Farmers Look To New Business Ventures To Boost Profits.(Value Added Products)(Brief Article)

Food Institute Report, The, October, 2001

Farmers across the nation are creating enterprises to transform raw agricultural products into processed foods. One such business, Alva, OK-based Value Added Products (VAP), was created two years ago by a group of 25 farmers to make pizza dough. More than 850 farmers are now members of VAP, which has 83 employees mixing 60 recipes of dough for pizzas, pastries and breads. VAP has raised almost $10 million in two stock offerings and plans to spend up to $19 million, including $7.5 million in guaranteed loans, in business improvements.

Some 75 to 100 similar farmer-owned businesses exist nationwide and interest appears to be surging. USDA received more than 400 requests for $10 million in grant funding awarded in September to 32 ventures. A new farm bill in the...

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