Business models and performance indicators for agribusinesses

Abstract

The purpose of the research is to provide information to assist in policy development for the New Zealand agribusiness sector. This project investigated business models and performance indicators for agribusiness firms, exploring the relevance and applicability of these models particularly for small and medium-sized enterprises (SMEs). The project has issued interim reports at several milestones in this year-long project. The first report reviewed the literature, both national and international on business models of development and their associated suite of indicators. The second report reviewed the indicators currently used in agribusiness, including governmental statistics and industry data. This report examined success models specific to agriculture and brought together the research from the prior report on general business models and the research specific to agriculture to identify the important information gaps. The third report presented the results of fieldwork collected through case studies, qualitative interviews, and questionnaires conducted to assess how applicable models of business success are to the agribusiness sector. The fourth report briefly reviewed business model theory including taxonomy and function before proposing a firm level model and indicators for New Zealand agribusinesses. This report, the final for the project summarises previous findings and presents a new model for business success tailored to agribusiness. From this indicators are developed and policy conclusions are drawn. The report is organised into chapters. The second chapter provides a review of several standard business models including the Firm Foundations, Five-Stage SME, Balanced Scorecard, Business Culture and Personality, Sustainability-oriented, and Best Practice. Chapter 3 reviews the indicators currently collected and provides an analysis of the gap between standard and agribusiness model indicators, and between the information currently collected and that required for monitoring agribusiness health or success. The fourth chapter outlines the fieldwork completed for this project, providing a summary of the findings from the interviews and survey of kiwifruit growers and sheep and beef farmers. Chapter 5 outlines the proposed firm level model for agribusinesses. This chapter describes the key elements of the model and their interrelationships, and discusses the model’s indicators. The final chapter of the report identifies the implications of this research, highlighting some potential gaps in government policy and support for the agribusiness sector.