AgDM newsletter article, November 2003

Business development producer alliances

Don HofstrandDon Hofstrand, retired extension value added agriculture specialist, agdm@iastate.edu

Producers are joining together to focus on adding value to the crops and livestock they produce. Rather than developing just one value-added business, some of these new alliances are focusing on developing a variety of businesses by identifying new markets and creating new business ventures to service these markets. In other words they are in the business of creating value-added businesses.

Examples

Below are three examples of these new producer alliances. Many more have either been formed or are in various stages of formation. Although each alliance is unique, they all share the basic mission of creating new value-added businesses.

Advantage of alliances

These new alliances provide advantages for producers involved in value-added business development that are not available when working in isolation on a single project. Alliances provide a unique form of business “incubator.” Not an incubator in terms of physical space and equipment, but an incubator in terms of skills development, leadership, idea sharing and access to resources.

Producers are attempting to enhance the value-added business development process by creating these entrepreneurial organizations. In the eyes of this observer, these alliances are critical to the success of the value-added movement.

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