Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project

16
Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project Rich Pirog – Associate Director Leopold Cen

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 Presentation

Transcript of Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project

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

This is Value Chain Partnerships… (it’s a metaphor)

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)

The Asparagus Working Group!!

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