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

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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 2 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Content 1.What is agri benchmark network Page 3 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes agri benchmark understanding agriculture worldwide Page 4 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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 5 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Target groups and relevance 16.10.2013 Page 6 The Agenda, MSP Ottawa 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

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Ernesto Reyes agri benchmark data and services Page 7 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 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Analysis and projects Page 8 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 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes agri benchmark at a glance Page 10 Network Product branches Data Confe- rences Capacity building Know- how Analysis and projects CoordinationMain supporting partner Clients 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Branches in the agri benchmark Network Page 11 HorticultureDairyCash CropBeef and Sheep Under construction Pig and Poultry Organic Under construction Cow-calf Ewes Finishing Under construction Cereals Oilseeds Sugar Other Sows Grapes Apple Wheat Potatoes Milk Cow-calf Coffee Bananas Finishing 16.10.2013The Agenda MSP, Ottawa Regional EDF Global IFCN

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Ernesto Reyes Countries in the agri benchmark Beef and sheep Network Page 12 New countries 2013 Ireland (beef/sheep) Uruguay (beef/sheep) China (sheep) 2013CountriesFarms Cow-calf2355 Beef finishing2970 Sheep1425 2013CountriesFarms Cow-calf2355 Beef finishing2970 Sheep1425 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Research partners of the Beef and Sheep Network Page 13 16.10.2013The Agenda MSP, Ottawa Research partners

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Ernesto Reyes Research partners of the Dairy Network (IFCN) Page 14 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Content 1.What is agri benchmark network 2.Typical farm approach Page 15 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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! Typical farms the principle Page 16 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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 Typical farms reasons to choose the concept Page 17 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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) Typical farms three sources of data Page 18 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Content 1.What is agri benchmark network 2.Typical farm approach 3.Examples of analysis (Cow-calf, Beef, Sheep and Dairy) Page 19 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Cow-calf Stocking rates of cow-calf enterprises ha per cow West Europe grasslands Sweden lowland Bohemia hills Ukraine plains Sask. plains UK Lowland North West Spain UK Upland Kansas plains Montana Prairie Pampa Corrientes Mato Grosso Plains Cuenca del Salado Meta Plains South Sulawesi Plains NSW Table- lands North QLD Natal Hills Semi Kalahari 10 15 24 Ireland Lowland Alberta foothills Gobabis Savannah 16.10.2013The Agenda MSP, Ottawa Page 20

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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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 36 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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): MoU and inclusion of the Botswana beef and Ethiopia sheep projects into the network 6.International Meat Secretariat (IMS): Member since 2012 Page 37 16.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes Analysis of greenhouse gas emissions (finishing + pre-finishing) Enteric fermentation (own data + IPCC) Manure storage and handling (own data + IPCC) Feed production (CO2-coefficients) Carbon sequestration (scenarios) Page 38 CO 2 equivalent emissions per 100 kg carcass weight sold 16.10.2013The Agenda MSP, Ottawa

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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 39 016.10.2013The Agenda MSP, Ottawa

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Ernesto Reyes 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)

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Ernesto Reyes How we can model alternatives? Page 41 016.10.2013The Agenda MSP, Ottawa Introduction of rotational grazing Production factors Labour Own hours, wage Hired hours, wage Contractor price Land Purchase price Rent price Capital Fences price Machines price Corrals price Inputs Seeds kg, price Fertiliser kg, price 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

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