Kernel, IMC, MHP, LNZ, and Cygnet became the first participants of the Agrohub BM benchmark analysis
Agrohub BM finished the first wave of benchmarking of Ukrainian agricultural companies. Five holdings participated in benchmark analysis from March to July 2019: Kernel, IMC, MHP, LNZ, and Cygnet. The total land bank which was analyzed is up to 1 million hectares. More than 200 indicators were collected in four areas: agri-efficiency, staff, machinery and precision farming.
Now it’s most important to develop a unified approach and methodology that ensures the correct comparison of indicators and passing the first learning stage.
Olexiy also noted that it became possible thanks to the joint work of experts from the participating companies and the Agrohub team.
Believes that Agrohub BM laid a solid methodological foundation: “Each company considers itself highly efficient. But is it so? Benchmarking allows you to compare your performance with other companies and understand your strengths and development areas. The business operates with numbers, not intuition. In this case, benchmarking provides measurable parameters which confirm or refute our understanding of how effective the company is and what it needs to improve.”
Participation in such projects is always a win-win for the company — it is an opportunity to look at yourself with a different perspective: to estimate the chosen strategy and process structure, and in some way — to find additional information for reflection and for making plans for improvement. It is very important to operate clean and relevant data because the next level of quality of decisions depends on it. The adequate number of participants with an appropriate level of organizational and managerial culture is not a less important element in such projects, and openness is an indicator of the maturity of companies. The final product, created by our Agrohub partners, completely satisfies our request and will not lose its relevance over the years, and 20% of the best indicators encourage you to raise your level, even though you can be the one who sets it.”
From all the abundance of information, it was necessary to find precisely those indicators and analytical sections that would be most useful for the management of participating companies. The most difficult thing was to keep the overall picture in focus while taking into account all the requirements and wishes of the participants. After all, we all did it for the first time
Kernel has been implementing the benchmarking on its own with several agro-producers for several years.
Agrohub team succeeded in conducting a complex type of benchmarking – analyzing the performance of particular agricultural companies in Ukraine, not just average market data. Making it in Ukraine is twice as difficult as in developed markets because most companies are not ready to disclose their internal data. Agrohub did a great job of collecting data, conducted a very detailed analysis and in-depth study of the processes, which provided comprehensive results. Agrohub BM has just launched but immediately proved its effectiveness. As the number of participants will increase, the accuracy of the data and value of the project will grow. We are ready to join the research, to disclose all the data since we are interested not only in increasing our efficiency but also in the joint development of the agricultural sector in Ukraine. We believe that thanks to the synergy of farmers, our country will be able to reach the total index of grain production at 100 million tons and confidently maintain the leadership in the world markets.
Participation in benchmarking is a unique example of how Ukrainian agricultural companies work together to achieve common benefits. Indeed, the exchange of best practices expands a share of the cake by increasing the efficiency of all project participants.
The benchmarking tool for enterprise performance through benchmark analysis has been practiced for many years around the world. I am glad that the Ukrainian agricultural sector finally has the opportunity to learn the best practices in agribusiness. I think the Agrohub BM project is extremely useful for every company in the agricultural sector, regardless of its location and size, and I recommend everyone to join!
In plans of Agrohub BM is conducting this year the second wave of benchmark analysis, in which to double the land bank and involve other 5-6 agricultural holdings in the study. Agrohub BM emphasizes that the most important criteria for participating in benchmarking are the availability, reliability, and completeness of the company’s data, as well as the location of crops in the focus regions of the study.
The essence of benchmarking is to analyze the activities of competitors or different divisions of the same holding, which allows anonymous comparison of their performance and identifies best industry practices. Benchmarking gives the company an understanding of the position that it takes concerning its competitors and the market as a whole, helps to evaluate the effectiveness of processes and determine the places and growth points that need to be strengthened.
• diagnostics and analytics of agricultural companies (benchmarking, research “Innovation Priorities”);
• search for solutions (Agrohub Innovation Solutions technology database, MHP accelerator) and consulting on the implementation of these solutions.
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