Value Creation: First version of socio-economic model discussed in Panningen

EU-PLF’s Value Creation Group recently came together in Panningen (NL) to discuss the initial socio-economic model for value creation on farms. 


The meeting was hosted by FANCOM, a project partner. The company’s hospitality was greatly appreciated by the group members including a rare opportunity to hear both FANCOM’s CEO Paul Smits and its Business Development Director Simon Lague on how the company sees the future of PLF and iFarming. 

Henk Hogeveen from the Wageningen University, another EU-PLF project partner, presented what he calls a “simple model” of the farm value creation. For the different animal species, the model collects essential parameters that contribute to costs and benefits. Social and environmental costs and benefits will also be incorporated over time as externalities, most likely using the approach of “shadow prices”, which attempts to estimate a price, for example, by researching the Willingness to Pay (WTP) or the Willingness to Accept (WTA).

The model provides a clear understanding of the socio-economic “mechanics” of farm operations, to the point that Value Creation Group considered it robust and promising for the blueprint. As a necessary second step, the Value Creation Group will now attempt to model the impact of PLF technologies based on these parameters. To this effect, the group is arranging interviews and a survey with 25 leading providers of PLF technologies. In addition, the experience of the project consortium will be harvested in two brainstorming sessions to be celebrated in March/April.  One with the cow group and the other with the pig/poultry group.

The final model is expected to be delivered before summer 2014.

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