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Thread: IAF announcement on Value Chains

  1. #1
    Dennis Lapierre
    Join Date
    Dec 2009
    Falkland, BC
    Blog Entries

    IAF announcement on Value Chains

    If you've not already seen it, here's a promising-looking idea:

    Dear BCAC member,
    The Investment Agriculture Foundation of British Columbia recently launched the
    “BC Value Chain Initiative” to work with agri‐food groups and individuals wishing to
    move from their price‐sensitive commodity business model to a value‐driven one.
    Value chains succeed by satisfying consumers’ food buying preferences and result in
    more revenues and higher margins.
    How can value chains make a difference? In the commodity supply chain, everyone
    is “on their own” and the relationship with the next link is purely transactional. In
    most cases, prices are first dictated by the retailer or food service operator and then
    pushed downward one link at a time with a “take it or leave it” attitude.
    In a value chain, a product is produced, processed and marketed by separate
    companies with expertise in each area. By partnering closely and communicating at
    a deep enough level; they ensure that information from the market place gets to the
    links in the chain where the consumer‐driven changes need to be made. This
    information sharing is far cheaper than inventory. The partnerships created in a
    value chain mean the risks and rewards of fulfilling market demand are shared
    across the chain. This allows for a quick response to changing consumer needs while
    keeping the value of the product high and in demand.
    Farmers are beginning to discover that value chains are one of the better solutions
    to getting out of the commodity trap, where someone else dictates your prices. It
    takes work, time and trust to join together with other producers, processors,
    retailers and food service operators to produce and brand a differentiated product
    that consumers will buy at a premium. But the rewards are worth it.
    IAF’s new service can assist you with the early stages of agri‐food value chain
    development. Facilitated group sessions and coaching services are available at no
    charge to interested parties. Funding for this initiative is provided through the
    former federal‐provincial Safety Nets framework.
    For more information about the BC Value Chain Initiative, visit the IAF website at
    www.iafbc.ca or contact the coordinator, Bill Henderson by email
    (bhenderson@iafbc.ca) or phone (250 356‐1675).

    Subsequent to this announcement, I received an e-mail from Bill Henderson who offered several examples of successful value-chains going in the USA, and two developing in BC; one in Williams Lake among beef producers and one in the Comox Valley.
    Here's a link to report on one developed in New Mexico that Bill also offered that is very comprehensive: http://www.ais-development.com/docum...t%20GFB-VC.pdf

    The one developing in Williams Lake is following the model found in Annex C page 4 of the report.

    Is this a way around being trapped by the price-taking way of doing business? What do you think?

  2. #2

    Thanks for info. As long as the Gov is involved in businesses, we would continue to see political interest in the NAP.

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