1. Putting Value Back in the Value Chain Iowa’s Value Chain Partnerships Project Rich Pirog – Associate Director Leopold Center

2. The Music Industry: decentralized to centralized and back again 1890 1945 2000 2001 2006 CENTRALIZEDDECENTRALIZED Individual Musicians Independent Record Labels Big Five Napster P2P From: the Starfish and the Spider: The Power of Leaderless Organizations

3. The Food Industry (System) 1880 1945 1990 2000 2015 CENTRALIZEDDECENTRALIZED Local farms –local markets Larger farms – Regional & national markets Five global retailers – huge farms Local food movement Networked local food – scaled up

4. Processors DistributorsMarkets (consumers) Focused beginning farmer programs Consumer market research Food safety and health Product and market authenticity Transaction costs Business/quality management Access to capital Capitalization strategies Technical assistance: R&D Production & Transaction costs Business planning & structure Marketing Certification Access to capital Capitalization strategies What must be present Community and state support and incentives to start and grow businesses Collaborative research and development Coordination of loan opportunities and technical assistance Culture of collaboration across funders, NGOs, universities, state agencies, and private sector – synchronized Technical assistance: R&D Transportation & logistics Transaction costs Business/quality management Product traceability Policy & Market incentives Technical assistance: R&D Processing innovation Co-location, transaction costs, Business/ quality management New business models with farmers, processors, and markets ( trade channels) Farmers Access to capital Capitalization strategies Policy and Market Incentives Supply Chain Approach to Developing Regional Food Businesses Farmers (direct market and farmer networks) Processors (local, regional, and national) Distributors (existing and new infrastructures) Markets (food service, retail, wholesale, direct) Policy & Market Incentives

5. Technical and financial assistance Hierarchical, Centralized, Siloed Difficult for businesses to negotiate Univ Extension Dept of Agric Marketing USDA Rural Development Ag Marketing Farm Bureau MarketingPolicy Production NGOs Community level Sustainable ag centers Cooperatives consultants Private sector ???

6. Value Chain Partners foster value chains that provide economic, social, and ecological benefits to Iowa farmers, communities, and landscapes.

7. Organization Orientation Network Orientation Mind-setCompetitionCollaboration “Coopetition” Strategy for Impact Grow the organization Grow the network field Typical Behaviors Compete for resources Protect knowledge Hoard leadership/staff Grow funding pie Share knowledge Disperse leadership StructureCentralizedDecentralized Why is Value Chain Partnerships (VCP) different? A network orientation (Forces for Good; L.R. Crutchfield and H.M. Grant 2008)

8. How we are different VCP communities of practice function as: Catalysts for cooperation of diverse interests to create solutions for producers and businesses; Catalysts for cooperation of diverse interests to create solutions for producers and businesses; Hubs which create, capture, document, leverage knowledge, and deploy this knowledge as technical assistance; Hubs which create, capture, document, leverage knowledge, and deploy this knowledge as technical assistance; Magnets to attract funding and for leveraging, channeling, and distributing funding; Magnets to attract funding and for leveraging, channeling, and distributing funding; Scouts to identify emerging opportunities with high potential to deliver economic benefits Scouts to identify emerging opportunities with high potential to deliver economic benefits

9. This is Value Chain Partnerships … (it’s a metaphor )

11. County-Based Regions – RFSWG 2008 Northeast Iowa Food and Farm Coalition South West Iowa Farm and Food Initiative Hometown Harvest of SE Iowa Northwest Iowa Regional Local Foods System Northern Iowa Food and Farm Partnership Marshall County Just pledged $30,000 year for 5 years

12. What we’ve done Supported more than 60 projects to address challenges across the chain and in communities Supported more than 60 projects to address challenges across the chain and in communities Raised more than $2.5 million since 2002 Raised more than $2.5 million since 2002 Involved 60-70 (farm or community-based) companies, consultants, organizations, and communities (Iowa and neighboring states) Involved 60-70 (farm or community-based) companies, consultants, organizations, and communities (Iowa and neighboring states) Started the MBA with minor in sustainable agriculture option at ISU Started the MBA with minor in sustainable agriculture option at ISU Accelerated R&D, marketing, and networking efforts in building value-based value chains (niche pork company cooperation) Accelerated R&D, marketing, and networking efforts in building value-based value chains (niche pork company cooperation)

13. The Asparagus Working Group!!

14. CoP Roundtable Niche Pork Regional Foods Small Meat Processing Fruit and Vegetables Grass- based Livestock Other CoPs* Value Chain Partners – “Knights of the Foodtable” Future Serves as a hub for many groups (state and regional level) All groups support the important work at the local level * Groups such as food policy council, farm-based energy, financial assistance, hunger Good Food Network Upper Midwest National Good Food Network eXtension NC SARE

15. Turning the Flywheel (in the Social Sectors): Implications for building Good Food farmer networks, buyers, TA providers-researchers Attract Believers Time Money Build Brand Emotion (heart) Reputation Demonstrate Results Mission Success Trend Lines (Indicators) Build Strength First Who…then what Sustainable networks Relentless focus on what you are good at, and what drives the resource engine Adapted from Good to Great and the Social Sectors – Jim Collins

16. www.valuechains.org Rich Pirog E-mail: rspirog@iastate.edu Rich Pirog E-mail: rspirog@iastate.eduspirog@iastate.edu Regional Food Systems Working Group