What separates a good farming business from a great one?
It is a question we often hear when working with growers across Australia. What is it that the best horticultural businesses are doing that sets them apart, and what can we do in our business to improve?
Many businesses focus on yield, prices or technology to make gains in their business, and while these all are very important factors, when we look at the 2024 Level Up Hort Benchmark report, we find that those aren’t the key differentiators between the average and top-performing businesses across Australia. Neither is scale, location or type of crop grown.
Successful businesses consistently excel in a handful of areas that go well beyond agronomy or production. You could call them the litmus tests of business success – the simple indicators that reveal whether a horticultural enterprise is set up for long-term profitability and resilience.
1. A strong understanding and use of data to guide business decisions
High-performing businesses know their numbers. They have a high level of data analytics and are actively using data to set targets to drive productivity and performance.
The litmus test:
Do you know your cost of production and profitability per hectare or per crop line? Even down to a per unit level? Are you using this information to make decisions in the coming season?
Understanding your cost of production allows you to identify areas where you can improve margins and help make better decisions around enterprise mixes and resource utilisation.
2.Strong leadership team with effective systems and processes in place
High-performing businesses have capable, proactive leaders. They plan ahead, understand their numbers, and make informed proactive decisions rather than reactive. Successful leaders build efficient systems, set clear goals and foster accountability across the team, allowing the business to operate smoothly even when things get busy or don’t go to plan.
The litmus test:
If you were to step away from your business for a few days or longer, would it be able to keep running effectively without you?
Set clear roles, expectations and systems among staff to make them feel part like a valued part of the team and watch productivity thrive. Successful businesses implement systems and processes to help them stay ahead, instead of playing catch up.
3. Productive relationships with bankers, buyers, and key stakeholders
High-performing businesses do not operate in isolation. They cultivate strong relationships with their financial partners, suppliers, buyers, and advisers. Positive relationships with any party reduce friction and opens new opportunities.
The litmus test:
When something happens in your business, positive or negative, who are the first people you inform?
These key stakeholders are your strategic partners. Keeping them informed and giving them real insight into your business builds trust, so when pressure hits, they are positioned to stand with you and offer real assistance.
4. Team engagement & culture
People are at the heart of any successful enterprise. Good employers invest time in training, communicate clearly, celebrate the wins, and provide a sense of purpose. A team that feels valued, motivated, and respected is far more productive and innovative.
The litmus test:
Would your employees recommend your business as a great place to work? Do they feel there is room for them to grow professionally and add value in your business in the longterm? Have you communicated the long-term vision for the business and do your employees feel included in that?
Retention doesn’t happen by accident. It’s a reflection of culture, leadership, and care. Good culture builds loyalty, attracts talent, and drives productivity.
When we put the data and stories together, the picture is clear:
The most successful businesses don’t just grow crops – they grow capability, relationships, and culture. How will your business stack up under the litmus test?
