Montana agricultural entrepreneurs offer tips for increasing profits with value-added and new products

11/21/00 

Montana is ripe with opportunities for agricultural entrepreneurs, said Sharron Quisenberry, dean of the College of Agriculture at Montana State University, during a recent conference. But, she said, overcoming geographic isolation, low population and high shipping costs often takes some “thinking outside the box.” That’s where value-added and new products come in. Montana already has quality agricultural products; now, innovative producers are using unique marketing strategies and consumers’ fascination with Montana to increase their profits. Others are developing new products for niche and specialty markets.

During the “Team Approach to Agriculture” conference at MSU Nov. 9, entrepreneurs and economic development specialists offered some of their tips for adding value to traditional agricultural products and developing new opportunities.

               Like all small business owners, agricultural entrepreneurs must be creative and willing to take risks, said Dean Folkvord, owner of Wheat Montana in Three Forks.

“There are dollars out there to be had,” said Folkvord. “We have learned to think of ourselves as in the food business rather than the grain business.” That type of big-picture thinking, Folkvord said, allows the company to explore new opportunities.

Other panelists echoed those sentiments. Mary Schmidt, co-owner of Thunderbird Ranch and Valley Gardens in western North Dakota, produces soup, salad dressings and dip mixes. Terry O’Neill is part of the Western Beef Alliance, a value-added marketing network of cattle producers. Jan Tusick is an economic development specialist with the Mission Mountain Market in Lake County, which helps small producers form cooperative partnerships.

The panelists offered these production and marketing tips for producers who may be interested in value-added products:

• Use the quality of Montana’s products as your selling point.

• Investigate partnerships with other Montana businesses.

• Learn about corporate structure and what might be most appropriate for your business: a limited-liability partnerships versus a corporation, etc.

• Grow your business slowly enough that you can stress quality.

• Research your market and know your customers.

• Investigate new markets. There are boundless opportunities in, for example, the ethnic foods and organic foods markets. Be innovative!

• Pursue many small ideas at once, rather than putting all your effort into just one.

• Experiment with different types of unique packaging.

               • Tell your story. Consumers are often intrigued by a description of your product and the people who create it.

               • Trademark and protect your original ideas. Don’t assume that the “big boys” won’t copy you – they will!

• Be prepared to invest in your company. It takes money to make money.

• At the same time, know when to bow out if your business is not successful. 

               Quisenberry said that helping producers with new and value-added products is a high priority for the College of Agriculture. The dean added that she will soon schedule another workshop on value-added products. To receive information about upcoming workshops, contact Lisa Duffey, (406) 994-4323.              

Additional Resources

• For more information about how the MSU College of Agriculture can help with value-added and new products, contact Jane Ann Boles, assistant professor of meat science and moderator of the value-added session: (406) 994-7352. 

               • Engineers from the Montana Manufacturing Extension Center (MMEC) help manufacturers solve engineering, technical and business management issues. MMEC specialists drive right to the manufacturing door to work with management and staff to develop workable, cost effective solutions. Center engineers oversee each project from start to finish. MMEC also presents educational seminars and a biennial conference for Montana manufacturers.Call (406) 994-3812 for more information. 

• The Montana State University Extension Service has several Web-based fact sheets on starting a new business. Visit www.montana.edu/wwwpb/pubs/bus.html

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Send questions or comments to Carol Flaherty, MSU Communications Services, Bozeman, MT 59717 or email Flaherty at carolf@montana.edu.

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