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Modern primary industry makes obsolete the conventional analysis of private and social performance. This is due to the dominance of chain failure as opposed to the more familiar market failure. This paper makes the case that value addition dominates aspirations for primary industries, and vertical coordination and shifts in commercial power balances feature in the sharing of benefits within value chains. Moreover, complexity in chain relationships and some particular features of primary industry bring challenges to forward planning and concerted effort. Value addition in New Zealand's forestry and wood products' industry presents several such challenges, and these are examined with a qualitative system dynamics model. Potential policy responses that eliminate chain failure are discussed in association with the Australian beef industry research model. The paper advocates joint industry-university-government action in terms of research and skills development. Copyright © 2016 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The intensification of beef cattle production in dryland areas of East Indonesia has the potential to substantially raise the incomes of smallholder farmers that dominate the sector. In this study we assess the potential for intensifying beef production on Sumbawa Island, by introducing a household feedlot production system (2–20 animals) based on the Leucaena leucocephala (leucanea) tree legume as an improved source of feed. We used a system dynamics approach to model the entire value chain, accounting for herd dynamics, demand dynamics and seasonality. Our findings complement the growing body of biophysical evidence about the potential success of this intervention, by simulating improvements in the annual profitability for beef farmers in the project area of up to 415% by 2023. Increases in farm profit were shown to depend near equally on the higher productivity of the leucaena feeding system and an associated price premium, demonstrating the importance of supporting improved agricultural production with better marketing practices. The intervention was also shown to generate positive or neutral benefits for the main post-farm value chain actors. Importantly, it also reduced the GHG emission intensity of outputs from the beef herd by 16% by 2020. We explored number of scale-out pathways, including a relatively moderate pace of autonomous adoption for our main analysis, resulting in the accumulation of 3,444 hectares of leucaena 20-years after the initial project phase, which could sustain the fattening of 37,124 male cattle per year. More ambitious rates of scale-out were found to be possible without exceeding the animal and land resources of the island. [ABSTRACT FROM AUTHOR]