09 reyes agri_benchmark_network

Ernesto Reyes

Ernesto Reyes

Accra, Ghana, 5-6.11.2013

agri benchmark Beef and Sheep networkMainstreaming Livestock Value Chains: Bridging the Gap between Household Modelling and Policy Analysis

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. Why networking?

Page 205-06.11.2013 Mainstreaming Livestock Value Chains

Ernesto Reyes

Content



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


Ernesto Reyes

agri benchmark – understanding agriculture worldwide

Page 5

• Our core competence:Production systems and their economics, drivers and perspectives

• An expert network which started in 2000 >>> more than just data

• Global, non-profit, independent >>> credibility

• Standardised methods >>> global comparability

05-06.11.2013 Mainstreaming Livestock Value Chains

Ernesto Reyes

Target groups and relevance

Page 6

• 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

• Support strategic decisions

Policy makers


Ernesto Reyes

Analysis and projects

Page 7

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


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


Ernesto Reyes

Branches in the agri benchmark Network

Page 9

HorticultureDairyCash Crop Beefand Sheep

Under construction

Pig and Poultry

Organic

Under constructionCow-calf

EwesFinishing

Under construction

Cereals

Oilseeds

Sugar

Other

Sows

Grapes

AppleWheat

PotatoesMilk

Cow-calfCoffee

Bananas

Finishing

Finishing

RegionalEDF

GlobalIFCN


Coordination

Ernesto Reyes

Countries in the agri benchmark Beef and sheep Network

Page 10

Participating countries 2013

Contacts for further growth

New countries 2013Ireland (beef/sheep)Uruguay (beef/sheep)China (sheep)

2013 Countries Farms

Cow-calf 23 55

Beef finishing 29 70

Sheep 14 25


Ernesto Reyes

Research partners of the Beef and Sheep Network


http://www.lamolina.edu.pe/portada/

http://www.cna.org.br/

http://www.cepea.esalq.usp.br/english/

http://www.agro.uba.ar/trad/english/index.shtml

http://www.afpc.tamu.edu/

http://www.crpa.it/home/en/index.asp

http://www.argerind.at/

Ernesto Reyes

Research partners of the Dairy Network (IFCN)

Page 12The Agenda MSP, Ottawa

Ernesto Reyes

Content




Ernesto Reyes

Imagine you have a guest from a foreign country who is interested to see how sheep farming is done in your country.

You would want to show your guest a farm that is • … located in an important sheep producing region,• … using the common technology for sheep production,• … running the prevailing 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


Ernesto Reyes

• Statistics available to determine> important regions> farm sizes and distribution

According to farm size

Large sized farm

Basis: All farms in a region

%

Farm size

Moderatesized farm

% of farms % of production

• 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


Ernesto Reyes

Content





Ernesto ReyesPage 17

Cow-calfTotal cost of cow-calf production by countries 2012

0

100

200

300

400

500

600

700

800

AT-

25C

AT-

30D

E-10

0D

E-30

0D

E-11

00D

E-14

00

FR-8

0BFR

-80

FR-8

5

ES-8

0ES

-150

UK-

70U

K-10

0U

K-10

5IE

-30

SE-1

00C

CZ-4

20

UA

-295

UA

-410

RU-4

50

CA-2

00 A

BCA

-200

SK

CA-8

00 S

KCA

-800

AB

US-

160

US-

160B

US-

500

MX-

120

AR-

700

AR-

730

AR-

800

AR-

1000

UY-

220

UY-

115

BR-4

00BR

-107

0CO

-220

CO-4

00CO

-110

0CN

-2

ID-2

ID-3

ID-4

KZ-5

00A

U-2

00A

U-3

50A

U-6

00ZA

-200

ZA-2

50ZA

-350

ZA-4

00N

A-2

90

Total capital cost Total land cost Total labour cost Non-factor costs incl. depreciation

USD per 100 kg carcass weight sold

Europe

AsiaOceania

Americas Africa


Ernesto Reyes

BeefTotal cost by production systems 2012

Page 18

0

200

400

600

800

1000

1200

1400

ID-4

ID-2

BR-1

550

MX-

ZA-7

5KA

R-40

KPE

-170

0A

R-63

0ZA

-300

0U

S-75

KU

S-72

00ES

-550

0CA

-28K

ES-4

90IT

-266

0TIT

-910

ES-5

20A

U-1

5KCN

-200

0CN

-940

BR-6

00B

NZ-

375

BR-6

00U

A-2

75BR

-340

AR-

600

NA

-600

BR-2

40U

Y-45

CO-1

60A

R-55

0BR

-140

CO-1

30CO

-350

ID-1

00A

U-1

50A

U-5

40A

U-8

5IE

-40

UK-

80U

A-5

600

CO-8

00D

E-28

5CN

-300

DE-

525T

DE-

260

UK-

90PL

-30

DE-

280

FR-2

00TN

-45

AT-

175T

CZ-5

00RU

-640

MA

-280

SE-2

30FR

-60

SE-1

50U

K-75

0A

T-12

0A

T-35

FR-7

0KZ

-800

PL-2

0D

E-80

0A

T-25

FU

K-45

Total capital cost Total land cost Total labour cost Non-factor costs

USD per 100 kg carcass weight sold

PastureFeedlot Silage

Cut &

Car

ry


Ernesto Reyes

Beef feedlots: low margins depend heavily on animal purchase and to lesser extent on feed costs (2005-2012)

Page 19

ES-5500

IT-2880T

US-7200

AR-40K

BR-1550

CN-940

ZA-75K

-200

0

200

400

600

800

1000 Returns Margin Animal purchase Feed costs

USD per 100 kg carcass weight


Ernesto Reyes

Beef - Pasture farms (2005-2012):Margin depends mainly on beef prices and animal purchase

Page 20

AR-600

BR-340

BR-600B

AU-540

-200

-100

0

100

200

300

400

500 Returns Margin Animal purchase Feed costs Land costs

USD per 100 kg carcass weight


Ernesto Reyes

DairyCost of milk production by clusters (USD/100 kg ECM)

Page 21

Cost of milk production only Cost of milk production only Cost of milk production only

World region Herd size Milk yield

0

20

40

60

80

100

120

140

Wes

tern

Eu

rop

e

No

rth

ern

Am

eri

ca

Mid

Eas

t

Afr

ica

CE

EC

So

uth

Am

eric

a

Asi

a

Oc

ean

ia

C/

100

kg m

ilk

(EC

M)

0

20

40

60

80

100

120

140

1 -

2 c

ow

s

3 -

10

cow

s

11 -

30

co

ws

31 -

10

0 co

ws

101

- 3

00 c

ow

s

301

- 1

000

cow

s

> 1

000

cow

s

C/

100

kg m

ilk

(EC

M)

0

20

40

60

80

100

120

140

0 -

100

0 kg

1001

- 3

000

kg

3001

- 5

000

kg

5001

- 7

000

kg

7001

- 9

000

kg

> 9

000

kg

C/

100

kg m

ilk

(EC

M)


By region By size By yield


0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

105

110

115

120

125

130

135

CM

-35

UG

-3

ET

-4

PE

-7

CL

-57

AR

-170

UY

-138

ID-3

NG

PK

- 6

BD

-2

NZ

-34

8

US

-110

0CA

AU

-300

UA

-145

IN-4

N

BY

-633

BR

-25S

US

-100

0ID

IN-4

SE

MX

-10S

DE

-650

E

DE

-106

N

ZA

-52

0

RU

-142

8

MX

-100

0To

BR

-120

PR

MA

-3N

IE-6

2

BR

-50S

E

EG

-4

CZ

-39

0

US

-71N

Y

TN

-4

UK

-150

NW

FR

-50

W

US

-80W

I

TR

-15

LU

-50

NL

-76

DK

-150

AM

-5

ES

-50

NW

CN

-17B

E

PL

-16

CO

-6

IR-1

7

CN

-10H

J

IL-7

4

DZ

-6

IT-1

54

JO-7

5

BE

-40N

RS

-2

CN

-135

DE

-30S

NO

-22

SE

-55

CA

-49

AT

-14

IR-9

0

FI-

23

CH

-22

JP-3

6

Cost P&L - non milk returns Opportunity costs Quota costs

DairyCost of milk production by clusters (USD/100 kg ECM)

Ernesto Reyes

Sheep Cost from the Profit and Loss Account (USD per 100 kg LW sold)

Page 23

UY

-60

0

NZ

-32

00

ZA

-18

00

AU

-12

50

NA

-24

00

AU

-78

00

AU

-48

00

AU

-30

00

CN

-34

0

AU

-20

00W

A

AU

-20

00

ZA

-15

00

CN

-27

0

UK

-50

0

AU

-16

00

IE-2

30 M

X-3

00

FR

-47

0

UK

-45

0 FR

-86

0

UK

-40

0 ZA

-85

0

ES

-80

0

DZ

-30

0

ES

-15

00

DE

-60

0

DE

-12

00

TN

-40

ES

-93

0

MA

-30

0

0

100

200

300

400

500

600

700

800Cost from the Profit and Loss Account (USD per 100 kg LW sold)



0

100

200

300

400

500

600

700

800

900

DE

-600

DE

-120

0

ES

-800

ES

-930

ES

-150

0

FR

-470

FR

-860

IE-2

30

UK

-400

UK

-450

UK

-500

MX

-300

UY

-600

CN

-270

CN

-340

AU

-125

0

AU

-160

0

AU

-200

0

AU

-200

0WA

AU

-300

0

AU

-480

0

AU

-780

0

NZ

-320

0

DZ

-300

MA

-300

TN

-40

NA

-240

0

ZA

-85

0

ZA

-15

00

ZA

-18

00

Cash cost Depreciation Opportunity cost Market returns (excl. payments) Total returns

Cash and non-cash cost, total returns and profitability (USD per 100 kg LW)

Sheep Cost (USD per 100 kg LW sold)


Ernesto Reyes

Content




4. Special projects


Ernesto Reyes

Selected projects, activities and cooperations

Page 26

• Beef and Sheep: Indonesia, Algeria, Morocco, Tunisia, South Africa, Namibia, China, Colombia, Brazil

• Pigs: Vietnam, China.• Dairy: India, Pakistan, Bangladesh, Maghreb region, Cameroon, China, Mongolia, Malaysia,

Vietnam, Indonesia, South America.

• Indonesia: Beef supply chain• Maghreb region: Policy impact analysis on meat production • India: Indian Dairy Development Board• Namibia and South Africa: Local capacity building - meat

Partners, developing countries and projects


Ernesto Reyes

Selected projects, activities and cooperations1. Global Agenda of action (FAO initiative): In support of sustainable

livestock sector development. Chair Focus Area 1: Closing the efficiency gap

2. EU-COM: use of data base and tools for trade model improvements + special analysis on demand

3. EU-COM: assessment of compliance costs for regulations in the field of environment, animal welfare and food safety

4. FAO-AGAL (under negotiation): use of agri benchmark data for calculating mitigation costs

5. FAO: Integration of Maghreb States in the agri benchmark Beef and Sheep Network

6. ILRI (under negotiation):MoU and inclusion of the Botswana beef and Ethiopia sheep projects into the network

7. International Meat Secretariat (IMS): Member since 2012


Ernesto Reyes

Content




4. Special projects

5. Why networking?


Ernesto Reyes

Why networking?

Page 29

1. Participatory approach (stakeholders together – sharing problems and solutions)2. To have chain analysis approach3. To create a platform for sector analysis (updated information)4. To support local capacity building

Why networking?

Why benchmarking?1. To define production systems, efficiency and competitiveness 2. To standardize and homogenize methods of analysis for the interpretation of

results3. To understand regional differences and economic rationality behind production

systems and farmers reactions

What is often available?1. National and regional research studies2. Agric. Economic observatories3. Agric. Year book (outlook) – annual reports4. There is no data available

Not frequently updated

Different methods for calculating results

One stakeholder view

Information is project specific


Ernesto Reyes

Why networking?

Page 30

Benefits of networking

For the sector

1. Stakeholders‘ involvement

2. Platform analysis provided

3. Information as a public good

4. Providing support for strategic decisions

• Where are we?• Where we are goin to?• How do we know we are going

in the right direction?• How do we know we have

arrived?

For farmers and advisors

1. Communication channel provided

2. Visibility

3. Thinking globaly

4. Economic rationality behind decisions

For the government

1. Visibility

2. Coordination role provided

3. Better informed to make decisions

4. Better institutional perception

1. Stakeholders interaction

2. Better understanding of the chain vision

3. Better institutional perception

4. Testing chain members reactions

For the industry


Ernesto Reyes

Thank you

Page 31

Ernesto reyesLivestock systems Manager

E-mail: [email protected]: www.agribenchmark.org

agri benchmark− passionate about facts


mailto:[email protected]

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