Center for Profitable Agriculture

PROJECT HIGHLIGHTS | PRODUCTS ON THE MARKET

Value-Added Projects — Project Highlights — 5

	Dairy Processing Opportunity Analysis
	Dehydrating Chicken Litter for Use as Fertilizer
	Developing a Direct Garden Marketing Enterprise
	Developing Markets for a Lavender Enterprise
	Developing Markets for Farm-Based Goat Milk Soap Products
	Diversified Direct-Marketing and Agritourism Enterprise Idea — A Preliminary Assessment
	Drinkable Yogurt Processing and Marketing Considerations

Dairy Processing Opportunity Analysis

With slim margins at the commodity level, some dairy producers are looking for ways to earn more of the consumer dollar. Processing fluid milk products and marketing them under a farm label is often seen as a method to add value to commodity milk. Building, equipping and operating a milk processing facility, however, comes with its own challenges. The CPA evaluated the start-up and operating costs of an on-farm processing facility, investigated opportunities for co-packing and conducted a preliminary market analysis. Limiting factors of such a venture often include capital financing, regulations, distribution, retailer cooperation, financial feasibility, competition and other issues.

Dehydrating Chicken Litter for Use as Fertilizer

The results of our findings indicate that there is limited market potential for a dehydrated poultry litter product as soil amendment/conditioner. It is expected that the level of sales for such a business to break even would require a much greater amount of raw litter input than is likely available. Cost of production estimates appear to push the retail price of the bagged product into the market for higher income consumers. With a projected nutritional value less than competing commercial soil conditioners, the product must appeal to the consumer on a basis other than price and nutrients. Approval of the product for use in certified organic production will be dependent on end-product analysis, record keeping and a thorough procedure that insures organic standards. The most probable positioning strategy will include uses of terms such as natural, local and fresh.

Developing a Direct Garden Marketing Enterprise

Direct garden marketing enterprises are often considered commercial agricultural operations that operate much like a mega garden. These operations often grow 3 to 5 acres of a variety of fruits and vegetables and utilize a variety of marketing methods and approaches including both on-farm and off-farm sales direct to consumers or retailers. When selling direct to the public, most market gardeners find it important to be friendly, courteous, informative and respectful to their customers; offer high quality products; develop a unique product or feature about the business; set fair price; display products in a neat and organized manner and provide product samples if appropriate.

Developing Markets for a Lavender Enterprise

Lavender is growing in popularity across the globe. Not only are people once again discovering the homeopathic and aromatherapy uses of its essential oils; it is being widely used in arts and crafts and home decorations. The majority of lavender is not grown in the United States; however, the trend is changing. Pockets of lavender growers are popping up in the Pacific Northwest and New England areas as well as other areas across the U.S. The CPA assisted a family currently growing this non-traditional agricultural crop in addressing issues associated with marketing channels. The family had previously sought to sell the lavender fresh-cut on the wholesale flower market with no success. Alternative marketing channels such as direct to the florist, to an oil distillery, and a pick-your-own enterprise were considered.

Developing Markets for Farm-Based Goat Milk Soap Products

Soaps made with goat-milk have various market opportunities. Positioned as natural and pure, goat-milk soap products can be used for cleaning, gifts and decorations and can be marketed through numerous direct-retail and wholesale outlets. Similar to other specialty products, sales of goat-milk soaps can be improved with an effective marketing plan which includes clearly defined and commercial product features, appropriate packaging, effective labeling, superior marketing materials and a multi faceted set of planned sales outlets.

Diversified Direct-Marketing and Agritourism Enterprise Idea — A Preliminary Report

Some producers consider value-added ideas such as direct-marketing and/or agritourism when looking at ways to sustain family operations. With many options and opportunities to add value, it may be difficult to narrow down ideas into something that can be analyzed and implemented effectively. Trying to implement too many options at once may stretch or break and operation's financial and human resources. Large-scale operations often attribute their success, in part, to starting small and growing over time as resources can be made available.

Drinkable Yogurt Processing and Marketing Considerations

Drinkable yogurt sales reached $132.8 million dollars in mid-2002 in food stores with more than $2 million in sales, with a growth rate of 36.6 percent above the previous year. Per capita consumption of yogurt was only 12.9 half pints in 2001, however. The market has several major players including DANNON® , Yoplait®, and Stonyfield Farm®. Drinkable yogurt products developed for niche markets are appearing and opportunities may exist to tap an unsatisfied niche. Identifying a target market and their product preferences would be a key factor in product development and market planning. Drinkable yogurt production requires a significant amount of equipment to produce a safe and quality product. The amount of capital necessary to acquire equipment may be restrictive depending upon production and sales volume expected.