Center for Profitable Agriculture

PROJECT HIGHLIGHTS | PRODUCTS ON THE MARKET

Value-Added Projects — Project Highlights — 3

	Cabin Rentals for Agritourism
	Canned Tomato Products
	Colored Mulch
	Commercial Greenhouse Retailing
	Commercial Herb Marketing
	Commercial Kitchen Feasibility

Cabin Rentals for Agritourism

The CPA assisted an agri-entrepreneur in redesigning marketing materials to better attract the targeted market and allow the material to meet guidelines for distribution in Tennessee’s welcome centers and rest areas. Marketing efforts were also directed toward getting the business listed in the Tennessee Sounds Good To Me vacation guide, which is sent out to tourists inquiring about vacationing in Tennessee. A partial marketing plan was also developed to assist in the exploration of advertising and marketing in metropolitan areas. An analysis by the CPA of visitation trends and cycles for area attractions proved valuable in the assessment of expected peak seasons

Canned Tomato Products

Upscaling a home-canning recipe for commercial sale requires more than a larger cooking pot. Inspected facilities, required training and approved processes are required. These upscale requirements have an associated cost which may increase production costs to a point that discourages most consumers. In this case, the competition for specialty-type canned tomato products is considerable. Other canned tomato products (generic label, bulk and gourmet) represent alternatives for the targeted customer.

Colored Mulch

The passion by Americans for home landscaping, combined with loyalty, spirit and a desire for the unusual may be enough catalyst for development of a successful value-added wood-product business through the production of specialty colored mulches. Surplus waste products suitable for landscaping mulch may be used with modern technology and coloring agents to tap into a growing demand for landscaping mulch in various colors. Equipment for such procedures is often considered expensive and therefore should be offset with substantial market development and promotion strategies so as to increase the potential for business success. CPA faculty assisted a rural Tennessee wood products business, and producer of colored hardwood mulch, with intensive financial planning and analysis for debt capital acquisition. The CPA also assisted with the development of marketing strategies designed to introduce wholesale buyers to the advantage of this product over non-colored hardwood-based mulches.

Commercial Greenhouse Retailing

Identification of a business's target market is critical to the success of specific promotion and advertising activities. Use of billboards, television, radio and direct-mail campaigns may be totally irrelevant if they are not developed and targeted at the right audiences. In addition, an appropriate slogan and brand image will assist in the effectiveness of frequent-shopper programs, promotional flyers/brochures, exit surveys and direct-mail programs.

Commercial Herb Marketing

The herb industry is often separated into three primary classifications: essential oils, medicinal crops and culinary herbs. Herbs are the leaves, roots and flowers of plants grown and processed for these three classifications. Favorable trends for the production of herbs for the culinary market include the greater acceptance of ethnic cooking and the increased use of herbs by up-scale restaurants. The increased use of convenience food by consumers has also increased the demand for herbs as high-quality flavorings. The harvest and post-harvest handling of fresh herbs is much more labor intensive than crude-dried herbs. Because of the relatively high labor requirements, producing fresh herbs for niche markets is usually done on a small scale. Herb prices tend to be relatively variable, predominantly because of fluctuating supplies. Market access can be difficult for a beginning herb farmer. Overhead and start-up costs for large-scale herb production normally represent 35 to 65 percent of all costs. Most markets for herbs require reliable, year-round supplies although some local niche markets may exist for small-scale production.

Commercial Kitchen Feasibility

Adding value to tomatoes by developing salsas, sauces and chow chow for commercial sale requires the use of a commercial kitchen facility. Several factors influence the feasibility of starting and operating a commercial kitchen including equipment needs, fixed costs, variable and operating costs and market potential. Marketing activities will be very important to the potential success of the products. Government regulations for food processing must also be met in the construction and operations of the kitchen.