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What is Value-added Agriculture?
Before you start down the road to value-added agriculture, you should understand where the road will lead you. Value-added agriculture is a movement that has created a life of its own. It is an idea that has the potential to change production agriculture and rural America. However, we need to define What is Value-Added Agriculture? Generally there are five ways farmers have of Adding Value. For a more specific definition, we define value-added agriculture using USDA Definition.
However, to be successful in this movement we must look further into this concept of adding value. For example, there is a difference between Capturing Value and Creating Value. Regardless of whether you capture value or create value, the bottom line is that you get paid for providing value. If your business venture does not provide value to the system, there is no reason to expect a return. So the process of creating a successful business involves the search for providing value. Providing value can be in the form of marketing a unique product, filling a market niche, simplifying the supply chain, providing a service, lowering costs, and many other ways. The more value you provide, the more return you can extract from the marketplace.
For more information on this topic, see the links listed below of articles posted on related Web sites.
- What Do We Mean by Value-added Agriculture - Choices Magazine
- Agriculture and Applied Economics Association (AAEA)
- Keys to Success in Value-added Agriculture - NCAT ATTRA
- Adding Value to Agricultural Products – Texas A & M University Extension – The economic impact of adding value past the farm gate usually adds many times the value of the original commodities.
Links checked March 2016.