Verdant Fungi Farms Business Plan — Key Performance Indicators
The contamination, yield, crops-per-year and price indicators reported per crop cycle, with targets and intervention thresholds.
Key Performance Indicators
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Structure
- 3. How a Mushroom Farm Makes Money
- 4. Contamination and the Oyster Ceiling
- 5. SWOT and Competitive Position
- 6. Operations and the Room Build
- 7. Compliance and Food Safety
- 8. Management and Team
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Production and Capital Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this farm should be managed. Four of them — yield per square metre, days from cook-out to next fill, contamination incidence by room, and kilograms harvested but not sold — are recorded for every crop rather than every month.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Yield per square metre per crop |
Kilograms harvested divided by shelved area, recorded per room per crop |
28.5 kg by Year 5 |
The largest single lever in the model. A 12% swing moves Year 5 EBITDA by R2645631 |
|
Contamination incidence by room |
Crops lost or downgraded divided by crops started, by room |
6% by Year 5 |
Cumulative break-even sits at 4.25%. A contaminated room can seed the one next to it |
|
Days from cook-out to next fill |
Calendar days a room stands empty between crops |
Below 12 |
Determines crops per room. 6.7 crops rather than 5.4 produces a quarter more from the same capital |
|
Crops per room per year |
Completed crops divided by rooms |
6.7 by Year 5 |
The least visible of the four terms and the cheapest to improve |
|
Kilograms harvested but not sold in shelf life |
Unsold kilograms divided by kilograms harvested |
Below 5.5% |
A mushroom has five to seven days. Unsold production is not inventory; it is loss |
|
Oyster sold against estimated market absorption |
Oyster kilograms divided by estimated absorbable market |
89% by Year 5 |
The gap closes over the plan period. Further oyster capacity must follow demand, not precede it |
|
Realised price per kilogram by line |
Revenue divided by kilograms sold, button and oyster separately |
R50.18 and R108.09 |
Protects against discounting to move product that is about to expire |
|
Spent substrate sold as soil conditioner |
Tonnes sold divided by tonnes produced |
Tracked |
Converts a disposal cost into a revenue line of R282000 by Year 5 |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.25x from Year 3 |
No principal falls before Year 3 under the two-year moratorium |
|
Compost cost per tonne delivered |
Compost spend divided by tonnes received |
Tracked by supplier |
The binding constraint on button economics, alongside room turns |