Dairy farm costs

Having an efficient cost of production (COP) is important for farm business financial performance.

Dairy Australia has tools available to help you understand your costs on farm and to create a plan for your business. 

The 'Dairy farm costs' fact sheet breaks down farm working expenses such as cash variable and overhead costs. 

Your cost of production is relative to your farm system. A low cost of production is achieved by ensuring all inputs are used efficiently in the production process and that this investment is directed at improving production efficiency and reducing COP.

Cost of production, including inventory change, takes into account the impact on costs caused by significant inventory change. This is particularly relevant for farms that are in a state of change or facing high feed costs.

Watch this short video from our Farm Business Fundamentals series to see how you can break down the costs in your business.


For information on workshops and resources about farm working expenses and cost of production, contact your local RDP.

For all farm business management tools go to dairyaustralia.com.au/fbm.

For more information, contact your Regional Development Program or Dairy Australia at dairyaustralia.com.au

Download the 'Dairy Farm Costs' fact sheet.