Assessing current production and handling systems

To assess production and handling systems requires knowledge of industry best practice and the benchmarks for production systems in a given area. Some common benchmarking examples include: 

• gross income per dry sheep equivalent (DSE  
• DSE managed per labour unit 
• gross income per labour unit 
• return on investment (%) 
• income from wool ($/head) 
• income from meat ($/head) 
• income from surplus sheep sales 
• split of wool:meat ratio 
• flock net reproduction rate (NRR) 
• scanning, marking and weaning percentages. 

Knowing an enterprise’s cost of production can highlight where efficiencies can be made. The MMFS Cost of production calculator for wool and sheepmeat enterprises tool can assist with calculating cost of production. 

After calculating the cost of production, compare it with the average sale price of the various commodities in an enterprise (e.g., wool and meat). This will provide an immediate indication of the performance of the business. Use the Indicative industry benchmarks tool to compare the business against other industry benchmarks. 

A partial budget can support decisions about whether implementing a new technology or management practice is worthwhile. Use the Partial budget template tool to prepare a partial budget for a proposed change.