Processing and packaging.
WHAT VALUE ADDITION MEANS
Doing something to produce that increases what it sells for.
WHAT FORMS IT TAKES
Cleaning and grading Drying Milling and processing Packaging Branding Preservation
WHY IT MATTERS
Raw produce earns the least in the chain.
WHAT THE SIMPLEST STEPS ARE
Cleaning, grading and better packaging.
WHY START THERE
They require little capital and they frequently increase price meaningfully.
WHAT GRADING PROVIDES
Higher prices for better produce, rather than one price for everything.
WHAT PACKAGING PROVIDES
Reduced damage Longer shelf life Presentation Ability to sell to different buyers
WHAT PROCESSING REQUIRES
Equipment Power Premises Regulatory compliance
WHAT COMPLIANCE INVOLVES
Registration of processed food products with the food and drug agency Premises meeting requirements Labelling requirements
WHY THAT MATTERS
Selling unregistered processed products attracts enforcement and excludes formal buyers.
WHAT TO ESTABLISH BEFORE INVESTING
Whether the additional price covers the cost.
WHAT TO CALCULATE
Cost per unit processed, against the price difference.
WHAT TO BE REALISTIC ABOUT
Equipment utilisation.
WHY
Processing equipment used seasonally is expensive per unit.
WHAT TO START WITH
The smallest step that increases price.
