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A conceptual business model for an agroforestry consulting company

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Abstract

While socioeconomic and environmental benefits of agroforestry are widely appreciated in the tropics, they were almost neglected from the plans for agronomic development implemented up to early 2000 as set by major policy schemes within the EU. However, such benefits had supported the rural economies of the Mediterranean EU countries—Greece included—in the past. Nowadays several unorganized traditional agroforestry systems persist, rather as remnants, and occupy extensive areas in Greece. Given its recognizable paramount importance as a lever for rural development, the EU included agroforestry in the forthcoming programming period of the Common Agricultural Policy (CAP 2014–2020) as a greening, agro-environmental tool. While the institutional environment in Greece and the EU generally favours the initiation of agroforestry projects, farmers do not have such experience. The present paper sets as its major goals to set up and explore the major characteristics of a Business Model for an agroforestry consulting company (ACC) in Greece, by applying the Pillar/Blocks methodology of Alexander Osterwalder and his co-workers. Details on Customer Value Proposition, Customer Segmentation and Relationship, necessary Resources, Costs and Revenue streams are presented. Greening primary production, sequence of harvests, additional income, prospects for entrepreneurship, and transfer of EU provisions to the farmers are the main Value Propositions of the ACC. Dedicated personal assistance and co-creation are the relationship types expected to be developed with its customers. Key partners are local representatives, academic specialists and stakeholders, while key suppliers are tubex manufacturers, software providers and NGOs. Main revenue streams for the ACC are usage fees, subscription fees and advertising. The establishment of such a consulting company in a central location of the country, such as the region of Thessaly, where the agri-market environment appears promising, is expected to generate additional revenues for farmers that will introduce and/or maintain agroforestry systems and cause major improvements in an area with decreasing soil and water quality and deteriorating landscape values due to intensification of farming over the last decades.

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Notes

  1. http://go.worldbank.org/EZJW0EMEN0 [accessed 12th January 2013].

  2. i.e. Natural Resource Management.

  3. Diameter at breast height.

  4. The Single Payment Scheme (SPS) or Single Farm Payment is a direct subsidy payment tool for landowners introduced by EU on 26 June 2003 in the reformed Common Agricultural Policy (CAP).

  5. Namely “First establishment of agroforestry systems on agricultural land”.

  6. Vasilios Papanastasis, Greek Agroforestry Network, pers. com.

  7. www.agroforestry.eu.

  8. http://euraf.isa.utl.pt/sites/default/files/pub/docs/euraf_cap_reform_working_group_recommendations_v2.pdf.

  9. http://www.skai.gr/news/politics/article/197695/a-samaras-pulonas-anakampsis-tis-oikonomias-i-georgia/.

  10. http://www.sev.org.gr/Uploads/pdf/Greece_10_Years_Ahead_Executive_summary_Greek_version_small.pdf.

  11. http://www.sev.org.gr/online/index.aspx?lang=en.

  12. Commented by Agronews (05/09/2011) http://www.agronews.gr/agora/eboreumata/arthro/71667/.

  13. In contrast, the period 2001-2011 the total GDP grew by 16 % cumulatively, while the GDP of the primary sector declined by 22 %, with a slight slowdown in the years 2008–2011.

  14. The trade balance of Greece to the EU-27 is consistently negative and steadily growing over the last decade (from €1.21 billion in 1999, to €1.79 billion in 2011). Indeed, the expansion of the trade deficit occurred despite the fact that Greek exports nearly doubled from €1.23 billion to €2.43 billion.

  15. Wednesday, 06 June 2012, Agricultural University of Athens.

  16. Article of Christos Konstas in Attiki Press (Sunday, 8 April 2012) http://www.attikipress.gr/4942/posoi-einai-oi-agrotes-sthn-ellada (accessed 14 June 2013).

  17. Article of Mattheos Tsimitakis in Kathimerini http://news.kathimerini.gr/4dcgi/_w_articles_economy_2_04/05/2013_519450 (accessed Saturday, 4 May 2013).

  18. The survey conducted by questionnaires in a sample of 1417 mature individuals from all (13) regions of Greece. Details are found in http://www.ntvserres.com/2013/05/22/page/2/ (accessed 14 June 2013).

  19. 1 UFA = 1 dairy cow (PASEGES 2012).

  20. Please read more on: "Seeding" billion of funds on farmland on the planet, published 8th December 2012, http://www.capital.gr/News.asp?id=1684371&ppg=1 (accessed 15 June 2013).

  21. The GAN has already organized a series of successful meeting in several cities of Greece, like Thessaloniki (05 April 2013), Larissa (27 June 2013) and Lamia (08 November 2013) (http://www.agroforestry.gr/pages/?p=263, accessed 10 November 2013).

  22. See for example, http://www.neagenia.gr/frontoffice/popup.asp?cpage=agrotes&cnode=31 (accessed 16 June 2013).

  23. http://www.tubex.com/.

  24. http://www.tubexusa.com/.

  25. http://www.arborday.org/index.cfm.

  26. http://www.benmeadows.com/oak-tree-stakes-24l-pkg-of-25_s_134737/.

  27. GAN, www.agroforestry.gr.

  28. EURAF, www.agroforestry.eu.

  29. WAC (ex ICRAF), http://www.worldagroforestrycentre.org/.

  30. PENA, http://www.neoiagrotes.gr/.

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Acknowledgments

The support from members of the Greek Agroforestry Network is highly appreciated.

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Authors and Affiliations

  1. Department of Forestry and Management of Natural Environment, Technological University of Thessaly, 43100, Karditsa, Greece

    Michael Vrahnakis

  2. Department of Forestry and Management of the Environment and Natural Resources, Democritus University of Thrace, 68200, Orestiada, Greece

    Stamatia Nasiakou

  3. Agroeconomist - Rangeland Ecologist, 53077, Lemos, Greece

    Yannis Kazoglou

  4. Department of Business Administration, Technological University of Thessaly, 41110, Larissa, Greece

    George Blanas

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  1. Michael Vrahnakis
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Correspondence to Michael Vrahnakis.

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Vrahnakis, M., Nasiakou, S., Kazoglou, Y. et al. A conceptual business model for an agroforestry consulting company. Agroforest Syst 90, 219–236 (2016). https://doi.org/10.1007/s10457-015-9848-0

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