Cost of Production

What is your business cost of grain, wool and meat production?

As most Australian farmers are ‘price takers’ rather than ‘price makers’, it is important to know the business cost of production for your various commodities. Knowing this cost will inform your marketing decisions and ensure that you are selling at a profit.

Key Points

• Successful farm businesses know the cost of production of each commodity they produce.
• The challenge in calculating the cost of production is the allocation of overhead costs.
• Knowing the cost of production is fundamental to maintaining profitability.
• Cost of production data can be used to drive marketing decisions and improve profitability.
• Cost of production data can also be used to reduce business risk.

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Region National, North, South, West, Overseas

• 3.01 mbCost of Production Fact SheetWhat is your business cost of grain, wool and meat production?  As most Australian farmers are ‘price takers’ rather than ‘price makers’, it is important to know the business cost of production for your various commodities. Knowing this cost will inform your marketing decisions and ensure that you are selling at a profit.