Benchmarking involves looking at a few key indicators of performance and seeing how businesses compare with each other.
Farming families get enormous benefit from benchmarking if it is kept simple and is used to answer the important questions: Should we buy the block next door? Can we bring other family members into the business? Should we replant with new varieties?
At an industry level, benchmarking can highlight key relationships between say yield and water use efficiency. It can facilitate meaningful practice change by helping industry to focus on the key performance indicators.
RMCG has developed the BizCheck method, from economic and financial farm surveys carried out over a range of agricultural and horticultural industries. Data collection is based on annual financial statements (tax return data) and physical farm information. This information is combined to provide performance indicators that anyone can use. It has been applied over many years to citrus, wine grapes, pome and stone fruit, grains, pork, dairy, rice and a range of other enterprises.
We also undertake cost of production surveys to drill into the performance of individual varieties. Measuring cost of production is fundamental in determining where costs can be reduced to improve profit.
We recognise that confidentiality is important and will ensure that the process of data collection and collation is straightforward, cost effective and confidential.