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Mid-Scale Food Value Chains. Food Distribution Research Society Conference Broomfield, CO November 3, 2009 Steve Stevenson (gwsteven@wisc.edu) . Business & Marketing Options. Value- Added. 1. Direct Marketing. Opportunity Area. Strategic Alliances & Food Value Chains.

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mid scale food value chains

Mid-Scale Food Value Chains

Food Distribution Research Society Conference

Broomfield, CO

November 3, 2009

Steve Stevenson

(gwsteven@wisc.edu)

slide3

Business & Marketing Options

Value-

Added

1. Direct

Marketing

  • Opportunity Area

Strategic Alliances

&

Food Value Chains

Farmers’ Markets

CSA’s

Internet Sales

Very

Small

Very

Large

3. Commodity Marketing

4. Troubled

Zone

Mid-scale

Commodity

Producers

Large-scale

commodity

Producers

Commodity

slide4

Strategies for “The Middle”

Value-

Added

1. Direct Marketing

2. Opportunity Area

  • Differentiate with Value-added Attributes
  • Aggregate for necessary volume
  • New kinds of business rules

Very

Small

Very

Large

3. Commodity Marketing

4. Troubled

Zone

Mid-scale

Commodity

Producers

Commodity

mid scale food value chains are strategic business alliances that
Mid-Scale Food Value Chains are Strategic Business Alliances that:
  • Deal in significant volumes of high-quality, differentiated food products;
  • Treat farmers as strategic partners, not as interchangeable input suppliers;
  • Distribute rewards and responsibilities equitably across the supply chain;
  • Emphasize strategic interests in the well-being of all partners;
  • Build value beyond the product to include the story of the people and the business practices; and
  • Operate effectively at regional levels.
agreements among value chain partners ensure that
Agreements Among Value Chain Partners Ensure that:
  • Prices are negotiated on the basis of production and transaction costs;
  • Agreements are fair and for appropriate time frames;
  • Opportunities exist for farmers and ranchers to own and/or control their brand identity up the supply chain; and
  • Co-branding with supply chain partners is a strategic option.
case studies
Case Studies
  • Country Natural Beef [www.oregoncountrybeef.com]
  • Shepherd’s Grain [www.shepherdsgrain.com]
  • Organic Valley Family of Farms [www.organicvalley.coop]
  • Red Tomato [www.redtomato.org]
big theme
Big Theme
  • Value Chains Can Be Both “Smart” and “Right”

1) Smart Business: strategic partnerships (social capital) replace economic capital and expertise; nimbleness in the market; quality control efficiencies; food miles and food safety efficiencies; geographical identities

2) Ethical Business: equitable distributions; participatory organizations and alliances; ethical differentiations

other references
Other References
  • www.agofthemiddle.org
  • Thomas Lyson, G.W. Stevenson, and Rick Welsh, eds. 2008. Food and the Mid-Level Farm: Renewing an Agriculture of the Middle. The MIT Press: Cambridge MA.