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How can you use yield management to improve sustainability in agriculture?

Yield management is a strategy that involves adjusting prices and availability of products or services based on demand and customer segments. It is widely used in industries like hospitality, airlines, and entertainment, but it can also be applied to agriculture. In this article, you will learn how you can use yield management to improve sustainability in agriculture by optimizing your resources, reducing waste, and increasing profits.

1 What is yield management in agriculture?

Yield management in agriculture is the process of analyzing data on crop production, market conditions, customer preferences, and environmental factors to make informed decisions on how much to produce, when to harvest, where to sell, and how to price your products. By using yield management, you can align your supply with the demand of different customer segments, such as wholesalers, retailers, processors, and consumers. This way, you can maximize your revenue and minimize your costs, while also reducing your environmental impact.

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Ahmed Tijjani Abdullahi

Agronomist @ Flour Mills of Nigeria | Msc Agronomy
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Indeed yield management is a practice used by many small holder farmers in Africa especially vegetable farmers to plant at a different date so that harvest period coincides with the product demand period. This helps in improving sustainable Agriculture

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Mostafa A.fouad

Sales and Marketing Agronomist at Yara Egypt with expertise in CRM
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One of the most important factors affecting the success of agricultural sustainability is the 4R index The right time The right source The right rate

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2 How can you segment your customers in agriculture?

Customer segmentation is an essential part of yield management, as it allows you to identify and target the most profitable and loyal customers for your products. In agriculture, you can segment customers based on geographic location, demographic characteristics, behavioral patterns, and psychographic factors. For example, you can sell your products to customers who are closer to your farm or distribution center, have specific needs or preferences, have different buying habits, or have different values, attitudes, or motivations. By segmenting your customers and tailoring your products, prices, and promotions to each group, you can increase their satisfaction and loyalty.

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Cyrille Tamatcho Yougang

Business Manager I Marketing & Sales Leadership | Strategic Planning | FMCG, Life Sciences, Human and Animal Nutrition and Health | Operations excellence | Project Management | Budgeting & Finances |
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This segmentation should also take into account who is the buyer and the end user. Buying for a chain of super market is different from buying for a restaurant or buying for a household. The segmentation will never be perfect but always perfectible as market dynamics evolved. It is however very useful to use a segmentation based on sound insights from buyers, end users and even consumers. Thus Yield Management is sustainable and profitable.

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3 How can you optimize your production in agriculture?

Optimizing your production in agriculture means using your resources efficiently and effectively to produce the optimal quantity and quality of crops. Yield management techniques such as forecasting, inventory management, scheduling, and pricing can help you achieve this goal. Forecasting requires you to use historical data, market trends, weather patterns, and customer feedback to predict the demand and supply of your products. Inventory management involves data on inventory levels, storage capacity, shelf life, and spoilage rates to manage your stock. Scheduling requires data on labor availability, equipment capacity, harvesting time, and delivery deadlines to optimize productivity and quality. Pricing involves data on production costs, market prices, customer segments, and competitors to set your prices dynamically based on demand and supply. By optimizing your production in this way, you can reduce waste, lower expenses, and increase profits.

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Dr. Riyadh Zaidi

🇹🇳 | DVM&S | Veterinary Scientific Sales Manager | Clinical Applications | IT | Regulatory Affairs (15K 👥)
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It is essential to analyse competition also to get an idea on the future demand. This may be hard to guess for one farm, that's why farmers are encouraged to organise themselves into professional groups. This helps to control production quotas on a large scale and prevent speculation which can be detrimental. There are many examples of successful farming associations, which can help in production planning, pricing, and sales.

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4 How can you improve your sustainability in agriculture?

Improving your sustainability in agriculture is a way to reduce your negative impact on the environment and society, while also enhancing your positive impact. Yield management principles can be used to optimize the use of resources, reduce waste generation and disposal, and support the local community. These practices can not only protect the environment and society, but also improve your reputation, customer loyalty, and competitive advantage.

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5 What are the benefits of yield management in agriculture?

Yield management in agriculture can bring many benefits, such as increased revenue, reduced costs, improved quality, enhanced customer satisfaction, and greater sustainability. You can capture more value from your products by selling them to the right customers at the right time and price. You can also use yield management to lower production costs by using resources efficiently, managing inventory effectively, and avoiding waste. Additionally, you can use yield management to enhance product quality by producing the optimal quantity and quality of crops and delivering them fresh and safe. Furthermore, you can increase customer satisfaction by meeting their needs and preferences and offering personalized products and services. Finally, you can improve sustainability by reducing environmental impact and increasing social impact. With yield management in agriculture, you can achieve a win-win situation for yourself, your customers, and the planet.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use yield management to improve sustainability in agriculture?

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1 What is yield management in agriculture?

2 How can you segment your customers in agriculture?

3 How can you optimize your production in agriculture?

4 How can you improve your sustainability in agriculture?

5 What are the benefits of yield management in agriculture?

6 Here’s what else to consider

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How can you use yield management to improve sustainability in agriculture?

1

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3

4

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1 What is yield management in agriculture?

2 How can you segment your customers in agriculture?

3 How can you optimize your production in agriculture?

4 How can you improve your sustainability in agriculture?

5 What are the benefits of yield management in agriculture?

6 Here’s what else to consider

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