An agro-processor's stock moves from raw harvest through to finished product, and its financing follows the growing season rather than a standard loan calendar. Here's how Mkushi Valley Agro-Processors handles it.
Agro-processing has a rhythm most businesses don't — financing and stock that follow a growing season rather than a calendar year. Mkushi Valley Agro-Processors Ltd, an oilseed crusher and maize miller and one of our eighteen fictional reference companies, is built around exactly that rhythm.
Where the complexity actually is
Ten separate stock lines carry Mkushi's inventory all the way from post-harvest raw grain and oilseed through to finished cooking oil, cake and meal — several stages of the same business, all visible at once. Outgrower input advances — funding given to farmers ahead of the season, against a dedicated scheme register — sit alongside a seasonal agri-finance facility and a separate term loan for the press line itself, plus pre-season deposits from customers securing supply ahead of harvest. A register spanning the press, mill, dryer and weighbridge rounds out a business that's as much industrial as agricultural.
Fully onboarded, and transacting
Mkushi went through the same review and sign-off workflow described in our opening balances post, and has carried on since: a real quotation, order, invoice and payment on the selling side, and a real purchase order, supplier bill and payment on the buying side — the same day-to-day cycle every one of our reference companies runs, adapted here to a business whose whole calendar is set by the harvest.
Get in touch if agricultural or agro-processing accounting is closer to your own business than a standard trading company.
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