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Putting Value Back in the Value Chain

Putting Value Back in the Value Chain. Allen R. Williams, Ph.D., PAS. Tallgrass Beef Company. Grass Fed – No Grain. Source Verified. No Fed Antibiotics. No Added Hormones. No Animal Byproducts. Verifiable Protocols. Network of Producers. Heritage Genetics. Ultrasound Selection.

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Putting Value Back in the Value Chain

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

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

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

  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 Retailer (Grocer, HRI) E-Commerce Data Sharing Loop Custom Grazer/Finisher Distributor Selected Processor

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

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

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

  10. Value Chains – AFF Point of View • 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. • AFF proposes a web based communication tool to augment/compliment direct communication. • Consumers wish to purchase products they can TRUST. • Consumer driven differentiation provides the competitive advantage that VBVC’s need to survive and thrive.

  11. Summary • All successful VBVC’s have been built by catering heavily to the consumer. • VBVC’s must establish constant dialogue with the consumer through variety of media. • Capacity building is important, but must lead with the consumer, not with capacity building. Many have gone bankrupt that way. • 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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