In search of differentiation and the creation of value: the quest of the Scottish pig supply chain

Purpose: The purpose of this paper is to analyse different aspects of the concept of value and to provide examples of value creation, identifying the conditions necessary for their production within a case study of a Scottish pig supply chain. Design/methodology/approach: The case study involved in-depth, recorded interviews of between 60 and 75 minutes (undertaken between June and August 2010) with seven people involved in the chain and its management. Findings: Value within the supply chain (i.e. value in exchange) was created through farmers engaging in horizontal and vertical collaboration. For farmers this value arises from efficient pig collection and transport, improved market and price security, and information on improving pig performance. For the processor and retailer, value is generated in terms of improved security of supply of an assured quality and the ability to communicate with their pigmeat supply base. For consumers, value (i.e. value in use) comes through market development associated with a label that communicates clear provenance, high animal welfare practices and consistent product quality. Research limitations/implications: A limitation of the research is that the findings are based on the analysis of a particular supply chain. However, the pig cooperative involved currently produces over half of Scotland's weekly pig production. Practical implications: The lessons of the case study are highly transferable to other agri-food supply chains. It shows producers' successful efforts to reflect attributes that are important for different stakeholders (e.g. retailers, consumers). It also illustrates the importance of shared goals, information exchange and collaborative interaction between supply chain stakeholders in value creation. Originality /value: The paper's contribution derives from showing the creation of value at different stages of a supply chain.