Business Development Group newsletter – December 2022

December 2022 | Prepared by Adrian Stone, AgFirst | Future Orchards® Business Development Group newsletter

The December 2022 Future Orchards® Business Development Group update focuses on using OrchardNet to turn production records into block-level profitability information. Adrian Stone of AgFirst explains that updated Orchard Business Analysis averages for returns and costs had been added to OrchardNet for the 2021 and 2022 seasons, together with an estimate for 2023.

These industry averages allow growers to generate profitability reports using their own production information. Users enter gross production, Class 1 production and average fruit size, and OrchardNet combines this with industry return and cost assumptions to provide a quick indication of block and business performance.

The dashboard gives a three-year view of production and profitability by variety, helping growers see trends rather than judging performance from a single season. The block profit report goes further by providing a breakdown for individual blocks and allowing previous years to be compared.

Profit calculations take account of size distribution based on average fruit weight and the proportion of high-grade fruit. This is important because two blocks with similar gross yields can produce very different financial outcomes if fruit size and Class 1 recovery differ. The Block Profit Summary then presents one block per line so that stronger and weaker areas of the orchard can be compared quickly.

The update demonstrates how Business Development Group tools were intended to support practical management decisions. By combining production history with industry financial benchmarks, growers can identify blocks that are contributing strongly, blocks that need management improvement and blocks where redevelopment may deserve consideration.