Crop Profitability and Production Cost Analysis
The crop has two cost responsibilities: production and selling. The farm crop carries growing cost; the marketing crop carries selling and distribution cost. Review these separately before attributing a weak margin to farm performance.
Before you begin
Confirm the period, harvested quantity, dispatched quantity and price in force. Establish whether the cost covers the full season and whether the discussion concerns gross harvest weight or saleable grade.
Navigation: Top-right screen dropdown → Crop P&L · Grown vs Sold.
Procedure
- Review the production elements separately from commission, transport, samples, marketing overhead and spoilage.
- Check Board price, Budget price, Market price and Temporary approved price.
- Where a temporary price applies, read the approver and reason. Potato uses SAR 1.80 in the example, while retaining the SAR 2.00 budget price.
- Follow the margin bridge and check the quantity used for each unit-cost calculation.
- Use the Packhouse screen to assess Class 1 unit cost when discussing premium-grade profitability.
- Trace unexplained growing costs through Cost Drill-Down and review price settings in Solution Console → Pricing.
Responsibilities and follow-up
The management discussion can then separate growing efficiency, grade yield, selling expense and price. Retain the calculation basis when comparing crops or periods.
Crop margin calculation
| Component | Potato | Peaches |
|---|---|---|
| Production cost | SAR 548,335 | SAR 107,930 |
| Harvested kg | 380,000 | 42,000 |
| Selling cost | SAR 49,616 | SAR 44,579 |
| Dispatched kg | 200,000 | 27,700 |
| Price used per kg | SAR 1.80 temporary | SAR 6.90 market |
| Displayed margin per kg | SAR 0.11 | SAR 2.72 |
The displayed potato margin is approximately 1.80 − (548,335 ÷ 380,000) − (49,616 ÷ 200,000) = 0.11 per kg. This explains the screen’s calculation: production and selling costs use different quantity bases. Use the same basis when comparing periods or crops.
Important notes
A crop can carry production cost before any sale occurs. The displayed unit margin is not a complete statutory profit measure. Saving an example temporary price affects the displayed P&L; the approver and reason fields alone do not establish that a separate approval workflow has run.