Breakeven Milk Price
Breakeven milk price (BEMP) is a useful number which allows us to understand the ability of our business to cope with volatile milk prices. The lower our BEMP the more money we have to invest and grow during a high payout year and the less risk we have in a low payout year. The aim is not to just break even but to have surplus available most years.
Including principal repayments of $1.01/kg MS for the 2020/21 season our breakeven milk price was $7/kg MS.