Tool 1.9 MMFS cost of production calculator
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 wool and sheep analysis.
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 sheep producers with similar resources to your own.
To read more about the benefits of calculating your cost of production and for a printable version of the MMFS cost of production calculator, click here.
Knowing your cost of production is just the first step. Once you have a rough idea of how you are performing, measure the performance of your business in more detail and for all enterprises using the other calculators in this module.
