Increase your income by adding value to farm products

The value addition of agricultural products brings a lot of money into the Kenyan economy each year. In fact, adding value beyond the farm has a bigger economic footprint than the normal farm production. Farmers usually perform poorly when it comes to cash flow margins as compared to food processors who sell items through brand names (e.g Brookside, Honey Care).

Reigning in the extra money by adding value to farm products is a goal for many enlightened farmers.

So, what is value addition?

“Value Addition” means adding value to a raw product by taking it to at least the next stage of production.  Value can be added through membership in a cooperative that processes your products, such as milk and yogurt packaging.

What are the main benefits of value addition?

Value addition can bring these benefits to your enterprise;

• Increased Cash Flow – Adding value to your farm produce automatically increases the financial value of your product and income.
• Brand and Identification- Branding enables customers to brand with your product and farm. This gives you an edge when it comes to pushing products and making sales. If your product is good, customers will refer you to more people by mentioning your brand in their networks.
• Consumer Loyalty- Customers relate well to producers who add value and still maintain quality. By maintaining quality, customers will always identify with your product and create a loyalty base around it.
• Better Prices – Longer shelf life of products means farmers can better pricing at the right time. E.g UHT Milk, Yoghurt, Juice, etc.

How to be Successful in Value Addition

Building a new business is difficult and takes hard work (nothing new for farmers and ranchers). But, for all the uncertainty, there are ways to craft a successful value-added business strategy. The key factors in a detailed business plan are:

• Operations plan – This is how the business flows, it’s quality and cost control.
• Team and Management- You need a team that has the right skills and training to run your business.
• Sales Plan – Develop a thorough sales plan that will enable you to sell your products consistently.
• Investment Plan- Plan and use your money wisely so that your business grows naturally and without unnecessary burdens.

Examples of Value-Added Farm Products

Milk

Milk is a versatile ingredient that can be used to create a range of dairy products. Packaged fresh milk is a common product that is readily available in stores. Cheese is another popular product made from milk, which can come in a variety of textures and flavors. Yogurt is also made from milk, which is fermented and can be enjoyed plain or with added flavors. Ghee is a clarified butter made from milk, which is commonly used in Indian cooking. Finally, ice cream is a delicious dessert made from milk, cream, sugar, and other flavorings.

Passion Fruits

Passion fruits can be used to make a refreshing and nutritious juice that can be enjoyed as a beverage. Soda can also be made from passion fruit, which is a carbonated drink that can be sweetened with sugar or other sweeteners. Passion fruit can also be used to create jams and jellies, which are spreads made from the fruit and sugar.

Potatoes

Potatoes can be used to make a variety of foods. Crisps, also known as potato chips, are a popular snack made from thinly sliced potatoes that are fried until crispy. Fries, also known as French fries, are a side dish made from sliced and fried potatoes. Potato flour is made by grinding potatoes into a fine powder, which can be used as a gluten-free flour substitute in baking.

Strawberry

Strawberries can be used to make a variety of food products. Jam is a popular spread made from cooked strawberries and sugar. Packaged fresh strawberries can be found in plastic tins in grocery stores, which can be eaten as a snack or used as an ingredient in recipes.

Honey

Honey can be used to make a range of products, including honey peanut snacks, which are a popular snack made from peanuts coated in honey. Honey can also be sold in jars, which can be used as a natural sweetener in tea, on toast, or as an ingredient in recipes.

Peanuts

Peanuts can be eaten as a snack and are commonly sold in packaged form. Roasted peanuts are a popular variety that can be enjoyed salted or unsalted.

Managu

Managu is a green leafy vegetable that can be dried for preservation. Dried managu can be used in soups, stews, and other dishes as a flavorful ingredient.

Tomato

Tomatoes can be used to make a variety of products, including tomato sauce. Tomato sauce is a common ingredient used in many dishes, including pasta, pizza, and casseroles. It can also be used as a dipping sauce for appetizers.