Making More from Sheep Australian Wool Innovation Limited Meat & Livestock Australia
MODULE 1: Plan for Success
Tool 1.13
Previous Index  

Calculating your cost of production is an important step in assessing flock performance and a first step to improving profitability.

The calculator is intended to be used for only one enterprise at a time, for example a specialist prime lamb flock. If you have a Merino wool flock and you join a percentage of the ewes to a terminal sire and the rest to Merino sires, break that flock into two enterprises:

  1. A dual purpose lamb flock that includes the ewes joined to a terminal sire
  2. A wool flock that includes those ewes joined to Merino sires, and all Merino wethers.

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.

 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.