Understanding Value-Added Products

Some agricultural produce are sold as is, without having to undergo further processes, whether natural or otherwise. Examples of these are fruits and vegetables that are up for sale after they have been harvested. By themselves, they already have value. But if they are changed or transformed from their original state, they become value-added products.

Image source: blog.uvm.edu

There are many reasons for value-added products, and one of them, and probably the most essential, is that there is a demand for them. 

For example, consumers need flour. Thus, producers refine wheat to create them. Fruits that are made into jams are also considered value-added products. Grains that are modified into biomass for energy purposes are also an example. When biotechnology is introduced to the processes of preparing agricultural goods, the finished product is considered a value-added one. 

Even the consumers’ increasing preference for healthier alternatives has led to many organic farming business models, whose products have also been defined by the U.S. Department of Agriculture as value-added. Although, this is still an on-going debate as some point out that even though organic products have more value, they are technically not “added,” and they are inherent to the processes of organic farming. 

There are various approaches to adding value to farm products, but they generally fall into two categories, namely, innovation, which emphasizes the improvement of existing processes, products, and services, and coordination, which focuses on the arrangement between the entities that create the farm products and that market them.

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Jon Queen is at present a part of Amatex Capital, a private equity company from Ukraine that pursues investment opportunities in various fields, including agriculture, production of value-added products, and more. Learn more about Mr. Queen by visiting this page.

Is It Worth Investing In Sustainable Agriculture?

Amatex Capital is contemplating strategic agreements with leading international groups in regard to Ukrainian oil and gas, commercial real estate, agriculture and energy opportunities; it has commenced due diligence on several resource plays and M&A opportunities. The firm’s management is then no stranger to agricultural investments or real estate, either. And with the company’s information gathering efficiency, it was only a matter of time before they ventured into sustainable agriculture.

Image source: con10u2farm.com

So the question is – just how financially viable can sustainable agriculture be?

Sustainable agriculture isn’t a new concept. In fact, the very concept of sustainability in structures and businesses has been used as cornerstones in many of the world’s greatest societies. Today, many entrepreneurs and entities have gravitated towards sustainable businesses, including real estate and agriculture, because the world has become more concerned about the environment.

In agriculture, sustainability doesn’t change the fundamentals of farming. A farm will still have its basic responsibilities to its workers and the community. Farm management, however, will be different.

A key aspect of sustainability is the minimization of pollution. To achieve this, farm soil has to be properly tended, and water should only be used when needed. The development of crop rotation, a sustainable ecosystem, a biodiverse farm, and agroforestry is encouraged in sustainable agriculture.

Image source: worldwildlife.org

Jon Queen is currently a part of Amatex Capital, a private equity firm that places emphasis on the sectors responsible for gas and oil production, agriculture, production of value-added products, retail, and commercial real estate. The company is exploring a strategic partnership with North American oil and gas companies to develop opportunities in Ukraine, offering critical value enhancement to the business platform. This initiative enjoins several of Ukraine’s experts in the oil and gas sector who have worked in technical field capacities for Shell, Chevron, Exxon, and many other international and local oil and gas specialists who have done research and are presently developing opportunities in Ukraine. Learn more about Jon Queen and Amatex Capital here.