Although the supply chain approach is relatively new in Latin America, it has been used for decades to guide work in other countries, mainly European.
This approach, developed in Europe in the 1970s, has made it possible to improve the competitiveness of several first-rate products (milk, meat, wine, etc.) by promoting the definition of sectoral policies agreed upon by the different actors in the chain.
Contrary to what is sometimes thought, chains are not structures that are built from the State: they have existed for a long time and will always exist. Chain analysis is just an analysis tool that allows identifying the main critical points that slow down the competitiveness of a product, and then define and promote concerted strategies among the main actors involved.
When we speak of chains, we think of products with market potential, but beyond the product, in the chains there are actors and differentiated jobs around a product. These actors link with each other to carry the product from one state to another, from production to consumption. The structure and dynamics of this whole set of actors, actions, relationships, transformations and products is what is known as the productive chain.
A simple definition can be: "A production chain is a system made up of interrelated actors and actors and a succession of operations for the production, transformation and marketing of a product or group of products in a given environment."
The chain approach is relevant in the current context of the evolution of the world economy, competitiveness, globalization, technological innovation and complex agri-food systems. In this reality, agriculture and livestock can no longer be considered as separate elements from the rest of the economy. This approach allows us to take a systematic look at productive activities.
A chain analysis is an exercise that should not be confused with a production systems diagnosis, since the purpose of the latter is different.
The diagnosis of production systems makes it possible to analyze the functioning of cropping systems and livestock systems as a whole and, in this way, understand the strategies developed by producers to make the best use of their scarce resources (land, hand of work and / or capital).
In general, it is advisable to have a study of production systems before entering into a chain analysis, as this will allow a better understanding of the relationship between the central product of the chain study and the other products and activities developed by producers..
