The Value Chain Program

Working Together For Success | What is a Value Chain? | Funding – What Does a Value Chain Involve? | Eligible Activities | Eligible Costs | Ineligible Costs | Regional Development Team | Confidentiality | Contact Us | Download Brouchure

Last Reviewed : February 8, 2006

Working Together For Success

Value chains are all about working together. By co-operating with others in the supply chain – from the producer through to the consumer – value chain members build their competitive advantage, identify sustainable marketing opportunities, and improve their response to market demand. Saskatchewan Agriculture and Food’s Value Chain Program can help, by providing financial support and technical expertise to value chain members. We can all work together to grow and diversify Saskatchewan’s agricultural economy.

“Our value chain enabled us to establish the type of rapport with several chain partners that wouldn’t have been possible otherwise. We are a common alliance dedicated to finding new consumers for lamb products.”– Gordon Schroeder, Canadian Prairie Lamb

“The value chain approach to business development is based on sharing information relative to the needs of each member link in the supply chain. Our success depends on each value chain partner’s success.”– Sandra Purdy, Prairie Berries

What is a Value Chain?

Agricultural value chains can include three or more of the following: producers, processors, distributors, brokers, wholesalers, retailers and consumers. Value chains are market-driven, rather than supply-driven. These groups partner to respond more effectively to the needs of the market place through co-operation, communication and co-ordination. The partners within the value chain:

• will work together to identify objectives
• are willing to share risks and benefits
• will invest time, energy and resources to make the relationship work.

Here’s an example: A group of lentil producers work with a processor and a retailer to develop a new lentil soup for the market place. The retailer helps the producers work with the processor on the packaging, and provides information on retail pricing requirements. The producers secure a long-term contract with the marketer for a specific quality and grade, and the processor is guaranteed ingredient supply for the term of the contract. The retailer provides feedback to the processor and producers regarding sales, inventory, and consumer comments. These comments are used to improve the product.

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Funding – What Does a Value Chain Involve?

To be considered for the Value Chain Program, projects must contribute to the growth and diversification of Saskatchewan’s agriculture industry, and involve the development of a value chain. In addition, the project must involve one or more of the following:

• differentiate a product in the marketplace
• reduce system costs
• build, establish and/or enhance food safety or quality assurance programs, or
• respond to a specific consumer demand.

Potential projects are evaluated according to criteria in four areas: project design, economic impact, applicant capabilities and value chain development. The Value Chain Program funds will be allocated to successful Saskatchewan-based applicants in two phases.

Phase I: Building Awareness and Education, Concept Development and Training (maximum $30,000 per project):

• For potential value chain projects in the early stages of development, at the idea or concept stage; and
• For training events that will increase awareness of value chains, and/or increase Saskatchewan’s expertise in value chains.

Phase II: Proposed Value Chain Initiatives and/or Implementation (maximum $70,000 per project):

• For proponents that are in a working value chain with at least three links of the supply chain involved, and where the opportunity has been clearly identified. 

Projects will be supported up to 50 per cent of eligible costs. The amount of funding allotted will be determined by the degree of financial need and the benefit to Saskatchewan’s agriculture and food industry. Additional consideration may be given to projects making a significant contribution to the industry.

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Eligible Activities

The following development activities are eligible for assistance:

Phase I: Building Awareness and Education, Concept Development and Training

• market assessment
• product development
• test marketing
• preliminary feasibility analysis
• market verification of opportunity
• education and awareness projects
• limited funding for trade shows

Phase II: Proposed Value Chain Initiatives and/or Implementation

• organizational development
• detailed feasibility analysis
• business plan development
• marketing plan
• value chain design
• limited funding for trade shows and missions
• initiating and managing a value chain pilot project
• traceability/identity preservation system development
• quality assurance and/or food safety system development

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Eligible Costs

• Professional, legal and technical fees
• Project management costs
• Travel and meeting costs
• Equipment rental/leasing costs
• Trade missions (Phase II only)

Ineligible Costs

• Operating costs
• Capital purchases (e.g. equipment, land, computers)

Access Your Regional Development Team

The Regional Development Teams at Saskatchewan Agriculture and Food's nine regional offices around the province can help explore your ideas, answer questions and assist with the application process. Call the Agriculture Knowledge Centre at 1-866-457-2377 to find the office nearest you.

Confidentiality

Where projects are approved for funding, the title, name of applicant, objective and amount of funding are considered to be public information. Project results are considered to be public information unless the applicant has negotiated confidentiality of results with SAF.

Contact Us

3085 Albert Street
Regina, Saskatchewan  S4S 0B1
Phone: (306) 787-8523
www.agr.gov.sk.ca

The Value Chain Program is part of the Food Safety and Quality Chapter of the federal/provincial Agricultural Policy Framework.