Strategies for medium-sized valuesbased food chains during growth processes
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1 March 2014 Dr. Susanne von Münchhausen Policy and Markets in the Agri-Food-Sector HealthyGrowth Project: Strategies for medium-sized valuesbased food chains during growth processes Susanne von Münchhausen, Anna Maria Häring, Kristin Schulz EU-Projekt HealthyGrowth (BÖLN), Working Group 2.1, IFSA Conference, Berlin, Funded by the German Ministry of Food, Agriculture and Consumer Protection with the Federal Program for Organic Agriculture and other forms of Sustainable Agriculture (BÖLN) University for sustainable development Schicklerstr. 5 D Eberswalde Prof. Dr. Max Mustermann HNE Eberswalde (FH) Modul Wirtschaftskreisläufe Seite 1
2 Overview Introduction Business development strategies Case study results Conclusions Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 2
3 How to manage the growth process without loosing the organic plus values? Standard organic: No extra values no premium prices? Easy values-based food marketing Who to realise? Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 3
4 Values-based organic food businesses Standard organic is not enough for a successful growth of small and medium-size businesses and initiatives. Organic-plus is important for the realisation of the marketing of high quality products and premium-prices. But! The extra values have to be transmitted to the consumer successfully. Common issues for growing businesses and initiatives: - Trust (consumers, chain partners) - Fairness (staff, upstream, downstream chain partners, animals.) - Reliabilty and good cooperation between chain partners Good strategies and well-working instruments are needed! Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 4
5 Objective and methodology Objective Analysis of business strategies which are put in place for the management of growth processes of values-based organic food chains. Methodology Literature review on typical challenges and used business strategies Testing: Analysis of the strategies of 3 case study businesses asking, Which strategies are put in place in the real businesses? and Have the strategies been working as expected? Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 5
6 Business development strategies Establishment of efficient and flat organisational structures, professionalization of management Marketing measures - High quality production - Pricing policy based on fairness, stability/flexibility - Promotion Sustainability - Strengthening the market position - Nature conservation, environmental protection, reduced emissions - Social engagement, regional development Cooperation/good communication with business partners - Trust, fairness - Transparency, controlling Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 6
7 Case study Bohlsen Mill Ltd Case 1 Type of business Main values Strategies Bohlsener Mühle GmbH & Co. KG ( nermuehle.de) Organic mill Bakery products: flour, seeds End-user products: cereals, cookies, bread Employees 160 We are a lively part of the society. Our core values are responsibility, trust and openness. Sustainability concept based on organic principles Excellent product qualities Open for improvements Reliable business relationship: close cooperation with producers assocociations, organic bakeries and Naturkost shops Regional engagement, sociocultural events Appreciative attitude towards staff Fostering corporate ID Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 7
8 Bohlsener Mühle GmbH Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 8
9 Rinklin Naturkost Ltd Case 2 Type of business Main values Strategies Rinklin Naturkost GmbH Organic wholesaler for fresh foods, groceries, drinks, chemist s products, natural cosmetics; >200 employees; 600 customers To be reliable partner: restaurants, shops, catering! Regional organic food is our first choice! Our logistic systems are up to date Providing local income and employment Fostering trust: open, fair internal/external communication, participation in decision making, reliable trade partnerships Efficient new cooling and transport systems Informing chefs: Gastro- Events on organic food/ cooking for chefs Positive image in the area: local vegetables/ fruits, bakery, meat products Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 9
10 Rinklin Naturkost GmbH Strasbourg Stuttgart Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 10
11 Kräutergarten Pommernland cooperative Case 3 Type of business Main values Strategies Kräutergarten Pommernland e.g. ( tergartenpommerlan d.de) Agricultural cooperative with 76 members Production and marketing of herbal tea mixtures Growing together! Cooperation and trust for job creation (team of 10 women) Production of organic health/wellness products from local agriculture and well known partners Cooperative spirit between within the team based on fairness and good communication Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 11
12 Herb Garden Pomerania Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 12
13 The case studies show successful businesses representing the centre of an organic values-based food chain and driving the chain. Bohlsen Mill and Rinklin grew out of local niche production up to businesses handling significant volumes. Kräutergarten has realised the integration of production, processing & marketing; the cooperative s strengths: a strong team, local embeddedness and over-regional marketing. All businesses sell organic products with additional values: organic plus. + Organic premium product marketing Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 13
14 Clearly defined business strategies of the three cases... were the basis of a successful growth process. secured distinct values adapted to the chain and the type of products. built on appropriate volumes of high-quality, differentiated, market-engaging food products. are coupled with value-adding stories of the region and regional practices. are drivers of the chain s development enhanced by trust, transparency and win-win relationships between chain partners. Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 14
15 Finally Successful food value chains show effective supply chain management and environmentally friendly production and logistic systems. Values-based food chains - relate to social and regional economic engagement, and - aim to claim regional embeddedness of businesses and initiatives. Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 15
16 Thank you! Dr. S. v. Münchhausen oder Dr. Susanne von Münchhausen HNE Eberswalde (FH) Projekt HealthyGrowth Seite 16
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2be or not 2be! www.2besatinalma.com. Address: Cumhuriyet Mah. Cumhuriyet Cad. Bey Center Plaza Kat 10 Daire 75 Esenyurt / İstanbul
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Omini on the Global Organic Market
Display problems? Please click here Update personal data Recommend the newsletter to others News on the global organic market: 1. USA: Organic food market up 16 % in 2008 2. College clothing made of eco-textiles
DB Schenker solutions for perishables you have a passion for the finer things in life. So do we.
DB Schenker solutions for perishables you have a passion for the finer things in life. So do we. When it comes to perishable goods we always keep a cool head. In order to ensure an uninterrupted cold chain