Many agricultural delegacy have further farmers over the past decennium or so to invest in “ value - adding , ” that is , creating note value - add product by taking something you already produce and turning it into a different , and presumptively more valuable , product .
So a berry farm , for exemplar , might lead off producingjamsor evenwineas economic value - added products . For a veg farm , it could be pickles or soups . A dairy farm could face intosoaps , or a pig farm could make its own charcuterie . There ’s a set of electric potential here , but when it comes to your farm , does it make sense to connect the value - added marketplace ? Would it actually add up note value to what you do ? Let ’s give it a look .
Consider Regulations
To the credit of the U.S. Department of Agriculture and similar delegacy , the regulatory fabric that oversees commercial product of a farm products has remained fairly approachable to modest producer ( for non - meat mathematical product , at least ) . Many states even let producers to generate some amount of saleable ware in their own kitchen with “ home processing ” licenses . This might require some amount of breeding , testing and review . However , there is a threshold for how much one can raise in a family kitchen , and once a certain amount of edible product is reached , the agency require the product to be made in a commercial kitchen , and that can be an expensive endeavor .
Consider the Best Use of Your Time
Your sentence as a agriculturalist or producer is valuable , and any metre you drop working on another intersection might take out from that . produce any secondary goods will require your attention for at least the menses of clip you pass producing it . This can be managed in engine block , where perhaps you are bring forth the value - added ware only during dumb metre of the year , but that might also be unmanageable if your product trust on a bounty of , say , tomato in the middle of the summer when you are already very meddlesome harvest home state tomatoes .
Prepare to Start Another Business
Whenever you consider a note value - added production , you as the manufacturer should first demand yourself whether you really delight puddle it . Granola , soup , soap––is it something you are passionate about ? That ’s of import , because it could become a full - sentence fizgig if it goes well . It might take time , as mentioned above , away from what you already do , and in many way you might have to supervise it like a disjoined business — accounting , stock-taking , startup capital and so on .
Calculate the Initial Investment
You should also examine the money take up - front to buy , for illustration , label and jar and or extra fees that come along with the processing of a note value - added Cartesian product . Some concession and office might serve with those monetary value , but if you want to extend producing , it will probably ask reinvestment .
Think About Storage and Transportation
Whatever production you choose will need to be stored and moved . This might be fine in the caseful of products that do not need to be chilled . That say , perishable , frozen or refrigerated items all require some amount of space and something in which to move them . This might be just a cooler , but certainly deal it in your costs .
Add It All Up
create time value - added products can absolutely total revenue to an mathematical process , though you should consider all of the above considerations as well as marketing and statistical distribution before run forward . Can you take what you ’re already doing and make it more profitable first ? Would it be easier to add another crop rather than to add a prepared intellectual nourishment ? It depends on your operation as well as your market . Nonetheless , there might be a niche out there just ask to be filled , and economic value - sum up products could help you be the one to fill it .
