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:
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