cost of goods sold

Hidden Costs of Launching a Value-Added Product

Hidden Costs of Launching a Value-Added Product

Adding value to your farm product can bring more of that food dollar back home to the farm. Many Kentucky farmers transform their raw agricultural commodity into a different product with higher market value (milk to cheese, fruit to jam, etc.) This may seem like an obvious way to increase revenue, but it’s important to understand all of the costs associated with launching a value-added product. Understanding your costs will help you price your product at the right level and ensure that you can make a profit off the finished product.