Story > Creating robust global food systems requires understanding of “Value Chains” Published: 3/10/2010 12:00:00 AM

Forecasts suggest food shortages are increasing in many parts of the world. Aligning food systems with demand (need) to address these shortages requires new ways of thinking and strategic public-private partnerships. Applying the “value chain” approach holds potential for transformational change in food systems for developing and developed countries alike. The term “value chains” comes from business – it means a chain of activities that gives a product more value than the sum of all the individual activities along the way. The value chain approach can be applied to food systems as show below. The process of value chain analysis for the food system could go like this: 1. Identify markets for which a given region has potential comparative-supply advantages from both production and distribution perspectives. 2. Identify food system segments (e.g. producers, processors, marketers) for focus, utilizing the value chain approach to identify opportunities. 3. Develop the required business plans/work plans for a value chain approach to pursue these opportunities. So how does this relate to GIFSL? GIFSL helps the public and private sectors learn to partner within the food system to capture the opportunities presented in value chains. GIFSL programs enhance communication skills and the ability to work across traditional boundaries, whether the boundary crosses different disciplines, cultures, countries or sectors. So enhancing these basic leadership competencies can help public and private sectors to better capture the value chain. Establishing value chains means more robust food systems. The value chain approach also has been recognized as a valuable development tool because value chains can help the rural poor participate gainfully in local, regional and international trade. Success will require win/win partnering within value chains, and this holds true for developing and developed regions alike. Text and illustration by Barry Mehr, GIFSL senior fellow and president of 1291677 Alberta Ltd