Understanding Value Added Products for Small Scale Farmers

What are value added products?

Value added products are agricultural products that have undergone a transformation or processing to increase their market value. These products are typically derived from raw agricultural commodities and are processed, packaged, or combined with other ingredients to create a new product with added benefits and appeal.

Why are value added products important for small scale farms?

Value added products offer small scale farmers a solution by allowing them to diversify their product offerings and capture a larger share of the market. By adding value to their raw agricultural commodities, small scale farms can differentiate themselves and increase revenue for their products.

How can value added products increase revenue?

1. Expanded product range: By creating value added products, small scale farms can expand their product range beyond raw commodities. This allows them to cater to a wider customer base and tap into new market segments.

2. Premium pricing: Value added products often bring higher prices compared to raw commodities. The additional processing, packaging, and branding add perceived value to the products, allowing farmers to charge a premium.

3. Increased market demand: Value added products are often more appealing to consumers due to their convenience, quality, and unique features. This increased demand can lead to higher sales volumes and revenue for small scale farms.

4. Direct marketing opportunities: Value added products provide small scale farms with opportunities for direct marketing. Farmers can showcase their unique products at farmers' markets, local stores, or through online platforms, allowing them to establish direct relationships with customers and capture a larger portion of the retail price.

5. Seasonal product extension: Value added products can help small scale farms extend their product availability beyond the traditional growing season. By processing and preserving their agricultural commodities, farmers can offer products year-round, reducing the impact of seasonal fluctuations on revenue.

Examples of value added products

1. Homemade Jams and Preserves

Small-scale farmers can utilize their surplus fruits and vegetables to create delicious homemade jams and preserves. These products have a longer shelf life and can be sold at local markets or online.

2. Artisanal Cheese

With the right equipment and knowledge, small-scale farmers can produce high-quality artisanal cheese. This value-added product can attract customers who appreciate the unique flavors and craftsmanship.

3. Organic Honey

Small-scale farmers who keep bees can harvest and package their own organic honey. This natural sweetener is in high demand and can be marketed as a healthier alternative to processed sugars.

4. Dried Herbs and Spices

By drying and packaging their own herbs and spices, small-scale farmers can offer a convenient and flavorful addition to customers' kitchens. This value-added product is easy to produce and has a long shelf life.

5. Handcrafted Soaps

Using natural ingredients such as goat milk or essential oils, small-scale farmers can create unique and luxurious handcrafted soaps. These products can be marketed as gentle on the skin and environmentally friendly.

6. Specialty Baked Goods

Small-scale farmers with baking skills can expand their product offerings by creating specialty baked goods. This can include artisan bread, pastries, or gluten-free options to cater to different dietary needs.

7. Herbal Teas

Utilizing herbs and flowers grown on their farms, small-scale farmers can create a variety of herbal teas. These teas can be marketed for their soothing properties, unique flavors, and health benefits.

8. Farm-Fresh Eggs

Small-scale farmers who raise chickens can sell farm-fresh eggs as a value-added product. Customers often prefer these eggs due to their superior taste, vibrant yolks, and the assurance of ethical farming practices.

9. Natural Beauty Products

Small-scale farmers can tap into the growing demand for natural beauty products by creating their own line of skincare items. This can include moisturizers, lip balms, or facial scrubs made from farm-grown ingredients.

10. Gourmet Sauces and Dressings

By combining their homegrown herbs, vegetables, and spices, small-scale farmers can produce gourmet sauces and dressings. These products can elevate everyday meals and attract customers looking for unique flavors.

11. Farm-Fresh Flowers

Small-scale farmers with flower gardens can sell farm-fresh bouquets or individual stems. These flowers can be marketed as locally grown, long-lasting, and a sustainable alternative to imported blooms.

12. Herbal Supplements

Using their knowledge of medicinal herbs, small-scale farmers can create herbal supplements in the form of capsules or tinctures. These products can target specific health concerns and appeal to customers seeking natural remedies.

13. Farm Tours and Workshops

Small-scale farmers can diversify their income by offering farm tours and workshops. This value-added experience allows customers to learn about sustainable farming practices and connect with the source of their food.

14. Specialty Canned Vegetables

Small-scale farmers can preserve their harvest by canning and selling specialty vegetables. These canned goods can be marketed as convenient, locally sourced, and a way to enjoy seasonal produce year-round.

15. Farm-Produced Wine or Cider

For farmers with vineyards or apple orchards, producing their own wine or cider can be a lucrative value-added product. These beverages can be marketed as artisanal, locally made, and reflective of the farm's unique terroir.

By expanding their product offerings with these value-added products, small-scale farmers can increase their revenue, attract new customers, and showcase their expertise and dedication to sustainable farming practices. 

Value added products offer small scale farms a pathway to increase revenue and overcome the challenges they face. By diversifying their product offerings, capturing premium prices, and tapping into new market segments, small scale farms can thrive in a competitive agricultural landscape.

Investing in value added products can be a game-changer for these farms, allowing them to grow their businesses and contribute even more to the local economy.