What is food processing and packaging equipment worth?
Food processing and packaging equipment is valued under USPAP by category, age, condition, sanitary construction, throughput and the resale market for each class: mixers, ovens and fryers, fillers and depositors, labelers and case packers, conveyors, and refrigeration. Stainless, washdown-rated machines hold value because they can move into another food plant. Whether a line is a custom-integrated system or a set of standalone machines changes both the number and how readily the assets sell. Lukes & Lukes is an independent machinery and equipment appraisal firm; every report is prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA) and reviewed by a second principal before it goes out.
By Jared Lukes · CEO & lead appraiser · June 1, 2026 · Reviewed by Jesse Lukes
What we appraise
- Processing: mixers, blenders, cookers, ovens, fryers, kettles and extruders.
- Filling and packaging: fillers, depositors, cappers, baggers, labelers, case packers and palletizers.
- Material handling: sanitary conveyors, elevators and accumulation tables.
- Refrigeration and thermal: chillers, blast freezers, walk-ins and ammonia or glycol systems.
- Utilities and support: compressors, boilers, water treatment and CIP (clean-in-place) systems.
What drives the value
Sanitary construction leads: stainless, washdown-rated, USDA- or FDA-appropriate equipment holds value because it can move into another food plant; painted or non-sanitary gear cannot, and trades accordingly. Throughput and format matter, and so does flexibility: a machine that handles many container sizes resells more easily than one tooled for a single product. Integration cuts both ways: a custom continuous line can be highly productive in place but hard to relocate, which depresses its liquidation value relative to standalone machines that buyers can pick off individually. Refrigeration is regulated too: ammonia systems carry de-install and compliance costs that any buyer prices in.
Integrated lines vs standalone machines
This distinction drives the gap between in-place value and what the assets bring at liquidation. A fully integrated, automated line is worth a great deal to a going concern but may be expensive to remove and re-commission elsewhere, so its orderly liquidation value can sit well below its contribution to a working plant. Standalone, common machines from known builders have a deeper buyer pool. We weigh both, because the right number depends on whether the plant keeps running or the assets are sold.
Which premise applies
Lending, SBA collateral work and wind-downs usually call for orderly liquidation value (OLV) or net orderly liquidation value (NOLV). A sale or acquisition usually calls for fair market value (FMV). Estate and partnership matters use FMV as of a specific date. Food processing sits inside our general machinery and equipment specialty. See general machinery & equipment.
Common questions
Answers, up front.
What makes food processing equipment hold its value?
Sanitary, stainless, washdown-rated construction that can move into another food plant, common formats from known builders, flexibility across product sizes, and documented condition and maintenance. Non-sanitary or single-purpose gear trades at a discount.
Why is an integrated line worth less at liquidation than in place?
Because a custom, automated line is productive where it sits but can be costly to remove and re-commission elsewhere. That lowers its orderly liquidation value relative to standalone machines, which have a deeper buyer pool and are easier to relocate.
Which value premise applies?
Lending, SBA collateral and wind-downs usually use orderly or net orderly liquidation value; a sale or acquisition uses fair market value; estate and partnership matters use fair market value as of a date. We confirm the premise before we begin.