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There is a very well-known maxim in the field of administration that says: "you can only manage what you can measure." This famous phrase represents the importance of using performance indicators. And what are KPIs? They are used both in the management of large companies and in complex processes. These are indicators that have been gaining ground in all sectors, providing improvements and great results. And today we are going to show the applications of these KPIs in agriculture. Like many other sectors, agriculture has welcomed these key indicators, which have made it possible to monitor processes in ways never imagined before and achieve extremely satisfactory results. Several agricultural producers have already applied these latest technologies and management techniques to their plantations. The use of benchmarking associated with key performance indicators (KPIs) focused on the improvement and refinement of agricultural processes has become one of the great technological leaps of precision agriculture. In this post, we will present what KPIs are, how they can be applied in agriculture, and what advantages their use can provide. Check it out below and learn how to increase your agricultural productivity and maintain a high standard of quality! READ ALSO: • Computer Vision: A Complete Guide to Answering Your Doubts
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What is a KPI?
KPI is an acronym for Key Performance Indicator, which in Portuguese can be called Indicador-Chave de Performance. KPIs are metrics that demonstrate the efficiency of the company or of a certain process, regardless of the area or purpose. Simply put, they help a company or enterprise define and achieve its goals. When managers analyze their business mission, identify their potential strengths and weaknesses, and define the objectives to be achieved, it is necessary to measure and track the company's progress to reach the objectives. This is how we have our KPIs. These indicators are constantly used at various levels of the production chain to evaluate whether goals are being achieved. In the case of agriculture, they can be used from planting to harvest quality control. KPIs in agriculture can be used with a focus on total production or simply for the control of processes, activities, or certain sectors. Allowing for analysis, creation of strategies, development of action plans, and the constant search for continuous improvement.
Why use KPIs in agriculture?
When used, KPIs in agriculture allow for the control of input consumption, evaluation and control of production, and monitoring of operating costs. We can divide agricultural key performance indicators according to their impact on activities and productivity, thus reaching the following categories: • KPIs focused on productivity gain and profit: indicators for monitoring production allow for the detection of bottlenecks in the production process and the implementation of improvements. The result is a plantation with high productivity and progressive gains in profit.
• KPIs of labor consumption and idle time: a way to monitor the employment of labor, allowing for a reduction in employee idle time and establishing the ideal collaborators for each function.
• Strategic KPIs for decision making and business management: indicators for a macro analysis of the entire business, these are responsible for strategic decisions and managerial definitions.
It is fundamental that managers monitor these indicators continuously, also using weekly briefings to achieve better management of the plantation and the entire business. The use of KPIs is one of the best ways to achieve a more profitable business, that is, to increase profits and productivity.
Most commonly used key indicators in agriculture
We can divide the indicators most used by agricultural producers into productivity, administrative, and financial KPIs. The most common are:
Productivity KPIs:
• Production increase rate
• Estimated production potential
• Fertilizer use per area
• Water consumption vs. production
Administration KPIs:
• Plantation age
• Number of plants per hectare
• Total number of plants
• Occupancy rate
• Labor utilization efficiency
Financial KPIs:
• Monitoring shareholder gain
• Profitability
• Cash flow monitoring
• Investment evolution
• Fixed costs vs. Variable costs
As we have seen, indicators are essential for business monitoring and for defining and tracking objectives and goals to be achieved. KPIs are the most reliable way to represent the current performance of the plantation, keeping a history of evolution over time. Pix Force is a company specialized in computer vision and digital image processing. We can bring our technology to your farm and add value to your product. Get in touch with us!
Fabio Caraça
Fábio Caraça is the Chief Growth Officer at Pix Force. He leads Pix Force's transformation into a scalable SaaS operation, combining strategic vision, culture, and high-impact execution.
