farmcfo.com.au/tools/piggery-cost-of-production · 0412 759 847Piggery cost of production calculator
Enter a year's costs for the whole unit and the pigs sold. The calculator works out the kg HSCW sold, the cost per kg and per pig for each cost line and in total, the share of feed in the total, and the margin at your pig price.
Your figures stay in this browser. Nothing is sent to Farm CFO or anyone else.
- kg HSCW sold
- 352,000 kg
- Total cost of production
- $3.41 per kg HSCW
- Price received
- $4.00 per kg HSCW
- Margin
- $0.59 per kg HSCW
- Feed share of total cost
- 52.5%
$272.73 a pig, $1,200,000 a year
$208,000 a year
| Cost line | A year | Per pig | Per kg HSCW | Share |
|---|---|---|---|---|
| Feed | $630,000 | $143.18 | $1.790 | 52.5% |
| Labour | $220,000 | $50.00 | $0.625 | 18.3% |
| Power, gas and water | $45,000 | $10.23 | $0.128 | 3.8% |
| Vet and medicines | $40,000 | $9.09 | $0.114 | 3.3% |
| Genetics, AI and replacement gilts | $25,000 | $5.68 | $0.071 | 2.1% |
| Repairs and maintenance | $35,000 | $7.95 | $0.099 | 2.9% |
| Freight, levies and selling | $30,000 | $6.82 | $0.085 | 2.5% |
| Insurance, rates and administration | $30,000 | $6.82 | $0.085 | 2.5% |
| Interest | $60,000 | $13.64 | $0.170 | 5.0% |
| Depreciation | $70,000 | $15.91 | $0.199 | 5.8% |
| Other costs | $15,000 | $3.41 | $0.043 | 1.3% |
| Total | $1,200,000 | $272.73 | $3.409 | 100% |
The example is an invented 200-sow farrow-to-finish unit selling 4,400 pigs a year at 80 kg HSCW. Feed cost follows the piggery feed margin example; every other figure is made up for illustration.
The working
- kg HSCW sold = pigs sold x average carcase weight.
- Cost per kg HSCW for each line = annual cost / kg HSCW sold. Total cost of production = sum of all lines / kg HSCW sold.
- Margin per kg = pig price (c/kg HSCW) / 100 - total cost per kg.
- Include your own labour at a fair wage and depreciation, or the cost will look lower than it is.
General information only. This calculator doesn't take account of your circumstances and isn't tax, credit or financial product advice. Check figures with your accountant before relying on them.
Want the numbers done for you?
Farm CFO builds the budget, the monthly cashflow and the tests your lender will run, at a fixed price.
Read next: How to budget for a piggery
Questions
Should I include my own labour?
Yes. Put in a wage for every person who works in the business, family included. A cost of production without it looks good until you need to employ someone.
What about interest and depreciation?
Include them. Interest is the cost of the money tied up in the sheds and stock, and depreciation is the cost of replacing the sheds and equipment over time. A lender looks at both.
How is this different from margin over feed?
Margin over feed takes off feed only. Cost of production takes off every cost, so it tells you whether the unit makes a profit at today's pig price.