Farms Boost Profits Through Vertical Integration

California farms turn to value-added products and on-site manufacturing to capture more food dollars

Jan. 27, 2026 at 7:47pm

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Farms in California are increasingly turning to vertical integration and value-added products - from sauces and jams to cider and creamery goods - to capture more of the food dollar, manage risk, and keep jobs and revenue in their rural communities. Experts say trends in the food supply chain and changes in consumer behavior are incentivizing more farms to vertically integrate, though they often face barriers like accessing capital and achieving the necessary scale.

Why it matters

For decades, farmers have seen their share of consumer food dollars decline, with more of the value captured by processors, retailers, and food service. Vertical integration allows farms to regain some of that lost value, diversify their revenue streams, and insulate themselves from risks in raw commodity markets. It can also have broader community impacts by keeping more food dollars circulating locally.

The details

Full Belly Farm opened a commercial kitchen in 2016 to manufacture value-added products like tomato sauce, jam, cakes, and olive oil from the farm's organic produce. Other farms like Rosa Brothers Milk Company and Far West Cider Co. have built their own creameries and cideries to process and sell their own dairy and fruit. While vertically integrating can be challenging due to capital costs and achieving scale, successful farms can benefit from year-round cash flow, outlets for unsold produce, and more control over their supply chain.

  • Full Belly Farm opened its commercial kitchen in 2016.
  • Rosa Brothers Milk Company built its creamery in Tulare in 2012.
  • Far West Cider Co. was opened by the Chinchiolo family in 2018.

The players

Amon Muller

Co-owner of Full Belly Farm, a 450-acre organic farm in Capay Valley that operates a commercial kitchen to manufacture value-added products.

Kristin Kiesel

Agricultural and resource economics professor at the University of California, Davis, who has partnered with Full Belly Farm on research.

Noel Rosa

Co-owner of Rosa Brothers Milk Company, a Kings County dairy that built its own creamery in Tulare in 2012.

Steve Chinchiolo

Organic apple grower in San Joaquin County who opened Far West Cider Co. with his children in 2018 to process the farm's fruit.

Crystal Whitelaw

Associate director for sustainable food economies at the UC Sustainable Agriculture Research and Education Program (SAREP).

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What they’re saying

“I really enjoyed my time there, but I quickly realized that I like being outside. I was drawn back to the farm.”

— Amon Muller, Co-owner, Full Belly Farm

“It's a really interesting model. They're a good example of a farm that vertically integrated and built a brand.”

— Kristin Kiesel, Agricultural and resource economics professor, UC Davis

“It gets easier as your brand gets established.”

— Noel Rosa, Co-owner, Rosa Brothers Milk Company

“Ultimately, we're hoping to be able to utilize all of that fruit.”

— Steve Chinchiolo, Organic apple grower

“More consumers are vested in the food supply chain. Now more than ever, folks want to have a relationship with their food and know where it comes from.”

— Crystal Whitelaw, Associate director, UC SAREP

What’s next

Farms interested in vertical integration can receive support and resources from UC SAREP, and they can also apply for USDA's Value-Added Producer Grant program to help establish value-added enterprises.

The takeaway

Vertical integration is allowing California farms to capture more of the consumer food dollar, diversify their revenue streams, and keep more economic activity in their local communities. While it presents challenges, successful farms are finding that value-added manufacturing can be a strategic way to remain viable in an increasingly consolidated food system.