ValueAdded and Alternative Enterprises: A Major Initiative of the College of Agriculture and Life Sc

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Value-Added and Alternative EnterprisesA Major
Initiative of the College of Agriculture and
Life Sciences

• Dr. Johnny C. Wynne
• Sampson County
• January 15, 2004

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North Carolina Agriculture
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Economic Impact of Agriculture in NC

• Farm Cash Receipts (2002) 6.6 billion
• Value-Added Income 62.6 billion (22.2 GSP)
• Employment 771,000 (20.0 work force)

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NC Agriculture in Transition

• Major contributor to economy
• Number of farms decreasing
• 302,000 1948
• 57,000 2000
• Share of food expenditures decreasing
• 37 -- 1954
• 19 -- 2000

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Two Agricultures in the Future

• Commodity Agriculture
• Focus on production potential
• Small margins maintained with large size and
  technology
• Product Agriculture
• Focus on consumer needs
• Margins protected by capturing value and business
  arrangements

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Product Agriculture Research
Objectives

• Develop products
• Assist growers with marketing
• Identify markets

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Meeting the Needs of North Carolina Growers
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Definition of a Specialty Crop

• Unusual, high-value niche market crop.
• Any crop that has not been commercially produced
  in the specified region before.

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IncludeSpecialtyEnterprises

• Agritourism-corn mazes, catfish farms,
  historical farms, PYO orchards.
• Value-added products-herb soaps, goat cheese,
  wine, honey spreads, packaged salads.

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The N.C. Specialty Crops Program is a
multi-agency, cooperative program
North Carolina Agricultural Research Service

• N.C. State University researchers.
• Extension Service agents and specialists.
• N.C. Department of Agriculture and Consumer
  Services marketing specialists.

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• Objective to fast track development of new
  crops, value-added products, and agricultural
  enterprises.
• Key to success marketing and crop research are
  initiated at the same time.

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Status of Program in 2003

• There are 31 faculty led research projects.
• There are 22 county agent led on-farm projects.
• There are a total of 42 counties involved.
• There are 7 marketing studies.

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Some agricultural successes of the N.C. Specialty
Crops Program
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Sprite melon

• 3 million worth sold in 2003.

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Yellow Seedless Watermelon

• 650,000 worth sold in 2003.

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Red Seedless Watermelon

• 3.3 million worth sold in 2003.

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Cantaloupes

• 27 million worth sold in 2003.

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Eastern N.C.Lettuce

• 600,000 worth sold in 2003.

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Non-timber forest products

• Medicinal herbs, food, animal feed and flowers
• Value-added products from ramps

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• 780,000 in grants from the Golden LEAF since 2001

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Aquaculture
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Emerging Species

• Recent development of culture techniques for
  higher valued species from freshwater and
  saltwater
• Hybrid striped bass, yellow perch, black sea
  bass, and flounder are moving into mass culture

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Yellow Perch in Sampson County

• Nash Johnson of Clinton opened 10,000 square-foot
  fish barn using water recycling tanks in 2002

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Cooking Oil in Duplin County

• Carolina Soy Products in Warsaw turning what was
  a byproduct of their soybean additive for
  livestock feed
• Tests confirm that the oil is free of trans fatty
  acids, linked to heart disease and stroke

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Meat Goat Production
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Market Opportunities

• Ethnic population
• 300,000 to 500,000 Hispanics in NC
• Asians, Africans, Middle-Easterners, Caribbeans,
  Europeans
• Geographical location
• Proximity to urban centers of Eastern seaboard

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NC Estimates -- 2002

• Live goats sold for meat through all marketing
  channels
• 215,000 head
• Receipts 9.0 million
• Existing Breeding stock
• 146,000 head on 3,200 farms
• Capital 14.4 million

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Future of NC Meat Goat Industry

• Bright
• Goats have an important role to play as an
  integral part of NC production systems
• Market does not meet the demand for goat meat
• Demand for goat meat will increase because of
  demographics

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Farmstead Dairy Products

• Growing trend nationwide
• Growing trend in North Carolina
• Value-added for cow and goat dairies
• 12 operating currently, gt50 others very interested

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The Challenge

• No local source of information and assistance
• Overall goal develop programs to assist current
  facilities and those interested in starting
  farmstead production

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Nursery/Floriculture Crop Productionin North
Carolina
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New Landscape Plants
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X
X
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Summer Cascade River Birch

• A joint introduction by NC State, Shiloh Nursery
  and North Carolina Foundation Seed Producers

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Organic Farming

• A production system that avoids or largely
  excludes use of synthetically compounded
• Fertilizers
• Pesticides
• Growth regulators
• Livestock feed additives

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Organic United States, 2001

• 2.3m acres certified organic
• 1.3m cropland
• 1.0m pasture
• Organic vegetable acreage is 2 of total
• 72,000 certified organic beef cattle, dairy cows,
  hogs, pigs, sheep, and lambs (4x 1997)
• Dairy cows gt50
• Organic poultry increased 6x.

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Center for Environmental Farming Systems

• NCSU, NCDACS, NC AT SU
• Long-term, large-scale comparisons of farming
  systems
• Impact on economics, the environment, and rural
  communities
• Bright spots for NC organically grown corn and
  soybeans and organic poultry

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What is Bioprocess Engineering?

• Bioprocess Engineering involves the design and
  advancement of processing technologies for the
  production of value-added products from
  agricultural commodities and waste.
• Bioprocess Engineering has a positive impact on
  agricultural sustainability, profitability,
  development efforts in food and other industries
  and the environment.

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The Bio-refinery Concept
Crops Crop Waste
Lignocellulosic Material
Proteins
Carbohydrates
Food Additives Biochemicals Construction Material
Enzymes Amino Acids
Starches Sugars Ethanol
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Current Efforts at NCSU Include

• 36 million from Golden LEAF for Biomanufacturing
  Training Education Center on Centennial Campus
• Plant-Based Bioprocessing to Produce New
  Value-Added Agricultural Products

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More Current Bioprocessing Efforts

• Cotton Stalks Waste to Valuable Products
• Erosion Control Matting
• High Strength Biodegradable Paper Stock
• Ethanol
• Sweetpotatoes An Efficient Bio-factory
• Starch products Ethanol
• High-fructose syrup Bio-plastics
• Nutraceuticals Vitamins
• Proteins/Pharmaceuticals
• Anthocyanins Red Purple Dye

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Cotton Stalks

• Approximately One Million Acres in NC

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• Long Fiber Fraction
• Erosion Control Blankets
• Sedimentation Filters
• Pollution Filters

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• Long Fiber Fraction
• High-Strength Biodegradable Paper Stock

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Short Fiber Fraction Ethanol
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Sweetpotatoes
Table Stock Type
Industrial Type
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Industrial Sweetpotatoes

• Starch products
• Bio-ethanol
• High-fructose syrup
• Bio-plastics
• Nutraceuticals
• Vitamins, Caratenoids
• Protein/Pharmaceuticals
• Other renewable bio-products
• Red/Purple dye

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Sweetpotato Anthocyanins

• Textiles Dyes
• Bright Colors
• Improved Potency
• More Color Fast
• Food Dyes
• Healthfulness
• Safe Natural Product
• Co-extraction
• Proteins
• Starch by-products
• Ascorbic acid, etc.

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Viticulture
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Viticulture
Grape Production 14th Nationally Wine
Production 12th Nationally 26 Wineries (Shelton
, Biltmore) Grape Sales 2.9 Million Wine
Sales 30.0 Million Acreage 1,120 acres (280
increase since 1997-98) Varieties Cabernet
, Sauvignon, Cabernet Franc, Merlot, Pinot
Noir
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Wineries in North Carolina
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We are Changing the Way We Do Business
Objective 5.5 -- Utilize agriculture and natural
resources for economic development

• Ask key agencies toassist entrepreneurs in the
  production of value-added agricultural
  commodities and products
• to provide business, marketing and technical
  assistance to entrepreneurs in value-added
  agricultural commodities and products

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Leveraging Product Agriculture
For producers to benefit

• Grow what will sell, NOT sell what you grow
• Negotiation skills more important
• Coops a likely strategy
• Capital base crucial

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Opportunities for NC Agriculture?
Product Agriculture
WILL WE SEIZE NEW ECONOMIC OPPORTUNITIES?