The AERU Value Chain Compass

Collective Values

At the centre of the Value Chain Compass is Collective Values. ‘Value’ is used here in two senses:

• Economic value, measuring the value chain’s contribution to social wellbeing through providing goods and services at a price greater than the cost of production.

• Social and cultural values, reflecting norms and practices that are considered by a community to be an essential part of leading a good and meaningful life.

Collective values, in both senses of the word ‘value’, act as glue in a value chain. Unless the value chain is able to create and sustain collective economic value, for example, it is not viable and will not endure. Collective social and cultural values strengthen bonds along a value chain from the producers to the consumers, and also contribute to collaborative governance and management of the value chain.

There are many values that may be relevant to a particular value chain, but the research underpinning the Value Chain Compass concentrated on five sets of inter-connected social and cultural norms:

• Consumer wellbeing, including food safety, nutritional value and other health benefits.

• Animal welfare, including animal health, good feed, and ability to express normal behaviour.

• Environmental stewardship, including water quality and low greenhouse gas emissions.

• Social responsibility, including worker safety, living wages and community contributions.

• Cultural authenticity, including family farm traditions and Indigenous enterprises.

These values become articulated values when they are collated into a formal statement, which can provide a strong foundation for the value chain’s brand trusted by its consumers and producers.