Case Study: Transforming Operations and Restoring Balance

Control, quality and productivity before scale.

In this case study we demonstrate how a simple strategy focused on improving system and process control, fruit quality and operational productivity dramatically improved our clients' profitability and work-life balance.

The newfound management bandwidth and free cash flow subsequently enabled further profitable growth.

You can download a pdf of the full case study here.

If you want to learn more about how these strategies can benefit your agribusiness, please get with Simon Drum +61 407 567 250 or email Simon@psvcadvisory.com.au

Background

 Our client is a family-owned and operated, multi-site berry operation founded in 1990. 

Hands-on, innovative and determined, the owners successfully grew the business while pioneering hydroponic, protected cropping and integrated pest management systems. 

With a reputation for growing consistent volumes of excellent fruit during winter, their retail and wholesale customers encouraged them to establish a second site to secure year-round supply. 

After carefully investigating the ideal region and property, the owners established their green field site 400km from home. 

The Challenges

• Running two large-scale intensive berry enterprises in vastly different growing regions, while harvesting 52 weeks of the year. 

• Learning to grow in very different conditions. Varieties, irrigation, fertigation, pest, disease and weed control systems and techniques needed rethinking and refining. 

• Finding the right calibre management willing to live in the region. Sourcing people with the same work ethic and eye for detail was virtually impossible. 

• The owners split their time between the two operations which resulted in critical tasks not being performed to standard or at the right time. 

• Fruit quality and yields declined at both sites. Infrastructure, plant and equipment maintenance costs, crop input and labour costs all increased. 

• Declining profitability and relentless increases in compliance made the owners question whether it was the right decision to expand. 

• Although enormously capable and highly driven, our client came to us tired, burnt out and frustrated. 

Strategy Formulation

Our initial engagement involved a three-day visit to the two berry farms, where we met with the owners, managers and frontline supervisors to ask questions and develop an initial understanding of the business. 

Following the visit, we created a one-page plan identifying short-term projects that would have an immediate impact on performance and bottom line. 

While implementing these initial projects we built rapport with the team and developed a more comprehensive understanding of the business. 

Equipped with a deep understanding of the competitive environment and current state of the business, we designed and facilitated the creation of a practical and implementable strategic plan. 

Market Alignment Plan Implementation

Over eighteen months, we guided the owners and management via site visits and video calls as they systemically implemented their strategic plan. 

Primary Production

›  Transitioned all ground production to substrate on tabletops 

› Introduced state-of-the-art irrigation & fertigation control systems 

› Refined plant architecture & agronomics to improve fruit pickability 

Maintenance Culture

› Altered investment strategy to maintain all infrastructure, plant and equipment in ‘as new’ condition 

Operations Management

› Introduced whole of value chain weekly planning meetings

Workforce Management

› Identified, developed and retained high-performing frontline supervisors 

› Altered the seasonal workforce sourcing strategy 

› Reinvented the seasonal workforce induction & training systems 

› Refined performance measurement and managed systems

Outcomes

• Enhanced collaboration and coordination between all departments 

• Streamlined the execution and refined the precision of irrigation and fertigation 

• Optimised the ‘do-ability’ of planting, crop maintenance, pest, disease and weed control 

• Radically improved ergonomics, productivity and attractiveness of harvest roles 

• Gained control over the quality and productivity of all tasks performed by seasonal workers 

• Industry-leading seasonal workforce productivity, earnings, retention and return rate 

• Positioned the business as ‘the’ quality and compliance-focused producer in the region 

• Provided owners with the capital, time and confidence to expand the area under production 

• Dramatically improved operational control, productivity and profitability 

• Restored work-life balance to owners 

The Feedback

“We engaged Simon Drum over an eighteen-month period for our multisite berry operation. Simon looked at the strengths and weaknesses of our business and helped develop a strategic plan for us to implement. Simon drove the strategy by providing hands on and practical assistance while pushing the team to follow through with plans. Labour efficiencies were of a particular focus which saw us transform our production systems resulting in a productivity increase of 30%. Working with Simon was money well spent!”

You can download a copy of the case study here.

If you want to discuss opportunities in your agribusiness contact Simon Drum +61 407 567 250 or email Simon@psvcadvisory.com.au