Value-added agriculture is the processing, packaging, and/or marketing of agricultural commodities and farm resources in a way that allows a greater portion of the revenue derived from the product to be earned by the producer. An example of value-added agriculture in each category follows:
• Processing?converting tomatoes, peppers, and onions into salsa.
• Packaging?baling small, lightweight bales of clean, bright wheat straw to sell as fall harvest decor.
• Marketing?opening an on-farm retail stand to sell produce or allowing customers to come to the farm to pick their own produce.
A farmer can add value by doing one or all of the above activities (processing, packaging, and/or marketing). The value-added activity chosen is highly dependent on the agricultural commodity, resources available, trends in the market, and the skills and interests of the entrepreneur. Adding value to an agricultural product is more similar to developing a new business product and can differ greatly from traditional production techniques.
Farmers interested in developing or producing a value-added agricultural product should develop a feasibility plan to help them evaluate whether this is the best alternative for their operation. The following are links to resources related to value-added agriculture:
• University of Tennessee Center for Profitable Agriculture cpa.utk.edu/
• Agricultural Marketing Resource Center www.agmrc.org/agmrc/
• Appropriate Technology Transfer for Rural Areas www.attra.org/
