The Agricultural Adaptation Council (AAC) has adopted a Value Chain Initiative (VCI) designed to facilitate and promote the formation of alliances across Ontario’s agri-food sector.

The Value Chain Initiative aims to build awareness and assist potential participants in developing the capabilities they need to form strategic alliances with other organizations and establish a successful value chain. To assist the formation of specific value chains, AAC plans to make available seed funding and assist with providing third-party management expertise, if needed.

The AAC has committed nearly $300,000 through September 2003 to the value chain concept. AAC’s Value Chain Facilitator, Martin Gooch, says that such alliances offer significant benefits by strengthening ties among producers, processors, retailers and distributors. AAC’s initiative will focus on “developing capabilities to differentiate products or identify other opportunities to increase profitability in a sustainable manner.”

The Value Chain Initiative incorporates learning gained from programs already in existence in Canada and overseas to address issues facing Ontario’s agri-food industry.

Such issues include reduced commodity prices, foreign subsidies, increasingly quality-conscious consumers, and food safety.

“Understanding these issues in a global context,” says Gooch, “is critical to enhancing the international competitiveness of Canada’s agri-food industry.”

A national value chain conference planned for June 2003 is a key element in AAC’s initiative. Internationally recognized experts from Australia, United Kingdom and Canada will speak about value chains from the perspective of producers, processors, retailers and other participants. Details of the conference are available.

Through the conference and ongoing communications efforts, AAC aims to raise awareness about the value chain concept and what specific value chains have achieved in other locales.

“Value chain management requires organizations to think differently about how they conduct business,” says Gooch. “AAC’s initiative will focus on building an environment in which Ontario’s agri-food industry can support the widespread acceptance of value chain business practices.”

In the longer term, AAC will explore the possibility of introducing university undergraduate and executive courses on value chains. Tom Smyth, an AAC executive member and a strong advocate of value chains, says AAC’s initiative will encourage collaboration among organizations operating at all levels of the agri-food industry. The AAC – with board members representing many Ontario agriculture and agri-food sectors – is in a strategic position to encourage alliances.

“We believe that the Value Chain Initiative will help the industry become more consumer focused.” “Operating as individuals, farmers and other food industry organizations have little control over the environment within which they operate, which limits their overall business options,” says Gooch. “Partnering to create an integrated value chain gives them more control over their trading environment.”

 The Agricultural Adaptation Council is a non-profit coalition of 55 agricultural, agri-business and rural organizations working together to support Ontario’s agricultural sector and rural communities. The AAC receives its funding through Ontario’s share of Agriculture and Agri-Food Canada’s Canadian Adaptation and Rural Development (CARD) fund. The AAC supports projects that foster long-term growth, self-reliance, competitiveness and employment for Ontario agriculture. Anyone interested in learning more about AAC’s Value Chain Initiative is invited to contact Martin Gooch at (519) 822-7554 or Martin's e-mail.

-- 30 -- For more information: Martin Gooch, Martin's e-mail or

Mary Jarvis, Mary's e-mail