Value-added Agriculture Student Name: ______________.
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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 – Don’t 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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Could producers get MORE $$$ for their products if they –
•1.
•2.
•3.
www.acclaimimages.com
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It’s important to identify value-added activities that support investment in _____________, ________________________, & ___________
Additional opportunities for adding value include: 1.
2.
3.
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1.
2.
3.
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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!
www.cs.miami.edu
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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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Creating Value: _____________________________
___________________________________________
Innovative new products
Enhance a product’s characteristics
Enhance services
Create brand names
Develop unique customer experiences
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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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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 Value: ________________________
_______________________________________
Meant to ‘capture’ more of the consumer dollar through:
1.
2.
3.
4.
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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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Think - Tyson Chicken:
http://images.google.com/images?svnum=10&hl=en&gbv=2&client=firefox-a&channel=s&rls=org.mozilla%3Aen-US%3Aofficial&q=Tyson+Chicken&btnG=Search+Images
Vertical Integration –
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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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Cooperative Efforts: Individuals or companies pool their products in order to increase bargaining power.
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Minimizing Costs: 1.
2.
3.
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Adding value often requires a _______________ __ ________________
These techniques provide producers with a _________ __________ in the marketplace
There are _____ strategies for adding value
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6 Key Strategies for Adding Value 1.
2.
3.
4.
5.
6.
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Changing the physical state / form of products
1.
2.
3.
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Producing products in ways that enhance value
1.
2.
3.
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Differentiating agricultural products in order to enhance their value
1.
2.
3.
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Bundling Products
1.
2.
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Producing and marketing commodities that improve operating efficiency up the supply chain
1.
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Owning assets somewhere up the supply chain for further processing
1.
2.
3.
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Producers use one (or more) of these six strategies:
1.2.3.
BOTTOM LINE:
______________________________________
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Producers used to have a ‘produce-then-sell’ mentality 1.
2.
3.
TODAY’s Agriculture includes:
1.
2.
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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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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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How much value can be added? 1. 2. 3. 4. 5. 6. 7. 8.
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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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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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Follow these basic steps: 1. 2. 3. 4. 5. 6. 7. 8. 9