improving the food value chain: methodology and...
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IMPROVING THE FOOD VALUE CHAIN: Methodology
and Case Studies Teresa Briz, PhD
Technical University of Madrid (Spain)
August 1st, 2017
Index Introduction Methodology Case studies
• Segovia and Aranjuez (Spain) • Dominican Republic • Peru
Research limitations Final considerations
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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
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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
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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
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Value Chain Scheme
Suppliers
Goods and Services Flow
Production Transformation Distribution Consumer
Financial Flow
Information Flow
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Factors which affect the Food Value Chain
Food Chain
Sociodemographic Changes
Firm Structure Foreign Trade Research and Development
Food Policy
Environmental Conditions
Business and Economics
Natural and Human Resources
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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
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GLOCAL Methodology Introduction
Socioeconomic Framework
Objectives of the study
GLOCAL Methodology
Global Focus Analysis Local Focus Analysis
Vertical Scenario Goals and Services Information Flow Financial and Economic Flow
Horizontal Scenario Structure Conduct Performance
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Analysis of Results
Conclusions and Proposals
1st Step
2nd Step
3rd Step
4th Step
5th Step
6th Step
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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
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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
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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
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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)
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Case study: Perú
• Production of cuyes (Cavia porcellus)
• Traditionally carried out by women in mountainous areas
• Poor production conditions • Used as “piggy bank”
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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)
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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
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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
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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
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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
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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
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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
ADMINISTRATION
RESTAURANTS
CONSUMERS
RETAILERS
WHOLESALERS
PRODUCERS
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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
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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
