Value Chain

/ ˈvæl.juː ˌtʃeɪn / noun /

RE: DEVELOPMENT, ECONOMICS, EXPORT, PRODUCTION, TRADE

A value chain is the full set of steps a product goes through before it reaches the customer, with each step adding value along the way. It includes everything from sourcing raw materials to production, packaging, marketing, and transportation. For example, a bar of chocolate might begin with cocoa grown in Ghana, be processed in the Netherlands, packaged in Poland, and sold in supermarkets across Europe. Each country adds something along the way and benefits differently depending on its role in the chain.

In farming, the value chain might begin by planting a seed, followed by growing the crop, harvesting it, processing it into food, packaging it, and finally delivering it to a shop or restaurant. Each of these stages increases the product’s worth, often by improving its quality, usefulness, or appeal to buyers.

Understanding the value chain helps businesses spot where they can be more efficient or sustainable. It's also important in global trade and development, where improving local value chains helps countries move beyond exporting raw goods into building industries that can process and sell higher-value products, boosting jobs and income in industries farming, textiles, and manufacturing.

More terms beginning with 'V'