Cost of production beef
The beef cost of production calculator is a tool kit to help beef producers determine their CoP and compare their performance annually.
There are four components to the CoP calculation:
1. Kilograms of beef produced
This is calculated by recording any significant change that occurred in the inventory of livestock on the property at the end of the year compared to the start.
Kilograms of beef sold are recorded in liveweight terms (carcase weight sales are converted to a liveweight equivalent).
Kilograms of beef purchased is subtracted fromthe sale of kilograms.
2. Labour costs
These include permanent and/or casual labour costs plus an allowance for a fulltime owner/operator at $50,000 per year.
3. Herd enterprise costs
These include health, selling, purchased fodder and transport costs.
4. Overhead costs
As the name implies these are the costs largely incurred regardless of what happens in the production part of the business. For example repairs and maintenance, insurance, rates, pasture improvement and maintenance costs and depreciation.
Total costs are divided by the kilograms produced to give the CoP in $/kg liveweight.