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Feed Price Impact

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