What cost per kilogram is
Cost per kilogram is the total amount it cost you to produce one kilogram of your harvest. It is calculated by dividing your total input costs for the crop cycle by the total quantity harvested.
If you spent β¦180,000 on a crop cycle and harvested 1,200 kg, your cost per kilogram is β¦150.
Why it matters
Your cost per kilogram is your break-even price. Every kilogram you sell below this price is a loss. Every kilogram you sell above it is profit. Without this number, you are guessing whether your farm is profitable β and most farmers who guess are wrong.
Where to find your cost per kilogram
Go to Farmer β Crop cycles. Open any closed cycle. The summary section shows:
- Total input costs
- Total quantity harvested
- Yield per hectare
- Cost per kilogram
- Average selling price (if you have recorded sales from this harvest)
- Gross profit or loss per kilogram
How to use your cost per kilogram when pricing
Your selling price must cover:
- Your cost per kilogram (production cost)
- Your transport cost to the buyer
- AADOPS marketplace commission (if selling through the marketplace)
- Your desired profit margin
If the market price for your crop is below your cost per kilogram, you are selling at a loss. This happens β but it should be a conscious decision, not a discovery made months later.