Introduction

This study was conducted in order to develop a real-life case of banana beverages. The case was developed in preparation for the value chain development (VCD) course, which is designed and facilitated by Match Maker Associates Limited (MMA). The banana beverages case was selected due to its great potential for learning, i.e. the application of the methodologies and tools provided in the first week of the VCD course, and because the value chain is only active within the region of Arusha. Hence, it enables course participants to visit the major actors and stakeholders in the chain.

Methodology and limitations

This case study was developed through consultations and interviews with various stakeholders in the banana subsector within Arusha municipality and Arumeru district. In addition to primary data, also secondary data obtained from the internet and subsector actors was used. There were no specific limitations that hindered the development of this case study. This case study is to be regarded as a “living document”. It implies that the authors will continue improving the case on the basis of the evolving subsector dynamics, contributions of the VCD course participants, the feedback from the VCD panel and other key actors in the chain and by the comments of peers in VCD.

Structure of the Chapter

As the case is meant for learning purposes, its structure follows the curriculum of the VCD course. The authors feel that it may benefit the “learners” to follow the structure as this enables them to cover all the key elements of the VCD course. The chapter is divided in two parts. The first part covers the subsector definition and analysis and the second part addresses the value chain identification and analyses. It is concluded by strategies for value chain upgrading, and a number of specific recommendations for value chain development.

Subsector analysis and development

A subsector can be defined by either a raw material or a final product/service for a particular market. A subsector is broadly defined to include all the firms that transact with each other in order to supply a particular set of products or services to final consumers. A subsector can include producers, processors, input suppliers, exporters, retailers, etc. In this study, we will define the subsector as “Banana subsector in Arusha Municipality and Arumeru District: With emphasis on banana beverages”.