Tool 1.7 MLA cost of production calculator for sheep, beef and goat enterprises
Calculating your cost of production is an important step in assessing flock performance and a first step to improving profitability.
The calculator is set up for cattle, sheep and goat analysis. Click ‘sheep’ and then the orange ‘get started’ button. Once in the calculator, provide data for lamb income, trading income and wool income then work through the expenses.
If your business has multiple enterprises and you’re only calculating the cost of production for one, you must be careful not to over-allocate expenses, such as overhead and labour expenses, to that enterprise. This will generate an inflated cost of production estimate.
Use your estimate of cost of production to compare the health of your business year on year, and then compare it against other lamb producers with similar resources to your own.
To access the MLA cost of production calculator for beef, lamb and goat, visit: http://tools.mla.com.au/cop/
Knowing your cost of production is just the first step. Measure the performance of your business in more detail and for all enterprises using the other calculators in this module.
