Agricultural Value Chain Finance - A Guide for Bankers : Identifying a Target Value Chain
The Agricultural Value Chain Finance – A Guide for Bankers was developed by bankers for bankers. The Guide is a practical "how-to" toolkit, detailing the process of engaging in agricultural value chain finance.
AgriFin developed the Guide in partnership with HDFC Bank, India, HBL Bank, Pakistan, and Bankaool, Mexico. It provides:
- Practical, evidence-based guidance to financial institutions engaging in agricultural value chain finance (AVCF).
- Comprehensive picture of agricultural value chains to enable financial institutions to adapt financial products to the specific demands of value chain actors.
- Examples of field-tested AVCF products and procedures that have shown value or promise for financial institutions.
The AVCF Guide can be used by financial institutions' staff including senior management to understand the strategic benefits of value chain finance, heads of agricultural lending departments and their teams to implement value chain finance, other bank staff for training and self-study. The AVCF Guide is also useful for development professionals supporting agricultural finance projects.
This is Chapter 2: Identifying a Promising Value Chain.
This step highlights a procedure for identifying a promising, high-potential value chain that a bank can target for value chain financing. The selection process, based on quantitative and qualitative criteria, helps banks to determine the health and viability of different value chains and provides a guidance on how to select value chains with the most promise.
