Arkansas, alternative crop, profitability, stability, family farm, small-size farm, medium-size farm
Co-packing, also known as contract packaging, is when a company contracts with another company to manufacture and package foods that the original company will sell. Products on the market that have been co-packed range from nationally known brands to those sold under private labels. The use of co-packers has become extremely popular with entrepreneurs who have a product idea but lack the $100,000 or more needed to set up a manufacturing facility to produce the product. In addition, many entrepreneurs starting a foods business find that, in today’s market conditions, greater profits are achieved through sales and marketing innovations than by what is done in manufacturing. So, if a company has limited resources, they may get more profit using these resources to develop efficient marketing procedures rather than spending them on setting up manufacturing operations.
Brady, Pamela L.; Seideman, Steve; and Morris, Justin R., "Choosing and Using a Co-Packer" (2009). Research Reports and Research Bulletins. 14.