Risk and value chains: Participant sharing of risk and rewards

2004 ◽  
Vol 4 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Paul Preckel ◽  
Allan Gray ◽  
Michael Boehlje ◽  
Sounghun Kim
Keyword(s):  
Value Chain ◽  
Analytical Framework ◽  
Value Chains ◽  
Pork Industry ◽  
Contractual Arrangements ◽  
A Value ◽  
Sustainable Value

Much discussion, analysis and experimentation with various forms of value chain coordination has occurred, but often, these business arrangements have not been sustainable. We address the important role that risk/reward sharing plays in developing sustainable value chains. The discussion will: 1) describe an analytical framework for determining the optimal risk/reward sharing between partners in a value chain, and 2) illustrate the application of the framework to contractual arrangements between producers and processors in the pork industry. We find that contract structures must balance the risk/reward preferences of both producers and processors in order to be sustainable.

scholarly journals A template for sustainable food value chains

2017 ◽  
Vol 20 (4) ◽  
pp. 461-476 ◽  
Author(s):  
Elena Monastyrnaya ◽  
Gwenola Yannou Le Bris ◽  
Bernard Yannou ◽  
Gaëlle Petit
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Graphical Representation ◽  
Value Chains ◽  
Sustainable Food ◽  
Pork Industry ◽  
Business Model Canvas ◽  
Sustainable Value ◽  
Collaborative Efforts ◽  
Food Value

This paper proposes a template to assist food value chain actors in their collaborative efforts to develop common sustainable strategies and business models. Inspired by the simplicity of the Business Model Canvas, the template reintroduces sustainable practices as a support for management solutions for sustainable food value chains. The template requires cooperation between actors and stakeholders and comprises three steps: (1) identification of needs for sustainability; (2) development of value chain practices aimed to deliver sustainable value, and assignment of responsibilities to actors for these practices; and (3) formulation of a sustainable value proposition. The template also allows a simple graphical representation of sustainability in value chains, which helps improve communication between actors, and allows stakeholders to be kept informed. The template is applied to a sustainable pork value chain to illustrate how it captures various aspects of sustainability in the pork industry.

Achieving better strategic fit and higher surplus for Australian beef value chains by recognising and countering chain failure

2017 ◽  
Vol 57 (8) ◽  
pp. 1767
Author(s):  
Stuart Mounter ◽  
Garry Griffith ◽  
Euan Fleming
Keyword(s):  
Value Chain ◽  
Demand Uncertainty ◽  
Low Cost ◽  
Analytical Framework ◽  
Optimal Level ◽  
Value Chains ◽  
Economic Relationships ◽  
Strategic Fit ◽  
A Value ◽  
Best Fit

Strategic fit is the nature of the link between the customer priorities that a value chain hopes to satisfy, and the capabilities that are available in the value chain to implement that objective. Usually, there is a trade-off between value chains that focus on being responsive to customer needs and those that focus on supplying at the lowest possible cost. If demand uncertainty is low, a low-cost value chain is the best strategic fit; conversely if demand uncertainty is high, a responsive value chain is the best fit. A poor fit means lower chain surplus to be shared among the chain participants. We provide an outline of an analytical framework for determining the optimal level of responsiveness for a food value chain. We then present and discuss two case studies. Both feature initiatives aimed at internalising positive chain externalities and capturing chain goods within the Australian beef value chain. We use our framework to show how these initiatives are predicted to promote responsiveness and thus achieve a better strategic fit and higher surplus for the whole chain. Verifying that such a move would indeed contribute to higher chain surplus would require some new measurements of whole-of-chain outcomes so that the economic relationships making up the framework could be estimated and analysed.

scholarly journals SUSTAINABILITY VALUE CHAIN IN BIOECONOMICS

2020 ◽  
Vol 18 (Suppl.1) ◽  
pp. 614-618
Author(s):  
N. Penev ◽  
Y. Andreev
Keyword(s):  
Value Chain ◽  
Renewable Resources ◽  
Fossil Fuels ◽  
Value Chains ◽  
Processing Industry ◽  
Cyclic System ◽  
Microbiological Processes ◽  
Sustainable Value ◽  
Textile Industries ◽  
Processed Products

The concept of bioeconomics covers all sectors of the economy, including agriculture, which supplies renewable resources: plants, animals, microorganisms and their processed products. The goal is a transition to an economy that is independent of fossil fuels and non-renewable resources. Agriculture and forestry, fisheries and aquaculture, as well as the conversion of biotechnological biomass and biological waste, are central to the multilateral new value chain. The processing industry uses renewable resources in various products, in particular, due to the industrial application of biotechnological and microbiological processes, especially in the chemical industry. This also applies to the food, woodworking, paper, construction, leather, and textile industries, as well as parts of the pharmaceutical and energy industries. Thus, the cyclic system and the storage of reusable waste are also included in the bioeconomic system. The aim of our study is to study the degree of development of sustainable value chains in bioeconomics.

scholarly journals Governance structures in smallholder pig value chains in Uganda: constraints and opportunities for upgrading

2017 ◽  
Vol 20 (3) ◽  
pp. 307-319 ◽  
Author(s):  
Emily Ouma ◽  
Justus Ochieng ◽  
Michel Dione ◽  
Danilo Pezo
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Institutional Economics ◽  
Multinomial Logit Model ◽  
New Institutional Economics ◽  
Information Value ◽  
Value Chains ◽  
Governance Structures ◽  
Cross Sectional ◽  
Contractual Arrangements

This paper analyses governance structures in Uganda’s smallholder pig value chains by applying the New Institutional Economics framework. It utilises cross sectional and qualitative survey data from randomly selected pig value chain actors in 4 districts. A multinomial logit model is applied to assess the determinants of vertical integration among pig traders. The findings indicate that most relationships at the pig production node of the value chain are based on spot market governance structures supported by personal relationships and trust. Live pig traders are mostly vertically integrated. High integration levels of the pig traders are positively influenced by access to market information, value of investments in the value chain, and dedicated asset specificity in terms of backyard slaughter premises. Upgrading opportunities in the value chain in the form of value addition strategies, policy implementation and promotion of business models that link producer organisations to quality inputs and service suppliers through contractual arrangements are identified.

scholarly journals Sustainable management of agriculture products value chain in responses to climate change for South-Eastern coast of Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prabal Barua ◽  
Syed Hafizur Rahman ◽  
Maitri Barua
Keyword(s):  
Climate Change ◽  
Value Chain ◽  
Sustainable Management ◽  
Value Chains ◽  
Community Based ◽  
Content Type ◽  
Sustainable Value ◽  
Agriculture Products ◽  
Combat Climate Change ◽  
Adaptation Options

PurposeThis paper is designed to assess the sustainable value chain approaches for marketing channel development opportunities for agricultural products in coastal Bangladesh to combat climate change through an approach of community-based adaptation options.Design/methodology/approachThe study was designed to select the potential value chain candidate and to analyze and establish a value chain map to benefit the crop farmers. In this connection, the resources of the whole context were evaluated. The approach uses few tools to generate three outputs, the last of which are the final list of value chains selected for in-depth assessment to design interventions as community-based adaptation practices of the study to combat climate change in the study areas.FindingsThe study demonstrated that the difference in the institutional circumstances of the end markets of the agriculture products is connected to the different categories of harmonization and control of the facilitating environment throughout the supply chains. National and local networks improve the value chain in terms of the value addition of the agriculture products, technology improvement, market access and profitability of the products. Strengthening the weak financial structure, focus more on formal financial systems and resolving sociocultural and climate change-induced hazard concerns are the major concerns on the development of value chains in the countries. Apparently, guarantee for good governance, checking illegal and unregulated market contexts, proper mitigation measures to climate change are some paramount important issues for the sustainable management of livelihood, yield, income and development.Practical implicationsAll kinds of stakeholders of the agriculture product value chain should focus on competitiveness and productivity and look for and exploit multiple ways to add value once initial success has been attained with a single deal. Ensuring sustainability within the value chains is an important feature to cater to the challenges and changing demands of the age.Originality/valueThe study will help to established a sustainable value chain approach in response to climate change, which process will help to existent opportunities for firms to manage the issue of climate risk by codeveloping and employing adaptation options that may be more preferred or accepted by consumers across the entire chain for the sustainable management of livelihood, yield, income and development.

THE EU’S SHRINKING SHARE IN GLOBAL MANUFACTURING: A VALUE CHAIN DECOMPOSITION ANALYSIS

2020 ◽  
Vol 252 ◽  
pp. R19-R32
Author(s):  
Robert Marschinski ◽  
David Martínez-Turégano
Keyword(s):  
Value Chain ◽  
Decomposition Analysis ◽  
Value Added ◽  
Value Chains ◽  
High Tech ◽  
Global Manufacturing ◽  
A Value ◽  
Industry Policy ◽  
The Eu

The EU´s falling share in global manufacturing has fuelled concerns about an overall loss of EU competitiveness, in particular vis-à-vis China. We analyse the empirical evidence underlying these concerns by applying a newly developed decomposition technique to global input-output data spanning the years 2000 to 2014. Our results confirm the diminishing role of the EU in manufacturing value chains, but also show that this is mostly, by nearly 75 per cent, a consequence of the geographical and sectoral reallocation of global demand, reflecting the lower economic growth in the EU relative to the rest of the world. Still, the other almost 25 per cent of the EU’s loss of global share is explained by its lower participation in manufacturing value chains, which confirms a downturn in EU competitiveness. By extending the analysis to individual manufacturing activities we show that this general trend is more pronounced for low-tech (e.g. textiles) than high-tech sectors, with pharmaceuticals emerging as the most resilient EU industry. Policy concerns appear to be most warranted for electronics, a key sector for which the EU´s global share fell even more than for overall manufacturing, without evidence that EU value added from upstream service inputs could significantly mitigate this trend.

scholarly journals Facilitating Aligned Co-Decisions for More Sustainable Food Value Chains

2021 ◽  
Vol 13 (12) ◽  
pp. 6551
Author(s):  
Gaëlle Petit ◽  
Gwenola Yannou-Le Bris ◽  
Claudia Eckert ◽  
Yan Liu
Keyword(s):  
Value Chain ◽  
Current Practice ◽  
Animal Feed ◽  
Shared Vision ◽  
Value Chains ◽  
Sustainable Food ◽  
Pork Products ◽  
A Value ◽  
The Impact ◽  
Food Value

The transition of existing food value chains towards greater sustainability is a societal imperative and a potential competitive factor. To succeed, some actors in the chains define new practices to establish common sustainability goals. To date, there is little evidence that the visions and values of the various actors in the chains have been leading to common solutions. This work explores the impact of collaboration on the value chain actors’ ability to jointly decide strategies for redesigning their activities. It reports on an empirical approach, which elicits the values and priorities of different stakeholders. The case takes place in the context of a value chain of the production/processing/sale of pork products. This value chain involves two French production-processing and redistribution cooperatives. Stakeholders were questioned about their prioritization of sustainability issues and these weights were applied to evaluate 12 animal feed solutions that vary in terms of the composition and geographical origin of rations, and the means and locations of their production. The results show that despite several years of cooperation, the objectives of the upstream and downstream actors remain different. The objectives of the upstream actors are driven by the economic difficulties of production and those of the downstream actors by the multiplicity of consumer demands and cost control objectives. In a reversal of the current practice marked by the economic difficulties of the actors upstream of the chain, an integrated culture could be led by bottom-up approaches to create a shared vision. Public policy would be then essential in regulating the sharing of value among actors; and in promoting chain models that help the required investments.

scholarly journals Viability and Sustainability Assessment of Bioenergy Value Chains on Underutilised Lands in the EU and Ukraine

Energies ◽  
2021 ◽  
Vol 14 (6) ◽  
pp. 1566
Author(s):  
Cosette Khawaja ◽  
Rainer Janssen ◽  
Rita Mergner ◽  
Dominik Rutz ◽  
Marco Colangeli ◽  
...  
Keyword(s):  
Value Chain ◽  
Sustainability Assessment ◽  
Bioenergy Crops ◽  
Value Chains ◽  
The European Union ◽  
Feed Production ◽  
A Value ◽  
Sustainability Assessments ◽  
Selection Of

Bioenergy represents the highest share of renewable energies consumed in the European Union and is still expected to grow. This could be possible by exploring bioenergy production on Marginal, Underutilised, and Contaminated lands (MUC) that are not used for agricultural purposes and therefore, present no competition with food/feed production. In this paper, the viability and sustainability of bioenergy value chains on these lands is investigated and measures for market uptake were developed. Using three case study areas in Italy, Ukraine, and Germany, a screening of MUC lands was conducted, then an agronomic assessment was performed to determine the most promising crops. Then, techno-economic assessments followed by sustainability assessments were performed on selected value chains. This concept was then automated and expanded through the development of a webGIS tool. The tool is an online platform that allows users to locate MUC lands in Europe, to define a value chain through the selection of bioenergy crops and pathways, and to conduct sustainability assessments measuring a set of environmental, social, and economic sustainability indicators. The findings showed positive results in terms of profitability and greenhouse gas emissions for bioethanol production from willow in Ukraine, heat and power production from miscanthus, and biogas and chemicals production from grass in Germany. The webGIS tool is considered an important decision-making tool for stakeholders, which gives first insights on the viability and sustainability of bioenergy value chains.

Southern African Regional Value Chains and Integration

2021 ◽  
pp. 395-418
Author(s):  
Reena das Nair
Keyword(s):  
South African ◽  
Southern Africa ◽  
Value Chain ◽  
Regional Integration ◽  
Value Chains ◽  
Public And Private ◽  
Policy Interventions ◽  
A Value ◽  
Push Forward ◽  
Chain Level

Despite the changing face of global trade towards greater ‘south-south’ trade, the development of regional value chains (RVCs) and the record of intra-regional trade and integration in Southern Africa has been poor. This chapter unpacks the nuances that affect participation, investment, and upgrading in RVCs in Southern Africa, drawing lessons from selected agro-processing and food retail value chains. The lack of a clear regional development vision is evident in how these value chains have developed in practice, with limited value-addition outside South Africa, even where there is potential for it. Regional integration in Southern Africa has been fairly weak against stated targets, and the development of RVCs can push forward the regional integration agenda. This requires tailored and coordinated investments across public and private sectors, and targeted policy interventions at a value chain level, with an appreciation of political economy dynamics and the role that South African firms with market power play in shaping value-chain outcomes in the region.

scholarly journals Socioeconomic Impact of Genome Editing on Agricultural Value Chains: The Case of Fungal-Resistant and Coeliac-Safe Wheat

2019 ◽  
Vol 11 (22) ◽  
pp. 6421 ◽  
Author(s):  
Oliver Maaß ◽  
Nicola Consmüller ◽  
Hella Kehlenbeck
Keyword(s):  
Genome Editing ◽  
Value Chain ◽  
Qualitative Content Analysis ◽  
Value Added ◽  
Socioeconomic Impact ◽  
Value Chains ◽  
Value Chain Analysis ◽  
A Value ◽  
Food Retailers ◽  
Chain Analysis

Genome editing (GE) is gaining increasing importance in plant breeding, since it provides opportunities to develop improved crops with high precision and speed. However, little is known about the socioeconomic impact of genome editing on agricultural value chains. This qualitative study analyzes how genome-edited crops could affect agriculture value chains. Based on the hypothetical case of producing and processing fungal-resistant and coeliac-safe wheat in Germany, we conducted semi-structured, in-depth interviews with associations and companies operating in the value chains of wheat. A value chain analysis and qualitative content analysis were combined to assess the costs and benefits of the crops studied along the value chains of wheat. The results show that the use of fungal-resistant and coeliac-safe wheat can provide benefits at each step of the value chains. Fungal-resistant wheat benefits actors by reducing the problems and costs resulting from fungal-diseases and mycotoxins. Coeliac-safe wheat benefits actors by producing high value-added products, which can be safely consumed by patients suffering from coeliac disease. However, the results also show that low acceptance of GE by society and food retailers poses a significant barrier for the use of genome-edited crops in agricultural value chains.

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