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CASC 28 May 2014 * Copyright Presentation by Claudia Sanchez Bajo 2014

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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

Presenter
Presentation Notes
KC The Coffee C contract is the world benchmark for Arabica coffee The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse to one of several ports in the U S and Europe with stated premiumsdiscounts for ports and growths

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

Presenter
Presentation Notes
See ldquoCapturing the Gains Economic and Social Upgrading in Global Production and Traderdquo with the UK Department for International Development (DFID) and the Swiss Agency for Development and Cooperation 13

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
KC The Coffee C contract is the world benchmark for Arabica coffee The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse to one of several ports in the U S and Europe with stated premiumsdiscounts for ports and growths

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

Presenter
Presentation Notes
See ldquoCapturing the Gains Economic and Social Upgrading in Global Production and Traderdquo with the UK Department for International Development (DFID) and the Swiss Agency for Development and Cooperation 13

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
KC The Coffee C contract is the world benchmark for Arabica coffee The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse to one of several ports in the U S and Europe with stated premiumsdiscounts for ports and growths

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

Presenter
Presentation Notes
See ldquoCapturing the Gains Economic and Social Upgrading in Global Production and Traderdquo with the UK Department for International Development (DFID) and the Swiss Agency for Development and Cooperation 13

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
See ldquoCapturing the Gains Economic and Social Upgrading in Global Production and Traderdquo with the UK Department for International Development (DFID) and the Swiss Agency for Development and Cooperation 13

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
3 Value Chain Dimensions 13supply chain13value-added activities13supporting industries1313Rayport and Sviokla (1995 76) a value chain ldquodescribes a series of value-adding activities connecting a companyrsquos supply side (raw materials inbound logistics and production processes) with its demand side (outbound logistics marketing and sales)rdquo A value chain describes thus the full range of activities that firms and workers carry out to bring a product from its conception to its end use and beyond The following graph shows the various types of activities in a value chain 13

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwbcieorguploadedcontentcategory344680993pdf13

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
httpwwwyoutubecomwatchv=t1FIfNLs5uw13

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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

Presenter
Presentation Notes
Business models are associated with how firms and chains of firms and organizations position themselves in the marketplace to sustain a revenue stream over time (Stewart and Zhao 2000) Broadly Slywotsky (1996 727) defines business models as ldquohow a company selects its customers defines and differentiates its offerings defines the tasks it will perform itself and those it will outsource configures its resources goes to market creates utility for customers and captures profitsrdquo

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