Knowing your COP

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By Dwain Duxson

Knowing your COP - Most people in the Sheep game would have heard of Roseville Park, they are a high profile Sheep stud within the Merino industry. They put up something on Linkedin the other day that triggered my curiosity. 

Check out the image of the page to get an idea of where I am headed with this. I reckon we all should investigate cost of production (COP) more. Knowing your COP is vital. I am not great at it, but I know how much it costs us each week to turn the lights on. That's pretty general COP knowledge.

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It's been a trend within the Wool industry for some time now to Shear every six months. It has many advantages, too numerous to mention. The trade also loves the shorter Wools, but I am not sure if there is a premium there over a longer staple. But with Shearing costs blowing out and a tightening Wool market, the Shear-twice-a-year model is being tested.

The Roseville Park people have weighed up their numbers and made a directional change by moving to a cost of one Shearing instead of two. By doing that the margin for their Wool enterprise should be greater. Have you changed things up when the COP has risen or, in some cases, dropped? Reply to dwaind@farmtender.com.au

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