogo, A., Bockel, L., Abedi, A., Arouna, A. and Gopal, P. 2021. Rice value chain in Ghana – Prospective analysis and strategies for sustainable, pro-poor growth. Accra, FAO.




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    The Ex-Ante Carbon-balance Tool for Value Chains (EX-ACT VC) is a quantitative multi-appraisal tool that evaluates the sustainability of agrifood value chains simultaneously along several environmental, economic, and social dimensions. It analyses greenhouse gas (GHG) emissions along an agrifood value chain, from farm-gate-to-shelf, including GHG fluxes from processing and storage, to packaging and transportation; calculates a set of value-added indicators including gross production value, value-added, and net income; and estimates the number and nature of jobs created along the value chain. It also includes an estimation of food loss at each stage of the value chain; an assessment of gender and youth participation and an SDG tracker. The primary objective of EX-ACT VC is to provide decision support to design (ex-ante) and evaluate (ex-post) agrifood VC projects and policies by comparing a ‘current’ scenario with baseline information and a ‘planned’ scenario involving a future vision or goal (or implemented activities scenario in case of ex-post evaluations). EX-ACT VC helps users to quantify the sustainability performance of the selected value chain, identify the drivers of sustainability, understand how economic, social, and environmental dimensions are intertwined, and identify potential entry points for environmental and socioeconomic improvements along the selected value chain. The EX-ACT VC methodological guidelines aim at: 1) providing a comprehensive overview of the tool and helping users assess the sustainability of agrifood value chains across environmental, economic, and social dimensions using the tool; 2) describing the various methodological concepts underlying the tool to perform a value chain assessment and calculating several indicators of sustainability; 3) illustrating the structural layout of the tool, explaining data requirements, and providing step-by-step data entry guidance to perform a value chain assessment using EX-ACT VC; 4) discussing the different indicators the tool calculates and how they can be used for project and policy evaluation and design. These guidelines are intended to assist potential users of EX-ACT VC including policymakers, project managers, analysts, and researchers, among others.
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    The Ex-Ante Carbon-balance Tool (EX-ACT) is an appraisal system developed by FAO providing ex-ante estimates of the impact of agriculture and forestry development projects, programmes and policies on the carbon-balance. The carbon-balance is defined as the net balance from all greenhouse gases (GHGs) (expressed in carbon dioxide (CO2) equivalents) that are emitted or sequestered due to project implementation as compared to a business-as-usual scenario. EX-ACT is a land-based accounting system that estimates carbon (C) stock changes (i.e. emissions or sinks of CO2) and GHG emissions per unit of land, expressed in equivalent tonnes of CO2 per hectare and year. The tool helps project designers to estimate and prioritize project activities with high benefits in economic and climate change mitigation terms. The amount of GHG mitigation can also be used as part of an economic analysis to facilitate funding applications for additional project components.
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    As part of its Sustainability Program, the Global Shea Alliance (GSA), in partnership with the Food and Agriculture Organisation of the United Nations (FAO Regional Office for Africa), conducted this multi-impact appraisal of the shea value chain in 8 West African countries that account for 99 percent of shea exports. The study uses the EX-ACT Value Chain tool (EX-ACT VC), developed in 2016 by the FAO, to assess the value chain’s contribution to climate mitigation, climate resilience, and socio-economic impact. At present, the shea value chain fixes 1.5 million tons of CO2 every year. Relative to production volumes, every ton of shea kernels produced has a negative carbon footprint of 1.04 tons of CO2. With an expansion strategy supported by donors and private partners to increase shea tree population in agroforestry areas by 7 million additional trees per year, the CO2 fixed could increase up to 9 million tons of CO2e per year, leading to an aggregated carbon fixing impact of 180 million tons of CO2e over 20 years. Through shea parklands expansion and improvement of collector productivity, the gross income per woman collector could increase to USD 127/ year, while the value added per day of work will reach USD 2.30. The global value chain will reach a gross production value of about US$ 593 million, representing 6 percent growth per year between 2019 and 2032 and a value added of USD 452 million by 2032.

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