The human elements of value-added enterprises
If you look behind the scenes at any successful value-added farm enterprise in Hawai‘i (there are many), you will find that their most important resource is people. Entrepreneurs are the "heart," "soul" and "brains" of the operation. The resourcefulness and tenacity to run a small farm comes from the people who run it. Here are a few characteristics of successful value-added farm enterprises.
Passion
Small farm enterprises always reflect the enthusiasm and engagement of their owners. Successful operations center on crops and products that inspire their owners, and this manifests itself in many ways including product quality and customer relationships. Passion for the products drives both product quality and consumer satisfaction and contributes tangible and intangible advantages in production and marketing. Conversely, if a farmer no longer finds her/his products to be inspiring, the enterprise will likely whither from lack of attention and enthusiasm. Customers who are looking for special products can sense the enthusiasm of the producers.
Attention to detail
Adding value requires attention to the details at many stages of the process: cultivation, harvest, postharvest, processing, labeling, and marketing. Customers are looking for consistent quality and supply for the additional cost. Carelessness will not be rewarded with referrals or future purchases.
Tell personal stories
The mastery involved in creating a value-added product requires navigating a wide range of challenges. Each farm has its own personality, its own story. People who want value-added products usually want to strengthen their relationship with producers and the food they consume. Telling the producer’s story helps customers appreciate what it took to create a product, giving them added good reasons to pay more for it. Successful entrepreneurs communicate their stories in their marketing materials and in person with customers. Successful web sites have a comprehensive “About Us” page.
Educate customers
Customers are much more willing to pay more for a product if they know about the resources and passion that went into it. Many successful value-added enterprises educate customers about their basic processes (e.g., organic techniques, processing methods) and the historical context of the product so that they can appreciate what went into the consumer-ready product. Educating customers allows small producers to differentiate their products from inexpensive, mass-produced products.
Constantly improve and learn
In developing and selling value-added products, sometimes the “path of least resistance” is easy to follow when everything falls into place. Other times immense challenges arise. The most successful small farm enterprises are constantly learning how to improve their operation and to make their customers happy. They adjust to changing environments and continually adapt to changing market conditions and regulations. As digital technologies become increasingly important, up-to-date computer skills are also necessary.
Craig Elevitch and Ken Love will be presenting a four-island workshop entitled "Value-Added Innovation for Hawai'i Growers: Making the Family Farm Profitable" during March 2013. For more information, visit valueadded.info.
Craig Elevitch has been an educator in agroforestry since 1991. He was the grain miller and business director at a certified Biodynamic® farm in Sweden, where he gained his first experiences producing and marketing value-added products. He directs Agroforestry Net, a nonprofit educational organization dedicated to empowering people in diverse agricultural systems that produce abundant food, fiber, medicine for subsistence and commercial purposes.
Ken Love, widely known as a passionate tropical fruit expert, is co-owner of Love Family Farms in Kona, Hawai‘i, which produces a range of value-added products including jams, jellies, dried fruits, and coffee. His research supports farmers in becoming sustainable though diversity, agritourism and value-added product development. Ken has held presentations on these programs in the South Pacific, Japan, India and Italy.