AgrifoodV ·
Every raw-material growing area draws up a cost plan at the start of the season. Most only find out how far they have drifted from it once the harvest is over. The delay is not caused by the complexity of farming, but by a plan-versus-actual comparison that runs monthly while conditions in the field change weekly.
Key points
- The value of a budget-versus-actual report lies in when it reaches the manager. If it arrives early, there is still time to correct course; if it arrives late, it only serves as a lesson for next season.
- According to AGRIVI, the three most costly variances are input application rates that deviate from plan, unscheduled field passes, and labour overruns during peak periods.
- In Vietnam, VietGAP record-keeping (TCVN 11892-1:2017, Annex C) and growing-area code files (Decree 38/2026/ND-CP) already require most of the data needed for this comparison.
The plan is not wrong; the tracking is
According to the editorial team of AGRIVI (Croatia), a developer of farm management software, seasonal cost plans are usually prepared carefully, based on field-by-field estimates, input use in previous seasons and the work schedule. At the time of approval, the plan is a reasonable forecast.
The problem, according to AGRIVI, is how the plan is tracked after approval. The comparison typically runs monthly, with some items reviewed only quarterly, so by the time a variance becomes visible it has been building for weeks. A report on a May cost overrun that only arrives in September is good for nothing more than lessons learned.
To become a management tool, according to AGRIVI, the comparison must run weekly, operations managers must see it at field level, and it must answer the question “what can we still do” rather than “what happened to the budget”.
The three most costly variances in a season
The table below summarises the three variance groups identified by AGRIVI, with AgrifoodV’s interpretation for MD2 pineapple growing areas and the corresponding VietGAP records.
| Type of variance (according to AGRIVI) | Example in MD2 pineapple growing areas | Data already in VietGAP records |
|---|---|---|
| Input rate deviations: small deviations each time, compounding across many fertiliser and spray applications over a large area | Top-dressing fertiliser, crop protection products and flower-induction agents used above the standard rate on some blocks | Table C.3: fertiliser name and quantity; product name, concentration and quantity, by block code |
| Unscheduled field passes: corrective sprays when pests exceed thresholds, extra irrigation in dry spells, an additional scouting pass | Additional sprays when pests exceed thresholds on some blocks; supplementary irrigation in the dry season | Table C.3 records the date of each operation; comparing it with the planned schedule shows which passes were unplanned |
| Labour overruns during peak periods: overtime during disease outbreaks or when harvests bunch up | Hiring extra workers at planting and at peak harvest | VietGAP does not require labour hours to be recorded: operators must add this themselves |
AGRIVI notes that input rate deviations are rarely caught in time if they are only reconciled from purchase records at month-end, while labour overruns only appear in the monthly report after about 30 days. Tracking costs by each application is discussed in the article Cost per hectare of MD2 pineapple; additional sprays caused by late pest detection are covered in Early pest detection in MD2 pineapple growing areas.
Mandatory records in Vietnam already hold half the data
National standard TCVN 11892-1:2017 on Good Agricultural Practices (VietGAP) for crop production requires producers to keep records in line with Annex C and to retain them for at least 12 months from the harvest date (clause 3.1.4). Two tables in this annex are effectively the two sides of a plan-versus-actual comparison:
- Table C.2, tracking purchases of inputs: purchase date, input name (planting material, fertilisers, crop protection products, chemicals), quantity and supplier. This is the “purchased” side.
- Table C.3, tracking the production process: recorded by block, plot or orchard code and area; each fertiliser and spray application with name and quantity; harvested volume and buyer. This is the “used where, and how much” side.
For export growing areas, clause 3 of Article 6 of Decree 38/2026/ND-CP requires an area applying for a code to keep and store records on its production and harvesting process. Most block-level input data must therefore already be recorded to maintain certification and the code. What is usually missing is three things: unit prices attached to each record line, labour and machine hours by block, and a block-level plan drawn up at the start of the season for comparison.
The Ministry of Agriculture and Environment has issued draft TCVN 11892-1:2025 (dated 6 May 2025) to replace the 2017 edition; check with your certification body which version applies before changing your record templates.
Block-level detail and weekly updates must go together
AGRIVI offers a comparison: knowing that input costs are running 15% over plan on blocks 3 to 7, a manager can check sprayer calibration, see whether the overrun comes from rates or extra passes, and adjust before the next application. A monthly report stating “15% over plan for the whole farm” gives only a diagnosis, not where to act.
Block-level detail without timeliness is just history. Timeliness without detail does not tell you where to act. This is also why each block needs one permanent code shared by the field log, cost records and growing-area code, as explained in Block-level data.
On cadence, AGRIVI recommends reviewing at least weekly during peak periods, and immediately after any unscheduled field pass, any crop stage transition requiring a major input programme, or any weather event that forces an urgent response.
What companies should do
The following are AgrifoodV’s recommendations.
- Draw up a block-level cost plan at the start of the season, split into three groups: inputs, labour and machinery, irrigation and energy. Use the same block codes recorded in VietGAP records and growing-area code files.
- Add a unit price column to the input purchase table, and labour-hour and machine-hour columns to the block-level field log. Each log line then becomes an actual cost line.
- Hold a plan-versus-actual review every week during planting, flower induction and harvest, and every month for the rest of the season. Record the reason for every unscheduled spray or irrigation.
- When a block runs over plan, establish whether the cause is rate, number of passes or unit price before deciding on cuts. Do not cut crop protection inputs just to stay within budget.
AgrifoodV helps companies organise growing-area management, field logs and block-level costing.
References
- Busic, B. Budget vs. Actual in Farm Management: Why Most Farms Find Out Too Late. AGRIVI Blog, published 30 April 2026, updated 28 September 2026. agrivi.com/blog/budget-vs-actual-farm-management-fms.
- Published by the Ministry of Science and Technology. TCVN 11892-1:2017 Thực hành nông nghiệp tốt (VietGAP), Phần 1: Trồng trọt [Good Agricultural Practices (VietGAP), Part 1: Crop production], clause 3.1.4 and Annex C (Tables C.2, C.3). Copy hosted on vnce.vn: vnce.vn.
- Ministry of Agriculture and Environment. Dự thảo TCVN 11892-1:2025 Thực hành nông nghiệp tốt (VietGAP), Phần 1: Trồng trọt [Draft TCVN 11892-1:2025, VietGAP Part 1: Crop production] and explanatory note, 6 May 2025. mae.gov.vn.
- Government of Vietnam. Decree 38/2026/ND-CP of 24 January 2026 on the import of plants with soil and on growing-area codes and packing-house codes, Article 6. Copy on the Department of Crop Production and Plant Protection portal: ppd.gov.vn.
Article by AgrifoodV, compiled and interpreted from the sources above (accessed 19 October 2026) and applied to MD2 pineapple growing areas in Vietnam. The MD2 pineapple examples are AgrifoodV’s interpretation, not AGRIVI data. This content is not a substitute for professional advice on specific cases. This content is not a substitute for legal advice. Cover image: Quang Nguyen Vinh / Pexels.
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