Agricultural products, often fruits, vegetables, nuts, or herbs, can be transformed beyond their raw state to increase their market value. This transformation may involve processing, packaging, or marketing in a way that differentiates them from commodity crops. A local apple orchard, for example, producing and selling apple cider or apple butter demonstrates this principle. Similarly, a lavender farm that distills its own essential oils from the harvested plant provides a more profitable product than selling the raw flowers alone.
The economic importance of this practice lies in its potential to boost farm incomes and create rural employment opportunities. By engaging in direct marketing and processing, farmers retain a larger portion of the consumer dollar and reduce their reliance on fluctuating commodity prices. Historically, this approach has helped small and medium-sized farms remain competitive in an increasingly globalized agricultural market. The development of regional food systems and the growing consumer interest in locally sourced and unique products are also driving forces behind this trend.