Update to the RMCG Lot Feeding model

Summary

This project updated the Feedlot R&D evaluation model to align with current market segmentation and industry methodology for assessing feedlot productivity and profitability.

The model is utilised for ex-ante and ex-post evaluation of feedlot related projects, plus evaluation of the economic impact of feedlot related products as part of the ongoing impact assessment reporting across MLA.

Objectives

The main objective of this project was to produce an updated version of the RMCG Lot Feeding model by incorporating:

• updated industry market segments information
• updated standard production data for each market segment, reviewing each of the categories:
  • animal throughput (including daily production, mortality and weight gain)
  • livestock expenses (including livestock purchase & sale price)
  • cost of ration
  • utilisation efficiency
  • feed ration formulation
  • operating costs (variable, overhead and capital costs).

Key findings

The model was updated to align with current industry market segments and production metrics, and simplified to make it easier for MLA personnel to use.

MLA will utilise the model internally to assist the RDA project approval process, assess project applications, plus on-going assessment of RDA investments as part of the planned quarterly impact assessment reporting across MLA.

Benefits to industry

The updated model allows assessment of competing projects and industry priorities prior to their implementation, to establish which delivers the best economic impact from investment of industry funds. It also allows the economic impact of feedlot related products to be evaluated as part of the ongoing MLA impact assessment reporting process.

Future research

Further work is required to update the model to incorporate MLA evaluation framework requirements and make it available in a format that is consistent with MLA’s other M&E evaluation models.