Agriculture Growth Strategy Cost transformation

Growing more from the same orchards

How we built a farm-level productivity strategy for a horticulture producer, protecting profit through the price cycle.

Client
Horticulture producer processor and exporter
Timeline
12 weeks

The situation

A horticulture producer ran thousands of hectares across multiple locations around Australia. With crop prices under pressure, it wanted to lift horticulture productivity to protect profitability through the low points of the price cycle, and needed a clear three-to-five-year strategy the board and management could get behind.

The problem

Each farm had very different soil, water, yield and cost outcomes, but there was no clear, farm-level view of what was driving them. A large share of the premium crop was being downgraded because of damage, and the business needed to know which of many possible productivity initiatives were genuinely worth pursuing, and which were not.

What we did

Over a twelve-week engagement, we built a farm-level P&L and benchmarking model across all locations, using five years of cost, yield and quality data, to pinpoint the real drivers of performance farm by farm.

We then developed a view of global best practice through literature and interviews with leading Australian and overseas growers, industry bodies and researchers, and built internal best-practice league tables across the farms. From this we developed and prioritised a long list of yield, quality and cost initiatives by value, time to deliver and confidence, and were deliberately clear about which initiatives were not worth pursuing.

The priority initiatives were worked up in detail, from farm-specific fertiliser and water plans to a leaner labour and management model, and we handed over a yield forecast and sensitivity tool so the business could keep making the trade-offs itself in future seasons.

Results

+16% more yield per acre, from the same orchards

+50% annual contribution opportunity identified
+16% target yield uplift per acre

The Partners

Partner-led, across Australia and New Zealand.

GNG Partners works with boards and senior executives across Australia and New Zealand, from Sydney, Melbourne and Brisbane. The Partners who scope an engagement are the people who do the work – meet the team behind these results.