Integrating Value Chains
Integrating Value Chains tested whether New Zealand’s world-renowned reputation for food and fibre would allow our producers and processors to capture higher returns for agri-food exports. This research delivered new knowledge about how international consumers value New Zealand food exports, especially from Māori enterprises. Five case studies of successful New Zealand value chains were researched, so learning from their success can be used by other businesses.
The Our Land and Water National Science Challenge funded this research programme from January 2017 to June 2019. It was part of a larger theme called Incentives for Change, whose goal is for New Zealand to produce high-value products across all sectors, and share more of this value from consumers to producers in a way that rewards good environmental, social and cultural practices.
Tools
The Value Chain Compass
The AERU’s value chain research produced a list of nine key characteristics of successful food and fibre value chains. Further work organised these key characteristics into a diagram that we are calling the Value Chain Compass. The Value Chain Copass offers a guide for enterprises wanting to create a new value chain, or to transform an existing supply chain into a value chain.
This has been developed into an online tool, through which users can delve into the knowledge, values and attributes that underpin successful value chains capable or returning market premiums back to New Zealand producers.
Publications
Governing Value Creation and Capture in New Zealand Agribusiness Value Chains: Research Briefing
Tiffany McIntyre, Caroline Saunders and Paul Dalziel
This Research Briefing is a summary written for a general audience of the major result in AERU Research Report 355 (which is available as the next publication in this list). It introduces the research question of moving from supply chains to value chains, and lists the 11 identified attributes associated with successful food and fibre value chains. There is a description of each attribute with some comments on what the researchers found in the programme’s five case studies. It finishes with an explanation of next steps in a new programme called Rewarding Sustainable Practices.
Governing Value Creation and Capture in New Zealand Agribusiness Value Chains: A Case Study
Tiffany McIntyre, Mark M.J. Wilson, Caroline Saunders, Paul H.K. Childerhouse, Paul Dalziel, William Kaye-Blake, Tanira King, Alistair Mowat, John Reid and John Saunders
This research addresses a key question in the Our Land and Water National Science Challenge concerning the creation and capture of value for New Zealand’s food and beverage exports. It investigates five case studies of established New Zealand global value chains to identify those value chain attributes important for the value chain to return value to the producer. The research developed a theoretical framework, which identified eight value chain attributes for exploration in the case study analysis. A further three attributes were revealed during the research. All five value chains highlighted the importance of ‘values’ to create ‘value’. While value is an important driver of chain activities, firms were largely concerned with developing relationships in which trust became an implicit factor, based upon a foundation of shared values, vision, and culture. The presence of these throughout the chain, in addition to supporting incentives, was crucial in ensuring alignment within the value chain. This and other key findings are described in the report.
Consumer insights and willingness to pay for attributes: New Zealand wine in California, USA
Peter Tait, Paul Rutherford, Tim Driver, Xuedong Li, Caroline Saunders, and Paul Dalziel
This research is funded by the Our Land and Water National Science Challenge from the programme Integrating Value Chains and is one of a series of four reports assessing consumer behaviour and preferences in-market. In addition, the report examines consumer use of media and technology to obtain information on and/or purchase products. This report is on consumer behaviour and attitudes towards purchasing, using and gaining information on wine (specifically Sauvignon Blanc) in California.
Consumer insights and willingness to pay for attributes: beef products in California, USA
Peter Tait, Paul Rutherford, Tim Driver, Xuedong Li, Caroline Saunders, and Paul Dalziel
This research is funded by the Our Land and Water National Science Challenge from the programme Integrating Value Chains and is one of a series of four reports assessing consumer behaviour and preferences in-market. In addition, the report examines the consumer use of media and technology to obtain information on and/or purchase products. This report is on consumer behaviour and attitudes towards purchasing, using and gaining information on beef in California.
Consumer insights and willingness to pay for attributes: New Zealand yoghurt products in Shanghai, China
Peter Tait, Paul Rutherford, Tim Driver, Xuedong Li, Caroline Saunders, and Paul Dalziel
This research is funded by the Our Land and Water National Science Challenge from the programme Integrating Value Chains and is one of a series of four reports assessing consumer behaviour and preferences in-market. In addition, the report examines the consumer use of media and technology to obtain information on and/or purchase products. This report is on consumer behaviour and attitudes towards purchasing, using and gaining information on yoghurt in Shanghai.
Consumer insights and willingness to pay for attributes: New Zealand kiwifruit products in Shanghai, China
Peter Tait, Paul Rutherford, Tim Driver, Xuedong Li, Caroline Saunders, and Paul Dalziel
This research is funded by the Our Land and Water National Science Challenge from the programme Integrating Value Chains and is one of a series of four reports assessing consumer behaviour and preferences in-market. In addition, the report examines the consumer use of media and technology to obtain information on and/or purchase products. This report is on consumer behaviour and attitudes towards purchasing, using and gaining information on kiwifruit in Shanghai.
The AERU Data Portal: An Introduction
Tim Driver, Paul Dalziel and Caroline Saunders
To help exporters capture these higher prices, the Agribusiness and Economics Research Unit (AERU) received funding from the Ministry of Business, Innovation and Employment for a programme undertaking original research in five key export markets (China, India, Indonesia, Japan and the United Kingdom) to discover how consumers understand these attributes. The programme was known as Maximising Export Returns, beginning on 1 October 2013 and finishing on 30 September 2016. In order to make the results from that research as accessible as possible, the AERU prepared an online data portal, which can be accessed on the current website.
Techologies and audit systems for authenticating food trust
Our Land and Water National Science Challenge
Collaborative value chains that effectively communicate credence attributes will help enhance New Zealand’s global reputation for sustainable and high quality primary products. This report describes technologies and systems that can assist New Zealand to capture greater value through the value chains for our food products.
The Governance of Value Creation and Capture in Agri-Food Supply Chains: A Conceptual Framework, Propositions and Protocols
Tiffany McIntyre, Mark Wilson, Birgit Schulze-Ehlers, and Paul Childerhouse
The concept of value is central to business operations and how the process of value creation and value capture is managed is a critical success factor to the performance of supply chains. There are various modes of chain wide governance which attempt to facilitate value creation and capture. However, while the concept of governance has been well researched at the internal and bilateral exchange level, the governance literature at the systems level is somewhat sparser. Hence, the objective of this research is to explore the relationships between value and collaborative governance at the network level. We offer a conceptual framework which highlights the decision making process of the focal firm in order to create and capture value under a network governance schema. The contribution being a multi-level view of value, allowing for further research to take place at the internal, bilateral and systems level of the supply chain. Further, we derive a series of primary and supporting value chain attributes that are said to facilitate network governance, value creation and capture. We offer a series of propositions for further testing relating to the value chain attributes of; market orientation, information enrichment, aligned incentives, channel leadership and integrated collaborative network governance. These are supported by the attributes of; co-creation, resilience, adaptability, and brand ownership and control. We argue that this holistic view of value chains add to the sparse end-to-end value chain governance literature and will be useful for practitioners wanting to enhance value creation and capture.
How Value Chains Can Share Land Value and Incentivise Land Use Practices: A White Paper
Caroline Saunders, Paul Dalziel, Mark Wilson, Tiffany McIntyre, Hilton Collier, William Kaye-Blake, Alistair Mowat, Tava Olsen and John Reid
This white paper was commissioned by the Our Land and Water National Science Challenge to test the hypothesis that the more collaborative a value chain is, the greater is the value that New Zealand producers, processors and manufacturers in the land and water sector can capture from profiling the desirable ‘credence attributes’ of its production systems (‘the New Zealand story’), targeted at consumer segments. The analysis in this paper draws on the published results of the MBIE-funded research programme, Maximising Export Returns, and a structured literature review based on the keywords “market orientation of value chains” and “food”.