The AERU Value Chain Compass

Scale

Production

In the food and fibre sector, a greater volume of production typically requires an increase in land resources, which generally requires an increase in the number of participating producers. This can be a challenge, particularly for the launch of a new venture that has not yet demonstrated its commercial success.

It may also be challenging for a new venture to find sufficient production partners who are committed to delivering all the product attributes that support the perception by consumers that the product is high quality.

Questions for developing a value chain

• What volume of production is required for the value chain to be commerically viable?

• Are there sufficient potential production partners to meet this required volume of production?

• How can the value chain obtain the commitment of these potential production partners to delivering the product’s premium attributes?