Value-add
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Value-add, usually referred to as value-added, is the increase in value or price of a product due to a modification of the product or its marketing in some way. For example, making apples into apple juice increases the value or price beyond that of the unprocessed apples. Organic produce has more value or price than produce that is not produced organically. In this case, value is added because the identity of the product is preserved--it is not simply an apple, it is an organic apple. Another example of value added in this way is fair-trade coffee. There can also be a value added to a product when the market for the product increases, giving the producer an added value for the product due to the greater demand. Renewable energy produced on farmland is another source of added value, such as converting manure to methane for fuel.
References
- The USDA provided most of the info in this article, on pg. 33349 of the Federal Register for Tuesday June 15, 2004, in an announcement of the USDA's Value-Added Producer Grants (VAPG).
