Valueadded Agriculture

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Value-added Agriculture

• Student Name ______________

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What is Value-Added Agriculture?

• Adding Value

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BUT Dont Raw Commodities already have value?!

• Many raw commodities have value in their
  _______________ ___________________
• They are raised by an agricultural producer then
  sold by that producer for further processing
• ____________, _________, ___________,
  _____________, ____________ all HAVE value.
• They are ____________ ______________

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• Money, Money, Money

• Could producers get MORE for their products
  if they

• 1.
• 2.
• 3.

www.acclaimimages.com
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• Adding Value in a
• Changing Agricultural World

• Its important to identify value-added activities
  that support investment in _____________,
  ________________________, ___________
• Additional opportunities for adding value
  include
• 1.
• 2.
• 3.

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• I Produce Food!!

• 1.
• 2.
• 3.

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• Hieroglyphics Moment

• For ALL of the Capturing vs. Creating Value
  Slides (there are 10 of them) take a few minutes
  and draw a quick picture in the blank boxes
  located next to the definitions.
• Make sure the picture represents the definition
  to YOU the Learner!

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• Capturing vs. Creating Value

• Adding value to products can be accomplished in a
  number of different ways, but generally falls
  into one of two main types
• Creating Value
• Innovation
• Industrial Innovation
• Capturing Value
• Coordination

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• Capturing vs. Creating Value

• Creating Value _____________________________
• ___________________________________________
• Innovative new products
• Enhance a products characteristics
• Enhance services
• Create brand names
• Develop unique customer experiences

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Capturing vs. Creating Value

• Creating Value through - Innovation Improving
  existing processes, procedures, products and
  services or creating new ones
• Market unique or branded products
• Produce identity-preserved or specialty crops
• Combine family activities or recreation
  associated with direct on-farm marketing

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Capturing vs. Creating Value

• Creating Value through - Industrial Innovation
  Processing traditional crops into nonfood end
  uses
• Ethanol from corn
• Biodiesel from soybeans
• Particleboard from straw

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Capturing vs. Creating Value

• Capturing Value ________________________
• _______________________________________
• Meant to capture more of the consumer dollar
  through
• 1.
• 2.
• 3.
• 4.

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Capturing vs. Creating Value

• Direct Marketing
• Selling products directly to the consumer
• Selling beef animals on the hoof
• Selling homemade soaps lotions to the general
  public
• Think eBay!

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Capturing vs. Creating Value

• Vertical Integration

• Think - Tyson Chicken

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Capturing vs. Creating Value

• Producer Alliances Individuals / companies from
  the same level of the food chain consolidate in
  order to produce and market a superior product

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• Capturing vs. Creating Value

• Cooperative Efforts Individuals or companies
  pool their products in order to increase
  bargaining power.

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• Capturing vs. Creating Value

• Minimizing Costs
• 1.
• 2.
• 3.

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• Key Components

• Adding value often requires a _______________ __
  ________________
• These techniques provide producers with a
  _________ __________ in the marketplace
• There are _____ strategies for adding value

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• Key Components

• 6 Key Strategies for Adding Value
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.

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• Key Components

• 1.
• 2.
• 3.

• Changing the physical state / form of products

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• Key Components

• 1.
• 2.
• 3.

• Producing products in ways that enhance value

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• Key Components

• 1.
• 2.
• 3.

• Differentiating agricultural products in order to
  enhance their value

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• Key Components

• Bundling Products

• 1.
• 2.

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• Key Components

• Producing and marketing commodities that improve
  operating efficiency up the supply chain

• 1.

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• Key Components

• 1.
• 2.
• 3.

• Owning assets somewhere up the supply chain for
  further processing

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• Things Happen When

• Producers use one (or more) of these six
  strategies
• 1.
• 2.
• 3.
• BOTTOM LINE
• ______________________________________

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• Commodities vs. Products

• Producers used to have a produce-then-sell
  mentality
• 1.
• 2.
• 3.
• TODAYs Agriculture includes
• 1.
• 2.

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• Commodities vs. Products

• Agriculture is moving towards a _____ _______
• The international market for value-added products
  is _________
• Consumers have increasing _______, ________
  ________________ needs
• Food processors want to improve ____________.
• Technology enables producers to produce what
  ____________ ___________!

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• Commodities vs. Products

• Producers who add value will become more than
  commodity producers
• 1.
• 2.
• 3.
• They will be producing _________________
  ________________ (steaks, hamburgers, bread
  etc.)

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• Picasso Moment!

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• Involvement Value-added

• How much value can be added?
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.
• 8.

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• Involvement Value-added

• Adding Value to Products The Basic How-to
  List
• Gather intelligent market information on
  _________ _____________________.
• Make sure an opportunity exists!
• Start with a ________ ______________
• Add a healthy dose of _________ to create a
  product desired by ______________
• Make sure you have a valuable edge on the
  ____________

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• Involvement Value-added

• Adding Value to Products The Basic How-to
  List cont.
• Opportunities come in many ________ _______.
• You must do your _________! Research is required
• Be _________ and _________to succeed!
• You are no longer a commodity producer you are
  ____________________, ______________
  _______________________ food products

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• Involvement Value-added

• Follow these basic steps
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.
• 8.
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