Dan Macon

  • United States, CA, Auburn

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Dan Macon Auburn, CA
2 months ago
"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.
John Moody Irvington, KY
2 months ago

Dan Macon, great additional points. I figured the average person would grasp to qualify as "value added," it has to add measurable value to the underlying, original product. Aka, if you turn your beef into sausage, but that sausage sells for the same or less than ground beef, while the product is value added, it hasn't (at least for you!) added value, rather it has decreased it! [br][br]I think there are a number of ways to handle measuring, quantifying, and keeping track of such things. As you point out, what really matters though is that the business does figure out and does quantify the additional income vs. expenses. [br][br]Hope you are well and that your operation has a great 2018!