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Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project Rich Pirog – Associate Director Leopold Center. The Music Industry: decentralized to centralized and back again. 1890. Individual Musicians. 1945. Independent Record Labels. 2000. Big Five. 2001. Napster.

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slide1

Putting Value Back in the Value Chain

Iowa’s Value Chain Partnerships Project

Rich Pirog – Associate Director Leopold Center

slide2

The Music Industry: decentralized to centralized and back again

1890

Individual Musicians

1945

Independent Record Labels

2000

Big Five

2001

Napster

2006

P2P

CENTRALIZED

DECENTRALIZED

From: the Starfish and the Spider:

The Power of Leaderless Organizations

slide3

The Food Industry (System)

1880

Local farms –local markets

Larger farms –Regional & national markets

1945

1990

Local food movement

2000

Five global retailers – huge farms

2015

Networked local food – scaled up

CENTRALIZED

DECENTRALIZED

slide4

Supply Chain Approach to Developing Regional Food Businesses

  • Technical assistance: R&D
  • Transportation & logistics
  • Transaction costs
  • Business/quality management
  • Product traceability
  • Technical assistance: R&D
  • Processing innovation
  • Co-location, transaction costs,
  • Business/ quality management

Access to capital Capitalization strategies

  • Technical assistance: R&D
  • Production & Transaction costs
  • Business planning & structure
  • Marketing
  • Certification
  • Consumer market research
  • Food safety and health
  • Product and market authenticity
  • Transaction costs
  • Business/quality management

Access to capital Capitalization strategies

Farmers

Distributors

Markets

(consumers)

Processors

Focused beginning farmer programs

New business models with farmers, processors, and markets ( trade channels)

Policy & Market incentives

Access to capital Capitalization strategies

Policy & Market Incentives

Policy and Market Incentives

  • What must be present
  • Community and state support and incentives to start and grow businesses
  • Collaborative research and development
  • Coordination of loan opportunities and technical assistance
  • Culture of collaboration across funders, NGOs, universities, state agencies, and
  • private sector – synchronized

Farmers

(direct market and farmer networks)

Processors

(local, regional, and national)

Distributors

(existing and new infrastructures)

Markets

(food service, retail, wholesale, direct)

slide5
Technical and financial assistance Hierarchical, Centralized, SiloedDifficult for businesses to negotiate

consultants

NGOs

Community

level

???

Cooperatives

Sustainable ag

centers

Private

sector

slide6

Value Chain Partners foster value chains that provide economic, social, and ecological benefits to Iowa farmers, communities, and landscapes.

Regional Foods

Pork Niche

Communities

of Practice

Small Meat

Processing

Fruits and

Vegetables

slide7

Why is Value Chain Partnerships (VCP) different?

A network orientation(Forces for Good; L.R. Crutchfield and H.M. Grant 2008)

how we are different vcp communities of practice function as
How we are differentVCP communities of practice function as:
  • Catalysts for cooperationof diverse interests to create solutions for producers and businesses;
  • Hubswhich create, capture, document, leverage knowledge, and deploy this knowledge as technical assistance;
  • Magnetsto attract funding and for leveraging, channeling, and distributing funding;
  • Scouts to identify emerging opportunities with high potential to deliver economic benefits
slide11

County-Based Regions – RFSWG 2008

Just pledged

$30,000 year

for 5 years

Northeast Iowa Food and Farm Coalition

South West Iowa Farm and Food Initiative

Hometown Harvest of SE Iowa

Northwest Iowa Regional Local Foods System

Northern Iowa Food and Farm Partnership

Marshall County

what we ve done
What we’ve done
  • Supported more than 60 projects to address challenges across the chain and in communities
  • Raised more than $2.5 million since 2002
  • Involved 60-70 (farm or community-based) companies, consultants, organizations, and communities (Iowa and neighboring states)
  • Started the MBA with minor in sustainable agriculture option at ISU
  • Accelerated R&D, marketing, and networking efforts in building value-based value chains (niche pork company cooperation)
slide14

Value Chain Partners – “Knights of the Foodtable” Future

Serves as a hub for many groups (state and regional level)

All groups support the important work at the local level

Good Food Network

Upper Midwest

National Good

Food Network

eXtension

NC SARE

* Groups such as food policy council, farm-based energy, financial assistance, hunger

slide15

Turning the Flywheel (in the Social Sectors): Implications for building Good Food farmer networks, buyers, TA providers-researchers

  • Attract Believers
  • Time
  • Money

Relentless focus on what you are good at, and what drives the resource engine

  • Build Strength
  • First Who…then what
  • Sustainable networks
  • Build Brand
  • Emotion (heart)
  • Reputation
  • Demonstrate Results
  • Mission Success
  • Trend Lines (Indicators)

Adapted from Good to Great and the Social Sectors – Jim Collins

www valuechains org
www.valuechains.org
  • Rich Pirog E-mail: rspirog@iastate.edu

Regional Food Systems Working Group