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Primary Industry Chains and Networks: Analysis for Public and Private Interests
Author(s) -
Baker Derek,
Dizyee Kanar,
Parker Warren,
Scrimgeour Frank,
Griffith Garry
Publication year - 2016
Publication title -
systems research and behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 1092-7026
DOI - 10.1002/sres.2400
Subject(s) - dominance (genetics) , government (linguistics) , industrial organization , business , value (mathematics) , market failure , value chain , supply chain , economics , marketing , microeconomics , computer science , philosophy , biochemistry , chemistry , linguistics , machine learning , gene
Modern primary industry makes obsolete the conventional analysis of private and social performance. This is due to the dominance of chain failure as opposed to the more familiar market failure. This paper makes the case that value addition dominates aspirations for primary industries, and vertical coordination and shifts in commercial power balances feature in the sharing of benefits within value chains. Moreover, complexity in chain relationships and some particular features of primary industry bring challenges to forward planning and concerted effort. Value addition in New Zealand's forestry and wood products' industry presents several such challenges, and these are examined with a qualitative system dynamics model. Potential policy responses that eliminate chain failure are discussed in association with the Australian beef industry research model. The paper advocates joint industry‐university‐government action in terms of research and skills development. Copyright © 2016 John Wiley & Sons, Ltd.