Agribusiness: A strategy to increase your production and generate profitability - VIASOFT

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The rural producer is, more and more technological, globalized and modern in his agribusiness. However, when it comes to negotiating, many of them still act as they did in the past, and that is where the problem lies.
When it comes to bargaining in agribusiness, it is necessary to have a strategy, commitment and a very well-defined sales price, because if this does not happen, money is lost.

So, what to do and how to outline a MARKETING STRATEGY in your agribusiness?

Focus on margin, not price

Most producers have no real idea of ​​their profitability because they have not yet realized the cost calculation in a real way and, in the end, the selling price of the commodity remains true to the balance. There are also those that prohibit all production at once, losing valuable opportunities at a better price, as it is never known what the balance is between cost and profitability. The suggestion of industry experts to increase their profit margin is, after defining the cost of production, to calculate the average profitability value per bag for the sale.

In addition it can be separated into lots for sale, dividing them according to the need:

  • Payment of consumed inputs
  • Payment of fixed property expenses
  • Lot for best time on the market

These are some hypotheses that will give better visibility to the needs of each producer, and their agribusiness, respecting individuality and aiming at the best profitability of their production.

You can increase your profitability!

To conclude, it is common for some producers to sell their harvest below what it is really worth. Because they define the value in a hasty way, due to lack of control over costs. For the best marketing gear to work it is necessary to define the best selling price of the bag according to the reality of each producer and remain firm. Being disciplined with what you are committed to and taking advantage of business opportunities are qualities of successful managers towards the farm of the future.

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