Food Systems Value Chain – November 2, 2012 High Country Seeds of Change

Agenda TimeAgenda Items 9:00 – 9:20Welcome and Agenda Overview 9:20 – 9:50Food Systems Value Chain Introductions Name, organizational affiliation What is in it for you? 9:50 – 10:15Shared Values Food Security Livelihood Security Natural Resources Social Equity Other shared values 10:15 – 10:30Break 10:30 – 11:15Introduction to Food Systems Value Chains Key Concepts Value Chain Diagrams Mapping Participants to the Value Chain 11:15 – 12:15Mapping Your Value Chain List Assets and Gaps for each Value Chain Link Working Lunch 12:15 – 1:45Report from Teams: Creating a Collective List of Gaps Identify the Gap Who can fill it? 1:45 – 2:00Wrap up and Next Steps

Value Chain Creation Process Intermediary: Heifer USA Shared Values Value Chain: Critical Partners Value Chain: Support Partners The Glue: Mutual Benefit and Self-Interest

Value Chains: Defined  Network of businesses, nonprofit organizations and collaborative players who work together to satisfy market demand for specific products or services.  As value chains are built in response to market demand and involve clear and constant communication, they can be more responsive and innovative than traditional supply chains.

Traditional Supply Chain Production Processing Distribution Marketing Consumption Traditional Supply Chains: push supply to the next node in the chain

Mapping the Local Food Value Chain Input SuppliersProducersProcessorsDirect SalesAggregators Distributors Brokers Wholesale Buyers Consumers Waste Management Marketing Economic Development Media Government Other Value Chains National Organizations Trainers/ Extension Researchers Certifiers Landowners Brokers Financing

Demand Driven  Value chains identify the demand FIRST  Include key buyers in the work of the value chain  Key buyers can become investors in the value chain as it creates “value” for them

Shorten the supply chain – farm to fork

Thinking about Demand  In short term: Buyers that are friendly and patient  In long-term: Buyers that can absorb volume  Evaluate buyers based on highest possible price vs requirements.  Need crop introduction timeline

Purpose: Wealth Creation  Reduction of poverty  Define wealth broadly  Financial wealth – has to be reinvested in community and not just consumed  Built wealth – create permanent infrastructure  Social wealth – create new relationships that lead to other benefits beyond just VC  Political wealth – value chains unite people and gives them a stronger voice

# 1Wealth creation is intentionally inclusive. # 2Wealth is tied to place by wealth creation value chains. # 3Wealth sticks in rural areas through attention to structures of ownership and control. # 4The wealth creation approach is strategically flexible # 5Ensure that each link is sustainable otherwise chain falls apart # 6 Do no harm. Guiding Principles

Infrastructure  Value chains begin by building local infrastructure  As value chains mature, they bring in regional partners  Create rural – urban link to bring “new money” back into rural communities

Deep Collaborations  Move beyond bilateral partnerships  Working together to create system change  Joint problem solving  Driven by each entity’s self interest  Keep adding collaborators

Production Innovators

Mapping the Value Chain  Define and quantify demand  Work backwards to identify:  Assets already in place  Gaps that need to be filled  To create wealth, gaps should be filled by entrepreneurial ventures

Where do you fit in the value chain?

Mapping the Local Food Value Chain Input SuppliersProducersProcessorsDirect SalesAggregators Distributors Brokers Wholesale Buyers Consumers Waste Management Marketing Economic Development Media Government Other Value Chains National Organizations Trainers/ Extension Researchers Certifiers Landowners Brokers Financing