Beef Business Health Check: Developing Regional Benchmarks

Summary

MLA has produced a standardised Cost of Production Beef calculator. Beef producers wishing to improve the performance of their beef enterprises need to have a good understanding of the current health of their businesses. Cost of Production is a key factor affecting the profitability of beef businesses. Calculating Cost of Production (CoP) is an important step in assessing herd performance and a first step towards making change. This project utilised a powerful network of influential and progressive beef producers located in the NSW northern tablelands and north west region who use innovation, new technology and improved management techniques, including those promoted through the MLA More Beef from Pastures (MBfP) program, to boost productivity and profitability. The group members are "progressive in nature and keen to measure and monitor the performance and health of their businesses by calculating their Cost of Production (CoP) annually and use the outcome, together with other Key Performance Indicators (KPIs) such as kilograms of beef produced per hectare, to compare and benchmark themselves against other group members and the wider beef industry. 
This project aimed to utilise the output of these producers Cost of Production calculations and production data to develop regional benchmarks for a number of important production and profit KPIs. The following objectives were established for the project: 
1. To have a network of beef producers located in the northern tablelands region of NSW individually calculate their Cost of Production (CoP) and use the outcome to identify Key Performance Indicators (KPIs) for their businesses. 
2. To establish regional benchmarks for the following three KPIs: 
a. Cost of Production ($/kilogram of beef produced) 
b. Kilograms of beef produced per hectare (kgs/ha)
c. Kilograms of beef produced per hectare per 100 mm of rainfall received (kg/ha/100mm) 
3. Develop regional case studies to promote regional benchmarks, improved business benchmarking and opportunities to engage in MBfP and regional production groups.