Definition of Value-Added

[cakadu]

In many posts lately, we've seen the term value-added used quite a bit. I am curious to know what your definition of value-added is?

It might be interesting to see how close we are in our definitions and ideas of what we feel is value-added.

[ValueChainFX]

We have talked a lot about Value Added and what it means, to many their take on a value added product is the only definition there is in their minds. As with many of the "New Age" click words and phrases it is important to understand and implement a true Value Added Agriculture focused meaning to the phrase.

In my mind, Value Added can mean many things, but by terms that relate to the Agriculture industry, Value Added may be things the agriculture industry is already doing such as running a quality feeding program or growing their own crops for feed to ensure a consistent quality, or keeping impeccable records of their livestock, running a farm HACCP program and so on. Ever thing we do can add value if we draw from it the reasons we are doing it. Especially when those reasons are to ensure your product is providing the quality the consumer is looking for.

The more noticeable value added products, can be further processing, providing extended tracking or trace back, enhancing a customer service extension (within the supply chain or to the end user) or providing information that enhances the next step towards the consumers requirements.

How we interpret Value Added today, may be the way we save the industry tomorrow. My way of looking at the whole concept of Value Added is that if we all look at the big agriculture picture and coordinate the business risk management through decreasing overall costs of production through out the supply chain, and maximize profits in a stable manner through out the supply chain, then we have started down the path of continuous improvement and constant Value Added processes.

Interesting question, thank you for asking it, now I look forward to reading what others have to say about this question?

[topper]

I agree totally with ValueChainFX. Anything we can do,no matter what area of this business we are in, to increase our efficiency and create a better product for our customers puts us in a better position to be successful. There isn't much we can do about poor prices for our products and high input costs, but we can run our operations more efficently. So getting back to your question value-added means in my opinion anything we can do to add value to our products. It can be anything from a small improvement in the efficiency of a individual operation to the manufacturing of a finished product ready for the consumers plate.