putting value back in the value chain iowa’s value chain partnerships project

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

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  • Putting Value Back in the Value ChainIowas Value Chain Partnerships Project

    Rich Pirog Associate Director Leopold Center

  • The Music Industry: decentralized to centralized and back again18901945200020012006CENTRALIZEDDECENTRALIZEDIndividual MusiciansIndependent Record LabelsBig FiveNapsterP2PFrom: the Starfish and the Spider: The Power of Leaderless Organizations

  • The Food Industry (System)18801945199020002015CENTRALIZEDDECENTRALIZEDLocal farms local marketsLarger farms Regional & national marketsFive global retailers huge farmsLocal food movementNetworked local food scaled up

  • Processors

    Distributors

    Markets(consumers)Focused beginning farmer programsConsumer market researchFood safety and healthProduct and market authenticityTransaction costsBusiness/quality management

    Access to capital Capitalization strategies

    Technical assistance: R&DProduction & Transaction costsBusiness planning & structureMarketingCertificationAccess to capital Capitalization strategiesWhat must be present

    Community and state support and incentives to start and grow businesses

    Collaborative research and development

    Coordination of loan opportunities and technical assistance

    Culture of collaboration across funders, NGOs, universities, state agencies, and private sector synchronized

    Technical assistance: R&DTransportation & logisticsTransaction costsBusiness/quality managementProduct traceabilityPolicy & Market incentives Technical assistance: R&DProcessing innovationCo-location, transaction costs,Business/ quality management

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

    FarmersAccess to capital Capitalization strategiesPolicy and Market IncentivesSupply Chain Approach to Developing Regional Food BusinessesFarmers (direct market and farmer networks)

    Processors(local, regional, and national)

    Distributors(existing and new infrastructures)

    Markets(food service, retail, wholesale, direct)Policy & Market Incentives

  • Technical and financial assistance Hierarchical, Centralized, SiloedDifficult for businesses to negotiateNGOsCommunitylevelSustainable ag centersCooperativesconsultantsPrivatesector???

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

  • Why is Value Chain Partnerships (VCP) different? A network orientation (Forces for Good; L.R. Crutchfield and H.M. Grant 2008)

    OrganizationOrientationNetwork OrientationMind-setCompetitionCollaborationCoopetitionStrategy for ImpactGrow the organizationGrow the network fieldTypical BehaviorsCompete for resourcesProtect knowledgeHoard leadership/staffGrow funding pieShare knowledgeDisperse leadershipStructureCentralizedDecentralized

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

  • This is Value Chain Partnerships (its a metaphor)

  • County-Based Regions RFSWG 2008Northeast Iowa Food and Farm Coalition South West Iowa Farm and Food Initiative Hometown Harvest of SE Iowa Northwest Iowa Regional Local Foods SystemNorthern Iowa Food and Farm PartnershipMarshall CountyJust pledged$30,000 yearfor 5 years

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

  • The Asparagus Working Group!!

  • Value Chain Partners Knights of the Foodtable FutureServes as a hub for many groups (state and regional level)All groups support the important work at the local level

    * Groups such as food policy council, farm-based energy, financial assistance, hunger Good Food NetworkUpper MidwestNational GoodFood NetworkeXtensionNC SARE

  • Turning the Flywheel (in the Social Sectors): Implications for building Good Food farmer networks, buyers, TA providers-researchers Attract BelieversTimeMoneyBuild BrandEmotion (heart)ReputationDemonstrate ResultsMission SuccessTrend Lines (Indicators)Build StrengthFirst Whothen whatSustainable networksRelentless focus on what you are good at, and what drives the resource engineAdapted from Good to Great and the Social Sectors Jim Collins

  • www.valuechains.orgRich Pirog E-mail: rspirog@iastate.eduRegional Food Systems Working Group