Business KPI Definitions - All Systems

Published 15 November 17

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:

Key Performance Indicators  Definitions

Full economic costs of production (ppl)

Full economic costs of production consider all cash costs of the dairy herd plus depreciation and the value of the use of unpaid family labour, homegrown cereals and protein, and potential rental value of owned land.

Return on tenants-type capital (%)

Dairy profit as a proportion of the tenants capital (or assets) is that which only a tenant only would own ie land or buildings are not included.

Income retained (%)

Dairy cash net margin (less depreciation) as a proportion of the total income from the dairy herd.

Farmers can access an online calculator to enter their own figures and see how they perform and highlight focus areas.