Sustainable Livelihood-Based Value Chain Articulation Model for Rural Poverty Reduction

Abstract

Limited productive and commercial coordination within rural high-Andean agricultural systems constitutes a structural constraint to sustainable income generation and the reduction of socioeconomic vulnerability. In these contexts, fragmented production, small operational scale, and weak integration into formal markets negatively affect technical efficiency and profitability. This study proposes an integrated strengthening model for the guinea pig value chain in the district of Huachis (Áncash, Peru), through the combined application of the Sustainable Livelihoods Approach and the Value Links methodology. The Sustainable Livelihoods framework enabled a quantitative assessment of human, physical, financial, natural, and social capital, identifying structural gaps directly linked to low productivity and limited household resilience. Baseline analysis revealed productivity levels approximately 30% below regional technical benchmarks and limited access to formal credit (less than 20% of producers). Based on this diagnosis, the Value Links methodology facilitated actor mapping, value flow analysis, and identification of coordination failures across chain segments. The proposed upgrading strategies project measurable outcomes, including a 25–35% increase in productivity per production unit, a 15–20% reduction in transaction costs through associative coordination, a 20% increase in net household income, and a 30% growth in formal or differentiated market participation. Additional targets include a 40% increase in producer formalization and strengthened collective governance structures. The proposed model enhances territorial economic sustainability and provides a replicable quantitative framework for value chain transformation in vulnerable rural environments.