F ood Value Chains Developing strong market-driven partnerships

M y definition Group or sequence of activities in the food production chain that creates value for the final customer and to each other, through efficiency and optimization, thanks to a lean structure, a continuous quality control and a market driven approach.

Group or sequence of activities in the food production chain that creates value for the final customer and to each other, through efficiency and optimization, thanks to a lean structure, a continuous quality control and a market driven approach.

H ave the consumer in mind! Food is produced for one purpose only: the consumer who will eat it and pay for it. Therefore, understanding the consumers’ needs is essential and drive the all chain.

Food is produced for one purpose only: the consumer who will eat it and pay for it.

Therefore, understanding the consumers’ needs is essential and drive the all chain.

A lways be market-driven! Your marketing 4 P’s must meet the market’s needs. It is easier to fill demand than to push an unwanted product. It makes you the supplier of choice. It creates higher profit margins. It protects you from the competition.

Your marketing 4 P’s must meet the market’s needs.

It is easier to fill demand than to push an unwanted product.

It makes you the supplier of choice.

It creates higher profit margins.

It protects you from the competition.

C reating value The chain as a whole must add value to the original product. The marketing 4 P’s must be the right one, The links in the chain must create value for each other. This requires: Openness Communication Calculations for optimization

The chain as a whole must add value to the original product.

The marketing 4 P’s must be the right one,

The links in the chain must create value for each other.

This requires:

Openness

Communication

Calculations for optimization

O ptimization & Efficiency A successful value chain must be efficient. Zero waste, everything sold and/or recycled. Processes must maximize output and productivity. The links in the chain must constantly challenge each other on efficiency and together optimize technically and financially. Lots of planning. This is the key for a sustainable value chain.

A successful value chain must be efficient.

Zero waste, everything sold and/or recycled.

Processes must maximize output and productivity.

The links in the chain must constantly challenge each other on efficiency and together optimize technically and financially.

Lots of planning.

This is the key for a sustainable value chain.

F inding the right partners Complementarity Compatibility Trust Commitment Openness Common vision Common goal

Complementarity

Compatibility

Trust

Commitment

Openness

Common vision

Common goal

T he stronger links The ends have the most freedom and power: they steer the chain. Marketing: Provides the direction Generates the margin “ DNA”: Provides the right material Generates efficiency Links in the middle tends to follow more than steer.

The ends have the most freedom and power: they steer the chain.

Marketing:

Provides the direction

Generates the margin

“ DNA”:

Provides the right material

Generates efficiency

Links in the middle tends to follow more than steer.

M anaging the balance of power Interdependence is the key. Co-operation is the way. Depends on respective size and resources. Each link must add value to the others. Each link must be difficult to replicate. Balancing power = balancing profit distribution.

Interdependence is the key.

Co-operation is the way.

Depends on respective size and resources.

Each link must add value to the others.

Each link must be difficult to replicate.

Balancing power = balancing profit distribution.

A dding value to each other Creating a customer-supplier approach. All needs must be listed and described clearly. The first currency for deliverables is feedback.

Creating a customer-supplier approach.

All needs must be listed and described clearly.

The first currency for deliverables is feedback.

A dvantage through communication Early communication = early action. Ability to improve and correct when needed. All communication must help offer the best product and best service to the consumer. Helps share the joy. Helps share the pain.

Early communication = early action.

Ability to improve and correct when needed.

All communication must help offer the best product and best service to the consumer.

Helps share the joy.

Helps share the pain.

D eveloping a local business Value chains are a great medium for economic development. Can help several business grow in parallel. The value chain can create wealth in the community and create more needs for business.

Value chains are a great medium for economic development.

Can help several business grow in parallel.

The value chain can create wealth in the community and create more needs for business.

A solid basis for global business, too Value chains are not just for local business. It can be established on a global scale, too. The basis remains the same, though: Market-driven Create value for the whole chain Create value for all participants

Value chains are not just for local business.

It can be established on a global scale, too.

The basis remains the same, though:

Market-driven

Create value for the whole chain

Create value for all participants

D eveloping a niche A value chain is the ideal medium. Attracts partners with niche thinking = asset. Win-win case. High commitment. Builds the business quietly. Very few competitors = advantage.

A value chain is the ideal medium.

Attracts partners with niche thinking = asset.

Win-win case.

High commitment.

Builds the business quietly.

Very few competitors = advantage.

W orks for commodities, too As long as the final product at the end of the chain is not a commodity. Commodities can be included in the value chain, no problem. Key is to differentiate the final product to create the value.

As long as the final product at the end of the chain is not a commodity.

Commodities can be included in the value chain, no problem.

Key is to differentiate the final product to create the value.

B eware of commoditization of the value chain Commoditization: shift from a differentiated to an undifferentiated product -> no value creation. Success always creates followers -> more supply -> increased competition. Oversupply = margins under pressure. Necessity to keep a competitive advantage -> all links in the chain must participate.

Commoditization: shift from a differentiated to an undifferentiated product -> no value creation.

Success always creates followers -> more supply -> increased competition.

Oversupply = margins under pressure.

Necessity to keep a competitive advantage -> all links in the chain must participate.

F or more on this topic and how we can help Website: www.hfgfoodfuturist.com Email: info@happyfuturegroup.com

Website: www.hfgfoodfuturist.com

Email: info@happyfuturegroup.com