Uara Tauhokohoko Mākete -
Value Chains & Market

He Ara Tauhokohoko, He Ara Tukutuku

Value Chains & Supply Chains

The terms "food value chain" and "food supply chain" are often used interchangeably, but there are subtle differences between them:

  1. Food Value Chain: He Ara Tauhokohoko 
    • Focuses on the creation of value at each stage of the food production and distribution process.
    • Emphasises the addition of value to the product as it moves through various stages, from production to consumption.
    • Considers factors such as quality enhancement, differentiation, and consumer preferences.
    • May incorporate aspects such as branding, sustainability practices, and cultural elements as well as alignment of values between the various players in the value chain.
  2. Food Supply Chain: He Ara Tukutuku 
    • Refers to the entire network involved in the production, processing, distribution, and consumption of food products.
    • Encompasses the flow of goods, information, and finances from raw material suppliers to end consumers.
    • Emphasises the logistical and operational aspects of moving food products from producers to consumers efficiently and effectively.
    • Includes considerations such as transportation, warehousing, inventory management, and demand forecasting.

While the food value chain focuses on the creation of value and differentiation at each stage of the food production process, the food supply chain encompasses the broader logistical and operational aspects of moving food products from producers to consumers.

He Ara Uara Tauhokohoko Kai

Food Value Chain

A food value chain is a complex system involving multiple interconnected stages and stakeholders. When considering what a value chain is more often it refers to the value that can be added along this chain by the various players in the chain e.g. processors & logistics operators. However the role of how actual ‘values’ i.e. a ‘values chain’ can play is a different though no doubt more difficult path to go along.

It is envisioned though, and in some instances already coming into practice, that technologies such as block chain and artificial intelligence will aid and through time even force the alignment of values and transparency in a value chain system. This along with growing consumer and market pressures through wanting to know how their food is produced, who is producing it and where it comes from will also have an impact. 

Nevertheless despite such pressures it is still a difficult task for producers to have an effect and influence over other parts of the value chain, align values and create transparency particularly if they lack the scale and resources to do so. What can help though is through having an understanding of the elements that make up a value chain and how value can be added through the use of values and transparency.

Understanding the links in a value chain
  • Farming: Farmers grow crops or raise livestock.
  • Fishing: Fishermen catch seafood.
  • Forestry: Foresters harvest timber or gather forest products.
  • Processing: In some cases, processing may begin at this stage with initial cleaning or sorting of agricultural products.
  • Primary Processing: Raw products are processed into intermediate goods. For example, potatoes might be processed into fries, or milk might be pasteurised.
  • Secondary Processing: Intermediate goods are further processed into final food products. For instance, flour might be used to make bread, and milk might be used to produce cheese.
  • Transportation: Processed food products are transported from processing facilities to distribution centres or wholesalers via trucks, trains, ships, or planes.
  • Warehousing: Products are stored in warehouses or distribution centres before being distributed to retailers.
  • Wholesaling: Wholesalers purchase products in bulk from producers and sell them to retailers.
  • Supermarkets/Grocery Stores: Consumers purchase food products from supermarkets or grocery stores.
  • Farmers' Markets: Consumers buy directly from local farmers and producers.
  • Restaurants/Cafes: Consumers dine out and purchase prepared meals.
  • Preparation: Consumers prepare food products at home or eat out at restaurants.
  • Consumption: Consumers eat the food either at home, in restaurants, or on-the-go.

Throughout the value chain, there are also supporting activities such as quality control, packaging, labelling, marketing, and waste management. Additionally, various regulations and certifications may apply at different stages to ensure food safety, quality, and compliance with environmental and social standards.

A Foundation of Values Underpins Te Taiao

A Foundation of Values Underpins Te Taiao

Manawa Honey is from deep in Te Urewera forest Ruatāhuna, Te Manawa o te Ika-a-Maui. Photo: Manawa Honey

Revitalise te Taiao focused on value chains and markets with te Taiao central to the kaupapa. As a leading example Manawa Honey from Ruatāhuna was invited to be the special keynote speakers at the value chains and market wānanga held in Wānaka. This provided Ngā Kaiurungi Taiao (the three place-based pilots: Te Kahui Rau, Rere ki Uta Rere ki Tai and Knowledge into Action for Te Taiao) with an insightful opportunity to listen and learn directly from Manawa Honey about what it truly means to uphold values in business, and how you can design and develop your own value chain.

Tūturutanga (authenticity) and tikanga (values) are foundational to Manawa Honey’s value chain, located deep in the heart of Te Urewera indigenous forests, homeland of the tribe of Tūhoe. The provenance of te Taiao, forests, soil, climate, and diversity of vegetation is the magic blend of Manawa Honey’s liquid gold.

CEO Brenda Tahi said: “We are a Tuawhenua Trust responsible for 9000 ha of whenua; 25 blocks in Ruatāhuna; we have nine hapū and nine marae.  We decided that as a trust we had to be more than just a kaitiaki. Brenda and the whānau knew the value of their honey, they just needed the world to taste and see it as they did. Te Taiao (environment/nature) continued to refine their honey and craft their story.

In 2021, Manawa Honey’s Rewarewa won the Grand First Prize in the 10th Black Jar International Honey Tasting Contest held in Asheville, USA. Manawa Honey is now labelled the world’s best-tasting honey.

Manawa Honey’s rewarewa won the Grand First Prize in the 10th Black Jar International Honey Tasting Contest held in Asheville, USA 2021. Photo: Manawa Honey

Manawa Honey CEO Brenda Tahi and marketing executive Karioi Ki Tahuaroa White. Photo credit Manawa Honey

Manawa Honey Ruatahuna. Photo: Manawa Honey

The Revitalise te Taiao whānau shared what inspired them the most about the Value Chain & Market wānanga and how they will move forward:

Knowledge into Action for Te Taiao is led by WAI Wānaka in the Upper Clutha district

Acknowledging that there are farmers in the Upper Clutha district who have been undertaking successful diversification activities for some time, Knowledge into Action for Te Taiao investigated land use and value chain opportunities for the catchment which could lead to positive outcomes for the environment as well as financially sustainable outcomes for farm businesses. The project included consideration of pathways for farm business succession, encouragement for farmers to better understand the natural resources they work with and creation of connections between likeminded farmers to build relationships that could lead to future collaboration options within the catchment. 

Workshops were held with 12 landowners to move through a process of selecting a long list of possible enterprises which included a wide range of fruit and protein options as well as some options adjacent to more traditional farm enterprises. Each was tested through a multi criteria decision making model to objectively determine the most promising ones. From there, deep dives were completed on the top scoring enterprises, bringing in industry experts to support landowners and the WAI Wānaka team to better understand the opportunities and challenges that each may bring.

Through this series of workshops, sufficient interest was uncovered for landowners to continue to engage on these possible enterprises, with landowner groups being formed to continue to deepen the assessment of each opportunity. WAI Wānaka will continue to support this work as part of our rural programme.

Taiao Manawa Ora Seminar

Value Chains & Market

To gain further insight and understanding into Value Chains & Market from a Māori Agribusiness perspective Revitalise te Taiao invited Dr John Reid to present at the Taiao Manawa Ora seminar held in Wellington in November 2023.

As a guest speaker Dr Reid presented research findings – Whenua, Life & Values – Māori Agribusiness Key Ingredients for Success. The research focused on five key points.

  1. Matatau – Access to skills and knowledge
  2. Huamoni Access to Finance and Working captital
  3. Whakatairanga - Pathways to market
  4. Whakawhanaungatanga - Networks, relationships, and trust
  5. Whakareitanga – Regulatory Environment

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Transparency Reports & Impact Assessments

Publish annual transparency reports and impact assessments that document the social, environmental, and economic outcomes of value chain activities. This could include metrics on mana & mauri of soil, carbon emissions, water usage, biodiversity conservation, and community development indicators, providing stakeholders with a comprehensive understanding of the value chain's performance and areas for improvement.

By incorporating these ideas into value chain development efforts, stakeholders can create cultural, transparent, ethical, and sustainable systems that honour the interconnectedness of te Taiao, people, place, and consumers.

Cultural Protocol & Respect

Incorporate cultural protocols and practices into value chain activities, ensuring that all interactions with the land, waterways, and natural resources are conducted with respect and reciprocity. This could involve consultation with mana whenua, knowledge holders, and cultural advisors to ensure that value chain activities align with cultural values and traditions.

Regenerative Agriculture & Land Stewardship

Promote kaitiakitanga and regenerative agriculture practices that prioritise mana whenua and landowner knowledge, soil health, biodiversity conservation, and carbon sequestration. This could involve supporting whanau & hapu, and landowners in implementing agroecological techniques, reforestation projects, and habitat restoration efforts that enhance ecosystem resilience and vitality.

Consumer Feedback & Engagement

Engage consumers in dialogue and solicit feedback on their preferences, values, and expectations regarding transparency and sustainability. This could be tested through kanohi-ki-te-kanohi and digital surveys, focus groups, or interactive forums where consumers can voice their opinions and contribute to the development of more transparent

Environmental Monitoring & Reporting

Implement environmental monitoring and reporting systems to track the impact of production activities on local ecosystems and communities. This could include regular audits, data collection initiatives, and community-based research projects that assess the social, environmental, and cultural implications of value chain activities.

Supply Chain Partnerships

Forge partnerships between producers, processors, logistics providers, wholesalers and retailers to create transparent and mutually beneficial supply chains. This could involve direct sourcing agreements, fair pricing mechanisms, and collaborative decision-making processes that prioritise the well-being of producers and the environment.

Cultural Storytelling & Education

Use storytelling and educational initiatives to raise awareness about the cultural significance of products and the importance of preserving traditional knowledge and practices. This could involve hosting community events, workshops, or virtual tours that showcase the connection between te Taiao, people, place, and the products consumers purchase.

Maori/Community - Led Certification & Labelling

Establish a certification or labelling system that highlights products sourced from Maori-owned or environmentally sustainable enterprises. This could include labels indicating adherence to traditional land management practices, organic farming methods, or fair trade principles e.g. to take a step further the labels are printed with vegetable ink from a facility powered by renewable energy!!

Incorporating Maori knowledge & Practices

Value chains can integrate Maori knowledge and practices related to environmental stewardship, resource management, and cultural preservation. Local communities can be actively involved in decision-making processes, drawing on their deep understanding of the land, waterways, and ecosystems.

Digital Platforms for Transparency

Develop digital platforms or mobile applications that provide consumers with real-time information about the origin, production methods, and environmental footprint of products. This could include interactive maps showcasing the journey of products from farm to table, stories about local producers, and data on sustainability metrics.

Community-Owned Enterprises

Promote the establishment of community-owned enterprises that prioritise transparency, accountability, and equitable distribution of benefits. These enterprises could involve local farmers, artisans, and entrepreneurs working collaboratively to produce and market goods while respecting cultural and environmental values.

Developing a Transparent Value Chain

 

Value chains and markets with a te Taiao, people, and place perspective can operate by fostering sustainability, cultural resilience, economic empowerment, and community well-being. They recognise the interconnectedness of environmental, social, and cultural factors and strive to create inclusive and equitable systems that benefit all stakeholders.

Developing a transparent value chain from the perspective of te Taiao, people, place, and consumers can involve integrating Te Ao Maori knowledge and sustainable practices into every stage of the production and distribution process. Examples of this could be as follows: