Optimal Dairy Systems - business KPI definitions (all systems)
In the table below you will find an explanation of how the Optimal Dairy System business level Key Performance Indicators are defined and calculated for both all year round and block calving systems.
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| Key Performance Indicators | Definitions |
|---|---|
| Full economic net margin (ppl) | Full economic net margin: Difference between the income and costs of milk production as follows: Income ● Milk and dairy livestock sales ● Livestock valuation change ● Other dairy related income (eg muck and 13th payment) less ● All cash costs ● Value of homegrown cereals and proteins ● Depreciation ● Value of all unpaid labour ● Rental value of owned land |
| Return on tenants-type capital (%) | Full economic net margin as a proportion of the tenants capital (or assets) is that which only a tenant would own (ie land or buildings are not included), less the value of unpaid labour |
| Full economic costs of production (ppl) | Full economic costs of production: Including for milk, replacements and other dairy livestock ● All cash costs ● Value of homegrown cereals and proteins ● Depreciation ● Value of all unpaid labour ● Rental value of owned land |