Replacing Ingredients With By-Products

This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.

Agriculture is constantly faced with the tension between grower profitability and consumer affordability. Companies like Voyage Foods are taking an unconventional approach to making food more affordable, by replacing seasonal expensive ingredients with low cost by-products and using advancements in food science to maintain quality. Here’s Voyage Foods founder Adam Maxwell.

Maxwell… “That's one of the things we've really tried to work towards is price and cost stability. With that comes lower working capital needs for our customers, you're not contracting out as far, you don't have to price in as much risk into your, you know, product formulations and your P and L. And so, you know, we're trying to offer a very stable price depending on kind of what scale people are purchasing at.”

Maxwell said their business model fits their product line which started with just four different consumer packaged goods.

Maxwell… “Where things like coffee are the, you know, the largest growth areas in terms of per capita consumption are really the emerging markets that are much more price sensitive. And so being able to help manufacturers have lower incoming price points, or be able to serve more people, or offer more cost-effective things, I think is important for us. And, you know, for that reason, yeah, we're very much so not looking at pegging our pricing to coffee, but really being a cost-friendly alternative to manufacturers globally.”

Again that’s Voyage Foods founder, Adam Maxwell.