- Bad management. Responsible decisions are made by owners without taking into account the opinions of experts
- Management is carried out by persons who have nothing to do with agriculture and do not understand anything in agriculture
- The clan management system in some countries is a significant decrease in work efficiency
- Lack of preliminary technical audit and business planning
- Incorrect investment calculation
- Overestimating profits and underestimating required investments
- Investing less than you really need
- Investing in new lands and projects while the old ones have not yet started to make a profit - the principle of a financial pyramid
- Mergers and acquisitions of new companies without due diligence and full risk assessment
- Lack of financial reserve when investing
- Much higher operating costs than conventional farmers
- Reduced operating costs
- Lack of power reserve
- Lack of control
- Many large agricultural enterprises do not even know exactly how much land they have and cannot calculate correctly!
- Lack of energy efficiency
- Neglect and ineffective use of innovative technologies
- Low motivation of responsible employees
- Lack of preparation for climate risks
- Risks - much higher cost of loss than small farmers
- Others...
These are the main reasons for failures of large agricultural companies, but in each case the situation is unique and a high-quality technological audit, correct recommendations, author's supervision over the observance of these recommendations and effective management of a large agricultural business help to solve it!
