Managerial challenges for dynamic systems – the case of biofuel chains Online publication date: Sun, 15-Feb-2009
by Kirsti Dautzenberg, Jon H. Hanf, Sven-Oliver Jungklaus
International Journal of Agile Systems and Management (IJASM), Vol. 4, No. 1/2, 2009
Abstract: Structural change in the agricultural sector as well as in the whole agricultural value chain is an ongoing dynamic process and affords a number of diverse phenomena. Since the EU Commission sent a clear signal establishing and supporting the bioenergy industry, increasing production activities can be observed in many EU member states. In this paper, we discuss current sector developments and address the organisation structure of the biomass-based energy value chain, exemplifying the production of bioethanol and biodiesel separately. Usually, the processing company can be regarded as the initiator of the regional value chains. In order to safeguard the high initial investments and secure efficient supply, the processing company relies on contract farming or profit participation rights rather than spot market interactions. In addition to discussing that point, this article also explores opportunities and threats for the suppliers as well as for the processors.
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