Where to from here

Cost of production (CoP) is a key factor affecting the profitability of meat-producing businesses. Cost of Production, measured in cents per kilogram liveweight or dressed weight, provides an indication of the outlay required to produce each kilogram of meat.

The MLA Cost of Production Calculator is a 'do-it-yourself' tool that standardises this performance indicator, allowing you to easily compare your enterprise with others and, importantly, to compare your own performance from year to year.

Another advantage is that cost of production is simple to calculate. It is not complicated by how you have financed the business, how much of it you own or how you acquire your land, and it only deals with one enterprise at a time. Generally, herds and flocks with a low CoP are more efficient at producing meat and have a lower financial risk when meat prices are low.

Knowing your cost of production is just the first step. Once you have a rough idea of how your enterprise is performing, measure the performance of your business in more detail and for all enterprises.