Economic Modelling for Potatoes

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Increase profit from productivity by $150 per ha per annum.

Proposal extract.

PFP (operating Profit From Productivity) is defined as the difference between actual operating profit and the operating profit that would have occurred with no productivity changes since a base year. It generally excludes the cost of capital, although depreciation and changes in hectares utilised are accounted for.

Research is being undertaken to identify constraints to yield increase. Cost models are being developed and the recommendations of the yield R&D projects will be analysed using these models.

And then in the RD&E initiatives identified as No 6 Crop Profitability it states that the necessary actions are to:

6.1 Undertake profit from productivity study and publish results.

6.2 Ensure research projects are, where feasible, aligned to profitability target.