casc 28 may 2014 - university of winnipeg · coffee is the world's second largest traded...
TRANSCRIPT
CASC 28 May 2014
Copyright Presentation by Claudia Sanchez Bajo 2014
The Global economy today is made of
integrated supply chains
bullmore than 50 of total manufactured imports
bullmore than 70 of total service imports
are intermediate goods or services
bullA typical manufacturing company uses inputs from more than 35 different
contractors across the world
bullChains of organizations that create value by involving co-operatives has been
on the increase in many countries around the world
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is the worlds second largest traded commodity
1) most coffee is purchased in the commodity market and coffee
prices are subject to high volatility and speculation (Coffee C price)
2) quality coffee is usually purchased on a negotiated basis at a
substantial premium above commodity coffees depending on supply
and demand at the time of purchase
Two main recent phases in the coffee industry (1988 to 2004 ndash 2005
to 2014)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research questions 1 Are cooperative-led value chains different from conventional enterprise-
led ones 2 Do chains led by co-operatives generate different outcomes from those
led by conventional enterprises 3 What is the role of cooperatives in value chains Is there such a
ldquosolidarity chainrdquo Methodology to focus on how chains led by cooperatives may differ in terms of their structure governance mechanisms business models strategies and practices Methodology is based on the GVC framework (Gereffi) plus grounded theory (Strauss) having evolved beyond pure financial concerns as follows 1 2009 ndash social bottom line (with UK DFID and Swiss ADC) 2 2010- In considering the triple bottom line (Mayer amp Gereffi) 3 2011- actors of a single industry the roles they play in developed and
developing countries alike (Gereffi and Fernandez-Stark)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
how these value chains differ from traditional value chains in
terms of their structure governance mechanisms business
models strategies and practices
GAP because research mainly focused on national (regional) level
output or on Fairtrade
NOT on value chain leading entity design decision-making
processes and management strategies (Katz and Boland 2002)
Little comparative research on the scope operations and impact
of Fairtrade and co-operatives in developing countries (Pollet and
Develtere 2004 p20) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
The Global economy today is made of
integrated supply chains
bullmore than 50 of total manufactured imports
bullmore than 70 of total service imports
are intermediate goods or services
bullA typical manufacturing company uses inputs from more than 35 different
contractors across the world
bullChains of organizations that create value by involving co-operatives has been
on the increase in many countries around the world
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is the worlds second largest traded commodity
1) most coffee is purchased in the commodity market and coffee
prices are subject to high volatility and speculation (Coffee C price)
2) quality coffee is usually purchased on a negotiated basis at a
substantial premium above commodity coffees depending on supply
and demand at the time of purchase
Two main recent phases in the coffee industry (1988 to 2004 ndash 2005
to 2014)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research questions 1 Are cooperative-led value chains different from conventional enterprise-
led ones 2 Do chains led by co-operatives generate different outcomes from those
led by conventional enterprises 3 What is the role of cooperatives in value chains Is there such a
ldquosolidarity chainrdquo Methodology to focus on how chains led by cooperatives may differ in terms of their structure governance mechanisms business models strategies and practices Methodology is based on the GVC framework (Gereffi) plus grounded theory (Strauss) having evolved beyond pure financial concerns as follows 1 2009 ndash social bottom line (with UK DFID and Swiss ADC) 2 2010- In considering the triple bottom line (Mayer amp Gereffi) 3 2011- actors of a single industry the roles they play in developed and
developing countries alike (Gereffi and Fernandez-Stark)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
how these value chains differ from traditional value chains in
terms of their structure governance mechanisms business
models strategies and practices
GAP because research mainly focused on national (regional) level
output or on Fairtrade
NOT on value chain leading entity design decision-making
processes and management strategies (Katz and Boland 2002)
Little comparative research on the scope operations and impact
of Fairtrade and co-operatives in developing countries (Pollet and
Develtere 2004 p20) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Coffee is the worlds second largest traded commodity
1) most coffee is purchased in the commodity market and coffee
prices are subject to high volatility and speculation (Coffee C price)
2) quality coffee is usually purchased on a negotiated basis at a
substantial premium above commodity coffees depending on supply
and demand at the time of purchase
Two main recent phases in the coffee industry (1988 to 2004 ndash 2005
to 2014)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research questions 1 Are cooperative-led value chains different from conventional enterprise-
led ones 2 Do chains led by co-operatives generate different outcomes from those
led by conventional enterprises 3 What is the role of cooperatives in value chains Is there such a
ldquosolidarity chainrdquo Methodology to focus on how chains led by cooperatives may differ in terms of their structure governance mechanisms business models strategies and practices Methodology is based on the GVC framework (Gereffi) plus grounded theory (Strauss) having evolved beyond pure financial concerns as follows 1 2009 ndash social bottom line (with UK DFID and Swiss ADC) 2 2010- In considering the triple bottom line (Mayer amp Gereffi) 3 2011- actors of a single industry the roles they play in developed and
developing countries alike (Gereffi and Fernandez-Stark)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
how these value chains differ from traditional value chains in
terms of their structure governance mechanisms business
models strategies and practices
GAP because research mainly focused on national (regional) level
output or on Fairtrade
NOT on value chain leading entity design decision-making
processes and management strategies (Katz and Boland 2002)
Little comparative research on the scope operations and impact
of Fairtrade and co-operatives in developing countries (Pollet and
Develtere 2004 p20) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Research questions 1 Are cooperative-led value chains different from conventional enterprise-
led ones 2 Do chains led by co-operatives generate different outcomes from those
led by conventional enterprises 3 What is the role of cooperatives in value chains Is there such a
ldquosolidarity chainrdquo Methodology to focus on how chains led by cooperatives may differ in terms of their structure governance mechanisms business models strategies and practices Methodology is based on the GVC framework (Gereffi) plus grounded theory (Strauss) having evolved beyond pure financial concerns as follows 1 2009 ndash social bottom line (with UK DFID and Swiss ADC) 2 2010- In considering the triple bottom line (Mayer amp Gereffi) 3 2011- actors of a single industry the roles they play in developed and
developing countries alike (Gereffi and Fernandez-Stark)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
how these value chains differ from traditional value chains in
terms of their structure governance mechanisms business
models strategies and practices
GAP because research mainly focused on national (regional) level
output or on Fairtrade
NOT on value chain leading entity design decision-making
processes and management strategies (Katz and Boland 2002)
Little comparative research on the scope operations and impact
of Fairtrade and co-operatives in developing countries (Pollet and
Develtere 2004 p20) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
how these value chains differ from traditional value chains in
terms of their structure governance mechanisms business
models strategies and practices
GAP because research mainly focused on national (regional) level
output or on Fairtrade
NOT on value chain leading entity design decision-making
processes and management strategies (Katz and Boland 2002)
Little comparative research on the scope operations and impact
of Fairtrade and co-operatives in developing countries (Pollet and
Develtere 2004 p20) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Basic assumptions on why cooperatives take part of
value chains
1) Co-operatives can act as important mechanisms for poverty alleviation social inclusion and regional national development
2) Co-operatives by providing the appropriate mind-set infrastructure
business support and training facilitate the organization of local
entrepreneurs
3) Thus enabling small farmers to access markets
4) While enhancing local and community development
5) These co-operatives work as part of value chains that operate
nationally and internationally in both
developing and developed countries
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Grounded theory approach and case study method will explore case
studies through
20 in-depth semi-structured interviews with key informants
literature survey and data collection (Coop Norge Pachamama
Starbucks Cooperatives Coffee and Thrive)
To understand how chains operate advancing the co-operative and
solidarity literature streams Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Source CGGC (httpwwwcggcdukeedu) More Information Global Value Chains (wwwglobalvaluechainsorg )
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Typical way of seeing Co-operativesrsquo role in the chain value ndash Example of ANACAFE
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
900 co-operatives in Guatemala 43 women 73 of Guatemalarsquos GDP USD 34 billion each year
Of 61 organizations (all have various types of production) There are 43 of coffee producers (largest Fedecocagua) CABEI - BCIE (2009)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Coffee is Guatemalarsquo first export product providing employment for 500000 people or 9 of the economically active population It is the 2nd most redistributive economic activity in the country with 95 exports being specialty coffee There are 120000 producers which 80 are associated to cooperatives and the rest in associations (CBI 2010 Dutch Foreign Ministry) Buthellip Sargent using information from the Neumann Group (NKG) says organized producers in Guatemala do not reach 40 Such a blatant divergence calls for more research
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Cooperatives can play a significant role in the value chain in 5 areas that turn competitive advantage into market competitiveness 1 Vertical linkages and cooperation 2 Horizontal linkages and cooperation 3 The common storyline 4 Supporting markets 5 Enabling environment 1 Cooperative Vertical Linkages (operationsrsquo efficiency
communication marketing auctions certifications)
2 Cooperative Horizontal Linkages The cooperative structure of member ownership and participation allows for specific cooperation a) At the cooperativesrsquo level (econ of scale traceability cupping contacts loans) b) At the firm level upgrading (through institutional building training) Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Cooperatives can play critical pillar leading to sustainable development along the coffee chain in different parts of the chain 1 Cooperatives in developing countries as producer organizations and
exporters Some have entered developed markets directly incorporating as a coop
2 Cooperatives in developed countries as importers and consumers
3 Sustainability using water treatment and capturing methane from coffee pulp through bio-digestors
4 In support of farmersrsquo organization and self-help All cooperatives in the North and South buy coffee from both organised coffee farmers and co-operatives
5 They help in dealing with the impact of existing standards quality and sustainability requirements with a heavy cost for farmers while increasing export companiesrsquo added value and profit margin
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
ICA President Pauline Green acknowledged the importance of building supply chains ldquomaking sure that farmers own both cooperatives and the supply chains so that they not only produce food but ensure that the value remains in the hands of farmers families and communities through the ancillary benefits of cooperationrdquo
Cooperatives in the coffee value chain have been leaders in Fairtrade and sustainability initiatives
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Giovannucci 2001 Survey largest ever survey on coffee trade global coffee industry did not meet the two other bottom lines of sustainability civil society organized to change things
lsquoSustainable coffeesrsquo 10487071048707 Organic coffee 10487071048707 Fair Trade coffee
- directly from cooperatives of small farmers at a guaranteed minimum contract price - Local co-ops collect and process the beans at a premium (2013 US $ 20 cents) for social services like scholarships and health care for farmers and their families
10487071048707 Shade coffee
Challenges 1 Direct Trade 2 US away from fairtrade inclusion
of large farmers plantations 3 Black market emerging
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Business models how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Traditional targets the value chain economic efficiency where indicators and actions are solely based on and motivated by financial benefits and rewards Sustainable targets a more balanced set of indicators and actions where the value chain goals consider all three dimensions of the triple bottom line ie economic environmental and social (Elkington 1999)
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Governance type ldquogovernance is ultimately concerned with creating the conditions for ordered rule and collective actionrdquo Stoker (1998) Value chainsrsquo governance mechanisms can be designed
1 to be led by one single firmorganization or
2 can be planned to be manage jointly by all or several firmsorganizations operating on that value chain Siggelkow and Levinthalrsquos (2003)
Centralized decisions are made only by a focal firmorganization ie the firm with more bargain power within the chain Decentralized decision making is disaggregated into a number of firmsorganizations including the adoption of dialogue-based approaches and joint decision making processes Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-
Research by Claudia Sanchez Bajo and Bruno Silvestre Copyright Presentation by Claudia Sanchez Bajo 2014
Examples of each of the chainsrsquo products mentioned in the previous slide number 20
- Cooperatives in global value chainsCoffee in Guatemala and Co-operativesClaudia Sanchez Bajo amp Bruno Silvestre
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Next steps
- What is a value chain
- Slide Number 9
- Slide Number 10
- How many farmers in co-ops
- Slide Number 12
- Slide Number 13
- 2014 speech by ICA President Pauline Green in her speech ldquoBeyond Capitalismrdquo
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
-