Calculator launched to model return-on-investment in red meat plants
Red meat processors now have access to a return-on-investment calculator to model the net financial benefits from adopting various innovations, technologies or upgrades.
The calculator, designed by AMPC, models the expected changes in costs and benefits over a 10-year period, using discounted cash flow to determine the return on investment, payback period and other financial metrics.
AMPC Data and Insights Manager Seamus Hoban said red meat processors had a range of options for capital investment including innovations and technology in processing efficiency, occupational health and safety, sustainability and market access.
"The idea was to create a simple tool to model and compare different options to inform investment decisions," he said.
While individual processors often have various in-house methods for comparing investments and developing business cases for investment, this is the first publicly available calculator of its kind tailored to red meat processors.
The calculator provides a quick and simple framework to help processors develop a business case for on-plant capital investments.
"The calculator encourages users to consider the full spectrum of costs and benefits, some of which are often overlooked during investment decisions,” Mr Hoban said.
It was designed to be applicable to a range of different types of investments including equipment, technology and other capital upgrades.
"The greatest value to processors will come from having a standardised template to compare different options, and to develop a sound business case for investment," Mr Hoban said.
See the calculator here by scrolling down.
For more information contact s.hoban@ampc.com.au
