Contract manufacturing or self-production for agricultural processed products? A complete analysis of agri-food collaboration, part one

Agricultural producers often face off-spec losses, want to extend the sales cycle of fresh produce, or further increase product added value, and processing seems to be everyone's common answer. Relatively simple processes such as dried fruit, candied fruit, jam, and pickled products have already become staples at farmers' markets everywhere, while more complex brewed vinegar, soy sauce, and rice and grain premixed flour are also becoming more and more common. Recently popular puffed rice cakes in various flavors and specialty alcoholic drinks are innovations that start from tradition.

This article analyzes and compares regulations, costs, food safety risks, and product uniqueness to answer 'how should small-scale producers choose between contract manufacturing and self-production?' It is hoped that this will prompt more feedback and responses from others.

First, do complete and thorough planning

Should small producers choose contract manufacturing or self-production? It is recommended to first plan the agricultural production plan for the next three to five years and the scale of funds that can be allocated, thoroughly study the best way to present the product, and determine whether there is excellent market differentiation and marketing channels before deciding to find a food factory for contract manufacturing or invest in production equipment, and establish one's own food safety and self-management concepts (small producers may refer to the interview article with teacher Xie Furu, Harvest Magazine, December 2017 issue, 'Food processing steps require attention to detail, GHP as the basic guideline'), which is the path to long-term success.