| In this example, the farmer has invested 1000 (in practice additional 500) and as a result, decreased the percent of fruit infested from 50% to 0.1%. Meaning, he DOUBLED the marketable produce that is now free of pesticides and free of infestation. As a result, he is also getting a better market price for his produce. Hence, his income is increased from 1000 to 6000, and his profit grew by 10 (!) times. He managed to increase his ROI from 2 to 6 times. Expected conclusions:
To maximize Income, Profit, and ROI farmers need to think like businesspersons. Expected results:
Farmers will invest in goods and services that will enable them to increase their profit and ROI. Core reason:
As a farmer, you think several steps ahead about your crop and you need patience until it is ready. However, most of the farmers are not accustomed to doing such “business/investor" thinking when it comes to agri-business. Versus the 'Saving Attitude', it is more complicated to imagine how by investing now you will benefit financially in the future. When you focus on ROI, there is a period of uncertainty, and need patience and the ability to imagining several steps ahead. Many farmers are not accustomed to that process. Even when they are able to go through the business process, they are afraid or unable, as a single farmer, to take the blow of losing investment if something goes wrong. This is exactly where the Government should act and protect farmers. Governments' role:
Understanding the above is to understand the Achilles heel of farmers' fear, which prevents them from developing their agri-business much faster and with confidence. The way to help farmers is not by charity but through a system that can help the good farmers to take the risk they must take on the way to transform from Agriculture to Agri-business. Governments must step in and help farmers make that transformation. MY SECRET The business attitude of focusing on increasing your own profit by increasing the VALUE your buyer is getting from you (his ROI) is not limited to the agri-business but is true and suitable for any business in any field. For 20 years, Biofeed is engaged in developing advanced technological solutions and services. To turn Biofeed into a market leader, way before any other alternative, I had to make sure that on every $ we invest in R&D or marketing we will get the highest ROI for that dollar. I did it by focusing and by continuously asking my team – "what is our expected ROI if we invest in one endeavor versus another?" I wasn't looking for the safest investment, but for ones that could channel us towards our long-term goals. It is always necessary and legitimate to ask "How much does it cost?", but it should never be your first or single question, or you doom yourself to mediocrity or even worst. You see when I ask "How much does it cost?" it is after I already asked a more important question "What value will it brings us?" Or “Is the added value justifying the investment” Once I know the VALUE I will get from a product/service, I know how much I am ready to pay to get that VALUE. Hence, the question of price becomes secondary or non-relevant. That is what happens when you focus your business-attitude on the solid foundations of creating wealth through increasing VALUE for your buyer (his ROI), and hence your own income and ROI. You see, I always invest to produce higher value for my buyers. Indeed Biofeed continuously introduces the world's advantages and produces unimaginable benefits and VALUE to our customers. Note that nowhere did I say that everyone should always invest in getting the best product/service. Not at all. Depending on the budget available, you always have the freedom to choose from several alternatives. It is up to you to choose the alternative that suits your needs the best and offers you the greatest ROI. MAKE IT YOUR SECRET … Farmer, whatever you do always ask yourself; "How can I increase the VALUE I create to my buyer (his ROI) so I can increase my own income and ROI?" Very important is to write down what your target customers most need. When you understand your customers' needs, you know what THEY VALUE. When you are able to supply what they VALUE most, then they will happily pay you more. Business-Farmer, now you know the secret. Make sure you always focus on your buyers and provide them the best product/service that will help them increase their VALUE, which is selling to their customers, and hence to increase their ROI.
With happily satisfied buyers, you will also increase your income. And rightly so. A SHORT CONSUMERS' DREAM-LIST As a former fruit grower, and one that is currently working with many fruit/vegetable growers in the world, I understand the challenge that such growers are facing in the pursuit after the tangible value they wish to create for their customers. The above is especially critical for the international, export, market place requirements. Although it may look obvious, let us agree that in most cases Export markets can generate a higher price and higher income for your produce. Why? Because markets with higher quality demands are usually, ready to pay more to whoever is able to fulfill their wishes. The Dream-List of premium markets typical includes the following characteristics: * Free of chemicals – Must. * Free of pests, and particularly quarantine pests (e.g. fruit flies) – Must. * Visual appearance – looking freshly, ripe, nice color, right size. * Inner Quality – superior with great taste. * Availability – the ability to supply the demand, including during the market place off-season. Note, make sure you add to the above list also the reseller requirements, e.g. receiving the desired volume and quality on time. THE CEILING OF SAVING VS. VALUE Once you know what your buyer wants, you are ready to focus on creating the highest value, and ROI, for him. In return, you will get a premium price for your premium produce and continuously strengthen your market position. As a result, your income will grow too and create a nice ROI for you as well. But more importantly, finally, you are equipped with the right approach and attitude toward your activity as agri-business and investor in your own agri-industry. Remember, you should always focus on ways of increasing your ROI, by increasing the VALUE your buyer is getting. Once again, REDUCING COSTS and SAVING comes second. First, you reach your desired ROI, then you optimize your expenses and income. In the real-life example below we see the tradeoff that takes place once farmers move from "REDUCE COSTS and SAVING" (left) attitude towards the "INCREASE ROI and VALUE" attitude (right). | 
