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August 30, 2024
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Introducing The Value Chain Compass
New research has revealed how New Zealand producers are creating higher returns from sustainably produced primary products. In some cases that premium is perceived to be 20–100% greater than non-sustainably produced equivalents.
The resea…
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Shared Values // The Value Chain Compass
Collective values, in both senses of the word ‘value’, act as glue in a value chain. Unless the value chain is able to create and sustain collective economic value, for example, it is not viable and will not endure. Collective soci…
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Consumer Focus // The Value Compass
The price final consumers are willing to pay drives all value in the value chain. Hence, a value chain needs to understand how different groups of consumers in its markets value different attributes associated with the value chain’…
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Incentives // The Value Chain Compass
As the name suggests, a value chain involves a series of linkages between the producers at one end of the chain and the final consumers at the other end of the chain. Thus, the process of delivering the product from producers to co…
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Chain Leadership // The Value Chain Compass
A key responsibility of governance is chain leadership. Typically, one of the partners in the value chain acts as chain champion. The chain champion has a deep understanding of the chain’s target consumers and product quality, as w…
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Scale // The Value Chain Compass
In the research programme’s case studies of emerging value chains, scale was one of the key decisions that had to be made by the chain leadership. A higher volume of products might reduce the average cost of production and processi…
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Product Quality // The Value Chain Compass
Consumers pay a premium for a product only if they value it as a quality product. Quality begins with characteristics such as appearance, taste and texture. Quality also involves attributes that the consumer has to accept on trust,…
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Risk // The Value Chain Compass
All commercial enterprise involves a degree of risk. In the food and fibre sector, there are specific challenges related to the chain’s continuity of supply. These include seasonal limitations, adverse weather events, environmental…
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Value Co-Creation // The Value Chain Compass
A feature of food and fibre value chains is that creation of value for consumers requires collaboration among the partners of the chain. There is no premium, for example, if producers invest in strong environmental stewardship but …
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Information // The Value Chain Compass
A global value chain from New Zealand producers to overseas consumers can be lengthy, involving several links in the chain and diverse cultures. This means a value chain needs to work out how to pass information about final consume…