Product-based Value Chain Finance Using Grain Warehouse Receipts Calvin Miller Senior Officer, Agribusiness and Finance Group AGS Division, FAO. Opportunities through Value Chain Financing. What is a Value Chain?.
Product-based Value Chain Finance Using Grain Warehouse Receipts Calvin Miller Senior Officer, Agribusiness and Finance GroupAGS Division, FAO
Opportunities through Value Chain Financing
The full range of activities required to bring a product or service from conception through the various stages of production and delivery to final consumer.
A value chain includes all actors including producers, processors, suppliers, wholesalers and retailers and consumers.
A value chain is defined by its particular consumer segment.
Value chain finance Receipts– financial products and services flowing to and/or through a VC to address the needs of those involved in that chain, be it a need for finance, a need to secure sales, procure products, reduce risk and/or improve efficiency within the chain.Defining Value Chain Finance
VCF Approach – to understand the value chain and its participant needs and structure finance and services to best address them.
Financial Service Receipts
Value Chain Actors
Exporters / Wholesalers
Local Traders & Processors
Local MFIs /
Using the Value Chain for Financing Agriculture
IntegratedValue Chain Business Models
For value chains and value chain financing, a business model refers to the drivers, processes and resources for the chain.
Four types of business models:
1. Product Financing
2. Receivable Financing
3. Physical Asset Collateralization
4. Risk Mitigation Products
5. Financial Enhancements