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“Our belief that we can create a sustainable diet for ourselves by cherry-picking great ingredients is wrong. Because it is too narrow minded. We can’t think about changing parts of our system. We need to think about redesigning the system.”
- Dan Barber
CONCEPT
DEMAND DRIVEN FOOD VALUE CHAINS
Food21's Value Center designs and coordinates regional and local food value chains. Our primary goal is to build value and sustainability for all stakeholders.
There are many moving parts in a successful local food value chain. Consumer DEMAND and SUPPLY chain responses are essential factors in Food21's value chain model.
Food21 coordinates demand-driven, local food value chains built on three principles: (1) produce measurable benefits for all participants; (2) reduce stakeholder risk; and (3) increase the certainty of their success. Food21 is the link among all value chain participants.
Food21's model simultaneously meets the needs of consumers while responding to market forces. Costs are controlled. Jobs are created. Communities benefit from the collaboration these value chains create.
The Value Center’s services are directed to eight different sets of stakeholders that are critical to the successful operation of regional and local food value chains. These stakeholders are listed below.
CONSUMER
A consumer is an individual or business that purchases another company's goods or services. Consumers are important because they drive revenues. Without them, businesses cannot continue to exist.
Consumers play an important role in the creation of the value chain. The consumer is the key figure in the supply chain and their needs and opinions will affect the supplier's decisions. In a demand-driven value chain, the consumer is the primary source for identifying the needs, desires, and priorities of the marketplace.
RETAILER
Food retailers sell finished goods and products to consumers. Retailers include the major supermarkets and smaller independent traders selling directly to final consumers, closely following and adjusting to their needs and tastes.
DISTRIBUTOR
Food distributors purchase products from a manufacturer or from another distributor and sell and distribute the products to retailers, food- service companies, and other distributors. Food distributors handle transporting and storing food as it travels from manufacturers to food service operators. Some distributors specialize in certain food products such as seafood or fruits and vegetables. Some food distributors will also market and sell the products they are distributing.
Distributors play a vital role in keeping the lines between manufacturers and users operating smoothly. They can expedite response times, enhance a company's reach and even create value-added packages.
MANUFACTURER
A food manufacturer is a business engaged in making food from one or more ingredients, or synthesizing, preparing, treating, modifying or manipulating food, including food crops or ingredients.
In the food production process, steps are taken to extend the shelf life of food, to increase the variety in the diet and/or to provide the nutrients required for health.
Workers in the food manufacturing industry link farmers and other agricultural producers with consumers. They do this by processing raw fruits, vegetables, grains, meats, and dairy products into finished goods ready for the grocer or wholesaler to sell to households, restaurants, or institutional food services.
PROCESSOR
Food processing, the necessary conversion of raw materials to edible, functional, and culturally acceptable food products, is an important link between production and consumption within the food value chain.
Food processing is taking a raw product and turning it into an ingredient, like turning vanilla beans into vanilla extract, whereas food manufacturers purchase ingredients made by processors and use them within a product, like taking the vanilla extract and using it to make cookies.
FARMER
Most food products are either grown directly on farms or based on products derived from farms. Farmers play an important role as the first link in the food value chain. Despite various challenges, farmers do their best to respond to a dual responsibility sustaining a supply of primary agricultural products at affordable prices and minimizing the impact on the environment.
Sustainable, environmentally friendly production methods are increasingly expected and even demanded from farmers. New and improved farming methods are always being developed as well as finding natural ways to enhance and improve crop development.
SOURCE
Seed sources are a critical first step in all agricultural food value chains. The importance of seed provisioning in food security and nutrition, agricultural development and rural livelihoods, and agro-biodiversity and germ-plasm conservation is well accepted by policy makers, practitioners and researchers.
SERVICES
Stakeholder Assessment
Food21's Value Center has several core services that are available to organizations and individuals interested in starting, expanding, or replicating successful food value chains. Each of these services provides direct support in key areas of the value chain development process.
FEASIBILITY PLANNING
Food21's Value Center works with stakeholders to determine the feasibility of their food value chain concept, niche market, and sustainability. This service provides objective ways to determine the potential for success.
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Local capacity, demand, competition, and participation by other key stakeholders will be assessed. A comprehensive planning process enables stakeholders to investigate all of the elements of any potential opportunity.
If you have a specific opportunity in mind for a more robust local food value chain, contact Vince Mangini at our local office.
MARKET ANALYSIS
How well do you know the market your value chain serves? Its size and geographic boundaries are just a beginning step to understand the potential that may exist. Market demographics, consumer needs, and competitive forces are also important.
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The Value Center will coordinate with data analysis resources within Food21 to provide a thorough analysis of the market under consideration. All key elements of this market including demographic, geographic, psychographic, and product demand elements will be assessed. A detailed market analysis report will be produced.
BUSINESS PLANNING
Fail to plan and you plan to fail. This slightly overused pearl of wisdom is none-the-less 100% true. The Value Center considers business planning an essential ingredient for success.
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The Value Center can produce investment ready business plans that use all of the information collected in the earlier stages of feasibility planning, to create investment ready financial projections, market strategies, and implementation plans.
STAKEHOLDER ASSESSMENT
All stakeholders in a value chain are important. The Value Center will conduct a series of assessments that assertain the level of cooperation and the potential for participation of each stakeholder group.
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FINANCING
Access to funding sources is a key requirement when building a sustainable food value chain. Food21 has developed partnerships that assist in obtaining financing for various projects.
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The Center has partners such as the Council of Development Finance Agencies that are experts in crea,ng financing packages for value chain implementa,on. Once the need has been defined CDFA and other partners will be tapped to assist in crea,ng access to funds needed to underwrite implementation.
COORDINATION
Food value chains have many moving parts. The Value Center excels in coordinating the dynamic characteristics of food value chains on behalf of its stakeholders.
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The Value Center provides hands-on coordination services to ensure that the business plan created for the value chain is implemented successfully. Emphasis is placed on building mutually beneficial relationships among all stakeholder groups to obtain maximum participation.
IMPLEMENTATION
The ultimate success of any food value change lies in the implementation capabilities of the participants. Food21 offers extensive support in all aspects of implementation increasing the likelihood for success.
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Implementation services range from coordination, to trouble shooting, to strategic planning, to outcome management. An individualized implementation plan is created that is tailored to the specific needs of the food value chain being implemented. The Value Center cuts the learning curve and accelerates implementation
The Value Center offers both customized and standard versions of these services. The major difference is how much Food21 leverages our personal relationships and how much help the customer needs and wants.
PEOPLE
The Value Center is the backbone of Food21’s work to build and grow local food value chains. Through our staff, advisors, partners, and contributors we are able to serve a variety of needs of the various stakeholders in any value chain. We customize solutions through the expertise and experience of the people associated with this Resource Center.
PARTNERS
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