20 Years of bdk Auditors Fruit Benchmarking

This year will mark the 20^th annual bdk Auditors fruit benchmarking survey. Looking back while considering the latest trends we can summarise the past two decades as follows:

• The biggest driver of profitability is still the production of quality fruit of the right variety
• Over the past 8 years alone production has increased by more than 30%
• Notwithstanding the higher production, the quality fruit on tree increased or at least stayed the same
• There is a lot of value to unlock when you increase quality fruit on tree – BIG focus area
• Best practice producers produce on average 16% more tonnes per ha. than average producers. This resulted in +-R40,000 extra profit per hectare, a fact that saw best practice producers being sustainable for most of the period while the average farmer was unable to replant for 9 of the 20 years

What is benchmarking?

 “It is an agricultural economic study which identifies the factors that contribute to farm gate profit while comparing participating farms with each other.”

The study identifies the relative performance of each participant against his peers. The study compares the performance of +-44 farms on a confidential basis. We then calculate benchmarks for best practice performance. Our study covers 37% (3,687ha) of apples in the Grabouw/Vyeboom area and 33% (873 ha) of pears in the same area. Focus is on apples, pears and to a lesser extent plums.

2017 will be the the 20^th year that we are conducting our study and surveys have gone out. Participation is open for any deciduous fruit farm.

For more info or for participation please contact Tonie Linde tonie@bdkauditors.co.za or visit our website www.bdkauditors.co.za .

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)