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A value chain is a business model based on collaboration. An agri-food value chain is a partnership between producers, processors and marketers created to improve quality, increase efficiencies and develop and market differentiated products to make all partners more profitable.

A value chain occurs when companies need to collaborate to improve quality, increase systems efficiencies, or develop differentiated products to achieve a more rewarding position in the marketplace.

A value chain allows members to be more competitive and react quickly to the ever changing demands in today’s retail grocery and foodservice industries. The process includes seeking market opportunities and linking production and processing requirements to capture value-added and new market opportunities.

The value chain, not the individual company, is the unit of competition. Three key attributes of value chains include:

Strategy: Focus on creating value for your customer and consumer through product and process innovations and developing differentiated products.

Capabilities: Chain partners assemble existing and new skills and capacities to deliver enhanced value.

Relationships: Strategic relationships are formed between partners who link capabilities and become an integral asset that can’t be bought
or sold.

These combined attributes result in a strengthened competitive advantage that is unique and benefits all value chain partners.

The goal of a value chain is increased profits for value chain partners, as they capitalize on market opportunities and deliver quality products that consumers demand.

Moving from a price-sensitive, commodity production business model to a value driven
model.

 

 

Click the image above for the Saskatchewan Grocery Retail and Foodservice Value Chain Initiative brochure (will open as a FlippingBook document in your browser - requires Adobe Flash Player).

Click here to open the brochure in PDF format (2.6 MB)