"Value-added agriculture entails changing a raw agricultural product into something new through packaging, processing, cooling, drying, extracting or any other type of process that differentiates the product from the original raw commodity" - while this statement is technically correct, it leaves out a critical component! Value-added has to be more than simply changing the form of the product - it must actually ADD VALUE as well. In my own ranching business, and in looking at the businesses of others who have considered value-added products, this part of the equation is often missed.
From an economic analysis stand point, I feel like the value-added business must buy the raw product from the farming business (at least on paper) to determine if value-added makes sense. In other words, as the article correctly outlines, does spending all of the extra expense involved in changing my lambs from livestock to packaged meat actually increase my overall profitability? In our business, we've learned that if we can't raise live lambs profitably, no amount of "value-added" will change this.