Creating value in value-added agricultural products

To further explore this question, you need to know what a value-added agriculture product is. The USDA defines it as a result of the change in physical state or the manner in which the agricultural commodity or product is produced and segregated, the customer base for the commodity or product is expanded and a greater portion of revenue derived from the marketing, processing or physical segregation is made available to the producer of the commodity or product. Basically, taking raw commodities and manufacturing it.

Some of Montana’s leading value-added agricultural farming products are flour, ice cream, beer, pasta, candy, safflower and canola oil. With lentils, chickpeas, and hemp on the rise. Livestock value-added products include snack sticks, jerky, summer sausage, cheese and even treats for dogs.

Agriculture is Montana’s leading industry. With all the ups and downs of the markets in agriculture, farmers and ranchers are learning to think “outside the box”. Some are capitalizing on creating their own value-added ag products with the help of local and state economic development advisors. Producers are branching out and starting new or an extension to their current operations. The United States Department of Agriculture and the Montana Department of Agriculture have made grants available to encourage production of value-added agriculture products and the research to encourage alternative ways to help agriculture grow in our state.

Whether you are manufacturing and marketing your own product as a producer or partnering with someone else to buy and manufacture your product. You are creating value in your crop or animal that may not have been there if selling directly to the open market. Advisors and support are available to you in our area through Eastern Plains Economic Development Corporation’s Food and Agriculture Assistant Alissa Miller at [email protected] or (406) 852-3735.