Every week I speak with more producers who are struggling with managing the bottom line and, at the same time, hit an invisible moving target called customer preferences. Here at Pinion we have services called ResourceMax™ and AgKnowledge. Our team works with farmers interested in sustainable farming to collect data and analyze it to yield actionable information for operating the farm business. You and your team might already be managing your farm operation using data-driven decision making. This is a great place to start, but day-to-day management of the farm requires you to know all of the aspects of your business and how they interact and affect your profitability.
What is the triple bottom line?
Imagine applying data analysis to all aspects of your operation—economic, environmental and social. This is the triple bottom line—it includes not only the economics of your farm business but also the environmental and social impacts related to it. Our ResourceMax program is designed to help you take advantage of all three aspects, delivering best practices derived from analyzing data already at your disposal but not collected or viewed in an integrated way within your operation. When paired with on-farm budgeting scenarios and management accounting via AgKnowledge, your business is even more powerful – where profit is enhanced, working capital is strong, costs and risks are captured and managed, and you are exploring new sales opportunities for your enterprise.
Why is this important?
As you know, your farming operation is part of the food value chain, and your end customers are consumers with very real preferences about the food they buy and feed their families. Driven by these consumer expectations, food companies and retailers are scrambling to provide food products with the characteristics consumers want. And that’s just the demand side of the equation. On the supply side, manufacturers and distributors are looking to you, the producer, to help them with better information sharing and new ways to produce and distribute food products.
ResourceMAX, developed by the team that helped proactively form and influence sustainability reporting standards for both the dairy and beef industries, gives producers a meaningful sustainability program for their distinct operation and shows producers where they best align with overarching supply-chain information needs. Because that is a big part of what sustainable farming is all about.
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Do you know how you meet the needs of Walmart, Cargill, PepsiCo, Unilever, McDonald’s, etc.? Maybe you think you don’t need to? You may be positioned well to compete and meet these needs and you may not even know! With a ResourceMax assessment completed, you’ll be ready to meet your customers’ needs from the very beginning when you negotiate that new contract or dedicate supply. And, ultimately having this all ‘pencil out’ is the way that the triple-bottom line becomes real. When you can look at your entire operation, from what you are doing on the field, with your employees, with your costs and inputs – and have the information you need to make better decisions. That is the power of ResourceMax and AgKnowledge.
If you have questions, please reach out to me at firstname.lastname@example.org.