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Putting Value Back in the Value Chain Allen R. Williams, Ph.D., PAS.

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Presentation on theme: "Putting Value Back in the Value Chain Allen R. Williams, Ph.D., PAS."— Presentation transcript:

1 Putting Value Back in the Value Chain Allen R. Williams, Ph.D., PAS

2 Tallgrass Beef Company Source Verified No Fed Antibiotics No Added Hormones No Animal Byproducts Grass Fed – No Grain

3 Verifiable Protocols Heritage Genetics Ultrasound Selection Annual Ranch Visits Producer Affidavits Source Verified Strict Protocols Network of Producers

4 Tallgrass Feedlots Rotational Grazing Forage Sequencing Non-Confinement

5 Product Attributes Omega 3, CLA, Vit. E Favorable Unsaturated to saturated fatty acid ratio Lower E. coli, campylobacter Environmentally Friendly USA Family Farms Healthy Animals, Healthy Environment, Healthy People

6 Tallgrass Value Chain System Preferred Seedstock Genetics Cow/Calf Producer Custom Grazer/Finisher Selected Processor Distributor Retailer (Grocer, HRI) E-Commerce Data Sharing Loop

7 Tallgrass Challenges o Lack of Infrastructure o Forging Partnerships within the chain o Economies of scale o Ability to grow effectively and efficiently o Maintaining and even improving product quality as you grow o Trust at all levels – from producers to consumers.

8 Tallgrass Philosophy o Forge Strategic Partnerships throughout the VBVC. o Don’t seek to reinvent wheel where not necessary. o Complete data sharing. o Risk/Reward transparency and sharing. o Relationship and trust based. o Identify and work through problems/issues WITH strategic partners, not against them. o Constant communication/feedback with retail partners and CONSUMER.

9 Value Chains – AFF Point of View o Support development of regional based food production and family farms. Must be based in a relationship among suppliers across VC. Must be based in a relationship among suppliers across VC. Includes much more than price. Includes much more than price. o Relationship must be “Values Based”. Shared economic risk/reward. Shared economic risk/reward. Fair treatment of employees. Fair treatment of employees. Clearly defined product attributes. Clearly defined product attributes. o This Values Based relationship benefits everyone involved, including the CONSUMER. Values can be verified/certified by independent third party. Values can be verified/certified by independent third party. Values can be clearly communicated to the consumer. Values can be clearly communicated to the consumer.

10 Value Chains – AFF Point of View o Consumers/Purchasers of Values Based Value Chain products must be an integrally involved group. They are the DRIVER. Consumers must have information necessary to determine differentiation among products. Consumers must have information necessary to determine differentiation among products. AFF proposes a web based communication tool to augment/compliment direct communication. AFF proposes a web based communication tool to augment/compliment direct communication. Consumers wish to purchase products they can TRUST. Consumers wish to purchase products they can TRUST. Consumer driven differentiation provides the competitive advantage that VBVC’s need to survive and thrive. Consumer driven differentiation provides the competitive advantage that VBVC’s need to survive and thrive.

11 Summary o All successful VBVC’s have been built by catering heavily to the consumer. o VBVC’s must establish constant dialogue with the consumer through variety of media. o Capacity building is important, but must lead with the consumer, not with capacity building. Many have gone bankrupt that way. o TRUST is the key word. Consumers must trust that the products we are providing do provide the attributes they seek.

12 Thank You


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