The Building Horticulture Business Capacity program is calling for expressions of interest from Western Australian Avocado Growers interested in improving their profitability.

In the midst of difficult economic circumstances, there is a potential opportunity for Western Australian Avocado business owners to access a dedicated farm management consultant to explore avenues to increase profitability and resilience in their business over the next 3 years.

The current Building Horticulture Business Capacity program connects horticulture business owners with farm management consultants to take them through an annual 1:1 full business analysis exercise that identifies key areas for profitable focus. The business owner then works closely with the consultant to continually review and monitor progress over 3 years to ensure results.

The program is currently open to apple and pear growers in WA at no cost to them, but could be opened to the avocado sector as well; if there is a critical mass of demand registered by WA avocado growers.

As is the case with primary producers across all industries, the recent dramatic rise in operating costs continues to put a strain on business profitability. The program recently asked participants how much they thought that five major operational expenses had increased throughout the past year. The following assumptions were made:

• Fertiliser costs being 70% higher.
• Chemical costs being 70% higher.
• Fuel costs being 50% higher.
• Wages costs being 10% higher.
• Insurance being 40% higher.

The result – an increase to operating costs of over $60,000 for the average participating business. This poses a similar risk to all avocado businesses, particularly those that are already lacking profitability.

The program has helped current participants retain profitability in a variety of ways:

• Optimising labour efficiency through business specific metrics and identifying / addressing areas of the business lacking efficiency.
• Assisting with sales strategies through monitoring pack-outs and shed options.
• Feasibility assessment for the investment into capital in the orchard – return on investment.
• Farm lease and purchase analysis to assess risk to equity and potential upside to production and business profitability.
• Monitoring input costs and questioning expenditure on inputs based on benchmarking and knowledge of businesses and markets.

There is an opportunity, through potential Hort Innovation funding, for this program to be opened up to avocado growers, however we need to understand whether there is a critical mass of WA avocado business owners that see value in participating in such an initiative.

Therefore, if you would be interested in participating in the program, or would like to know more about the program, please put forward an expression of interest to Bryn Edwards before Friday 4^th November 2022, email: bryn.edwards@vegetableswa.com.au

To learn more about the current program please visit: https://buildingwahorticulture.com.au/

(Please note that expression of interest given does not commit you in any way to participate).

This article appears as part of the 28 October 2022 issue of Guacamole.