With a large number of processes involved, plantation management can be extremely demanding. Plantation businesses produce agriproducts in vast quantities that are consumed by thousands of households. Yet, many plantation owners still struggle to make their businesses profitable. This has highlighted the need for agricultural enterprises to incorporate smart plantation management strategies to yield significant returns for their business.
Adopting clever plantation management tricks can be quite effective in boosting your profit margins. By buying inputs in large volumes, plantation owners can negotiate better and get high discounts as compared to purchasing inputs as and when required. Eliminating middlemen and making contracts directly with processing companies can safeguard a massive amount of your profits.
With a robust and reliable drip irrigation system, plantation businesses can successfully meet their goals of sustainability and profitability with the precise use of water. Using Plantation management software to digitally keep track of your accounting and farm records can help you make well-informed business decisions. Taking wise calls related to renting or buying machinery can also contribute to improving your plantation management efforts and enhancing your business returns.
Check out the top 5 plantation management hacks that can improve profit margins for your enterprise and turn you into a thriving agribusiness.
1. Buy Agricultural Inputs for Your Plantation in Bulk
Plantations have high upfront costs and management expenses. The volatility of input costs makes budgeting and plantation management quite challenging for agribusinesses and enterprises. This is why bulk purchases of inputs, such as fertilisers, seedlings and pesticides are a must.
Plantation businesses must buy their inputs in bulk as it is more economical than purchasing them as and when they are needed. Bulk purchase of inputs makes sense for large to medium-sized farms and plantations as it significantly strengthens their bargaining powers. Consequently, plantation businesses get to considerably reduce their cost of production and maximise profits by bulk buying inputs.
2. Formulate Agreements Directly With Large Processors
Plantation businesses can sign contracts with large processors to always keep their business flowing and maintain a steady and regular cash flow. Creating contracts directly with large processors can help in eliminating middlemen or intermediaries. This can boost your profit margins as middlemen generally take away a major portion of the returns.
Direct contracts with large processors give plantation businesses the power to negotiate prices and get a better price for their crops. By negotiating directly with large processors, farmers are aware of the quantity and quality of crops they need to produce in a specified time. This helps them to schedule and optimise all their plantation or large farm management operations for greater productivity and profitability.
3. Set Up a Durable Drip Irrigation System
Saving water is the primary concern of large to medium-sized farm owners who wish to improve their plantation management activities and make their business lucrative. Underutilisation as well as over usage of water resources can weaken crops and make them susceptible to diseases. This can hamper crop outcomes and ultimately impact the profit margins of plantation businesses and enterprises.
Incorporating and implementing a drip irrigation system can be a solution to all these issues. It can foster a significant decrease in your plantation business’ expenses by decreasing labour costs. Plantations that install drip irrigation systems will also witness a decrease in annual seeding rates. Thus, with drip irrigation, greater plant density and stronger root systems are guaranteed. This will contribute immensely to help you practice precision farming and amplify yields per acre for your plantation and large farms.
4. Ditch Manual Record-keeping and Go Digital
When it comes to vastly spread plantations or medium to large-sized farms, managing agri accounting and record-keeping functions is a herculean task. Plantation businesses require accuracy and efficiency in bookkeeping activities to generate intelligent insights that aid well-informed decision making. Precise record-keeping can also help you to measure cash flow and estimate the profitability of your enterprise correctly.
Adopting digital record-keeping systems can introduce numerous long-term benefits for plantation businesses. A tech-driven system not only improves the efficiency of your administration but also provides insightful reports pertaining to your plantation management processes. This leads to easier information retrieval and the streamlining of accounting procedures to boost your agribusiness returns.
5. Make Judicious and Strategic Machinery Investments
Faced with unprecedented global concerns, plantation owners and producers today are challenged to produce more food while using fewer resources. Even though quite expensive, utilising machinery and equipment has become imperative for plantation businesses to streamline their operational workflows. So it is necessary to make thoughtful decisions while investing in machinery for your plantation or large to medium-sized farms.
There are several things to consider when investing in plantation machinery such as the overall efficiency and assessing which equipment will be most useful for your needs. For certain operations that are not performed quite often, it can be wise to rent the machinery instead of buying it. This can reduce plantation management expenditure considerably by eliminating the huge cost of equipment as well as mitigating machinery maintenance expenses.
Managing a large-scale plantation business and ensuring that it is profitable can be quite challenging. FarmERP’s plantation and farms pack can help you employ the best practices to strengthen your plantation management efforts while also meeting your revenue targets. Capitalise on groundbreaking agritech and plantation management solutions to grow your agribusiness with FarmERP. Get in touch with us to know more about how our innovative and future-ready ERP platform can foster the growth of your plantation business.