Value Chain Program

July 2008 

The Value Chain Program is intended to grow and diversify Saskatchewan's agricultural economy by supporting the development of value chains.

The Saskatchewan Ministry of Agriculture provides financial support and technical expertise to qualifying applicants for the purpose of promoting, developing and implementing value chains in Saskatchewan.  Developing collaborative alliances among producers, processors, wholesalers, distributors, and/or retailers is a fundamental part of a value chain.

Potential projects are evaluated according to criteria in four areas: project design, economic impact, applicant capabilities, and value chain development.  The program may provide up to $100,000 per project.

What is a Value Chain?

Agricultural value chains can include three or more of the following: producers, processor, 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 marketplace through co-operation, communication and co-ordination.

The partners within the value chain:

• will work together to identify objectives.
• will invest time, energy and resources to make the relationship work.

For example, a group of bison producers decide to market their bison together.  They establish a marketing group.  The marketing group identifies a retailer interested in purchasing the bison.  The bison producers establish a production protocol for their bison that meets the demand of the retailer.  The marketing group works with the processor and the retailer to develop a line of products required and packaging.  Once product movement is established, the partners continue to work together to identify and develop new products and also identify areas where costs could be lowered for all value chain partners.

Eligibility Criteria

To be considered for the Value Chain Program, projects must:

• differentiate a product in the marketplace based on a specific consumer demand, or 
• establish or enhance food safety or quality assurance programs.

Plus:

• Applicant must be a producer/group of producers, processor, distributor, broker, wholesaler or retailer.
• Applicant must be Saskatchewan-based. For a group of producers, a majority must be Saskatchewan-based.
• Projects must involve food, feed or bio-products.
• Applicants must have a producer or group of producers as a partner or be seeking a producer or group of producers as a partner.

Project Evaluation

Potential projects are evaluated according to the following criteria: economic impact, applicant capabilities, project design, and value chain development.

Funding

Saskatchewan-based applicants can apply for funds under two phases:

Phase 1 - Development of Supply: For potential value chain projects that need to identify partners, particularly producer partners.  Projects will focus on the development of the supply of raw product from producers.  Phase 1 projects are eligible for up to $30,000.

Phase 2 - Market Development:  For projects with established producer or group of producers that will focus on marketing and promotion of their unique product line.  Phase 2 projects are eligible for up to $70,000.

Phase 1 and 2 projects will be supported up to 50 per cent of the eligible costs.

Eligible Activities

Phase 1

• Market assessment
• Test marketing
• Targeted trade shows
• Meetings with supply group
• Value chain design
• Development of production protocols
• Organizational development activities

Phase 2

• Marketing plans
• Targeted trade shows
• Development of identity preservation systems
• Development of marketing and point-of-sale materials
• Development of food service/retail presentations

Eligible Costs

• Professional, legal and technical fees
• Project management costs
• Travel and meeting costs
• Equipment rental/leasing costs
• Trade missions
• Costs incurred by value chain partners

Ineligible costs

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

Contract requirements

Where funding is approved, Saskatchewan Agriculture will enter into a contract with the applicant to carry out the work described in the application.

Confidentiality

Where projects are approved for funding, the title, name of applicant, project objectives, 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 Saskatchewan Agriculture.

Application forms

Application forms are available from the Value Chain Development Specialist.                                                                                                       

For more information, contact:
Saskatchewan Agriculture
Value Chain Development Specialist
3085 Albert Street
Regina, SK  S4S 0B1
Phone: (306) 787-8537
E-mail: gary.coghill@gov.sk.ca

Saskatchewan Agriculture
Agri-Business Development Specialist
www.agriculture.gov.sk.ca/RegionalDevelopmentTeams