Meat Market Observatory Beef and Veal. Beef and veal monthly remainders
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- Winifred Singleton
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1 Beef and veal monthly remainders
2 Disclaimer: The calculation of monthly remainders is intended to identify trends in the cost difference between the most relevant elements of some beef production models. It does not intend to calculate specific financial margins or evaluate the profitability of beef production. The methodology outlined in this document is based on information gathered by the Commission services from different available sources.
3 Methodology
4 3 Production Models Dairy calves fattening Beef calves fattening Young store cattle fattening
5 Inputs Prices live bovines Prices basic feed ingredients Prices bovine carcases Basic parameters on fattening cycles: Initial live weight (Kg): fixed Average daily gain-adg (Kg): fixed Fattening period (months): fixed Feed conversion (Kg feed per Kg ADG): fixed Carcass yield (index): fixed Final live weight (Kg): calculated (Initial live weight+(adg*days fattening period) Carcase weight (Kg): calculated (final live weight*carcase yield) Amount of feed needed (Kg per 100kg carcase weight)= (ADG*days fattening period*feed conversion)*100/carcase weight Formula feed (basic ingredients)
6 Data Sources DG AGRI weekly prices (monthly averages) live animals and carcases DG AGRI commodity price monitoring: Monthly commodity dashboard
7 Calculations basic parameters Initial live weight (Kg): fixed Average daily gain-adg (Kg): fixed Fattening period (months): fixed Feed conversion (Kg feed per Kg ADG): fixed Carcase yield (index): fixed Final live weight (Kg): calculated =Initial live weight+(adg*days fattening period) Carcase weight (Kg): calculated= final live weight*carcase yield) Amount of feed needed (Kg per 100kg carcase weight): calculated=(adg*days fattening period*feed conversion)*100/carcass weight
8 Calculations cost feed (monthly) Average feed price ( /Kg)= monthly price of ingredients*coefficients feed formula Cost main feed ingredients ( /100kg cwe)= Average feed price ( /Kg)*Amount of feed needed (Kg per 100kg carcass weight)
9 Calculations cost animal purchase (monthly) Price live animals ( /head): fixed for dairy and beef calves, calculated for young store cattle ( /kg live weight*initial live weight) Cost animal purchase ( /100Kgr cwe)=price live animals*100/carcass weight
10 Methodology: Calculation remainder (monthly) Remainder ( /100Kg cwe)= carcase price- (cost main feed ingredients+cost animal purchase)
11 Models
12 Dairy calves intensive fattening Basic paremeters Initial live weight (Kg) 55,00 Average daily gain: ADG (Kg) 1,30 Fattening period (months) 10,85 Feed conversion (Kg feed per Kg ADG) 4,75 Carcase yield 0,53 Final live weight (Kg) 478,15 Carcase weight (Kg) 251,03 Amount of feed needed (Kg per 100kg carcass weight) 800,69 Formula feed example: Ingredients: 100% Cereals: 76% Corn 15,20% Barley 15,20% Wheat 15,20% Rye 15,20% Oats 15,20% Protein source: 24% Rapeseed 12,00% Soybean 12,00% Inputs: Price live animals: Dairy type calves' EU monthly averages Source: weekly MS notifications Price feed commodities: EU monthly averages for corn, barley, wheat, rye, oats, rapeseed and monthly world average for soybean Source: Monthly commodity dashboard Price carcases: EU monthly average for AO2
13 Beef calves intensive fattening Basic parameters Initial live weight (Kg) 70,00 Average daily gain: ADG (Kg) 1,45 Fattening period (months) 10,80 Feed conversion (Kg feed per Kg ADG) 5,00 Carcase yield 0,53 Final live weight (Kg) 539,80 Carcase weight (Kg) 283,40 Amount of feed needed (Kg per 100kg carcass weight) 828,88 Formula feed example: Ingredients: 100% Cereals: 76% Corn 15,20% Barley 15,20% Wheat 15,20% Rye 15,20% Oats 15,20% Protein source: 24% Rapeseed 12,00% Soybean 12,00% Inputs: Price live animals: Beef type calves' EU monthly averages Source: weekly MS notifications Price feed commodities: EU monthly averages for corn, barley, wheat, rye, oats, rapeseed and monthly world average for soybean Source: Monthly commodity dashboard Price carcasses: EU monthly average for AR3
14 Fattening of young store cattle Basic parameters Initial live weight (Kg) 270,00 Average daily gain: ADG (Kg) 1,40 Fattening period (months) 8,00 Feed conversion (Kg feed per Kg ADG) 6,00 Carcase yield 0,58 Final live weight (Kg) 606,00 Carcase weight (Kg) 351,48 Amount of feed needed (Kg per 100kg carcass weight) 573,57 Formula feed example: Ingredients: 100% Cereals: 76% Corn 15,20% Barley 15,20% Wheat 15,20% Rye 15,20% Oats 15,20% Protein source: 24% Rapeseed 12,00% Soybean 12,00% Inputs: Price live animals: Young store cattle EU monthly averages Source: weekly MS notifications Price feed commodities: EU monthly averages for corn, barley, wheat, rye, oats, rapeseed and monthly world average for soybean Source: Monthly commodity dashboard Price carcasses: EU monthly average for AR3
% of Reference Price 190% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beef & Veal Production (E28 Slaughtering) - Tonnes
Iran EU Iran EU Trade Japan Japan South Korea Tonnes cw in Tonnes cwe South Korea Qty in 1 Tonnes World Trade -8.4% Production Production & Stocks -1.8% -4.2% -4.2% -.6% EU Uruguay Paraguay Iran EU Paraguay
% of Reference Price 190% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beef & Veal Production (E28 Slaughtering) - Tonnes
Trade Prices Production Production & Stocks DG AGRI DASHBOARD: BEEF AND VEAL Last update: 5.1.217 Carcasse Live Animals 3.2% 1.7% -6.3% -4.2% -1.8% -7.3% 4.2% /1 kg Tonnes cw /head /kg 16.5% 1.5% -1.6%
% of Reference Price 190% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beef & Veal Production (E28 Slaughtering) - Tonnes
EU Trade Japan South Korea Russia (up to Mar) Chile (up to Mar) EU Chile (up to Mar) in Tonnes cwe Japan South Korea Russia (up to Mar) Tonnes cw Qty in 1 Tonnes World Trade China + H. Kong China + H.
% of Reference Price 190% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Beef & Veal Production (E28 Slaughtering) - Tonnes
EU Trade South Korea Malaysia (up to Sep) EU Japan Japan South Korea Malaysia (up to Sep) in Tonnes cwe Russia (up to Oct) Mexico (up to Sep) Russia (up to Oct) Mexico (up to Sep) Tonnes cw Qty in 1 Tonnes
% of Reference Price 190% Avg Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec. Male Calves Dairy Type Male Calves Beef Type
EU Canada Chile Chile EU Canada Trade Tonnes cw in Tonnes cwe In Tonnes cwe Russia (up to Aug) Japan Mexico (up to Aug) South Korea Russia (up to Aug) Japan Mexico (up to Aug) South Korea Qty in 1 Tonnes
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