CB19100: SWOT and the Production Plan

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It is important that the farmer is familiar with the opportunities and threats in the national and international environment, as well as knowing the abilities and potential performance of his farming business.

Strengths, weaknesses, opportunities and threats are usually identified in the following areas of a farming business:

Workforce
Technical resources
Financial information
Natural resources
Water
Pastures
Infrastructure
Location of the farm

This is called a SWOT ANALYSIS.

Click here to view an explanation on business strategy SWOT analysis.

STRENGTHS – WEAKNESSES – OPPORTUNITIES – THREATS

STRENGTHS

Strengths are within an organisation. It will look at products, processes, human resources, infrastructure, structures, administration, marketing, public relations and financial issues. These are all issues over which the farmer has control and that are working well and therefore contribute to the success of the farm

WEAKNESSES

Weaknesses are within an organisation. It will look at products, processes, human resources, infrastructure, structures, administration, marketing, public relations and financial issues. These are all issues over which the farmer has control but are not working well and undermine the farm’s potential success.

OPPORTUNITIES

These could be in any area, both internal and external. It could be improvements to internal systems to take advantage of a marketing opportunity. It could be an opportunity to upgrade equipment. Often the opportunities are identified through asking: ‘How do we take advantage of our strengths?’ ;‘How do we overcome our weaknesses?’ and ‘What can we do to mitigate this treat?’

THREATS

Threats are external forces over which the farmer has no control, but, by being aware of these issues, he can plan for a range of eventualities. The issues raised in this section also, therefore, can become key areas for development / improvement.

An example of a SWOT analysis is as follows:

Strengths

Product quality
Early maturity
Secure and plentiful water
Excellent soils
Good range of high-quality plant material
Committed ownership
Good technical production skills
Good PR skills – well connected
Labour plentiful
Close to port / airport
Innovative management
Low per unit labour costs
Labour literacy high (100%)
Good market potential

Weaknesses

Labour skills poor
Imports of inputs difficult and costly
No EurepGap (environmental) compliance
No local factory outlet
Poor quality and unreliable machinery
Packhouse in bad condition
No regular management accounts
No market access to key markets
- Japan
- USA
High pest pressure
- Pests (identified and specific)
Low export percentage
Lack of available logistics to exploit early maturity of produce

Opportunities

Expand production an identified and specific commodity into market gaps left by other farmers who no longer produce
Reduce electricity costs
Obtain EurepGap (environmental accreditation)
Improve labour skills through training
Upgrade equipment reliability
Improve systems
- Production and packing records
- Human resource
- Finance and reporting
- Marketing
- Explore market niche opportunities
- Investigate lime production
- Investigate local processing
- Gain access to Japan
- Improve nutritional management

Threats

Water availability
- Floods – medium risk
- Drought – low risk
Phytosanitary pests and diseases
- Identified and specific list
Management succession
Labour unrest
Political unrest
Security
Low market prices
Environmental requirements
Lack of management depth

Click here to view a video that explains the SWOT analysis for ultra-niche crops.

Click here for a SWOT analysis template.

CB19100 Farm Business Management

SWOT and the Production Plan