Introducing Enterprise Analysis
Agriculture is a multifaceted industry comprising various enterprises that contribute to food production. Among these enterprises, livestock, cropping, and horticulture. form the backbone of Agriculture Production systems. Understanding and analysing these enterprises is crucial for farmers, agribusiness professionals, policymakers, and researchers to optimize productivity, manage resources efficiently, and ensure long-term viability. This Economic analysis is by way of Gross Margin format, involves calculating costs (fixed and variable), revenues, and profits associated with each enterprise. Fixed costs are not included, for example land costs Interest, rent, and depreciation of machinery. And infrastructure, while variable costs are included. Profitability indicators such as gross margin, net profit, and return on investment provide insights into financial performance.
Sensitivity analysis,
Enterprises are subject to various risks, including price volatility, pest outbreaks, and adverse weather. Sensitivity analysis examines how changes in key variables affect profitability, guiding risk mitigation strategies.
Acknowledgements:
FoundationforArableResearch(FAR)NZWinegrowers, NZPotato Federation NZ OnionGrowers
DeerNZ
PGGWrightsonlivestock&Velvetmarketingagents Farmconsultants &Farmerinputs. Editor
Rob Reynish, Agribusiness Development
Faculty of Agribusiness and Commerce P O Box 85084, Lincoln University Lincoln 7647 New Zealand.
Available online
ISSN-0113-1397.
E: aginfo@lincoln.ac.nz
W: http://aginfo.lincoln.ac.nz
Ph: 03 423 0233
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