![]() ![]() Lev and Stevenson highlight the advantages of acting collectively and joint learning within and across the value chains in four cases-(1) Country Natural Beef, a beef rancher cooperative in the NW US (2) Cooperative Regions of Organic Producer Pools (CROPP)/Organic Valley, a multi-regional organic farmer cooperative (3) Shepherd’s Grain, a business marketing sustainably grown wheat in the NW United States and (4) Red Tomato, a nonprofit, domestic fair trade business marketing regional produce in the northeastern US. Since the concept of VBSCs has emerged, various case studies have examined how value chain businesses have fared using this model. ![]() Nested markets, alternative food networks and VBSCs, then, all seem to have several common elements that engage food system partners in environmental, social and economic sustainability in regional food systems. 139) define nested markets as “… alternative agri-food chains which are embedded or (nested) in normative frameworks (and associated forms of governance) which are rooted in the social movements, institutional frameworks and/or policy programmes out of which they emerge … they are markets with a particular focus (sometimes underpinned by a specific brand, or a specific quality definition, or by relations of solidarity, or specific policy objectives, etc.)”. 183) state that, unlike the globalized conventional food system, a key characteristic of alternative food networks is “… their capacity to re-socialize or re-spatialize food” by either its production area or even a specific farm, which provides a quality dimension. These benefits also contribute to the higher quality of foods in the alternative food networks analyzed by Goodman, Ilbery et al. Overall, the goals of VBSCs are to: (1) provide greater economic stability for producers and others along the supply chain and (2) provide high quality, regional food to consumers.įor farmers, earning a premium above commodity prices for the environmental and/or social benefits that they generate through their production practices is an objective of VBSCs. Key benefits of VBSCs for participating farmers include: (1) they are more transparent than conventional supply chains values are communicated throughout the chain, providing buyers and consumers with information they need to pay more for these foods (2) they provide higher prices to participating farmers due to the chain’s strategic partnerships and the fact that buyers are willing to compensate farmers for particular values and (3) buyers in these supply chains are more willing to negotiate with farmers and often absorb some of the transaction costs and work with farmers or ranchers to source products on an on-going basis. These farmers and ranchers are most likely to fit this model if they produce significant volumes of high quality, differentiated food products can operate on a regional scale and are willing to distribute profits among strategic partners. VBSCs are increasingly seen as opportunities to create strategic business models for farmers and ranchers of the middle. We conclude with common themes that emerge for VBSCs of the future and what it will take to strengthen them within regional food systems. We analyze them regarding the common benefits of VBSCs: transparency, fair prices to farmers and ease of purchasing from small and mid-scale producers. After a brief overview of VBSCs, we then describe three cases-a specialty food manufacturer, a natural food cooperative and a regional “food hub”-representing different entry points along the food supply chain. ![]() Goals of VBSCs are to: (1) provide greater economic stability for producers and others along the supply chain and (2) provide high quality, regional food to consumers. Wholesale channels that provide marketing options for small and mid-scale producers and support these values are referred to as “values-based supply chains” (VBSCs). The “values” associated with these foods may be that they are locally produced, by small or mid-scale farms, or use production practices that enhance the environment. Consumers are increasingly interested in the “values” associated with the food they eat and are often willing to pay more for food for which there is a “story” that links farm to fork. ![]()
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