Value Chains Gaining Momentum

REGINA - Feb 6/06 - SNS -- Value chains aimed at creating value-added marketing opportunities for primary producers are gaining momentum in Saskatchewan, according to Bryan Kosteroski, an Advancing Canadian Agriculture and Agri-Food Saskatchewan (ACAAFS) value chain specialist in Saskatoon.

The Saskatchewan Agri-Food Value Chain Initiative is an alliance of Saskatchewan Agriculture and Food (SAF), the Saskatchewan Council for Community Development (SCCD) and Agriculture and Agri-Food Canada (AAFC) that fosters collaboration in the development of value-added products for consumers in the retail marketplace.

A value chain is a market-focused collaboration between businesses to produce and market value-added products. It benefits producers, processors and marketers by responding to market demands through the alignment of product development, processing and logistics in an effective and efficient manner.

Value chains are not a new concept, explains Kosteroski, but they are an emerging concept. Knowledge-based value chains are growing in Canada. They are very successful in Canada, Australia and New Zealand, and there are some value chains in the United States. They are a new way of doing business that involves more collaboration with fellow producers and growers, and joining forces—putting our resources together—using our expertise within the chain and developing value-added products.

"Right now we have six value chains in the process," he notes. "For example, Canadian Prairie Lamb has a value chain process that has led to the successful development of five value-added products that are going to the retail markets. The value chain program has been very successful for the sheep producers of Saskatchewan."

Kosteroski point out that, four years ago, a number of sheep producers participated in an earlier version of the value chain program.

"They increased herds in Saskatchewan. They set up alliances among producers, slaughter plants and processors, and developed these new value-added products that will be available at stores across Canada . The benefit of value chains programs is producer groups setting up alliances and working together.

"The final products are all pre-cooked meats: lamb kebabs, Parmesan lamb meatballs. They did a lot of product development at the Saskatchewan Food Centre, which also sets up alliances with value chain partners."

A new series of value chain workshops will take place in the next few weeks.

"Module one is about learning the basics of the value chain process: how to collaborate with people and work with each other," says Kosteroski. "When producers get together and work together instead of competing against each other, in the end, we'll have more accessibility for higher yields of crops."

To achieve this, the organizers are bringing in Richard Broadwith of BCI Marketing Partners of Guelph, Ontario.

"Richard and his organization have set up an alliance with SCCD and SAF . They have value chain partners across Canada , and Richard has a great knowledge of the value chain program. His technique and skills in developing those alliances really help producers and business partners in Saskatchewan develop those resources and learn how to break the ice and work together."

Module 1 topics include: The logic of value chains applied to your firm/organization; Value chains—the rewards and the risks; Winning the competitive battle; Creating partner and consumer value; Introduction to value chain strategies; Designing a winning business; and Tips for executing value chain strategies.

"All the sessions run from 9:00 a.m. to 4:00 p.m. daily. They will be held on February 13 in Regina , February 14 in Swift Current, February 15 in Weyburn, February 16 in Yorkton , February 20 in Saskatoon , February 21 in Melfort, February 22 in Outlook and February 23 in North Battleford .

Kosteroski believes many producer groups and small and mid-sized businesses looking to value-added markets will find it worth their while to attend, as his organization will aggressively promote value chains to Saskatchewan retailers and to brokers in every market accessible in Canada.