Midscale Food Value Chains: An Introduction

By G. Stevenson, K. Clancy, Robert P. King, L. Lev, M. Ostrom, Stewart N. Smith. 2011

123 citations recorded by the source corpus.

This introductory discussion positions midscale food value chains as business models for a "third tier" in the U. S. food system, distinct from direct marketing to local consumers and global marketing of agricultural commodities. Responding to a growing demand for food that is differentiated from conventional products, midscale food value chains are developing strategic business alliances among small and medium sized farms or ranches and other agri-food enterprises. These supply chain alliances: (a) handle significant volumes of high-quality, differentiated food products; (b) operate effectively at regional, multistate levels; and (c) distribute profits equitably among the strategic partners. Value chain business models place emphasis on both the values associated with the food and the values associated with the business relationships within the food supply chain. Farmers and ranchers are treated as strategic partners, not as interchangeable input suppliers. Midscale food value chains employ two distinct, multifarm marketing strategies: direct-to-wholesale and direct-to-consumer. Both marketing strategies are based on organizational structures that achieve the necessary volumes of high-quality, differentiated food by aggregating product from multiple farms or ranches. The introduction concludes with a discussion of the challenges associated with developing successful midscale food value chains and of needed research and public policies to support the growth of this third tier.

Subfields: General Agricultural and Biological Sciences, Plant Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/575676887231467084c0037f27a158b205016e11

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In General Agricultural and Biological Sciences

In Plant Science

In Strategy and Management

Citations in the corpus

Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems (2016, background): “[60] explain from an economic and business theory perspective how the co-production of value along VBSCs occurs and that is very helpful for the understanding of the FHs’ nature.”
The economic potential of agroecology: Empirical evidence from Europe (2019, background): “Medium-scale value-based food chains (VBFCs), which bring together like-minded partners along the supply chain, are one mechanism that can create the conditions for scaling up agroecological production (Stevenson and Pirog, 2008; Stevenson et al., 2011; Pirog and Bregendahl, 2012).”
Agroecology territories: places for sustainable agricultural and food systems and biodiversity conservation (2016, background): “Moreover, it is also important to reestablish a consumer–producer link and reduce food systems carbon footprint through direct selling or community supported agriculture (CSA), or with midscale values chains (Lev and Stevenson 2011; Stevenson et al. 2011).”