Value added agriculture, simply defined, is the process of increasing the economic value and
consumer appeal of an agricultural commodity. Without a value added
model, commodity producers become price takers. With a value added
model, they can become price setters,.
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Value Added Agriculture, quite simply, is increasing the economic value and consumer appeal of an agricultural commodity such as alpaca fiber. Value adding benefits the producer, since it increases profits and can provide a shield against the price swings seen in the commodity markets. Value adding often entails some level of vertical integration.
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Alpaca fiber producers in the United States is uniquely positioned to take advantage of the movement towards the value added model. In fact, they are already doing so on many different levels.
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Alpaca fiber producers should remain aware of the larger industry. Due to the small numbers of alpacas in the United States, many owners have struck out on there own. However, the alpaca industry in the United States is uniquely positioned to take advantage of the the value added model if producers remain focused on the big picture.
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Cooperative efforts in agriculture, and other areas, can be traced to some of the
earliest records of human history. Babylonians practiced cooperative
farming and that the Chinese developed savings and loan associations
similar to those in use today. Alpaca fiber producers are uniquely positioned to take
advantage of the concept of cooperative agriculture in the United
States.
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