Market Assessment

Madagascar Aromatic and Medicinal Plant Value Chain Analysis, ACDI/VOCA, IRG, USAID AMAP 2006

    This assessment, by ACDI/VOCA and IRG, of Madagascar's aromatic and medicinal plant industry integrates the value chain approach (VCA) developed under USAID's Accelerating Microenterprise Advancement Project Business Development Services (AMAP BDS) Knowledge and Practice Task Order and the Nature, Health, Wealth and Power (NHWP) framework developed under USAID/FRAME and adapted by the USAID/Madagascar Mission. The two frameworks share a concern with harnessing markets to reduce poverty and promote equity. VCA uses the industry sector as a starting point, and NHWP uses natural resource-dependent producers as a starting point. Combining the two analytical frameworks situates fundamental environmental and social issues within a broader context of competitiveness and long-term industry sustainability.

    Aromatic and medicinal plants. Madagascar'[s AMP value chain consists of plant products used in the perfume, cosmetics, food, wellness and pharmaceutical industries. AMP in Madagascar are either wildcrafted (collected from natural stands) or cultivated (in agroforestry systems or plantations). Madagascar has a robust and expanding domestic market and a modest share of the global AMP market. Madagascar has potential competitive advantage for some specific (e.g., endemic, scarce) plant products. The domestic market is on a growth trend because of combined government and civil society efforts to mainstream traditional and herbal medicine. Global markets in the aromatic, cosmetic and health sectors demand steady supplies of new and innovative scents and medicinal products. Increasingly, these products must also be certified organic, fair trade or sustainably produced. The market requires suppliers to adhere to broker terms (quantity, quality and timing of shipments), proper packaging and consistency on product, price and delivery.

    Methods for info gathering
    secondary source reserach, key informant interviews, survey, stakeholder meeting

    Summary of results
    Strengthening Madagascar's AMP sector requires a focus on five key actions:
    - Emphasize AMP in natural resource management and biodiversity conservation practices and training.
    - Establish and diffuse AMP norms, standards and certification.
    - Support mainstreaming of traditional medicine.
    - Mainstream 'informal' processors, collectors, distributors.
    - Launch coordination and branding campaign.
    A stakeholder's workshop held as part of this analysis produced complementary actions by category of actors in the chain.

    Associated Activities and Documents
    Market Assessment
    »√Čtude de Cas sur les Produits Naturels - Le Laalo Mbepp au Senegal, IRG, USAID FRAME, 2005
    »Nature-Oriented Tourism in Ecuador: Applying the Value Chain and Nature, Wealth and Power Frameworks, ACDI/VOCA. IRG, USAID, 2006
    Synthesis Documents
    »USAID Accelerated Microenterprise Advancement Project (AMAP) BDS 2003-2007
    »FRAME - Knowledge Sharing for the Natural Resource Community, USAID, 2006