Getting Started with Value-Added Production: Boost Profits & Reduce Waste on Your Farm
- Lindsey Lusher Shute
- Oct 20, 2023
- 5 min read
Updated: Feb 1
Turn peak season produce into profitable products — reduce food loss, increase profit margins & expand your customer base by learning how to “put up” & market peak season crops.
In the Northeast, the sunlight is waning and the nights are growing progressively cooler; we are slowly saying goodbye to the summer growing season. For every farm, no matter where, there is a peak growing season and ours is coming to an end.
Most farms, including mine, aren’t able to sell everything they grow during peak harvest weeks. Whether that’s because of “seconds” quality (wrong sizes, blemished or bruised produce); lack of market (too few places to sell the quantities available); or even lack of labor, that is a significant loss — of profits, time, and opportunity.
There are many farms who have figured out how to “put up” peak season crops to sell all year long, transforming surplus produce into value-added products that reduce waste and increase profitability.
These value-added products—like From jams and jellies to fermented vegetables, and frozen berries, and freeze-dried fruit—can boost farm profits by increasing product diversity, extending shelf life, and attracting more customers seeking convenience and unique local flavors.
If you’re considering selling value-added products, continue reading for five tips to help you get started and preserving your harvest for year-round sales.
1. Determine your bumper crops.
The first thing to consider for value-added production is determining which crops you can grow well and in significant quantities. Whatever crop you choose to process, you’re going to need a lot of it, so you should look to use ingredients that will go well with the systems you’ve already established.
If you dislike growing tomatoes — don’t take on tomato sauce or salsa! If you struggle getting a high cabbage yield — don’t commit to sauerkraut.
BOTTOM LINE Make value-added products with high-yield crops you enjoy growing and eating.
2. Get inspired by other farm stores selling value-added products.
There are quite a few farms that have developed value-added products over the years, and I love to try all the amazing products that they offer.
I am always inspired by Hawthorne Valley’s many products. From their their biodynamic yogurt and now privately-labeled sauerkraut, curtido, and kimchi, Hawthorne Valley has developed a delicious and year-round product line from their seasonal offerings.
Once you find a product that you love, with a crop you’re able to grow, start experimenting with different ways to preserve it. Seek books at the library on canning and fermentation; there are many unique and flavorful ways to preserve food and you’ll want to land on a recipe and approach that speaks to your farm and business.
BOTTOM LINE You’ll probably need to go through many iterations before you perfect your recipe, process, and packaging, and at the end of the day, you will be both the taste tester and the sales rep for whatever you make, so it’s important that you love it!
3. Contact the Department of Agriculture in your state to avoid any legal issues or hiccups.
Contacting your State Department of Agriculture is a required step on your journey. Every state has unique processing laws that you must comply with. Depending on where you live, you may be allowed to do some home canning, fermenting, drying or freezing under a “cottage foods” law.
If your product isn’t approved to be sold in your state under cottage food law, you may still be able to make and sell it commercially. You may need to rent space in a local licensed commercial kitchen, or even find a co-packer.
A co-packer can help you develop a food-safe recipe and will process your products at their facility. Even if a co-packer is not required at your scale, you might decide to collaborate with a co-packer as a means of support labor distribution; you don’t want to pick all day and can all night!
BOTTOM LINE Read up on your state’s unique processing laws before processing any value added crops to avoid legal issues and expedite the process.
4. Develop a brand vision, identity, and voice.
There is a lot of competition these days for consumer’s attention, but as a farmer, you have a significant advantage with a great story and personal relationship with our food and connection to the fields that food grows in.
Consumers are increasingly interested in food traceability, and as the field-to-fork movement continues to grow, you should capitalize on any traditional food preservation techniques you may be using while highlighting that connection to food with memorable branding.
Aim for a clean, compelling label design that stands out on shelves and meets legal requirements for labeling (another question for your Agriculture Department).
BOTTOM LINE Brands with attractive labels sell better; the investment will be well worth your time.
5. Find a market. Understand & cater to that market.
While we’re putting this step last, it could easily be the first, and arguably one of the most important aspects of your value-added journey. You need a target market and platform i.e. customers who want to purchase your product. Your production and marketing strategy will ultimately be driven by customer needs, perceptions, and expectations.
Be sure to figure out where and how you want to sell your value-added product. If you don’t generally sell at farmers markets over your low season, identify other ways to sell. Meet with the owners and bring samples to local stores that might be good wholesale partners, and consider selling direct to consumer.
At GrownBy, we have numerous farms that sell their own products alongside other makers and farmers year-round. Creating a storefront on GrownBy for retail sales or partnering with a year-round farm are effective options.
BOTTOM LINE Understand and cater to your target market.
Resources
Find your State Department of Agriculture here.
A Labelling Guide and Toolkit for Packaged Goods via Sustainable Agriculture Research and Education (SARE)
Marketing Tips
GrownBy is the seamless, all-in-one solution for local farm sales.
GrownBy is the only farmer-owned marketplace and CSA management system that platforms your products and give consumers the opportunity to find and buy your farm products.
Build your farm shop on the GrownBy Marketplace for free and start selling your products in less than an hour. Everyone on our support team has farming experience and we will help you build your online farm shop, build custom CSAs, and get you SNAP Online Certified for free.
Stay updated on our farmers market tips.
Stay tuned for more information, tips, and inspiration for creating, marketing, and improving your product listings on your farm store. Grow with us at @farmgenerationscoop and @grownbyapp.
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