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Task force explores business, marketing systems for mid-size agricultural operations

gly demanding what farms and ranches-of-the-middle alone can produce – significant volumes of foods that have superior flavor and and nutrition.

An added benefit is that consumers know how their food is produced and by whom. Consumers can “see” the transparent supply chains that are built on business relationships they can trust and want to support. The president of the SYSCO Foods Corporation, whose company is collaborating with the agriculture-of-the-middle task force, describes the three food qualities his customers seek: memory, romance and trust.

The growing interest in organic foods and “fair trade” food products, such as coffee and bananas, are examples of this new, expanding market. Other examples include the growing demand for artisan cheeses, baked goods made of specialty grains, and meats and poultry guaranteed to be hormone- and antibiotic-free.

“We”re talking about a system that will have highly differentiated, high-quality foods distributed in volumes that are significant,” says Stevenson.

Stevenson foresees that to be successful, this emerging food system of the middle will need to be built on new business partnerships. Known as “value chains,” these business partnerships with food processors, distributors and retailers differ from traditional food supply chains in that farmers and ranchers are treated as strategic partners. Emphasis is placed on inter-organizational trust, and shared information (transparency) and decision making.

Value chains make deliberate commitments to the welfare of all partners in the chain. They typically provide fair profit margins, fair wages and appropriate business contracts.

“Instead of concentrating wealth in ways that often deprive rural communities of real economic health,” says Stevenson, “such new business models are designed to expand wealth, creating economically healthy farming and ranching communities.”