Value Chain

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A business model based on shared economic, social, and environmental values, in which producers, processors, buyers, and others work together to create value.

"The concept “value chain” has evolved from supply chain management and encompasses not only the transactional relationships along a typical business chain but also the larger web of stakeholder relationships and “external” social and environmental impacts of any supply chain. For agriculture and other natural resource ventures, these value chains involve primary producers, intermediaries that aggregate production … and one or more businesses downstream in the chain (processor, distributor, food service or retail.)  All supply chains get goods from one place to another, but many create unintended consequences for people or nature because of financial pressures that select for short term profit at the expense of long term resilience. There are other kinds of supply chains which we differentiate by calling Healthy Value Chains which provide social and economic benefit to all players in the chain while providing greater protection for ecosystems and natural resources.” -Value Chain Best Practices: Building Knowledge for Value Chains that Contribute to the Health of Source Communities, Susan Sweitzer, Hal Hamilton, Don Seville

Documentation Type:
Glossary