5 minutes with Hamish Gow Professor Hamish Gow of Lincoln University explains value chains, why they are important and why he is part of the Value Chain Innovation Programme to develop leaders for the food and fibre sector. First of all, what is a value chain? A value chain is the model or architecture by which we organise, coordinate and control the creation and delivery of value for consumers, earn the right to capture some of that value and then distribute this value to the various chain participants. A supply chain refers to the system and resources required to move a product or service from supplier to customer. The value chain concept builds on this to also consider the manner in which value is added along the chain, both to the product or service and to the actors involved. A supply chain is built from the producer to the customer and is
6 | THE FARMLANDER
associated with the physical movement of the product from the producer to consumer. A value chain is a customercentric business model that describes how the value chain participants collaborate to create value for the consumer and share a proportion of that value amongst each other. What is our record for efficient value chains, generally and in agriculture in particular? New Zealand is recognised around the world for developing innovative and effective international value chains that continuously deliver value to consumers and customers in the marketplace, capture part of that value and share it back for producers. We
have built a range of different value chain models over the past decades. Several are recognised as industry best practice, including those of Zespri, NZ Merino and Fonterra. All value chain designs are being continuously disrupted. Someone is always working on an improvement. What New Zealand is recognised for is leading the continuous disruption of our own value chains into international markets. We are continually doing this across our primary sector and designing ones that farmers can engage in and share in the value creation. When we get them right, they pull in investment capital and create
Farmlands Co-operative Society Limited | © March 2022. All rights reserved.
WWW.FARMLANDS.CO.NZ
