High Country Seeds of Change

Food Systems Value Chain – November 2, 2012

High Country Seeds of Change

Agenda Time Agenda Items

9:00 – 9:20 Welcome and Agenda Overview9:20 – 9:50 Food Systems Value Chain Introductions

Name, organizational affiliation What is in it for you?

9:50 – 10:15 Shared Values  Food Security Livelihood Security Natural Resources Social Equity Other shared values

10:15 – 10:30

Break

10:30 – 11:15

Introduction to Food Systems Value Chains Key Concepts Value Chain Diagrams Mapping Participants to the Value Chain

11:15 – 12:15

Mapping Your Value Chain List Assets and Gaps for each Value Chain Link Working Lunch

12:15 – 1:45 Report from Teams: Creating a Collective List of Gaps Identify the Gap Who can fill it?

1:45 – 2:00 Wrap up and Next Steps

Value Chain Creation Process

Intermediary: Heifer

USAShared 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 Suppliers

Producers

Processors

Direct Sales

AggregatorsDistributor

sBrokers

Wholesale Buyers

Consumers

Waste Management

Marketing

Economic Developme

nt

Media

Government

Other Value Chains

National Organizatio

ns

Trainers/Extension

Researchers

Certifiers

Landowners

Brokers

Financing

Demand DrivenValue chains identify the

demand FIRSTInclude key buyers in the work

of the value chainKey buyers can become

investors in the value chain as it creates “value” for them

Shorten the supply chain – farm to fork

Thinking about DemandIn short term: Buyers that are

friendly and patientIn long-term: Buyers that can

absorb volumeEvaluate buyers based on

highest possible price vs requirements.

Need crop introduction timeline

Purpose: Wealth CreationReduction of povertyDefine 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

InfrastructureValue chains begin by building

local infrastructureAs value chains mature, they

bring in regional partnersCreate rural – urban link to bring

“new money” back into rural communities

Deep CollaborationsMove beyond bilateral

partnershipsWorking together to create

system changeJoint problem solvingDriven by each entity’s self

interestKeep adding collaborators

Production Innovators

Mapping the Value ChainDefine and quantify demandWork backwards to identify:

Assets already in placeGaps 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 Suppliers

Producers

Processors

Direct Sales

AggregatorsDistributor

sBrokers

Wholesale Buyers

Consumers

Waste Management

Marketing

Economic Developme

nt

Media

Government

Other Value Chains

National Organizatio

ns

Trainers/Extension

Researchers

Certifiers

Landowners

Brokers

Financing