Managing Cost of Production

Summary

Calculating cost of production is an important step in understanding and analysing lamb and sheep business performance. Cost of production provides producers with a better picture of the financial health of your business and enables producers to compare annual performance with industry standards. Understanding the impact of profit drivers of cost of production enables producers to make informed business decisions when allocating resources.
This suite of projects contributed to the scoping and development of a cost of production tool for lamb and wool and a multi-enterprise cost of production tools. Scoping and development involved two expert workshops where catering, venue hire and industry representation were funded, and two workshops to pilot the tools with producers. To assist producer upskilling in use and application of the tool, this suite of project also developed a tutorial CD, developed workshop materials for a facilitated workshop and conducted train the trainer activity to ensure a trained deliverer base was available for producers. To improve producer understanding of the operation and purpose of the cost of production calculator and improve management of key profit drivers, two projects were funded to market, deliver and evaluate the producer course.