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Value Addition Lecture Notes

The document discusses post-harvest processing and value addition, explaining that value is added through enhancing products before offering them to customers. It provides reasons for developing value-added products such as increasing sales and stabilizing income. Examples of value-added products are given and creating employment opportunities through product development is discussed.
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0% found this document useful (0 votes)
2K views

Value Addition Lecture Notes

The document discusses post-harvest processing and value addition, explaining that value is added through enhancing products before offering them to customers. It provides reasons for developing value-added products such as increasing sales and stabilizing income. Examples of value-added products are given and creating employment opportunities through product development is discussed.
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Post-Harvest

Processing: Value
Addition
The Concept of Value-Addition
Value-addition takes place when enhancement is added to a product or
service by a company before the product is offered to customers.

2
Why Develop Value Added
Products?
Value-addition is performed due to numerous
reasons
“  Increase sales by
creating product
diversity

 Make use of excess


produce
4

 Stabilise income by allowing
income creation during off-
seasons.

 Provide opportunities for


other groups or sectors to
create income
5
 Increase the

“ profitability of a
product

 Provide opportunities
for other groups or
sectors to create
income 6
Add profit by
creating product
diversity
Product diversity is about offering a range of products
that differ from one another, satisfy the needs of
different market sectors, and involves differentiating
products from those of competitors.

7
Add profit by increasing
product diversity

Value-added products enable the


processor to increase sales by
creating product diversity, and to
increase and stabilize income

8
Example

9
Add profit by increasing
product diversity

▪ Product diversity is about offering a


range of products that differ from
one another, satisfy the needs of
different market sectors, and
involves differentiating products
from those of competitors.

10
Add profit by increasing
product diversity

▪ The physical product need not


change: changes may just be in
packaging or a change in
advertising theme. However,
diversity may be achieved by
changing the product in some
way
11
Product Development and
Value-Addition

▪ Product development is
necessary in value addition
▪ What do you need to know
before developing a value-
added product?

12
Know existing products and
talk to potential customers

▪ these are the best sources of


information if the product is
aimed at new markets

13
Talk with competitor’s
customers

▪ they provide a good source of


information on the strengths of
the competitor's products and why
they do not buy from you

14
Creating products
for tourists
Product diversity is about offering a range of products
that differ from one another, satisfy the needs of
different market sectors, and involves differentiating
products from those of competitors.

15
Tourism Market

▪ In some areas of some developing countries


have good opportunities to sell their products
to tourists

16
Create
Employment for
other Sectors
Value-addition can help other people be engaged in
other business.

17
Employment for other sectors

▪ Many processors find that developing a value-


added product provides a creative outlet that
maybe gives another family member or other
person a chance to be involved in the business.

▪ The production of value-added products opens


up income-creation
18
A way to use
excess produce
Utilization of processing wastes

19
Waste Utilization

▪ Product development and value-addition can


be used to utilize post-harvest losses.

20
Examples of
Value-Added
Products

21
22
Practicum Activity
Developing a Value-Added Product at Home
Instructions
1. Individually, think of a doable fisheries post-harvest product that
you can develop/make at home. This product should be value-
added in some way. Therefore, you can either develop your own
unique product or enhance an already existing product in the
market.
2. After making the said product, make a marketing poster for
advertising and see how many people are interested in your
product. This will tell you the potential of the said product if ever
released in the market. Product posters should be uploaded in
your social media accounts
24
3. Make a practicum report and attach your output including methods,
product photos, and the poster itself
4. Submit your report on or before Aug. 13, 2021.

25
Product diversity is about offering a range of products
that differ from one another, satisfy the needs of
different market sectors, and involves differentiating
products from those of competitors.

26
Extension is accountable to its clients

▪ Extension programmes are based on people's


needs, as well as on technical and national
economic needs. The extension agent's task is
to bring these needs together.

27
Extension is a two-way link

▪ Extension is not a one-way process in which


the extension agent transfers knowledge and
ideas to farmers and their families.
▪ Extension should be ready to receive farmers'
ideas, suggestions or advice, as well as to give
them. This two-way flow of ideas can occur at
different stages.
28
2. When recommendations
are being tested in the field
Trials conducted in the community is
an opportunity to test research
recommendations and provide
feedback for the research staff

29
3. When the community puts
recommendations into
practice
Problems discovered by the
community can be addressed and the
recommendations be adjusted
accordingly.

30
An extension programme is a written statement which contains
the following four elements:

1. Objectives- which the agent expects to be


achieved in the area within a specified period of
time. This will often be a one-year period, to
enable the agent to review the programme at
the start of each farming year.

31
An extension programme is a written statement which contains
the following four elements:

1. Means- of achieving the objectives.

2. Resources- that are needed to fulfil the programme.

3. Work plan- indicating the schedule of extension


activities that will lead to the fulfilment of the
programme objectives.
32
Situation Analysis

Before an extension 1. Collecting facts


programme can be drawn up, 2. Analysing facts
the existing situation must first
3. Identifying problems and
be analysed. This involves 3
potential
activities

33
Setting Objectives

Once the existing situation has


been analysed, decisions can 1. Finding Solutions
be made about the changes
2. Selecting Solutions
that should be brought about
through an extension 3. Stating Objectives
programme.
Solutions will require clear,
realistic objectives which
should be set in three stages 34
In looking for solutions to local problems, the agent should distinguish between
technical solutions and solutions that involve institutional changes.

The sources of ideas for developing an area's potential include:

 the agent's own technical knowledge;


 farmers and agents from other areas who have tackled similar problems
successfully
 applied research which tests new ideas under farm conditions;
 national priorities and directives
 projects which make funds available for particular activities.

Finding Solutions
35
When selecting from among the range of solutions and possible improvements,
agent and the community should ensure that proposed solutions are:

Acceptable to farmers in the area.

Technically sound and tested by research and experience elsewhere.

Consistent with national policy, and with the local activities of other agencies.

Feasible within the time and with the resources available to farmers and the
extension service

Within the scope of the agent's ability and job description.

Selecting Solutions
36
It should now be possible to state what the objectives of the extension
programme are to be. But because time and resources may be limited, the
agent must decide which objectives have a higher priority than others. In doing
so, he should consider national priorities and the size and distribution of the
benefits that will arise from a given input of time and resources

Wherever possible, objectives should be expressed in terms of amounts and


numbers, rather than general statements

Example:
1. "Establish two groups of dairy farmers who will share new equipment and
market their produce jointly“
2. "Increase the acreage of improved rice varieties from 60 to 120 acres“

They give the agent firm targets to work toward, and a standard against which
the effectiveness of the programme can be judged at the end of the year.

Stating Objectives
37
Implementation

To implement the programme, the agent carries out the


activities specified in the work plan. His detailed monthly and
weekly plans will take account of progress and problems
encountered in previous months.

38
Evaluation

▪ The agent will be constantly reviewing and evaluating his


progress during the year. At the end of the year, a more
thorough evaluation should be carried out in which the agent
identifies how fully each objective has been achieved, and
the reasons for any lack of progress. This evaluation,
together with an up-dated situation analysis, provides the
basis for planning the next year's programme.

39
Practicum Activity
Crafting a Community Extension Program
Proposal
Instructions

In groups of 3
1. Craft a community extension proposal for your chosen coastal
community.
2. The proposal can be applied to the whole community or a specific portion
within. Ex. Women, children, etc.
3. The proposal should be doable and can be pitched to local government
units for possible funding.
4. The proposal should consider a 1-2 years time frame only.
41
Instructions

5. All groups should follow a specified format for the creating the proposal.
6. The proposal shall be attached to the Activity Report and shall be submitted
on google classroom on or before August 14, 2021 (11:59 pm).

42

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