WealthWorks considers any person, business, agency or organization that is involved in a value chain a “partner.” Some value chain partners are very involved with the coordinator in thinking about, designing and building the value chain. Some are aware of the chain and supportive, but dip into the work of constructing the value chain only in relation to their specific contribution or connection to its effort. A few partners may be largely unaware they are even in the value chain, but because other partners and the coordinator are aware of those partners’ value, they maintain relationships with them.
There are three primary types of partners in a value chain—demand, transactional and support—and they each play different roles.
There are three primary types of partners in a value chain, and they each play different roles.
Demand partners are the buyers who have significant interest or commitment to buy your products or services. Any market opportunity that you want to address through a value chain is defined as a market opportunity primarily because you have developed relationships with buyers and documented their actual demand for something you can do or make in your region. Demand partners are in your value chain by necessity and default—without them, you are producing on blind faith that someone will buy what you make or do.
Some demand partners are interested in more than price and supply. They might buy goods produced through your value chain specifically because of additional wealth-building benefits—and thus might be willing to invest in it further.
For example, in weighing several options for buying organic tomato soup, your WealthWorks value chain might offer the buyer more because you provide soup that is processed in a zero-emissions facility and packaged in biodegradable containers, or because it benefits small growers and provides apprentice opportunities for new farmers. If this buyer is a high-end national grocery store company, and it wants to beef up its local and organic food offerings, it might make a commitment to become a support partner by providing funding or technical assistance to help more farmers in the region get certification as organic growers.
Once your value chain develops solid, trusting relationships with them, demand partners can also help identify new market opportunities and new product ideas. Getting to this kind of relationship with demand partners is key to developing resiliency.
Transactional partners are the businesses, organizations and people that play a direct role in sourcing, producing and distributing the actual product or service you are delivering to the demand partners. Who becomes a transactional partner depends on what must happen to turn local resources into the product or service the buyers want—and then get it to the buyers. Transactional partners typically include businesses or others that:
Because our organic tomato soup value chain partners started by building relationships with demand partners, they realized that the local school district and regional hospital needed organic tomato soup in quantity. They also found other buyers that wanted to sell the soup retail to individual consumers inside and outside the region. Such demand information begins to outline different transactional partners that must be a part of their value chain.
Value chains also include support partners—people, businesses and organizations that directly assist transactional partners with fulfilling their roles, or that help utilize all the benefits and waste that flow from the transactions to leverage more wealth building in the region. Support partners can be as diverse and specialized as transactional partners. Services provided by support partners can include financing (debt and equity, philanthropic), policy and regulation, certification, research and development, as well as technical assistance. Just like transactional partners, support partners are energized to participate in a WealthWorks value chain by what they get in return that meets their self-, shared or common interest.
In our tomato soup value chain, a support partner might be a local expert or program that helps entrepreneurs better market their “just like mom’s” tomato soup. A state-sponsored campaign might help promote organic products. A local bank and community development financial institution might jointly pilot a new small-loan product that low-income farmers need to get up to organic speed. Or a community foundation might provide a grant that pays for the value chain coordinator.
There are three primary types of partners in a value chain, and they each play different roles.
The school district or hospital that buys organic tomato soup in quantity, in large-batch no-frills cans, at a low price point
The high-end food market chain or farmers market customers that buy the organic soup in small containers with local-brand labeling at a higher price
Seed catalog providers, water or irrigation services, organic fertilizer firms, equipment shops that supply tomato growers
Growers of tomatoes, onions and garlic that will be used to make the soup
Soup-making firm that turns the vegetables into a fresh, tasty soup— and packages it
Firms that collect and bundle the output from many producers and/or processors to facilitate marketing and sale of soup products to buyers
The transportation company that delivers the soup to the buyers
University extension service that transition tomato growers to meet organic crop certification; small business development group that helps the farmers and soup-making firm with business plans and marketing
Bank, credit union, or community development financial institution (CDFI) that provides loans or start-up capital to tomato growers or processing firms; community foundation that subsidizes organic certification fees for low-income farmers, or makes a grant to cover the cost of the value chain coordinator
Coalition of farmers, processors and buyers that lobby a state agency to lower the cost of organic certification
Healthy Kids non-profit that offers local food taste-tests at schools and food markets, building demand for foods produced by local farmers
A wide range of strategies and partners can be incorporated into any single WealthWorks value chain. And they vary widely by product or service, sector, region, economy and local culture and connections. One tool for assembling and seeing the connections among the WealthWorks value chain partners is a value chain map.
A value chain map is a diagram of all the processes and functions that make up a value chain, the partners that are performing those functions, and the multiple links that connect them to each other. It shows how the “market opportunity”—the product or service at the center of the value chain—is produced and moves from one partner to the next on its way to the buyer. But it goes beyond the normal “supply chain” map typically used in economic development circles, because it shows the essential functions that support the transactional partners, and the “flows” of by-products from the value chain that might present more opportunities for wealth building.
The mapping process can be carried out in a myriad of ways, for example, a series of conversations, a large-group work session, or design by the coordinator, who then checks it with other partners. With time, additional products or services may be added to the core value chain. However, the design principle is generally to start with one product or service, in order to gain an understanding of the value chain dynamics, and add products or services, new benefit flows, and partners as they emerge.
The process of mapping a WealthWorks value chain—and keeping the map current—is critical. The key is to see the map as a living document, continually tended and updated. That brings us to the third essential activity in constructing a WealthWorks value chain.
The chart below shows what a tomato soup value chain map might look like at the start.
Specialties: Local Food, Placemaking, Renewable Energy
States served: Minnesota
Additional details: Enhancing the vitality and quality of life in Cass, Crow Wing, Morrison, Todd and Wadena counties is the mission of Region Five Development Commission. Resiliency, inclusion and collaboration are guiding concepts in achieving mutually shared goals that continue to evolve with local municipalities, state, federal, philanthropic, non-profit and social advocacy agencies.
Contact: Cheryal Lee Hills, 218-894-3233
200 1st Street NE, Suite 2
Staples, MN 56479
Alternative contact: Dawn Espe, 218-894-3233
Specialties: Food, Forestry/wood products, Tourism
States served: Idaho, Oregon, Washington
Additional details: RDI was formed in 1991 in response to the timber industry crisis facing the Pacific Northwest. Our nationally recognized programs and services help communities help themselves with effective and results-oriented training and resources necessary for individuals living in rural communities to build and sustain a better future in their communities. Our work is based upon our genuine commitment to build rural capacity through Leadership Development programs and strengthen Rural Economic Vitality through moving capacity into action.
Contact: Amy Hause, (541) 255-9590
Rural Development Initiatives
91017 S Willamette St
Coburg, Oregon 97408
Alternative contact: Heidi Khokhar, (541) 684-9077 ext. 7011
Specialties: Food, Forestry/wood products, Housing, Tourism
States served: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming
Region details: RCAC serves 13 western states including: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. We also work in the U.S. territories of the Marianas Islands, Marshall Islands and the U.S. Virgin Islands.
Additional details: RCAC Value Chains, economic development and Wealth Works are embedded in RCAC’s Building Rural Economies program. With over 10 years of experience in these arenas we technically assist communities who wish to envision and create their future.
Carol Cohen, 435-671-7068
3120 Freeboard Drive
West Sacramento, CA 95691
Alternative contact: Ellen Drew, (575) 421-0261
Specialties: Energy efficiency
States served: Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, South Dakota, Wyoming
Additional details: Midwest Assistance Program (MAP) has been helping communities and tribal nations find solutions to their infrastructure and development needs through information, resource management, expertise, and technical assistance since 1979.
Contact: Chris Fierrros, 660-562-2575
303 N Market Street, Suite 2
Maryville, MO 64468
Specialties: Bio-energy, Food
States served: Arkansas, Louisiana, Mississippi, Oklahoma, Tennessee, Texas
Region details: Communities Unlimited serves seven southern states: Arkansas, Mississippi, Tennessee. Texas, Oklahoma, Louisiana and Alabama. This is an area that includes 60% of this country’s persistently poor counties, including large percentages of African Americans, Hispanics, and Native Americans.
Additional details: Communities Unlimited has 40 years of community economic development experience in the South. It seeks to move rural and under-resourced places toward prosperity by identifying a community’s assets and the market demand for the products or services created from those. We then build value chain collaboratives based on WealthWorks principles to create new economic opportunities. Since 2013, we are demonstrating the success of this approach through a farm-to-fuel value chain in the Arkansas Delta.
Martha Claire Bullen, 479-443-2700
3 East Colt Square Drive
Fayetteville, AR 72703
Alternative contact: Debbie Luther, 870-509-1331
Specialties: Arts, Food, Forestry/wood products, Tourism
States served: Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, Vermont
Additional details: Community Roots, LLC is a Vermont firm specializing in rural community and economic development consulting. Melissa Levy of Community Roots, LLC has been working with the WealthWorks framework over the past several years. She’s been a trainer, coach, workshop facilitator, and presenter in the WealthWorks community.
Contact: Melissa Levy, 802-318-1720
Location: Hinesburg, VT
Specialties: Arts, Energy efficiency, Food, Forestry/wood products, Manufacturing, Tourism
States served: Kentucky, North Carolina, Ohio, Tennessee, Virginia, West Virginia
Additional details: The Central Appalachian Network is a regional network of six anchor organizations that pursue collective sustainable economic development strategies across the Appalachian region of Ohio, West Virginia, Kentucky, Virginia, and Tennessee. CAN builds regional partnerships and also works deeply at the sub-regional level around sectors and opportunities including local food value chains, forestry, new energy, small business development, social enterprise, recycling/upcycling, implementation-focused research, advocacy, and organizational capacity-building. CAN’s members are Appalachian Center for Economic Networks (ACEnet), Appalachian Sustainable Development (ASD), Coalfield Development Corporation, Community Farm Alliance (CFA), Mountain Association for Community Economic Development (MACED), Natural Capital Investment Fund (NCIF), and Rural Action.
Contact: Leslie Schaller, 740-592-3854
1456 C Patton Avenue
Asheville, NC 28806