Transcript Agri Benchmark Beef Conference

Agri Benchmark Beef conference
2007
By
Pieter Taljaard and André Jooste
AGRICULTURAL ECONOMICS
Outline
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•
•
•
•
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Introduction and background
Co-workers and countries
Agri-benchmark Methodology
RSA representative data
Results
Conclusions
AGRICULTURAL ECONOMICS
Introduction & Background
• International farm comparison analysis
– Beef finishing (feedlots)
– Cow-calf production system
• Collaboration in RSA
UP - NAMC –UFS
• NAMC (Membership sponsor)
• UFS (Beef)
• UP (Cash crops)
– DairyAGRICULTURAL
(MPO)
ECONOMICS
• Overall objectives – competitiveness
and potentials of regions
Introduction & Background
• 2007 Beef conference and preconference training
– Braunschweig, Germany
– New countries: RSA, Australia and India
– Beef finishing - 16 countries, 38 farms
AGRICULTURAL ECONOMICS
Participating countries
• Western Europe
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–
–
–
–
–
–
–
• Eastern Europe
Austria
– Hungary
France
– Poland
Germany
Italy
• North America
Ireland
– Canada
Spain
– USA
Sweden
UK AGRICULTURAL ECONOMICS
Participating countries
• Asia & Oceania
– Australia
– China
– India
• South America
– Argentina
– Brazil
• Africa
– South Africa
AGRICULTURAL ECONOMICS
Co-workers
AGRICULTURAL ECONOMICS
Agri-Benchmark (AB)
methodology
• AB SOP
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–
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Select regions and locations
ID prevailing production system
Determine farm size of typical farm(s)
Data collection (2007) and updating
(2008)
• Standard questionnaire (pannel of farmers)
– Farm data - Typical or representative figures
AGRICULTURAL
• Prices
for inputs andECONOMICS
outputs
RSA representative data
• 1 Beef finishing (feedlot)
– One time standing capacity 25 000 head
(i.e. +/- 75 000 head annual through-put)
• 3 Cow-calve farms
– Vryburg (250 cows)
– Heibron (300 cows)
– Howick (200 cows)
AGRICULTURAL ECONOMICS
0%
40%
Other farm enterprises
30%
Dairy
ZA-75K
AU-27K
AGRICULTURAL ECONOMICS
CN-300
CN-940
20%
BR-140
BR-240
BR-340
BR-600
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
10%
DE-230
DE-260
DE-280
DE-800
DE-525T
AT-25F
AT-35
AT-120
AT-150T
Results - Beef finishing
Share of market return
100%
90%
80%
70%
60%
50%
Cow calf
Cash crops
Beef finishing
Results - Beef finishing
Market returns and coupled government payments 2006
(US$ per 100 kg carcass weight)
Whole farm payments
Organic and environmental payments
Livestock payments
Crop payments
Beef price
500
450
400
350
300
250
200
150
100
ZA-75K
AU-27K
CN-300
CN-940
BR-140
BR-240
BR-340
BR-600
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
AGRICULTURAL ECONOMICS
DE-230
DE-260
DE-280
DE-800
DE-525T
0
AT-25F
AT-35
AT-120
AT-150T
50
0
DE-230
DE-260
DE-280
DE-800
DE-525T
AT-25F
AT-35
AT-120
AT-150T
AGRICULTURAL ECONOMICS
ZA-75K
AU-27K
Weaner price
CN-300
CN-940
BR-140
BR-240
BR-340
BR-600
AR-800
AR-2200
Calf price
US-7200
CA-9600
900
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
Results - Beef finishing
Purchase prices (US$ per 100 kg live weight)
Backgrounder price
800
700
600
500
400
300
200
100
0
DE-230
DE-260
DE-280
DE-800
DE-525T
AT-25F
AT-35
AT-120
AT-150T
AGRICULTURAL ECONOMICS
ZA-75K
AU-27K
CN-300
CN-940
800
BR-140
BR-240
BR-340
BR-600
1000
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
Results - Beef finishing
Total cost by cost items (US$ per 100 kg carcass weight)
1200
Total capital cost
Total land cost
Total labour cost
Non-factor costs incl. depreciation
600
400
200
0
DE-230
DE-260
DE-280
DE-800
DE-525T
AT-25F
AT-35
AT-120
AT-150T
AGRICULTURAL ECONOMICS
ZA-75K
Animal purchases
AU-27K
CN-300
CN-940
BR-140
BR-240
BR-340
BR-600
700
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
Results - Beef finishing
Non-factor costs by animal purchases and other cost (US$ per
100 kg carcass weight)
Other
600
500
400
300
200
100
Results - Beef finishing
Non-factor costs excluding animal purchases (US$ per 100 kg
carcass weight)
Other inputs
400
Other inputs beef enterprise
350
Insurance, taxes
Vet & medicine
300
Buildings (maintenance, depreciation)
250
Fuel, energy, lubricants, water
Machinery (maintenance, depreciation, contractor)
200
Feed (purchase feed, fertiliser, seed, pesticides)
150
100
ZA-75K
AU-27K
CN-300
CN-940
BR-140
BR-240
BR-340
BR-600
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
FR-45
FR-70
FR-90A
FR-90B
AGRICULTURAL ECONOMICS
DE-230
DE-260
DE-280
DE-800
DE-525T
0
AT-25F
AT-35
AT-120
AT-150T
50
Results - Beef finishing
Short and medium term profitability (US$ per 100 kg carcass
weight)
200
100
0
-100
Short-term: Total returns less cash cost
-200
Medium-term: Total returns less cash cost+depreciation
ZA-75K
AU-27K
CN-300
CN-940
BR-140
BR-240
BR-340
BR-600
AR-800
AR-2200
US-7200
CA-9600
PL-12
PL-30
SE-140
SE-230T
UK-35
UK-90
UK-98
IE-185
IT-910
IT-2880T
ES-630
ES-940
ES-6790
AGRICULTURAL ECONOMICS
FR-45
FR-70
FR-90A
FR-90B
DE-230
DE-260
DE-280
DE-800
DE-525T
-400
AT-25F
AT-35
AT-120
AT-150T
-300
Results – Cow-calf farms
Share of market return
Cow calf
Beef finishing
Cash crops
Other farm enterprises (forestry, manure, etc.)
100%
90%
80%
70%
60%
50%
40%
30%
20%
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
0%
AT-25C
AT-30
10%
0
FR-65
FR-80
FR-85
DE-1100
DE-1400
AT-25C
AT-30
AGRICULTURAL ECONOMICS
ZA-200
ZA-250
ZA-300
Female
AU-540
AU-
CN-2
Male
BR-400
BR-1070
450
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
Results - Cow-calf farms
Weight at weaning per head (kg live weight per head)
Av. male & female
400
350
300
250
200
150
100
50
0
ZA-200
ZA-250
ZA-300
Female
AU-540
AU-
CN-2
Male
BR-400
BR-1070
1400
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
FR-65
FR-80
FR-85
DE-1100
DE-1400
AT-25C
AT-30
Results - Cow-calf farms
Weaner prices per head (US$ per head)
Av. male & female
1200
1000
800
600
400
200
AGRICULTURAL ECONOMICS
Results - Cow-calf farms
Weaner prices per 100kg live weight (US$ per 100kg live weight)
Male
450
Female
Av. male & female
400
350
300
250
200
150
100
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
0
AT-25C
AT-30
50
Results - Cow-calf farms
Total returns (US$ per 100 kg live weight sold)
600
Government payments
500
Weaner and transfer to beef receipts
Breeding livestock receipts
Cull animals and slaughter receipts
400
300
200
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
0
AT-25C
AT-30
100
Results - Cow-calf farms
Total cost by factor and non-factors costs (US$ per 100 kg live
weight sold)
800
Total capital cost
700
Total land cost
600
Total labour cost
Non-factor costs incl. depreciation
500
400
300
200
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
0
AT-25C
AT-30
100
0
FR-65
FR-80
FR-85
DE-1100
DE-1400
AT-25C
AT-30
AGRICULTURAL ECONOMICS
ZA-200
ZA-250
ZA-300
AU-540
AU-1900
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
Results - Cow-calf farms
Labour intensity (hours per suckler-cow and year)
80
70
60
50
40
30
20
10
Results - Cow-calf farms
Total returns and costs by cash and non-cash costs (US$ per
100 kg live weight sold)
800
Opportunity cost
Depreciation
Cash cost
Weaner + transfer + cull + breeding + government payments
Weaner + transfer to beef + cull animals + breeding
Weaner and transfer to beef receipts
700
600
500
400
300
200
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
FR-65
FR-80
FR-85
AGRICULTURAL ECONOMICS
DE-1100
DE-1400
0
AT-25C
AT-30
100
Results - Cow-calf farms
Short and medium term profitability (US$ per 100 kg live weight
sold)
300
250
Short-term: Total returns less cash cost
200
Medium-term: Total returns less cash cost+depreciation
150
100
50
0
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
-100
AT-25C
AT-30
-50
Results - Cow-calf farms
Whole farm profitability (‘000 US$ per farm)
300,000
+ 727,126
+ 384,322
250,000
+ 1,125,604
+ 1,102,136
200,000
Net cash farm income (NCFI)
150,000
Farm income (profit)
100,000
50,000
0
-50,000
-100,000
ZA-200
ZA-250
ZA-300
AU-540
AU-
CN-2
BR-400
BR-1070
AR-730
AR-1300
US-240
US-500
CA-170
HU-150T
HU-880T
SE-150
UK-40
UK-60
IE-25
ES-90
ES-160
AGRICULTURAL ECONOMICS
FR-65
FR-80
FR-85
DE-1100
DE-1400
-200,000
AT-25C
AT-30
-150,000
2008
•
•
•
•
•
•
Annual update – expand
Local network (regional)
Emissions benchmarking
Quarterly price info
Trade profiles
Beef conference (Brazil)
– Bio-energy and beef production
AGRICULTURAL ECONOMICS
– SA farm story (case farm)
Conclusion
• Larger representation in SA
• Useful info
• Further analysis
– Comparative advantage analysis
• Involvement of industry
AGRICULTURAL ECONOMICS
Thank you!
AGRICULTURAL ECONOMICS