Recommending AVAC - Alberta Value Added Corporation

Toma & Bouma was commissioned in 1995 by Alberta Agriculture Food and Rural Development to examine value added development and devise an overriding valued added strategy for the province's food and agriculture sector. To this end, the firm conducted a detailed analysis of value added strategies in several industries including a series of case studies in the Netherlands, United Kingdom, USA and eastern Canada.

The strategy recommended the formation of AVAC - the Alberta Value Added Corporation to lead the value added development process. Alberta Agriculture responded quickly to the recommendation and AVAC was formed in 1997. Since that time AVAC has been focused on the future of value added development in the province and has taken a leadership position.

Best Practices of Economic Development and Manufacturing

Alberta Economic Development contracted Toma & Bouma to identify best practices in assisting manufacturing through a survey of Canada, the USA and Europe. This study involved the conducting of on-site visits in Europe, the USA (Texas, Kansas, Cleveland, Chicago and Washington), telephone interviews and literature reviews on programs and approaches.

It is clearly evident that the USA and Europe have a well-developed support system for manufacturers to help become globally competitive. The USA has a national program, the Manufacturing Extension Program (MEP) with over 70 centers offering in-plant assistance. Europe has a number of institutes and university assistance programs available for manufacturers.

By comparison, Canada has a fragmented system with each province having it's own approach. To become competitive, manufacturers need to understand "next generation manufacturing" concepts and develop in-plant strategies. Manufacturers need to address: ISO, QA, e-commerce, people systems and competitiveness issues. A report if available upon request.

The Olds College Centre for Innovation (OCCI)

When Olds College was considering new methods to stimulate value-added development in the Alberta agri-food sector, Toma & Bouma was called for assistance. Through a process of industry consultation, stakeholder facilitation and planning, Toma & Bouma worked with Olds to develop a strategy and assemble a core team to manage the project and raise the funds.

The funding team has generated commitments of $8 million over five years. We helped use the alliance approach in our consultation process to achieve this support. A unique idea in the overall financing plan for $17 million with $11 million from the public sector and $6 million from the private sector via the Foundation.

OCCI is dedicated to strengthening the research and innovation process in the agri-food sector. It will serve as a dynamic, flexible, virtual organization, which accesses resources for industry problem-solving and helps build an innovation culture though network partners in primary and value-added production.

Value Chains as a Strategy

Strategic alliances and the formation of effective working relationships are a necessary success factor for the development of the agri-food sector. In the development of value added strategies, Toma & Bouma recognized the importance of value (or supply) chain management as a critical area of competence.

The Agriculture and Food Council of Alberta and the Saskatchewan Council for Community Development contracted Toma & Bouma to develop Value Chain programs for each province respectively. The program is designed to facilitate the formation of value chains in three stages:

- Assessing the Opportunity
- Forming a Value Chain Plan
- Testing the Plan with a Pilot Project.

Both programs have been received with great interest.