- Estimate the amount per weight unit (e.g. ton) you think you are going to lose due to the lower grading. Example. You think 50% of the season’s total harvest might be downgraded from grade-1 to grade-2 and you can lose R200/ton on grade-2. This means you will lose R100/ton on the season’s total harvest.
- The next step is just to update your season’s crop marketing plan by adding R100/ton to the cost of the ‘Uncertain Harvest Marketing Tool’ and adding R100/ton to the cost of the ‘Certain Harvest Marketing Tool’. This way you take the expected lower grading into account in the season’s profit goals.
- Whenever you get new information that the season’s grading is changing again just repeat the above steps and apply it from the marketing cycle where you got the new information.
- After a season’s harvest is completed you will have the exact harvest yield the final grading, you can now update the season’s crop marketing plan again by just repeating the above steps and this time use these facts to guide you to profitability for the rest of the season’s unsold harvest.
- This way CropsProfit helps you to navigate through uncertain times.
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