Feed is the largest component of the Farm-Gate Minimum Live Price (FGMLP). Changes in feed prices can have a significant impact on the FGMLP.
Given the feed conversion, the FGMLP changes by $0.10/kg for every $0.0552/kg change in the feed price in the same direction. The following table provides examples of this relationship at different amounts of feed price changes:
|
change in feed price ($/Tonne) |
CHANGE IN FEED PRICE ($/KG) |
CHANGE IN
FGMLP
($/KG)
|
|
50 |
0.050 |
0.091 |
|
30 |
0.030 |
0.054 |
|
0 |
0.000 |
0.000 |
|
-30 |
-0.030 |
-0.054 |
|
-50 |
-0.050 |
-0.091
|