THE BENEFITS OF AGRI-FOOD VALUE CHAINS (2006)
BibTeX
@MISC{Devanney06thebenefits,
author = {Michael Devanney},
title = {THE BENEFITS OF AGRI-FOOD VALUE CHAINS},
year = {2006}
}
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Abstract
has received increasing attention in agricultural sectors in recent years in response to a number of economic factors and consumer trends affecting agri-food enterprises. This paper reviews the concepts of agri-food value chains, describes the economics behind the motivation for firms to enter into a value chain partnership and explains how a value chain strategy could benefit all stakeholders in the agri-food industry. 2. What is a Value Chain? Various researchers, organizations and companies offer slightly different formal definitions of value chains. Generally, these definitions employ terms such as “partnerships”, “alliance”, and “collaboration ” and focus on adding value, increasing market share and satisfying or exceeding consumer demand. A value chain is a mutually beneficial partnership among all players involved in the production of a product in which each partner contributes and shares knowledge, information and contributes expertise to improve (differentiate) the final product to better satisfy consumer demand relative to the chain’s competitors. Inherent in this definition is that the value chain must efficiently “add value ” to the product for the benefit of all involved in the chain; value that is determined by the perceptions of the consumer. It is assumed that value can be added to a product more efficiently by an interdependent value chain partnership than could be done by an individual effort by a member of a traditional supply chain.
Keyphrases
value chain benefit agri-food value chain partner contributes chain competitor agri-food enterprise consumer trend agri-food industry value chain strategy interdependent value chain partnership beneficial partnership market share final product traditional supply chain economic factor consumer demand relative individual effort agricultural sector various researcher consumer demand recent year different formal definition value chain partnership agri-food value chain
