agri benchmark Beef and Sheep network Ernesto Reyes The Agenda MSP, Ottawa 06.10.2013

Content What is agri benchmark network Typical farm approach Examples of analysis (Cow-calf, Beef, Sheep and Dairy) Special projects Linked to the Agenda 016.10.2013 The Agenda MSP, Ottawa

Content What is agri benchmark network 016.10.2013 The Agenda MSP, Ottawa

agri benchmark – understanding agriculture worldwide Our core competence: Production systems and their economics, drivers and perspectives An expert network which started in 2002 >>> more than just data Global, non-profit, independent >>> credibility Standardised methods >>> global comparability 016.10.2013 The Agenda MSP, Ottawa

Why global farm-level benchmarking? We are all directly or indirectly linked via markets and product flows Decision making is done by millions of producers every day It needs an approach in close cooperation with producers On global scale there is a lack of comparable farm data Collecting and comparing this data and information assists in Understanding agriculture worldwide − Know where a certain farm type is − Learn why a certain farm type is where it is − Conclude what can be changed to develop / adjust to changing framework conditions 016.10.2013 The Agenda MSP, Ottawa

Target groups and relevance Address global challenges with global overview and systematic expertise locally Non-profit organisations Align future production through benchmarking and positioning Producers and their organisations Operate successfully through in-depth understanding of markets and customers (Agri)Businesses 16.10.2013 The Agenda, MSP Ottawa

agri benchmark data and services Farm Economics and Production Systems Data Base Profitability and CoP of individual produce Profitability of farming systems What are key drivers of CoP? Sensitivity analysis for key cost elements Cost of individual operations (in crops) For all indicators: evolution over time Which regions / production systems are leading edge Hotline for specific questions on agri benchmark data and current developments in global agriculture Specific projects, for example how to increase labour productivity in rice? costs of forage production? Global and country-specific sector information and time series analysis of production, farm structures, prices and trade 16.10.2013 The Agenda MSP, Ottawa

Analysis and projects Comparative global analysis of Productions systems Economics (cost of production, prices, profitability) Policy analysis (what-if) Farm strategy analysis (what-if) Emission analysis (+ environmental indicators) Close cooperation with producers and advisors 16.10.2013 The Agenda MSP, Ottawa

Unique features of agri benchmark Production systems approach >>> more than financial data and reasons behind differences Cooperation with producers and advisors >>> get the story behind the data Global coverage >>> big players and emerging economies Using standardised methods world-wide >>> global comparability Works in countries without / with limited statistics and accounting >>> global comparability Expert knowledge >>> access local expertise and overcome language issues 16.10.2013 The Agenda MSP, Ottawa

agri benchmark – at a glance Main supporting partner Network Product branches Data Confe-rences Capacity building Know-how Analysis and projects Coordination Clients 16.10.2013 The Agenda MSP, Ottawa

Branches in the agri benchmark Network Cash Crop Beef and Sheep Pig and Poultry Dairy Horticulture Organic Cereals Under construction Under construction Oilseeds Cow-calf Under construction Regional EDF Wheat Potatoes Milk Cow-calf Coffee Bananas Finishing Apple Sugar Sows Ewes Other Global IFCN Finishing Grapes Finishing 16.10.2013 The Agenda MSP, Ottawa

Countries in the agri benchmark Beef and sheep Network Participating countries 2013 Contacts for further growth 2013 Countries Farms Cow-calf 23 55 Beef finishing 29 70 Sheep 14 25 New countries 2013 Ireland (beef/sheep) Uruguay (beef/sheep) China (sheep) 16.10.2013 The Agenda MSP, Ottawa

Research partners of the Beef and Sheep Network 16.10.2013 The Agenda MSP, Ottawa

Research partners of the Dairy Network (IFCN) 16.10.2013 The Agenda MSP, Ottawa

Content What is agri benchmark network Typical farm approach 016.10.2013 The Agenda MSP, Ottawa

Typical farms – the principle Imagine you have a guest from a foreign country who is interested to see how wheatfarming is done in your country. You would want to show your guest a farm that is … located in an important wheat producing region, … using the common technology for wheat production, … running the prevailing crop rotation and production system, … having a not too small and not too big size, … using the prevailing combination of labour, land and capital. In other words, you want to show your guest a typical farm! 16.10.2013 The Agenda MSP, Ottawa

Typical farms – reasons to choose the concept results can be generalised (contrary to individual farm data) data sets are consistent and reflecting reality of production systems (contrary to surveys and averages) existing farms and producers can find themselves in the data of a typical farm it has proven to be applicable on a global scale it is cost-effective it is applicable in countries without or limited statistics and accounting figures 16.10.2013 The Agenda MSP, Ottawa

Typical farms – three sources of data Statistics available to determine > important regions > farm sizes and distribution Focus groups of producers and advisors to > define prevailing production systems > collect data in a standardised way Expertise of researchers + advisors + farmers > Production system knowledge > Explore adjustments to changes in frame work conditions (forward looking results) 16.10.2013 The Agenda MSP, Ottawa

Content What is agri benchmark network Typical farm approach Examples of analysis (Cow-calf, Beef, Sheep and Dairy) 016.10.2013 The Agenda MSP, Ottawa

Cow-calf Stocking rates of cow-calf enterprises Ukraine plains Alberta foothills Natal Hills Semi Kalahari ha per cow Montana Prairie Meta Plains Sask. plains UK Lowland 10 Gobabis Savannah Sweden lowland Pampa Corrientes North QLD North West Spain 24 Cuenca del Salado NSW Table- lands Kansas plains 15 Ireland Lowland South Sulawesi Plains UK Upland Mato Grosso Plains Bohemia hills West Europe grasslands 16.10.2013 The Agenda MSP, Ottawa

CowCalf Total weight produced per cow from 100-400 kgs, kg live weight (LW) produced per cow and year Page 21 16.10.2013 The Agenda MSP, Ottawa

Cow-calf Total cost of cow-calf production by countries 2012 USD per 100 kg carcass weight sold Europe Americas Africa Asia Oceania Page 22 16.10.2013 The Agenda MSP, Ottawa

Beef - Daily weight gain and net gain by production system (net gain = carcass weight divided by age at slaughter) g per day Feedlot Cut & Curry Silage Pasture Page 23 16.10.2013 The Agenda MSP, Ottawa

Beef Beef prices (and government payments) 2012 USD per 100 kg carcass weight sold North America South America Europe Asia Australia Africa Page 24 16.10.2013 The Agenda MSP, Ottawa

Beef Total cost by production systems 2012 USD per 100 kg carcass weight sold Cut & Carry Feedlot Pasture Silage Page 25 16.10.2013 The Agenda MSP, Ottawa

Beef feedlots: low margins depend heavily on animal purchase and to lesser extent on feed costs (2005-2012) USD per 100 kg carcass weight Page 26 16.10.2013 The Agenda MSP, Ottawa

Beef - Pasture farms (2005-2012): Margin depends mainly on beef prices and animal purchase USD per 100 kg carcass weight Page 27 16.10.2013 The Agenda MSP, Ottawa

Dairy Cost of milk production by clusters (USD/100 kg ECM) Page 28 16.10.2013 The Agenda MSP, Ottawa

Dairy Cost of milk production by clusters (USD/100 kg ECM) Page 29 16.10.2013 The Agenda MSP, Ottawa

Sheep Live weight sold Total live weight sold per ewe (kg live weight per ewe) Page 30 16.10.2013 The Agenda MSP, Ottawa

Sheep Total live weight sold Total live weight sold per ewe (kg live weight per ewe) Page 31 16.10.2013 The Agenda MSP, Ottawa

Sheep Cost from the Profit and Loss Account (USD per 100 kg LW sold) Page 32 16.10.2013 The Agenda MSP, Ottawa

Sheep Lamb prices Lamb prices (USD per kg LW) Page 33 16.10.2013 The Agenda MSP, Ottawa

Sheep Total returns Total returns of the sheep enterprise (USD per 100 kg LW sold) Page 34 16.10.2013 The Agenda MSP, Ottawa

Sheep Cost (USD per 100 kg LW sold) Cash and non-cash cost, total returns and profitability (USD per 100 kg LW) Page 35 16.10.2013 The Agenda MSP, Ottawa

Content What is agri benchmark network Typical farm approach Examples of analysis (Cow-calf, Beef, Sheep and Dairy) Special projects Linked to the Agenda 016.10.2013 The Agenda MSP, Ottawa

Selected projects, activities and cooperations EU-COM: use of data base and tools for trade model improvements + special analysis on demand EU-COM: assessment of compliance costs for regulations in the field of environment, animal welfare and food safety FAO-AGAL (under negotiation): use of agri benchmark data for calculating mitigation costs FAO: Integration of Maghreb States in the agri benchmark Beef and Sheep Network ILRI (under negotiation): MoU and inclusion of the Botswana beef and Ethiopia sheep projects into the network International Meat Secretariat (IMS): Member since 2012 Page 37 16.10.2013 The Agenda MSP, Ottawa

Analysis of greenhouse gas emissions (finishing + pre-finishing) CO2 equivalent emissions per 100 kg carcass weight sold Enteric fermentation (own data + IPCC) Manure storage and handling (own data + IPCC) Feed production (CO2-coefficients) Carbon sequestration (scenarios) Page 38 16.10.2013 The Agenda MSP, Ottawa

Content What is agri benchmark network Typical farm approach Examples of analysis (Cow-calf, Beef, Sheep and Dairy) Special projects Linked to the Agenda 016.10.2013 The Agenda MSP, Ottawa

What we can provide Global platform of partners (research, funding and institutional) A set of models, tools and information platform A harmonized and a standardized system for global comparison at the farm level A 10 year international database on production systems and economics (3 years for sheep)

How we can model alternatives? Introduction of rotational grazing Production factors Labour Own hours, wage Hired Contractor price Land Purchase Rent Capital Fences Machines Corrals Inputs Seeds kg, price Fertiliser Fuel liters, price Animal per-formance Daily weight gain Stocking rates Number of cycles Higher sales price * quantity NRU Nutrient balance GHG Emissions Water + energy use Biodiversity An example… 016.10.2013 The Agenda MSP, Ottawa

Thank you agri benchmark − passionate about facts Ernesto reyes Livestock systems Manager E-mail: ernesto.reyes@telefonica.net Internet: www.agribenchmark.org Page 42 16.10.2013 The Agenda MSP, Ottawa