Adding Value to the Sustainable Farm Learnings from a SARE Appalachia Initiative Grant 2007 The Need • Commodity agricultural production demands high efficiency and high volume. • Family living costs continue to increase. • Farmers must grow their business to provide the necessary return to owner’s labor and management. • Value added processing and marketing offers an option for growers with limited acreage to grow their business. The Problem • Value added production/processing provides the opportunity for increased income and profit. • Farmers are reluctant to invest, due to uncertainty about their ability to sell a value-added product. • Farmers never know if they can sell the product, because they don’t have one to sell. The Grant was the Solution • $25,000 Grant awarded in Spring 2007 • 9 farmers received $1,200 towards the cost of processing - $300 for jars and $900 for labor to grow the crop. • Additional funds used to provide marketing assistance, education, and product ideas from chefs. The Players • • • • • Collaborative for 21st Century Appalachia Gourmet Central, Romney, WV 6 farmers in WV 3 farmers in PA Brian Kelly, Penn State Extension Products Made • • • • • • • • Somerset Sweet Onion and Garlic Jelly Dilly Beans Bloody Mary Mix Spaghetti Sauce – two kinds Blackberry Jelly Jonagold Chunky Applesauce Hot Sauce Pumpkin Syrup Results • Unsold tomatoes were transformed from “pig feed” into spaghetti sauce and production was sold in a month. • Un-harvested sweet onions were “rescued” and processed! • High school boy, with help from his Grandmother, created Pumpkin Syrup By the Numbers Crop Value Product Quantity Cost Selling $ Tomatoes $4.00 Spaghetti Sauce 169 qt. $2.86 $6.00 Tomatoes & $175 Peppers Hot Sauce 160 $3.46 $4.00 Tomatoes $300 Bloody Mary Mix 250 (25 oz) $4.60 $8.00 Apples $125 Chunky Applesauce 437 qt. $2.30 $4.95 Green Beans $101 Dilly Beans 125 $3.26 $6.00 Pumpkin $150 Pumpkin Syrup 293 $2.86 $4.00 Calvin – Bigg Rigg’s • Original product a Vodka Sauce • Over $5 production costs. Retail $8. • Pasta Sauce • $.50 Tomatoes + $3.50 processing cost = $8 Retail Price Calvin’s Bank Account! Laurel Vista Farm Sell Everything • • • • Current market means grading for sale. So, they have a lot of “less than first” What do we do with the extras? Value-Added Processing uses the good, but not perfect. For example… Key Learnings • • • • • • Use over production or second quality Growers with an established market Price as a premium product; it is! Make a unique or specialty product! Product tastings and recipe ideas 7 of the 9 invested their own money in 2008 in Value Added Processing Questions? Brian Kelly Extension Educator Penn State Extension, Blair County 301 Valley View Blvd., “E” Wing Altoona, PA 16602 bmk12@psu.edu 814-940-5989