KPIFinance

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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