In coming up with what it was going to take to fill that quota, we figured about half a million head of cattle would have to be produced according to the EU protocol.
How we came up with that is that we asked some of the companies that are already shipping to Europe—well, the one company—as well as some of the companies that are anticipating shipping to Europe. They figure about 100 kilograms per animal makes sense to go to Europe. One of the things we always talk about is that you have to be able to send each piece of the animal to the market that's going to pay the most for it. For Europe, that's about 100 kilograms out of the animal.
I mentioned that we figured about $11 per kilogram for Europe. Our next best market right now in terms of value is Japan, where we're getting about $6 per kilogram. Just to do a very simple calculation, that's an extra $500 a head on that. Of course, there is an additional cost to raise those animals, but we think that's about a 20% additional cost, so already you have taken care of that. Then of course, you're still going to market the rest of that animal to the places where you'll get more money for it. There is a good market within Canada for that hormone-free product. It's a niche market in Canada, but it's a high-value market. We're seeing other countries that are putting some trade restrictions on those products as well. That seems to be the trade restriction that's building.
So I think we're positioned to be able to market all those pieces fairly well.