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Sustainability of Family Farming Owned Business



If a family Agricultural Company has a good current financial profitability, we could say that it is a financially sustainable company, but in the short term; However, if the Board of Directors does not consider social and environmental governance in its business strategy, in the long term this company and this business may not be sustainable.


Sustainability refers to the ability of the company to maintain its profitability in the long term, not only in economic terms, but also in social and environmental terms. Therefore, if the company does not consider these factors in its business model, in the long term it could face challenges that could jeopardize its profitability and survival.


Some typical problems that family agricultural businesses face and that can slow down their sustainable development or determine the future of the business:


  • Organizational culture highly focused on the family and/or owners

  • Lack of long-term strategic planning.

  • Resistance to change and innovation.

  • Lack of professionalism in the management and direction of the business.

  • Poor diversity in the Boards of Directors (composed mainly of family members)

  • Difficulties in business succession and continuity.

  • Financial and budget management defined by one or two people

  • Problems in human resource management and talent retention.

  • Lack of transparency in management and decision-making.

  • Difficulties in managing family and business conflicts.

  • Low ability to adapt to market changes and consumer demands.


A CEO of a family farm company must be able to define strategic guidelines to focus the company towards a future sustainable business.


Some proposed aspects:

  1. Promote innovation and technology to improve efficiency in the use of natural resources and optimize production.

  2. Implement sustainable agricultural practices, reduce environmental impact and enhance biodiversity.

  3. Improve waste management and reduce the use of chemicals, promoting more environmentally friendly alternatives.

  4. Develop an ethical and sustainable supply chain, establishing long-term relationships with suppliers and customers.

  5. Increase community participation and promote sustainable rural development, establishing alliances with relevant stakeholders.

  6. Incorporate sustainability in strategic decision-making and in the daily management of the business.

  7. Establish sustainability indicators and metrics to monitor and evaluate our progress.

  8. Implement quality management and food safety systems that guarantee the production of safe and high-quality food.

  9. Improve the efficiency and profitability of the business through cost management and diversification of products and markets.

  10. Promote the training and continuous training of staff in sustainable practices and foster a culture of sustainability in the company.

The use of #ESG criteria such as a #Framework is very useful to achieve this transformation towards a culture of business sustainability.


Crop Monitor Consulting offers experience in the management of agricultural companies together with the accompaniment and transformation towards a sustainable business culture. We develop flexible work, to detect urgent gaps and accelerate change.




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