Input Cost per Tonne Produced
Average cost of agricultural inputs (seed, fertiliser, water, labour) per tonne of produce
What is Input Cost per Tonne Produced?
Input cost per tonne produced is the average cost of inputs, such as seed, feed, fertiliser and energy, for every tonne of product. It shows how efficiently a producer turns inputs into output.
Inputs are a large part of production cost in agriculture and food, so this measure is central to profitability.
How this KPI is measured
- Function
- Finance
- Sub-function
- Cost Management
- Industry
- Agriculture & Food
- Type
- Lagging
- Impact
- Financial control
- Unit
- Currency ($ per tonne)
- Measurement frequency
- Per season / Annual
- Formula
- Total input costs / Total tonnes produced
How to calculate it
Divide total input costs by total tonnes produced.
For example, if input costs were 400,000 and output was 2,000 tonnes, the cost per tonne is 200.
Compare by crop or product and by season, and separate types of input so that you can see which is driving change.
Where it is used
Controlling production cost
Find savings.
Comparing methods and suppliers
Choose better value.
Pricing and planning
Understand margin.
How to improve it
Tips and common mistakes
- Cheaper inputs can reduce yield. Look at cost per tonne, not cost per unit of input.
- Weather affects output and therefore the ratio.
- Track by input type.
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