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» Projects: Latin America / Caribbean

Value Chain Analysis of the Textiles & Apparel Sector in Alpaca Products and Metal Mechanics Inputs to the Mining Sector for Arequipa


The second in a series of regionally focused programs sponsored by Corporacion Andina de Fomento (CAF) intending to boost competitiveness of selected cities in Latin America, this value chain analysis consisted of two strategic sectors in Arequipa, Peru: alpaca and metal mechanics inputs to the mining sector.  For metal mechanics, GDS executed value chain analysis of various locally produced inputs to the mining sector to determine best options to capitalize on significant investments underway by the multinational mining companies operating in Southern Peru.  The alpaca study was an integrated value chain analysis beginning at the farm and carrying through to textiles and finished goods (garments and accessories).  The analysis covered knitted garments and woven accessories. 

Through the value chain assessments, GDS identified bottlenecks and impediments to each sector.  Analysis included reviews of policy and enabling environment to determine if policy reform is required for the sectors to flourish.  GDS also analyzed institutional support, market transactions and structure, and supply chain structure and management.  For metal mechanics, GDS determined obstacles faced by local firms vying to increase their activities with the mines.  Recommendations included a detailed methodology for a comprehensive local content development program.  For alpaca, through analysis of international distribution and discussions with foreign buyers, GDS identified areas of improvement needed to increase international linkages and product marketability.

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