Quick Dips

Adding Value

The need to provide "added value" to products is increasingly recognised, but in some cases is inappropriate, according to a report released by the Ministry of Research, Science and Technology (MoRST).

It is inappropriate, the ministry report says, when it diverts resources from more productive uses and when the extra processing required removes products from direct sales. In addition, the report found that the perception of adding value "after the farm gate" was incorrect. It is possible to add value without extra processing by reducing input costs and increasing the value of the product being sold, such as longer clear lengths of logs, less fatty meat or more organic produce, the report said.

"Adding value cannot be done for its own sake -- it must be economically justifiable and market driven," says Dr Basil Walker, MoRST's chief executive. "It does not make sense for New Zealand to undertake value-added processing if the resources used could be more productively used elsewhere."