Evaluate Farm Shop From a Business Perspective

At the end of the day, it’s the numbers that count – whether it’s a new opening or a long-term direct marketing campaign. If you want to analyze the economic strengths and weaknesses of your farm shop, you can use the online tool “KennDi”.

The online tool “Key figures for direct marketing” (KennDi), which is financed by the Federal Programme for Organic Farming and Other Forms of Sustainable Agriculture (BÖLN), enables farm managers to find out how they compare with other farms and to identify their own strengths and weaknesses in direct marketing. In this way, their own farm shop can be optimized from an economic point of view.

53 shops analysed from a business management perspective

For KennDi, 53 farm shops were evaluated in cooperation with the BÖLN, Bioland Beratung GmbH and the Research Institute of Organic Agriculture (FiBL) and their data were transferred to the online tool.

The 52 shops consist of 32 organic farm shops, 14 conventional farm shops and seven farm shops of social institutions. The respective farm managers were also interviewed. The turnover of the farms is between 100,000 and one million euros, the sales areas between 40 and 300 square metres. 164 of the determined key figures can be found in the brochure “Hofläden im betriebswirtschaftlichen Vergleich”, which is available on kenndi.de. Some interesting findings:

  • If farm shop operators are very time consuming, their earnings are usually considerably below the minimum wage.
  • Organic farms scored better than conventional ones in most indicators.
  • If one looks at the development in the comparative years 2016 to 2018, it becomes clear that the turnover of organic farms is at an almost equally high level of around 315,000 Euros and that conventional farm shops increased their turnover by an average of around 20 percent.