Lean: From Theory to Practice — One City’s (and Library’s) Lean Story… Abridged
09 reyes agri_benchmark_network
1. agri benchmark Beef and Sheep network
Ernesto Reyes
Mainstreaming Livestock Value Chains:
Bridging the Gap between Household Modelling and Policy Analysis
Ernesto Reyes
Accra, Ghana, 5-6.11.2013
2. 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?
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Mainstreaming Livestock Value Chains
3. Content
1. What is agri benchmark network
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Mainstreaming Livestock Value Chains
4. 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
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Mainstreaming Livestock Value Chains
6. 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
Policy makers
• Support strategic decisions
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Mainstreaming Livestock Value Chains
7. 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
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Mainstreaming Livestock Value Chains
8. 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
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Mainstreaming Livestock Value Chains
9. Branches in the agri benchmark Network
Coordination
Cash Crop
Beef
and Sheep
Pig
and Poultry
Dairy
Horticulture
Organic
Under construction
Under construction
Cereals
Oilseeds
Sugar
Under construction
Cow-calf
Finishing
Regional
EDF
Sows
Ewes
Other
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Finishing
Finishing
Ernesto Reyes
Mainstreaming Livestock Value Chains
Apple
Global
IFCN
Grapes
Wheat
Potatoes
Milk
Cow-calf
Coffee
Bananas
10. Countries in the agri benchmark Beef and sheep
Network
2013
Countries Farms
Cow-calf
29
70
Sheep
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55
Beef finishing
New countries 2013
Ireland (beef/sheep)
Uruguay (beef/sheep)
China (sheep)
23
14
25
Participating countries 2013
Contacts for further growth
Ernesto Reyes
Mainstreaming Livestock Value Chains
11. Research partners of the Beef and Sheep Network
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Mainstreaming Livestock Value Chains
12. Research partners of the Dairy Network (IFCN)
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Ernesto Reyes
The Agenda MSP, Ottawa
13. Content
1. What is agri benchmark network
2. Typical farm approach
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Ernesto Reyes
Mainstreaming Livestock Value Chains
14. Typical farms – the principle
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!
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Ernesto Reyes
Mainstreaming Livestock Value Chains
15. Typical farms – three sources of data
According to farm size
% of farms
• Statistics available to determine
% of production
Large sized farm
%
Moderate
sized farm
> important regions
> farm sizes and distribution
Farm size
Basis: All farms in a region
• 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)
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Mainstreaming Livestock Value Chains
16. Content
1. What is agri benchmark network
2. Typical farm approach
3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy)
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Mainstreaming Livestock Value Chains
17. 0
AT-25C
AT-30
DE-100
DE-300
DE-1100
DE-1400
FR-80B
FR-80
FR-85
ES-80
ES-150
UK-70
UK-100
UK-105
IE-30
SE-100C
CZ-420
UA-295
UA-410
RU-450
CA-200 AB
CA-200 SK
CA-800 SK
CA-800 AB
US-160
US-160B
US-500
MX-120
AR-700
AR-730
AR-800
AR-1000
UY-220
UY-115
BR-400
BR-1070
CO-220
CO-400
CO-1100
CN-2
ID-2
ID-3
ID-4
KZ-500
AU-200
AU-350
AU-600
ZA-200
ZA-250
ZA-350
ZA-400
NA-290
Cow-calf
Total cost of cow-calf production by countries 2012
USD per 100 kg carcass weight sold
800
700
Europe
600
500
400
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Mainstreaming Livestock Value Chains
Total capital cost
Total land cost
Total labour cost
Non-factor costs incl. depreciation
Americas
Asia
Oceania
Africa
300
200
100
19. 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
ES5500
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IT2880T
US7200
Ernesto Reyes
Mainstreaming Livestock Value Chains
AR40K
BR1550
CN940
ZA75K
20. 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
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BR-340
BR-600B
Ernesto Reyes
Mainstreaming Livestock Value Chains
AU-540
21. Dairy
Cost of milk production by clusters (USD/100 kg ECM)
Cost of milk production only
Cost of milk production only
Cost of milk production only
140
140
120
120
120
100
100
C/ 100 kg milk (ECM)
80
60
40
80
60
40
80
60
40
20
20
20
0
0
World region
By region
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Herd size
By size
Ernesto Reyes
Mainstreaming Livestock Value Chains
Milk yield
By yield
> 9000 kg
7001 - 9000 kg
5001 - 7000 kg
3001 - 5000 kg
1001 - 3000 kg
0 - 1000 kg
> 1000 cows
301 - 1000
cows
101 - 300 cows
31 - 100 cows
11 - 30 cows
3 - 10 cows
1 - 2 cows
Oceania
Asia
South America
CEEC
Africa
Mid East
Northern America
0
Western Europe
C/ 100 kg milk (ECM)
100
C/ 100 kg milk (ECM)
140
23. Sheep
Cost from the Profit and Loss Account (USD per 100 kg LW sold)
Cost from the Profit and Loss Account (USD per 100 kg LW sold)
MA-300
800
ZA-1800
NZ-3200
100
UY-600
0
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Ernesto Reyes
Mainstreaming Livestock Value Chains
UK-400
FR-860
UK-450
MX-300
IE-230
AU-1600
UK-500
CN-270
ZA-1500
AU-2000
CN-340
AU-3000
AU-4800
AU-7800
NA-2400
200
AU-1250
300
AU-2000WA
400
FR-470
ES-930
TN-40
DE-1200
DE-600
ES-1500
ES-800
500
ZA-850
600
DZ-300
700
24. Sheep
Cost (USD per 100 kg LW sold)
Cash and non-cash cost, total returns and profitability (USD per 100 kg LW)
900
Cash cost
Depreciation
Opportunity cost
Market returns (excl. payments)
Total returns
800
700
600
500
400
300
200
100
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Ernesto Reyes
Mainstreaming Livestock Value Chains
ZA-850
ZA-1500
ZA-1800
NA-2400
TN-40
MA-300
DZ-300
NZ-3200
AU-1250
AU-1600
AU-2000
AU-2000WA
AU-3000
AU-4800
AU-7800
CN-270
CN-340
UY-600
MX-300
UK-400
UK-450
UK-500
IE-230
FR-470
FR-860
ES-800
ES-930
ES-1500
DE-600
DE-1200
0
25. Content
1. What is agri benchmark network
2. Typical farm approach
3. Examples of analysis (Cow-calf, Beef, Sheep and Dairy)
4. Special projects
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Ernesto Reyes
Mainstreaming Livestock Value Chains
26. Selected projects, activities and cooperations
Partners, developing countries and projects
•
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
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Ernesto Reyes
Mainstreaming Livestock Value Chains
27. Selected projects, activities and cooperations
1.
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
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Ernesto Reyes
Mainstreaming Livestock Value Chains
28. 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?
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Ernesto Reyes
Mainstreaming Livestock Value Chains
29. Why networking?
What is often available?
1.
2.
3.
4.
National and regional research studies
Agric. Economic observatories
Agric. Year book (outlook) – annual reports
There is no data available
One stakeholder view
Not frequently updated
Different methods for calculating results
Information is project specific
Why networking?
1.
2.
3.
4.
Participatory approach (stakeholders together – sharing problems and solutions)
To have chain analysis approach
To create a platform for sector analysis (updated information)
To support local capacity building
Why benchmarking?
1.
2.
3.
To define production systems, efficiency and competitiveness
To standardize and homogenize methods of analysis for the interpretation of
results
To understand regional differences and economic rationality behind production
systems and farmers reactions
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Ernesto Reyes
Mainstreaming Livestock Value Chains
30. Why networking?
Benefits of networking
1.
Stakeholders‘ involvement
2.
Platform analysis provided
3.
Information as a public
good
4.
Providing support for
strategic decisions
•
•
•
•
1.
Communication
channel provided
For the industry
1.
Visibility
1.
Stakeholders interaction
2.
Coordination role
provided
2.
Better understanding of
the chain vision
2.
Visibility
3.
Thinking globaly
3.
Better informed to
make decisions
3.
Better institutional
perception
4.
Economic rationality
behind decisions
4.
Better institutional
perception
4.
Testing chain members
reactions
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?
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For the
government
For farmers and
advisors
For the sector
Ernesto Reyes
Mainstreaming Livestock Value Chains
31. Thank you
agri benchmark
− passionate about facts
Ernesto reyes
Livestock systems Manager
E-mail:
Internet:
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ernesto.reyes@telefonica.net
www.agribenchmark.org
Ernesto Reyes
Mainstreaming Livestock Value Chains
