How to use the MLA COP Calculator
Meat & Livestock Australia April 26, 2024
Step 1
For each enterprise type, indicate the number of animals at the beginning and the end of the calculation period, then add purchases and sales during the year to complete the stock balance. You will also be asked to assign inventory values including average weight for each stock class and $ values.
Step 2
Add in direct expenses and supplement expenses for each enterprise type, then allocate relative values for all overheads and labour costs across your business (in case you have more than one type of livestock). For more information on allocating expenses, refer back to the previous lesson on variable costs and fixed costs.
Step 3
Determine your cost of production for each enterprise type, its relative value across the whole business, and compare your performance from year to year.
Cost of production provides an indication of the outlay required to produce each kilogram of meat for the enterprise types that are part of your business (cattle, sheep, or goat). Calculating your cost of production is an important step in assessing your performance and efficiency.
Use the below tool to have a go at calculating your cost of production. To log in to you MyMLA account and save your calculations, open the tool here.