agri benchmark Beef and Sheep network Ernesto Reyes

agri benchmark Beef and Sheep network Ernesto Reyes The Agenda MSP, Ottawa 06. 10. 2013 Ernesto Reyes

Content 1. What is agri benchmark network 2. Typical farm approach 3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy) 4. Special projects 5. Linked to the Agenda Page 2 016. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Content 1. What is agri benchmark network Page 3 016. 10. 2013 Ernesto Reyes 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 Page 4 016. 10. 2013 Ernesto Reyes 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 Page 5 016. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Target groups and relevance Non-profit organisations • Address global challenges with global overview and systematic expertise locally Producers and their organisations • Align future production through benchmarking and positioning (Agri)Businesses • Operate successfully through in-depth understanding of markets and customers Page 6 16. 10. 2013 Ernesto Reyes The Agenda, MSP Ottawa

agri benchmark data and services Which regions / production systems are leading edge For all indicators: evolution over time Profitability and Co. P of individual produce Profitability of farming systems Farm Economics and Production Systems Data Base Cost of individual operations (in crops) Page 7 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Sensitivity analysis for key cost elements What are key drivers of Co. P? 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

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 Page 8 16. 10. 2013 Ernesto Reyes 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 Page 9 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

agri benchmark – at a glance Main supporting partner Coordination Network Clients Analysis and projects Product branches Knowhow Data Capacity building Page 10 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Conferences

Branches in the agri benchmark Network Cash Crop Beef and Sheep Pig and Poultry Dairy Cereals Oilseeds Sugar Other Page 11 16. 10. 2013 Under construction Cow-calf Finishing Sows Ewes Finishing Ernesto Reyes The Agenda MSP, Ottawa Finishing Regional EDF Horticulture Organic Under construction Apple Global IFCN Grapes Wheat Potatoes Milk Cow-calf Coffee Bananas

Countries in the agri benchmark Beef and sheep Network 2013 New countries 2013 Ireland (beef/sheep) Uruguay (beef/sheep) China (sheep) Page 12 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Countries Farms Cow-calf 23 55 Beef finishing 29 70 Sheep 14 25 Participating countries 2013 Contacts for further growth

Research partners of the Beef and Sheep Network Research partners Page 13 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Research partners of the Dairy Network (IFCN) Page 14 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Content 1. What is agri benchmark network 2. Typical farm approach Page 15 016. 10. 2013 Ernesto Reyes 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 capital. In other words, you want to show your guest a typical farm! Page 16 16. 10. 2013 Ernesto Reyes 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 Page 17 16. 10. 2013 Ernesto Reyes 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) Page 18 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Content 1. What is agri benchmark network 2. Typical farm approach 3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy) Page 19 016. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Cow-calf Stocking rates of cow-calf enterprises ha per cow UK Lowland North West Spain Sweden lowland West Europe grasslands Page 20 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Sask. plains Montana Prairie 10 Kansas plains Ireland Lowland UK Upland Alberta foothills Bohemia hills Natal Hills Meta Plains Pampa Corrientes Cuenca del Salado Mato Grosso Plains Semi Kalahari Gobabis Savannah North QLD NSW Tablelands South Sulawesi Plains Ukraine plains 24 15

0 IE-30 AT-30 FR-80 B DE-1100 UK-105 AT-25 C FR-80 AU-600 FR-85 UK-70 DE-100 CZ-420 UK-100 CN-2 SE-100 C US-160 B DE-1400 US-160 CA-200 AB DE-300 ZA-400 US-500 UA-295 CA-200 SK AU-200 AU-350 CA-800 AB ZA-250 UA-410 ZA-350 CA-800 SK AR-800 KZ-500 ES-80 ES-150 ZA-200 UY-115 AR-1000 AR-700 RU-450 BR-400 NA-290 CO-400 UY-220 CO-1100 BR-1070 MX-120 ID-2 AR-730 CO-220 ID-4 ID-3 Cow. Calf Total weight produced per cow from 100 -400 kgs, kg live weight (LW) produced per cow and year 500 Adult cattle sold/going to finishing 450 Breeding animals 400 Cull and slaughter animals 350 Calves sold/going to finishing 300 250 200 150 100 50 Page 21 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Cow-calf Total cost of cow-calf production by countries 2012 USD per 100 kg carcass weight sold Europe Americas Page 22 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Asia Oceania Africa

1000 0 Page 23 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Net gain KZ-800 UK-45 UK-90 PL-30 CZ-500 PL-20 UK-750 DE-285 UA-5600 CO-800 SE-230 DE-800 DE-280 RU-640 CN-300 FR-70 MA-280 DE-260 DE-525 T TN-45 AT-35 AT-25 F AT-120 FR-200 AT-175 T FR-60 SE-150 1200 Feedlot UY-45 NA-600 BR-600 AU-150 BR-600 B BR-140 BR-340 CO-350 CO-130 BR-240 ID-100 AR-550 CO-160 AR-600 AU-85 IE-40 UK-80 NZ-375 AU-540 UA-275 1800 CN-940 CN-2000 AR-630 ES-490 MX-1500 AR-40 K US-7200 ES-5500 IT-910 PE-1700 CA-28 K IT-2660 T ES-520 AU-15 K ZA-3000 ZA-75 K US-75 K BR-1550 1400 Cut & Curry 1600 ID-4 ID-2 Beef - Daily weight gain and net gain by production system (net gain = carcass weight divided by age at slaughter) g per day 2000 Daily weight gain (g/day) Silage Pasture 800 600 400 200

Beef prices (and government payments) 2012 North America USD per 100 kg carcass weight sold South America Europe Asia Australia Page 24 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa Africa

Beef Total cost by production systems 2012 Cut & Carry USD per 100 kg carcass weight sold Page 25 16. 10. 2013 Feedlot Ernesto Reyes The Agenda MSP, Ottawa Pasture Silage

Beef feedlots: low margins depend heavily on animal purchase and to lesser extent on feed costs (2005 -2012) USD per 100 kg carcass weight Returns 1000 Margin 800 Animal purchase Feed costs 600 400 200 0 -200 ES 5500 Page 26 16. 10. 2013 IT 2880 T Ernesto Reyes The Agenda MSP, Ottawa US 7200 AR 40 K BR 1550 CN 940 ZA 75 K

Beef - Pasture farms (2005 -2012): Margin depends mainly on beef prices and animal purchase USD per 100 kg carcass weight 500 Returns Margin Animal purchase Feed costs Land costs 400 300 200 100 0 -100 -200 AR 600 Page 27 16. 10. 2013 BR 340 Ernesto Reyes The Agenda MSP, Ottawa BR 600 B AU 540

Dairy Cost of milk production by clusters (USD/100 kg ECM) Page 28 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Dairy Cost of milk production by clusters (USD/100 kg ECM) Page 29 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Sheep Live weight sold Total live weight sold per ewe (kg live weight per ewe) Page 30 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Sheep Total live weight sold per ewe (kg live weight per ewe) Page 31 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Sheep Cost from the Profit and Loss Account (USD per 100 kg LW sold) Page 32 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Sheep Lamb prices (USD per kg LW) Page 33 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Sheep Total returns of the sheep enterprise (USD per 100 kg LW sold) Page 34 16. 10. 2013 Ernesto Reyes 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 Ernesto Reyes The Agenda MSP, Ottawa

Content 1. What is agri benchmark network 2. Typical farm approach 3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy) 4. Special projects 5. Linked to the Agenda Page 36 016. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Selected projects, activities and cooperations 1. EU-COM: use of data base and tools for trade model improvements + special analysis on demand 2. EU-COM: assessment of compliance costs for regulations in the field of environment, animal welfare and food safety 3. FAO-AGAL (under negotiation): use of agri benchmark data for calculating mitigation costs 4. FAO: Integration of Maghreb States in the agri benchmark Beef and Sheep Network 5. ILRI (under negotiation): Mo. U and inclusion of the Botswana beef and Ethiopia sheep projects into the network 6. International Meat Secretariat (IMS): Member since 2012 Page 37 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Analysis of greenhouse gas emissions (finishing + pre-finishing) CO 2 equivalent emissions per 100 kg carcass weight sold Enteric fermentation (own data + IPCC) Manure storage and handling (own data + IPCC) Feed production (CO 2 -coefficients) Carbon sequestration (scenarios) Page 38 16. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

Content 1. What is agri benchmark network 2. Typical farm approach 3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy) 4. Special projects 5. Linked to the Agenda Page 39 016. 10. 2013 Ernesto Reyes The Agenda MSP, Ottawa

What we can provide 1. Global platform of partners (research, funding and institutional) 2. A set of models, tools and information platform 3. A harmonized and a standardized system for global comparison at the farm level 4. A 10 year international database on production systems and economics (3 years for sheep) Ernesto Reyes

How we can model alternatives? An example… Introduction of rotational grazing Inputs Production factors Labour Own hours, wage Hired hours, wage Land Capital Purchase Fences Fertiliser price kg, price Rent Machines Fuel price liters, price Contractor Corrals price Page 41 016. 10. 2013 Seeds Ernesto Reyes The Agenda MSP, Ottawa kg, price Animal per -formance NRU Daily weight gain Nutrient balance Stocking rates GHG Emissions Number of cycles Water + energy use Higher sales price * quantity Biodiversity

Thank you agri benchmark − passionate about facts Ernesto reyes Livestock systems Manager E-mail: Internet: Page 42 16. 10. 2013 ernesto. reyes@telefonica. net www. agribenchmark. org Ernesto Reyes The Agenda MSP, Ottawa