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What does the term "value-added" mean?

Last Updated: January 19, 2007

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The term "value-added" is generally applied in agriculture where the USDA defines value-added agriculture as:
1) A change in the physical state or form of the product (such as milling wheat into flour or making strawberries into jam or turning wool into yarn or felt);
2) The production of a product in a manner that enhances its value, as demonstrated through a business plan (such as organically produced products);
3) The physical segregation of an agricultural commodity or product in a manner that results in the enhancement of the value of that commodity or product (such as an identity preserved marketing system).

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