This document outlines the steps needed to properly prepare an agricultural value-adding business initiative. It discusses that many such initiatives fail due to lack of careful planning and assessment. The document divides the process into three sections - the first involves arguing the case for undertaking a value-adding initiative and placing it in the context of market conditions. The second examines emerging opportunities in the agri-food sector. The third presents five essential steps for success: implementation preparation, economic analysis, resource gap assessment, opportunity scoping, and maximizing internal efficiencies. Undertaking this thoughtful planning process can help agricultural producers properly develop and execute a value-adding business idea.

1. Objective: To Prepare an Agricultural Value-Adding
Business Initiative
 Many value-adding initiatives in agriculture that fail are neither written about nor discussed as
a case study. Success is celebrated and failures can be giving serious and adverse effects on
individuals and communities. So, value-adding initiatives require a serious judgment, careful
assessment of alternatives, thoughtful planning and scenario (business script) analysis are the
much needed before the business establishment. The purpose of these documents is to provide
a working framework for undertaking the value-adding initiative judgment (decision making)
process.
 Searching for Opportunities Successful value-adding initiatives are innovation-driven.
Innovation is the transformation of ideas into new products and services.
 When we can think that outcomes as occurring from two different stages i.e.– the thought
stage and the action stage – then these documents tell us about the thought stage. These
documents present the thought process of individual agricultural producers should go through
the conversations. i.e. Conversation of idea with his colleagues, his associates, friends and
family. The document is divided into three sections. i.e. First section, second section and
third section
• First section involves an argument with his colleagues for undertaking the value-adding
initiatives in agriculture are to be presented and defended. If increasing the interest of all
colleagues in value-adding initiatives. We can be placed value-adding initiatives within the
context of reality of agri-food market condition which are prevailing in existing market, and
to judge the support for such considerations within the production-processing-marketing
condition.

2. • Second section involves, the scope of opportunities emerging in the agri-
food sector in present contrast are to be presented and arguing that
particular industry members or participants should have been taken a
broader sense / sharp mind/ opportunities and business strategy and their
limitation. In narrow sense, primary objectives of value-adding initiatives
are to enhance producers’ net farm income as well as wealth,
• The third and final section of this study is presents into the five steps. It is
argued that the probability of success depends on the second stage of
outcome if the first (thinking) stage are to be properly employed or
executed – the action stage – is higher. These belief motivating factors are
growing an interest on value-adding initiatives by agricultural producers,
while the rationality makes sense on its execution. It is based on
assessment of cold business facts as well economic facts. The concept of
value-adding, facilitate this assessment. The Success of value-adding
depends on producers’ skill, if producers efficiently used available resources
then business initiatives success.
For Success full Value-Adding Initiatives following steps are necessary:
 Implementation Preparation
 Economic Analysis
 Resource Gap Assessment
 Opportunity-Scoping
 Maximizing Internal Efficiencies
These Five Steps is essential for value adding initiatives.

3. • Conclusion: Value-adding business initiatives are defined as those
producers which are received extra reward for performing
traditionally. It is one approach which is enhancing producer net
income. The process covers the steps which are very necessary for
thinking through value-adding initiatives – identification of
opportunities and selecting them, evaluate their feasibility as well
as identify potential sources of resource which facilitate the
business opportunities.
• First step, value-adding initiatives are maximizing internal
efficiencies. It is pointed out that internal efficiencies are not
maximized, and could make producers more permeable to market
changes as well as competitive pressures. Other steps involved
assessment of business opportunity. This can be helpful for the
participants. So, they can build up their business planning. The final
step and last steps, is to prepare for implementation of value
adding project for effective participation by producers in the
venture. It also primes for developing the any business idea or plan
for the venture.
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