Business & Marketing: Marketing Value Added Agriculture and Value Chain

Business & Marketing: Marketing Value Added Agriculture and Value Chain

Loading
Loading Social Plug-ins...
Language: English
Save to myLibrary Download PDF
Go to Page # Page of 18

Description: What is a Perfect Women’s Group Enterprise?:- A perfect women’s group enterprise is the one that generates good revenue for the cooperative to do community projects or raise women’s status in the household or community. It is an enterprise that makes women happy and engaged. Be original, select business enterprises or ventures that are not being done by many others in the market.

 
Author: International Trade Centre  | Visits: 193 | Page Views: 327
Domain:  Business Category: Sales & Marketing 
Upload Date:
Link Back:
Short URL: https://www.wesrch.com/business/pdfBU1HWO000KONR
Loading
Loading...



px *        px *

* Default width and height in pixels. Change it to your required dimensions.

 
Contents:
Business & Marketing :
Marketing, Value Added and Value Chain

Lesson 4:
Value Added Agriculture

Learning Objectives







What is a Perfect Women’s Group Enterprise?
Selecting an Enterprise: To do list and not to do list
What is value-added agriculture
Raw commodities already have value
Ways to adding value to products
Benefits from value added product marketing

What is a Perfect Women’s Group Enterprise?
 A perfect women’s group enterprise is the one that
generates good revenue for the cooperative to do
community projects or raise women’s status in the
household or community

 It is an enterprise that makes women happy and
engaged

Selecting an Enterprise: To Do List
• Be original, select business enterprises or ventures
that are not being done by many others in the
market
• Diversify = to spread out your risk
• Experiment = This is how you learn
• Locate and develop new markets

In the Past …
• Producers used to have a ‘producethen-sell’ mentality
– Producers grew crops or livestock

– Hoped to find a buyer
– ‘Took whatever price was offered
that day

Now …
• Producers now look at what consumers want to
buy and then produce
• Agriculture is moving towards a global economy
• The international market for value-added
products is growing
– Consumers have increasing health, nutrition,
and convenience needs
– Food processors want to improve
productivity
– Technology enables producers to produce
what consumers WANT

Selecting an Enterprise: The Don’t Do List
• Market to middleman unless really necessary
• Hire outside labor
• Get too far in debt
• Overwork yourself in the farm or dairy unit

What is a Value-Added Agriculture?
• Adding Value is a process of changing or
transforming a product from its original state to a
more valuable state

Add value to wheat

By processing it
into a product
(flour)

Desired by
customers
(a bread maker)

Raw Commodities already Have Value
• Many raw commodities have value in their original state
– They are raised by an agricultural producer; then sold by
the producer for further processing
• Corn, wheat, watermelons etc. all HAVE value. They are worth
something.

Ways to Adding Value to Products
 Creating Value - occurs with actual or perceived value to a
customer for a superior product or service
 Via innovation (technological) – improving existing
processes, procedures, products and services by:
• Enhancing product characteristics
• Enhancing/improving services
• Creating brand names
• Developing unique customer experiences
 Via industrial innovation – processing traditional crops into
non-food items
• Ethanol from corn
• Biodiesel from soybeans
• Particleboard from straw

Ways to Adding Value to Products
 Capturing Value => changing the distribution of value in the
food/fiber production chain


It means to capture more of the consumer’s money
through



Direct marketing



Vertical integration



Producer alliances



Cooperative efforts



Minimizing costs

Five Ways to Adding Value to a Product
Methods

Definition

Example

1. Commodity
processing

Increasing value by changing
commodity’s physical state

Wine, flour, cheese,
jam, biodiesel

2. Market
differentiation or
non-standard
production method

Increasing value by marketing the
commodity’s special identity or
character (e.g., creating a brand)

Organic, grass-fed,
humane, state
branding

3. Commodity
segregation

Increasing value by keeping the
commodity physically apart in
production and distribution

Genetically modified
organism-free,
varietal purity

4. On-farm
renewable energy

Realizing value by transforming
natural resources into energy on
the farm

Wind, solar, on-farm
biodiesel

5. Local Food

Increasing value by aggregating and Buy local – buy fresh,
marketing food for local markets – community-based
must be within 100 km radius
food enterprises

Benefit from Value Added Product Marketing
• Customer base has expanded
• Producers receive greater portion of revenue
• Producers receive strategic advantages in the
marketplace
Bottom Line => Producers enjoy higher return

What did we learn today?

Thank you!

Terms of Use

© 2013 MEAS Project, National Center for Agricultural Research and Extension (Samia
Akroush, and Asmahan Hattar) &
University of Florida (Kristen Augustine, Nargiza Ludgate, Jennifer Allen, and Sandra L.
Russo)
This work is licensed under a Creative Commons Attribution 3.0 Unported License.
Users are free:
• to Share — to copy, distribute and transmit the work
• to Remix — to adapt the work
Under the following conditions:
• Attribution — Users must attribute the work to the author/institution but not in any
way that suggests that endorses the user or the user’s use of the work).

Disclaimer
This presentation was made possible by the generous support of the

American people through the United States Agency for International
Development, USAID. The contents are the responsibility of the
author(s) and do not necessarily reflect the views of USAID or the
United States Government.