putting value back in the value chain iowa’s value chain partnerships project
DESCRIPTION
Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project Rich Pirog – Associate Director Leopold Center. The Music Industry: decentralized to centralized and back again. 1890. Individual Musicians. 1945. Independent Record Labels. 2000. Big Five. 2001. Napster. - PowerPoint PPT PresentationTRANSCRIPT
Putting Value Back in the Value ChainIowa’s Value Chain Partnerships Project
Rich Pirog – Associate Director Leopold Center
The Music Industry: decentralized to centralized and back again
1890
1945
2000
2001
2006
CENTRALIZED DECENTRALIZED
Individual Musicians
Independent Record Labels
Big Five
Napster
P2P
From: the Starfish and the Spider: The Power of Leaderless Organizations
The Food Industry (System)
1880
1945
1990
2000
2015
CENTRALIZED DECENTRALIZED
Local farms –local markets
Larger farms –Regional & national markets
Five global retailers – huge farms
Local food movement
Networked local food – scaled up
Processors Distributors Markets(consumers)
Focused beginning farmer programs
Consumer market research•Food safety and health•Product and market authenticity•Transaction costs•Business/quality management
Access to capital Capitalization strategies
Technical assistance: R&D•Production & Transaction costs•Business planning & structure•Marketing•Certification
Access to capital Capitalization strategies
What must be present
•Community and state support and incentives to start and grow businesses
•Collaborative research and development
•Coordination of loan opportunities and technical assistance
•Culture of collaboration across funders, NGOs, universities, state agencies, and private sector – synchronized
Technical assistance: R&D•Transportation & logistics•Transaction costs•Business/quality management•Product traceability
Policy & Market incentives
Technical assistance: R&D•Processing innovation•Co-location, transaction costs,•Business/ quality management
New business models with farmers, processors, and markets ( trade channels)
Farmers
Access to capital Capitalization strategies
Policy and Market Incentives
Supply Chain Approach to Developing Regional Food Businesses
Farmers (direct market and farmer networks)
Processors(local, regional, and national)
Distributors(existing and new infrastructures)
Markets(food service, retail, wholesale, direct)
Policy & Market Incentives
Technical and financial assistance Hierarchical, Centralized, Siloed
Difficult for businesses to negotiate
Univ
Extension
Dept of Agric
Marketing
USDA
Rural Development Ag Marketing
Farm Bureau
Marketing Policy
Production
NGOs
Communitylevel
Sustainable ag centers
Cooperatives
consultants
Privatesector
???
Value Chain Partners foster value chains that provide economic, social, and ecological benefits to Iowa
farmers, communities, and landscapes.
Organization
Orientation
Network Orientation
Mind-set Competition Collaboration“Coopetition”
Strategy for Impact
Grow the organization
Grow the network field
Typical Behaviors
Compete for resources
Protect knowledge
Hoard leadership/staff
Grow funding pie
Share knowledge
Disperse leadership
Structure Centralized Decentralized
Why is Value Chain Partnerships (VCP) different? A network orientation (Forces for Good; L.R. Crutchfield and H.M. Grant 2008)
How we are differentHow we are differentVCP communities of practice function as:VCP communities of practice function as:
Catalysts for cooperationCatalysts for cooperation of diverse interests to of diverse interests to create solutions for producers and businesses;create solutions for producers and businesses;
HubsHubs which create, capture, document, leverage which create, capture, document, leverage knowledge, and deploy this knowledge as technical knowledge, and deploy this knowledge as technical assistance;assistance;
MagnetsMagnets to attract funding and for leveraging, channeling, to attract funding and for leveraging, channeling, and distributing funding;and distributing funding;
ScoutsScouts to identify emerging opportunities with high to identify emerging opportunities with high potential to deliver economic benefitspotential to deliver economic benefits
County-Based Regions – RFSWG 2008
Northeast Iowa Food and Farm Coalition South West Iowa Farm and Food Initiative Hometown Harvest of SE Iowa Northwest Iowa Regional Local Foods SystemNorthern Iowa Food and Farm PartnershipMarshall County
Just pledged$30,000 yearfor 5 years
What we’ve doneWhat we’ve done
Supported more than 60 projects to address Supported more than 60 projects to address challenges across the chain and in communitieschallenges across the chain and in communities
Raised more than $2.5 million since 2002Raised more than $2.5 million since 2002 Involved 60-70 Involved 60-70 (farm or community-based)(farm or community-based)
companies, consultants, organizations, and companies, consultants, organizations, and communities communities (Iowa and neighboring states)(Iowa and neighboring states)
Started the MBA with minor in sustainable Started the MBA with minor in sustainable agriculture option at ISUagriculture option at ISU
Accelerated R&D, marketing, and networking Accelerated R&D, marketing, and networking efforts in building value-based value chains efforts in building value-based value chains (niche pork company cooperation)(niche pork company cooperation)
Other CoPs*
Grass-based Livestock
Fruit andVegetables
Small MeatProcessing
Regional Foods
Niche Pork
CoP Roundtable
Value Chain Partners – “Knights of the Foodtable” FutureServes as a hub for many groups (state and regional level)All groups support the important work at the local level
* Groups such as food policy council, farm-based energy, financial assistance, hunger
Good Food NetworkUpper Midwest
National GoodFood Network
eXtension
NC SARE
Turning the Flywheel (in the Social Sectors): Implications for building Good Food farmer networks, buyers, TA providers-researchers
Attract Believers
•Time
•Money
Build Brand
•Emotion (heart)
•Reputation
Demonstrate Results
•Mission Success
•Trend Lines (Indicators)
Build Strength
•First Who…then what
•Sustainable networks
Relentless focus on what you are good at, and what drives the resource engine
Adapted from Good to Great and the Social Sectors – Jim Collins
www.valuechains.orgwww.valuechains.org
Rich Pirog E-mail: Rich Pirog E-mail: [email protected]
Regional Food Systems Working Group