1. Advanced Management Control and Sustainable Development
Food Value Chain: FAO-Developing Sustainable Food Value Chains: guiding principles
Lecture 5: Concept and Framework
NOTA: per sostituire un'immagine selezionarla ed eliminarla, quindi usare l'icona Inserisci immagine per sostituirla con l'immagine desiderata.
Prof. Angelo Riccaboni
University of Siena
Department of Business and Law

2. Agenda Definition of Sustainable Food Value Chain
Value Creation in Value Chains
Related Concepts related to Value Chain
The Sustainable Food Value Chain Framework
Sustainability of the Value Chain

3. Definition of Sustainable Food Value Chain
“the full range of farms and firms and their successive coordinated value- adding activities that produce particular raw agricultural materials and transform them into particular food products that are sold to final consumers and disposed of after use, in a manner that is profitable throughout, has broad-based benefits for society and does not permanently deplete natural resources.”

4. Value Creation in Value Chain
Value in a Value Chain is captured in 5 ways:
Salaries for employees
Net profits for asset owners
Tax revenues
Consumer surplus
Externalities
negative effects – cost to society
positive effects - value to society

5. Value Creation in Value Chain
Objectives of Value Chain are:
Efficiently capture value in end markets
Generate profits
Create mutually acceptable outcomes for all farmers and firms
Eliminate inefficiencies
Core aspects of competitiveness in the Value Chains:
Adoption of greener operations
Social and environmental operations can create value and are source of competitiveness

6. Related Concepts related to Value Chain
Filierè
Supply chain
Sub-sector
Global commodity chain
Porter’s VC
Net-chain
Inclusive business model
Food system
Land-scape system

7. The Sustainable Food Value Chain Framework
The core functions of the Value Chian:
Production
Aggregation
Processing
Distribution
The Governance of Value Chain- is the nature of the linkages between actors in particular stages (horizontal linkages) and within the overall chain (vertical linkages)

8. The Sustainable Food Value Chain Framework
The Value Chain actors are supported by following business development support providers:
Provide seeds at the production level, or packaging materials at processing level;
Providers of physical inputs
Provide services such as field spaying, storage, transport, laboratory testing, management training, market research and processing;
Providers of non-financial services
Play a crucial role in the sustainable growth of the company, due to proving working capital and investment capital
Providers of financial services

9. The Sustainable Food Value Chain Framework
Societal elements
Informal sociocultural elements
Formal institutional elements
Organizational elements
Infrastructural elements
Environmental elements
Soils
Air
Water
Biodiversity
Value Chain actors and support providers operate in a enabling environment with particular societal and environmental elements.

10. Sustainability of the Value Chain
Economic dimension
Social dimension
Environmental dimension
VC is sustainable if the required activities are commercially viable (profitable for commercial services) and fiscally viable (for public services)
VC is sustainable, when sustainability refers to socially and culturally acceptable outcomes in terms of distribution of benefits and costs associated with increased value creation
VC is sustainable, when sustainability is determined largely by the ability of VC actors to show little or no negative impact on the natural environment from their value adding activities.