The AERU Value Chain Compass

Scale

In the research programme’s case studies of emerging value chains, scale was one of the key decisions that had to be made by the chain leadership. A higher volume of products might reduce the average cost of production and processing, for example, while a lower volume might preserve artisan values that contribute to consumers’ perception that the offering is a high quality, premium product. In the food and fibre sector, scale typically involves three considerations that must all be addressed simultaneously:

• The volume of production in the value chain.

• Investment in, or payment for, processing capacity.

• The size of the value chain’s target market segment.