31 BIOLOGICAL ASSETS (CONTINUED) Dairy Cow In determining the fair value of heifers and mature dairy cows, the Group applies the market approach (Level 2 fair value estimation), using recent market transactions and adjusted accordingly to reflect the age, weight and body score. For calves, fair value is measured at Level 3 fair value estimation, considering the projected market price at the point of the transformation from calves to heifers, and taking into account the expected feeding cost and the calf mortality rates. The key assumptions used in the fair value calculation are as follows: 2024 2023 Calves Expected transformation age of calves to heifers (months) 18 18 Culling rate per annum (%) 22.46 33.33 Feed cost per dairy cow per day (RM) 4.20 3.67 Selling price (RM/unit) 8,651 10,173 Processing cost per dairy cow per day (RM) 6.84 9.57 Discount rate (%) 9 8 Cash Crop Cash crop includes pineapple (2023: pineapple, banana and corn). In determining the fair value of pineapples, management considers estimates and judgements, including tree yield for suckers and stumps and their selling prices. In the previous financial year, factors considered included the culling rate, selling prices of pineapples and suckers, and grading based on weight. The key assumptions used in the fair value calculation are as follows: 2024 2023 Pineapples Culling rate (%) 15 to 100 15 to 100 Average selling price of pineapples per kilogram (RM) 2.58 2.58 Selling price of pineapple sucker (RM) 1.10 1.50 During the financial year, all plots of banana and corn have been fully written down, as the Group has decided to discontinue these operations. Notes to the Financial Statements For the financial year ended 31 December 2024 149
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