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8. BIOLOGICAL ASSETS | 12 Months Ended
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Dec. 31, 2020
Disclosure of detailed information about biological assets [abstract] |
BIOLOGICAL ASSETS |
8. | BIOLOGICAL ASSETS
The live animals are represented by poultry and pork and segregated into consumables and animals for production. The rollforward of the biological assets are presented below:
| Current |  | Non-current
| Live animals |  | Live animals |  |  |  |  |  |  |
| Poultry |  | Pork | Total |  | Poultry |  | Pork |  | Forests |  | Total
| 12.31.20 |  | 12.31.19 |  | 12.31.20 |  | 12.31.19 | 12.31.20 |  | 12.31.19 |  | 12.31.20 |  | 12.31.19 |  | 12.31.20 |  | 12.31.19 |  | 12.31.20 |  | 12.31.19 |  | 12.31.20 |  | 12.31.19
Beginning balance | 615,685 |  | 582,853 |  | 987,354 |  | 930,280 | 1,603,039 |  | 1,513,133 |  | 414,668 |  | 381,236 |  | 337,804 |  | 317,185 |  | 328,553 |  | 362,893 |  | 1,081,025 |  | 1,061,314
Additions/Transfer | 9,705,994 |  | 3,456,921 |  | 7,108,084 |  | 3,545,494 | 16,814,078 |  | 7,002,415 |  | 71,494 |  | 94,055 |  | 363,027 |  | 272,677 |  | 38,536 |  | 56,134 |  | 473,057 |  | 422,866
Changes in fair value (1) | 2,059,397 |  | 1,564,807 |  | 368,019 |  | 209,084 | 2,427,416 |  | 1,773,891 |  | 51,660 |  | (6,516) |  | (184,005) |  | (174,903) |  | 21,711 |  | (28,119) |  | (110,634) |  | (209,538)
Harvest | - |  | - |  | - |  | - | - |  | - |  | - |  | - |  | - |  | - |  | (59,586) |  | (48,890) |  | (59,586) |  | (48,890)
Write-off | - |  | - |  | - |  | - | - |  | - |  | - |  | - |  | - |  | - |  | (5,099) |  | (11,810) |  | (5,099) |  | (11,810)
Transfer between current and non-current | 57,164 |  | 49,250 |  | 91,574 |  | 77,155 | 148,738 |  | 126,405 |  | (57,164) |  | (49,250) |  | (91,574) |  | (77,155) |  | - |  | - |  | (148,738) |  | (126,405)
Transfer to assets held for sale | - |  | - |  | - |  | - | - |  | - |  | (10,389) |  | - |  | - |  | - |  | 329 |  | (1,655) |  | (10,060) |  | (1,655)
Transfer to inventories | (11,571,369) |  | (5,033,965) |  | (7,294,449) |  | (3,774,659) | (18,865,818) |  | (8,808,624) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | -
Exchange variation | 1,557 |  | (4,181) |  | - |  | - | 1,557 |  | (4,181) |  | 1,784 |  | (4,857) |  | - |  | - |  | - |  | - |  | 1,784 |  | (4,857)
Ending balance | 868,428 |  | 615,685 |  | 1,260,582 |  | 987,354 | 2,129,010 |  | 1,603,039 |  | 472,053 |  | 414,668 |  | 425,252 |  | 337,804 |  | 324,444 |  | 328,553 |  | 1,221,749 |  | 1,081,025
| (1) | The change in the fair value of biological assets includes depreciation of breeders and depletion of forests in the amount of R$876,976 (R$798,239 on December 31, 2019).
The estimated balances and quantities of live animals are set forth below:
| 12.31.20 |  | 12.31.19
| Quantity (thousand of heads) |  | Book value |  | Quantity (thousand of heads) |  | Book value
Consumable biological assets |  |  |  |  |  |  |
Immature poultry | 199,877 |  | 868,428 |  | 189,602 |  | 615,685
Immature pork | 4,204 |  | 1,260,582 |  | 4,098 |  | 987,354
Total current | 204,081 |  | 2,129,010 |  | 193,700 |  | 1,603,039
Production biological assets |  |  |  |  |  |  |
Immature poultry | 7,320 |  | 188,967 |  | 7,042 |  | 160,415
Mature poultry | 11,395 |  | 283,086 |  | 11,554 |  | 254,253
Immature pork | 203 |  | 93,466 |  | 211 |  | 77,027
Mature pork | 457 |  | 331,786 |  | 455 |  | 260,777
Total non-current | 19,375 |  | 897,305 |  | 19,262 |  | 752,472
| 223,456 |  | 3,026,315 |  | 212,962 |  | 2,355,511
The Company has forests pledged as collateral for financing and tax/civil contingencies on December 31, 2020 in the amount of R$68,381 (R$62,408 on December 31, 2019).
8.1. | Sensitivity analysis
The fair value of animals and forests is determined using unobservable inputs, using the best practices available in the valuation circumstances, therefore it is classified in the Level 3 of the fair value hierarchy. The main assumptions used in the measurement of the fair value of forests and their impact on measurement are presented below.
|  |  |  |  |  | The estimated fair value can change if:
Asset |  | Valuation methodology |  | Non observable significant inputs |  | Increase |  | Decrease
Forests |  | Income approach |  | Estimated price of standing wood |  | Increase in the price of wood |  | Decrease in the price of wood
|  | Productivity per hectare estimated |  | Increase in yield per hectare |  | Decrease in yield per hectare
|  | Harvest and transport cost |  | Decrease of harvest cost |  | Increase of harvest cost
|  | Discount rate |  | Descrease in discount rate |  | Increase in discount rate
Live animals |  | Cost approach |  | Price of the feed inputs |  | Increase in feed cost |  | Decrease in feed cost
|  | Storage costs |  | Increase in storage cost |  | Decrease in storage cost
|  | Outgrowers cost |  | Increase in outgrowers cost |  | Decrease in outgrowers cost
The prices used in the valuation are those practiced in the regions where the Company is located and were obtained through market research. The discount rate corresponds to the average cost of capital and other economic assumptions for a market participant. The weighted average price used in the valuation of biological assets (forests) on December 31, 2020 was equivalent to R$34.63 (thirty-four and sixty-three Reais) per stere (R$32.99 per stere on December 31, 2019). The real discount rate used in the valuation of the biological asset (forests) on December 31, 2020 was 6.00% p.a. (7.07% p.a. on December 31, 2019).

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- Definition The entire disclosure for biological assets, agricultural produce at point of harvest and government grants related to biological assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 41 -IssueDate 2020-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=41&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IAS41_g39-57_TI -URIDate 2020-01-01 + Details
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