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8/2/2019 Agrifood Value Chains
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Agri-food Value Chains
the Bigger Picture
Robert A. Reid, IICA Regional Specialistin Agribusiness
March, 2009
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Genesis of the Value-chainConcept
TheValue Chain, also known asvalue chain analysis, is a conceptfrom business management.
First described and popularized byMicheal Porter in his 1985 best seller,Competitive Advantage: Creating andSustaining Superior Performance.
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Definition of Value Chain
A description of the full range ofactivities required to bring aproduct or service through the
different phases of production(including physicaltransformation, and the input of
various producers and services),in response to consumer demand.
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EBASICAG
RI-FO
ODV
ALUE
AIN
DISTRIBUTION
CONSUMER
FARM
ING
PROCE
SSING
I d t li i
Food Safety
Modes of Production & Infrastructure
Technology
Information
COMPETITIVENESSDRIVERS
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Central Concepts of Value Chain
THE INTERACTION OFENTERPRISES AND PROCESSES -TO DELIVER PRODUCTS &SERVICES TO ENDUSERS
FOCUSES ON NET VALUE ADDED(shows where value is added in a process)
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Central Concepts of Value Chain
BUILD WIN-WIN LINKAGESAND COLLABORATION TO
REPOSITION AN ENTIREINDUSTRY AND SPURECONOMIC GROWTH.
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THE VALUE CHAIN APPROACH
CALLS FOR :
A COLLABORATIVE APPROACH TO THE REMOVAL OFCONSTRAINTS AGAINST INCREASING PRODUCTIVITY
FORMULATING AND IMPLEMENTING COMPETITIVEINDUSTRY STRATEGIES THAT SEEK TO REDUCEINEFFICIENCIES AND COSTS
HIGH LEVELS OF INFORMATION GATHERING ANDSHARING RE: ENTERPRISES AND PROCESSES (Allows forbetter understanding of the constraints and opportunities within
each segment)
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VALUE CHAIN ANALYSIS
A METHOD OF IDENTIFYING
THE DYNAMIC LINKAGES BETWEEN
PRODUCTIVE ACTIVITIES
CONSTRAINTS, AND LEVELS OFINEFFICIENCIES THAT PREVENT THEFURTHER ADDITION OF NET VALUE,AND COMPETITIVENESS.
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TOURISM
LARGEST INDUSTRY IN THE WORLD
ACCOUNTING FOR 11.5% OF WORLDGDP AND 12.5% OF EMPLOYMENT WorldTravel and Tourism Council
CARIBBEAN TOURISM HAS LARGESTPROPORTION OF GDP GAINED (29.6%)
AND PEOPLE EMPLOYED (25%) CaribbeanTourism Organization
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THE AGRO-TOURISM LINK
Agriculture based products and services
offered for sale to the tourism industry as acomplement to the natural attributes of thedestination.
The intent is to mainstream raw, minimalprocess and value added agricultural products(and rural spaces) as a unique and distinct
lifestyle products.
8/2/2019 Agrifood Value Chains
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RI-TOURIS
M
ODV
ALUE
CHAI
NHANDLING&
DISTR
IBUTION
TOURIST
FARM
ING
PROCE
SSING
Industry policies
Food Safety
Infrastructure
Technology
Information
COMPETITIVENESS
DRIVERS
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The Tourism - Agriculture Intersect
There are five (5) areas of the eight tourism
sectors in which agriculture can create agro-tourism products. These are:
Food and Beverage) together called hospitality
Accommodation (Rural) Adventure
Attractions
Events and Festivals
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THE WIDER AGRO-TOURISMINDUSTRY
IndustryTourismServices
Attractions
Accommodations
Travel Trade
Events and
Festivals
AdventureTourism
Food andbeverages
Transportation
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Fragmented production base
and increasing cost of production
Under-utilization of more
effective modern technologies
Lack of research anddevelopment oriented to
productivity improvements
Preference for utilizing foreign
products in culinary dimension oftourism
Low levels of adoption of fod
safety standards and formal
quality systems
WEAKNESSESPROCESS
PRODUCTION &UTILIZATION OF AGRI PRODUCTS
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Fragmented and inefficientdistribution systems
Inadequate collection, storageand distribution facilities
Low levels of adoption of
standards and formal qualitysystems
WEAKNESSESPROCESS
HANDLING &
DISTRIBUTION
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Sourcing mechanisms orientedtowards international suppliers
High wasteage due to greaterperishablity of imported products
untimely account settlement
with agri-producers
WEAKNESSESPROCESS
PROCUREMENT (BUYER)
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
inability to meet marketrequirements (re volumes and
quality) and to compete
effectively with importedproducts
Inadequate market information
systems
Mistrust by agri-producers ofcommercial marketingintermediaries due to perception
of exploitation
WEAKNESSESPROCESS
MARKETING AND SALES
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Limited negotiating skills forbuilding partnerships
Inadequate management andoperational capacities
WEAKNESSESPROCESS
HUMAN RESOURCE & MANAGEMENT
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Multiplicity of Institutions andagencies with little coordination
and potential for conflict
Inadequate communication and
information systems to supportstrategic and operationaldecision making
Value-chain activities not
coordinated or integrated
WEAKNESSESPROCESS
INSTITUTIONAL INFRASTRUCTRUE
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IDENTIFIED WEAKNESSES IN THE
AGRO-TOURISM VALUE CHAIN
Apparent disconnect andgeneric nature of policies relatedto agri-tourism linkages
Fragmented institutional and
legislative framework
Tendency to overlook external
threats
WEAKNESSESPROCESS
GOVERNANCE & EXTERNAL
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THE BIG PICTURE
CHALLENGES
Create a strategic competitive advantageusing AGRO-TOURISM as the vehicle forentry into the global agri-food value-chainsand markets
Developing an overarching AGRO-TOURISMPOLICY aimed at achieving internationalcompetitiveness [All Ministries] There must
be a formal agreement among agriculture,tourism, environment, health, trade andindustry
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THE BIG PICTURE
CHALLENGES
Food Value-Chain Operators understanding
the new environment the value chainswithin agriculture and within tourism.
Building systems to manage simultaneouslyTHREE industry value-chains (agriculture,tourism and environment) that are focused on
producing value added products
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THE BIG PICTURE
CHALLENGES
Building trust between public/private sectors
(in all three industries) in order to have acompetitive machine
Using tourism and environmental informationto position agricultural goods and servicesand/or create and supply needs in the
generating markets.
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STRATEGIC DIRECTION
Tourism sectorshould encourage its
stakeholders to use raw, minimal and valueadded products produced from agriculture inthe development and promotion of the
tourism product.
Tourism sectorshould Embrace and train
members of the agriculture sector in thephilosophy of community tourism.
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STRATEGIC DIRECTION
Agricultural sectorshould facilitate the
development of the product and service valuechain necessary for minimal and value addedproducts.
Agricultural sectorshould agree to developsmall business enterprises capable ofmeeting and maintaining the standards
necessary for a tourism productfocus onhealth and safety.
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STRATEGIC DIRECTION
Environment should work with agriculture
and tourism to develop scientificallyappropriate attractions, adventure tours andcommunity-based products.
Environment shouldensure that allinternational standards are developed as a
part of the competitive strategy for thecountry.
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REFERENCES
The Concept of Agro-Tourism. Dr. Carolyn Hayle. October 2007 National Strategy for the Promotion of Agri-tourism Linkages in Barbados;
AGRICO Ltd
Value Chain: Information as a Competitive Driver. Frank Lam; Nassau, TheBahamas, December 2008
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