In the modern era, the agri-food sector is characterized by a high level of volatility, due to factors such as fluctuating commodity prices, changing regulatory landscapes, climatic unpredictability, and the impacts of global events like the COVID-19 pandemic.
To navigate these challenges and ensure long-term stability, it is critical for agri-businesses to focus on cost optimization.
While direct costs, such as seed, feed, and fertilizer costs, often receive much of the attention, indirect costs also represent a substantial portion of an agri-business’s overall expenses.
This paper aims to provide practical strategies for agri-food cost optimization, helping agri-businesses to reduce their indirect costs.
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"In the current unpredictable agri-food sector, cost optimization is crucial for long-term stability.
While direct costs often receive the most focus, indirect costs also represent a significant portion of overall expenses and provide substantial opportunities for cost savings.
By implementing the strategies outlined above, agri-businesses can reduce these indirect costs and enhance their resilience and profitability."