Skip to content
RIMAIAgribusiness SchoolMy land

D-capacity-utilisation Dictionary

Capacity utilisation

The share of a machine's or plant's possible output that is actually used

All termsIntroduced in Module 8Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
The share of a machine's or plant's possible output that is actually used
How to use it
Size equipment to the volume the venture can actually supply. Idle capacity is a cost that eats the margin.
South African benchmark
Concept term; applies to South African processing plants as defined.
Country notes
Applies the same way in all five markets.
Go and read
C8
Calculate it
No calculator; the term is applied in the venture plan narrative.
Library sources
LIB-A070, LIB-A124
See also
Mechanisation as a service, Agro-processing
Value-add steps from raw crop to packed product with rising valueValue-add: each step multiplies what the crop is worthx 1.0Raw cropx 1.3Cleaned and gradedx 2.0Processedx 3.0Packed and brandedIllustrative multipliers: each step also adds cost, skills and equipment.
From Module 8, Value-Add and Processing, where this term is introduced.

Introduced in C8 Value-Add and Processing.