Title: Managerial challenges for dynamic systems – the case of biofuel chains

Authors: Kirsti Dautzenberg, Jon H. Hanf, Sven-Oliver Jungklaus

Addresses: Centre for Entrepreneurship and Innovation, (BIEM-CEIP), University of Potsdam, Am Park Babelsberg, Haus 5, 14482 Potsdam, Germany. ' Leibniz Institute of Agricultural Development in Central and Eastern Europe, Theodor-Lieser-Str. 2, 06120 Halle (Saale), Germany. ' Leibniz Institute of Agricultural Development in Central and Eastern Europe, Theodor-Lieser-Str. 2, 06120 Halle (Saale), Germany

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.

Keywords: biofuels; bioethanol; biodiesel; structural change; Germany; agricultural value chain; bioenergy.

DOI: 10.1504/IJASM.2009.023254

International Journal of Agile Systems and Management, 2009 Vol.4 No.1/2, pp.157 - 170

Published online: 15 Feb 2009 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article