Breakeven milk price
Breakeven milk price (BEMP) is the milk income per kilogram of milksolids required to cover all costs or outgoings.
It is a useful indicator of business performance that highlights the ability of your business to cope with volatile milk prices. In general, farm businesses with a low BEMP have more money to invest and grow. The aim should not be just to breakeven, but to have a low enough BEMP that there is surplus cash available for debt reduction and/or investment.
Download the calculator below to work out your farm BEMP. You can calculate previous seasons BEMP by looking at your farm accounts or a benchmarking report such as DairyBase. Use your budget to calculate a forecast BEMP. Remember, BEMP is just one of a number of useful KPIs and should not be used in isolation.
To use the calculator:
Now’s the perfect time to check in, plan, and set up for a strong season. We’ve pulled together smart tips and tools to help you stay ahead all winter long.
Whether you prefer to read, listen, or download handy guides, we’ve got you covered with trusted tools to support your journey every step of the way.