Valueadded Agriculture Student Name What is ValueAdded Agriculture
- Slides: 34
Value-added Agriculture Student Name: _______
What is – Value-Added Agriculture? l Adding Value:
BUT – Don’t Raw Commodities already have value? ! l Many raw commodities have value in their ___________________ ¡ They are raised by an agricultural producer; then sold by that producer for further processing l ______, _________, ______ all HAVE value. l They are ______________
Could producers get MORE $$$ for their products if they – • 1. • 2. • 3. www. acclaimimages. com
l It’s important to identify value-added activities that support investment in _______, ____________, & ______ l Additional opportunities for adding value include: ¡ 1. ¡ 2. ¡ 3.
l 1. l 2. l 3.
l 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. l Make sure the picture represents the definition to YOU – the Learner! www. cs. miami. edu
l Adding value to products can be accomplished in a number of different ways, but generally falls into one of two main types: ¡ Creating Value l Innovation l Industrial Innovation ¡ Capturing l Value Coordination
l Creating Value: ____________________________________ Innovative new products Enhance a product’s characteristics Enhance services Create brand names Develop unique customer experiences
l 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
l Creating Value through - Industrial Innovation: Processing traditional crops into nonfood end uses ¡ Ethanol from corn ¡ Biodiesel from soybeans ¡ Particleboard from straw
l Capturing Value: ________________________________ ¡ Meant to ‘capture’ more of the consumer dollar through: l 1. l 2. l 3. l 4.
l Direct Marketing ¡ Selling products directly to the consumer ¡ Selling beef animals ‘on the hoof’ ¡ Selling homemade soaps & lotions to the general public ¡ Think – e. Bay!
l. Vertical Integration – Think - Tyson Chicken: http: //images. google. com/images? svnum=10&hl=en&gbv=2&client=firefox-a&channel=s&rls=org. mozilla%3 Aen. US%3 Aofficial&q=Tyson+Chicken&btn. G=Search+Images
l Producer Alliances: Individuals / companies from the same level of the food chain consolidate in order to produce and market a superior product
l Cooperative Efforts: Individuals or companies pool their products in order to increase bargaining power.
l Minimizing ¡ 1. ¡ 2. ¡ 3. Costs:
l Adding value often requires a ________ __ ________ l These techniques provide producers with a __________ in the marketplace l There are _____ strategies for adding value
l l 6 Key Strategies for Adding Value 1. l 2. l 3. l 4. l 5. l 6.
l Changing the physical state / form of products l 1. l 2. l 3.
l 1. l Producing products in ways that enhance value l 2. l 3.
l Differentiating agricultural products in order to enhance their value l 1. l 2. l 3.
l Bundling Products l 1. l 2.
l Producing and marketing commodities that improve operating efficiency up the supply chain l 1.
l Owning l 1. assets somewhere up the supply chain l 2. for further processing l 3.
l Producers use one (or more) of these six strategies: l 1. l 2. l 3. BOTTOM LINE: ___________________
l Producers mentality used to have a ‘produce-then-sell’ ¡ 1. ¡ 2. ¡ 3. l TODAY’s ¡ 1. ¡ 2. Agriculture includes:
l Agriculture is moving towards a _______ l The international market for value-added products is _____ ¡ Consumers have increasing _______, ____ & ________ needs ¡ Food processors want to improve ______. ¡ Technology enables producers to produce what ______!
l Producers who add value will become more than commodity producers – ¡ 1. ¡ 2. ¡ 3. l They will be producing _________: (steaks, hamburgers, bread etc. )
l How ¡ 1. ¡ 2. ¡ 3. ¡ 4. ¡ 5. ¡ 6. ¡ 7. ¡ 8. much value can be added?
l Adding Value to Products – The Basic “How- to List” ¡ Gather intelligent market information on _____ & ___________. l 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 ______
l Adding Value to Products – The Basic “Howto 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
l Follow ¡ 1. ¡ 2. ¡ 3. ¡ 4. ¡ 5. ¡ 6. ¡ 7. ¡ 8. ¡ 9 these basic steps:
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