Value Addition Agribusiness
While farmers put a lot of effort in their crops or livestock, they tend to get the least out of it when it comes to the market and it’s only through Value addition that this trend can be reversed.
For long, local farmers have been comfortable with the way they have been handling agricultural produce. Most foods have been eaten fresh and any leftovers immediately thrown away and there hasn’t been any urgency before to consume food in an efficient manner, let alone preserve it.
Application of Good Agricultural Practices (GAPs) leads to a realization of maximum production at the farm level in both crop and livestock and ensures a safe environment that leads to maximum profits. Mazeedah Farms has a well taught program in place and its objective is to train and guide farmers on the need to apply best practices in farming.
Value addition Agribusiness is a worthwhile investment that can generate higher returns, allow penetration of a new potentially high-value market, extend the production season, create brand identity and develop brand loyalty. Value addition Agribusiness generally focuses on production or manufacturing processes, marketing or services that increase the value of primary agricultural produce, perhaps by increasing appeal to the consumer and the consumer’s willingness to pay a premium over similar but undifferentiated products.
Benefits of Value Addition Agribusiness
• Increased revenue. Any addition adds a percentage of increased financial value to the produce and has the effect of improving the incomes of the local farmers.
• Value addition allows the farmer to focus on the consumer while producing and through meeting expectations, he can create a loyal market around the product.
• The marketing bill is the difference between farm gate value and retail value and it is growing bigger by the day. It consists of costs of processing, marketing, transportation and it is a good idea if the producer could get a share especially on the processing side.
• Increased shelf life is a benefit any farmer would want. The longer the product can stay without getting spoilt, the more the guarantee one has of a product selling at their preferred price and time. Milk for instance, hardly lasts over 24 hours but with boiling, it can last more days while with further processing into ghee, the same milk can last months.
• With value addition comes increased bargaining power.
• Brand Creation is one of the de facto results of value addition and a fact that your product can be directly identified with you or your farm which is important in an industry where customers exercise a lot of brand loyalty. It allows them to always and readily identify with you as well as win you more referral customers.
How to Ensure Value Addition to Agribusiness
• Trains farmers on better post-harvest handling of produce since that is the start of the journey towards a good product on the market.
• Trains farmers on multiple processing alternatives of produce.
• Creating village teams of farmers (clusters) that can combine their expertise and resources to collectively engage in a value addition exercise.
• Harnesses indigenous technologies for food processing that are already embedded in the local skillsets.
• Educates the farmers on the potential uses of the ‘waste’ material from processed raw material for instance, dried banana peels can be used to make animal feeds.
The process of creating a successful business involves the search for providing value which can be in the form of marketing a unique product, filling a market niche, simplifying the supply chain, providing a service, lowering costs, and many other ways. Always remember, the more value you provide, the more return you can extract from the marketplace. At Mazeedah Farms, we do not just practice Agriculture, we focus more on Value Addition Agribusiness!
Posted On 2018-08-01 20:13:14