IMPROVING THE FOOD VALUE CHAIN: Methodology and Case Studies
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1 IMPROVING THE FOOD VALUE CHAIN: Methodology and Case Studies Teresa Briz, PhD Technical University of Madrid (Spain) August 1st, 2017
2 Index Introduction Methodology Case studies Segovia and Aranjuez (Spain) Dominican Republic Peru Research limitations Final considerations
3 Introduction Food Value Chain is the new scenario of innovation and research While technology has been increasing in the food sector, socioeconomic and management research is behind Globalization processes need instruments to compare international experiences A basic instrument of analysis will be useful for academic and entrepreneurs GLOCAL analysis describes some instruments for a more efficient performance
4 Introduction - continued Market research may help in the decision process Analytical methods may be qualitative and quantitative Goals to reach are varied: healthy diet, better environment, lower costs, nicer landscape, optimization of natural resources, etc. In order to reach those goals, it is necessary to follow a methodology, combining resources available with capacity to organize and use them
5 Methodology Three scenarios to study: good and services, information and economic-financial flows It is crucial to pay attention to all the actors participating in the food chain Pay attention to all the actors participating in the food chain A GLOCAL approach means a global view and local analysis GLOCAL methodology is a mixture of the sector analysis, combining qualitative and quantitative techniques Preliminary period: exploratory or Global analysis The qualitative analysis may be performed through Focus Groups Compare experiences in other regions and countries
6 Value Chain Scheme Suppliers Information Flow Goods and Services Flow Production Transformation Distribution Consumer Financial Flow
7 Factors which affect the Food Value Chain Sociodemographic Changes Food Policy Research and Development Environmental Conditions Food Chain Foreign Trade Business and Economics Natural and Human Resources Firm Structure
8 Main Steps 1. Introduction 2. Socio-economic framework 3. Objectives of the study 4. GLOCAL methodology: Combine a global vision of the food market with a local specific performance Global vision includes three vertical scenarios that correspond to the different flows 5. Analysis of results: Evaluate the results of the methods applied SWOT matrix Multicriteria method for decision making process 6. Conclusions and proposals: Key findings and subsequent proposals for action to achieve the goals
9 GLOCAL Methodology 1st Step Introduction 2nd Step Socioeconomic Framework 3rd Step 4th Step Vertical Scenario Global Focus Analysis Goals and Services Information Flow Financial and Economic Flow 5th Step Horizontal Scenario Structure Conduct Performance A B Objectives of the study GLOCAL Methodology Local Focus Analysis C E G D F H Analysis of Results 6th Step Conclusions and Proposals
10 GLOCAL Methodology The horizontal stage includes three groups of factors: structure, conduct and performance. Structure: refers to organizational system on the Food Market. Business organization Barriers to enter and exit Organization of commercial channels Diferenciation of products and services Marketing channels
11 GLOCAL Methodology Conduct: includes the behavior of the social and economic agents. Conduct of the actors Failure or absence of regulations Inter-company relations Features hidden Hidden intentions Industrial espionage Bad production and market practices Abuse in the negotiation process Food scandals Behavior of public and private institutions
12 GLOCAL Methodology Performance: reflects the result of the elements of the Food Market Effectiveness and efficiency in management. Transparency: Vertical, horizontal Trust Dynamism Innovation Adaptability. Level of conflicts Degree of selfsuficiency Outsourcing -insourcing
13 GLOCAL Methodology Specific Local Approach: A. Dynamic analysis B. National or international comparative studies C. Analysis of competitiveness in different sectors D. Study of the interaction among actors in the Food Market E. Analysis of the outsourcing insourcing strategies F. Evaluate the strategies for different segments (local, regional, national, international)
14 Case study: Perú Production of cuyes (Cavia porcellus) Traditionally carried out by women in mountainous areas Poor production conditions Used as piggy bank
15 Case study: Perú - continued Project with Universidad de La Molina dealing with the whole Food value chain Feed for cuyes Production farms How to prepare them Development of a Brand Quero cuy Improvement in all the chain links: farms, marketing and prices (x4)
16 Case study: Segovia (Spain) Value chain of the roast pig Very popular in Spanish region, Segovia Related to specific zone, tourism 80 producers 4 slaughterhouses 15 distributors 32 restaurants 6 butchers
17 Case study: Segovia (Spain) - continued Slaughterhouses were the key points They need to classify the pigs according to a series of indicators All stakeholders have inspections to control everything is working Promotion of the Cochinillo de Segovia Brand
18 Case study: Dominican Republic New land owners producing rice Irrigated land Facing future problems Possibility of changing products Want to produce fruits and vegetables for hotels of the area
19 Case study: Dominican Republic - continued Study of the whole value chain Needs of hotels Production characteristics Possibility of association Interviews with the sales responsables of hotels, association of irrigators, wholesalers It is a win-win action
20 Case study: Aranjuez (Spain) Food chain does not work well Better for the environment Changing food habits Increases income of producers New demands on traceability, quality and food safety
21 Case study: Aranjuez (Spain) - continued Interviews along the whole Food chain All links willing to colaborate Lack of information among them New logo, organization and more producers PRODUCERS WHOLESALERS RETAILERS CONSUMERS RESTAURANTS ADMINISTRATION
22 Research Limitations Models are simplification of the real world to facilitate analysis and conclusions Models are useful instruments but we should be prudent in their application Dimension of variables may be superficial looking for interaction of different scenarios and conditions Lack of existing literature, basic information or statistics Personal background and opinion of researchers may create bias in the results
23 Final Considerations Glocal analysis gives a basic overview for the Food Value Chain Due to lack of time, knowledge, or budget, studies are very partial and thus are results and the corresponding actions to be developed Combining qualitative and quantitative instruments, GLOCAL methodology is flexible to the food market changes
24 THANK YOU Teresa Briz
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