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| Eugene Warwaruk (front) and Annette Allen work with Manitoba's Value Chain Initiative. Laura Rance photo |
When Manitoba consumers expressed interest in buying locally produced organic milk, dairy farmers producing it turned to Notre Dame Creamery for help.
They also linked up with Value Chain Manitoba Initiative (VCMI) to help forge a partnership with the milk processor and with retailers interested in selling organic milk.
VCMI was launched in Manitoba in 2008 to develop these kinds of agri-food value chains.
Value chains are a business approach that differs from those of traditional supply chains by being a deliberate attempt among all partners to collaborate for mutual benefit and increased profit, says Eugene Warwaruk, VCMI co-ordinator.
He spoke to the Southwest Farm Women’s Network at Ag Days on Jan. 19.
Supply chains, while often comprised of the same players as value chains, tend to have adversarial relationships between the players, with value usually captured at one end of the chain, or by a limited number of members within it.
Value chains, by contrast, involve a high level of collaboration and co-operation between players and have the goal of increasing profits for all members, says Warwaruk.“You’re trying to grow the pie together,” Warwaruk said.
Value chains are also primarily consumer-driven, producing something in response to a specific market demand, he added.
“Consumer influences are key in value chain development,” he said.
Warwaruk said VCMI’s main work is to spread the word about value chains and help producers learn more about the concept.
VCMI staff, which include Warwaruk and business development specialist Annette Allen with MAFRI can meet with those interested in forming a value chain. They can also approach prospective partners a farmer group may be eyeing. “We play that role as facilitator,” said Warwaruk.
Several producer groups are in the early stages of exploring a value chain in Manitoba. The approach particularly interests those who’ve been doing some form of direct marketing, Warwaruk said. They eye value chains as a means towards achieveing greater efficiency in production and marketing.
A series of video-conferenced seminars are being held throughout the winter to familiarize agro-Manitoba with the value chain concept.
The next will be held Jan. 28 at MAFRI GO offices and will focus on how a producer group approaches retailers as marketing partners.
The VCMI is a joint initiative between MAFRI and the Manitoba Rural Adaptation Council and runs to 2011.
For more information on value chains log on to: