Brazilian Roundtable on Sustainable Livestock DRAFT

AGENDA BRAZIL & BRAZILIAN BEEF WHY GTPS? COMMITMENTS + ACTIONS & RESULTS SO FAR DRAFT

Brazil  ~850 million ha (300 arable lands)

Land Use in Brazil 2011 ~850 million ha (8,53 MM km2) 554 milllion ha of native vegetation (> 60% )  107 million ha of Conservation Units  million ha of Indigenous Land Settlements  274 million ha of native vegetation in private properties (PPAs riparian and hills + Legal Reserve)  69.5 native remaining vegetation in PPAs 60 million ha of productive land (crops, fruits, and planted forest) 38 million ha of urbanization and other uses 189 million ha of pastureland (at least 90 degraded) Sources: minister of environment- MMA; IBGE – PAM (2010) and agricultural census (2006); INPE – terraclass; agricultural land use and expansion model brazil - aglue-br (gerd sparovek, ESALQ-USP). Notes: 1) the data on conservation units exclude the areas called environmental protection areas (apas); 2) the ppas data include natural vegetation along rivers, hills and top of hills; 3) the data for other natural vegetation areas include quilombola´s areas, public forests non settled and other remaining natural vegetation areas

DRAFT Global pressure…

BEEF PRODUCTION 3.36%/year BEEF PRODUCTION 3.36%/year PASTURELAND AREA 21% PASTURELAND AREA 21% PRODUCTIVITY 79% PRODUCTIVITY 79% ANIMAL PERFORMANCE 38% ANIMAL PERFORMANCE 38% OCUPATION RATES 62% OCUPATION RATES 62% “LAND SAVING EFFECT” 525 Million ha Source: G.B.Martha Jr., E. Alves, E. Contini (EMBRAPA) DRAFT Cattle production ( )

Rebanho 212 milhões de cabeças Rebanho 212 milhões de cabeças Abate 40,4 milhões de cabeças Abate 40,4 milhões de cabeças Produção de carne 9,4 milhões TEC Produção de carne 9,4 milhões TEC 171 milhões de hectares de pasto Taxa de Lotação: 1,2 cab./ha 171 milhões de hectares de pasto Taxa de Lotação: 1,2 cab./ha EXPORTAÇÃO (18%) 1,69 milhões TEC EXPORTAÇÃO (18%) 1,69 milhões TEC Mercado Interno (82%) 7,7 millhões TEC Consumo per capita : 40kg/ano Mercado Interno (82%) 7,7 millhões TEC Consumo per capita : 40kg/ano Desfrute: 19,5% Confinamentos: 4,08 mihões de cabeças (10% do abate total) Desfrute: 19,5% Confinamentos: 4,08 mihões de cabeças (10% do abate total) Peso Médio de Carcaça: 234 kg Rendimento Médio Carcaça: (zebu): 51%-55% Peso Médio de Carcaça: 234 kg Rendimento Médio Carcaça: (zebu): 51%-55% Rússia: 27% Egito: 14% Hong Kong: 11% Outros: 49% Rússia: 27% Egito: 14% Hong Kong: 11% Outros: 49% UE-27: 49% EUA: 16% Outros: 35% UE-27: 49% EUA: 16% Outros: 35% Hong Kong: 64% Angola: 4% Outros: 31% Hong Kong: 64% Angola: 4% Outros: 31% 73% In Natura 1,2 milhões TEC 73% In Natura 1,2 milhões TEC 92 países 16% Industrializada 272 mil TEC 16% Industrializada 272 mil TEC 106 países 11% Miúdos e outros 190 mil TEC 11% Miúdos e outros 190 mil TEC 71 países Brazilian Beef 2012 Brazilian Beef 2012 DRAFT

LIVESTOCK 189 mi ha mi head (IBGE-2011) SUGARCANE 8,5 mi/ha (Conab) GRAINS 50,86 mi/ha (Conab) SILVICULTURE 7 mi/ha (SAE) OTHERS ~ 16 mi/ha (IBGE) 2012 LIVESTOCK INTENSIFICATION 1,1 para 1,7 Head/ha ou 3,2 para RELEASING 56 millions ha 2022 CANA 13,1 mi/ha (Fiesp/Icone) SILVICULTURE 14 mi/ha (SAE) LIVESTOCK 133 mi/ha(NIT) 227 mi/cab (Fiesp/Icone) GRAINS 58,5 mi/ha (Fiesp/Icone) OTHERS ~16 mi/ha FOREST LAW ENFORCEMENT Elaborado por: DRAFT Challenge for the next 10 years

WHO WE ARE set up in late 2007, formally constituted in June 2009; made up of representatives from different segments from the value chain; debates and formulates principles, standards and common practices to be adopted by the sector which contribute to the development of sustainable beef production in the triple bottom line; members of the RT plan to be proactive given these challenges, leading dialogue and creating agreements to work towards sustainable cattle farming, aware of the social and environmental responsibility held by all those involved ; committed to zero deforestation, with the creation of the conditions and forms of compensation to make it viable. DRAFT

MEMBERS (> 60) DRAFT

GOVERNANCE To find technical alternatives for better efficiency in: Pasture and land conservation Nutrition Health Genetics Welfare Traceability Management Agreement to legislation Indicators – define performance criteria and indicators MRV (Measurable, Reportable and Verifiable) Scientific - GHG emissions, water database To finance the development of sustainable production Improving Credit Management for sustainable cattle farming, reducing the demands in processes and making financial management of rural businesses one of the requirements for credit to be approved Promoting environmental and agrarian upgrading of farms, creating social and environmental incentives such as paying for environmental services Development of public policy on long-term financing for sustainable cattle farming and the training of financial agents for this differentiated credit to be approved To disseminate solutions: Scientific knowledge management – (e.g.: Sustainable Cattle Farming Guide) Reorganization of education and training and the creation of demonstration units Adoption of model farms (public and private) to be benchmarks in sustainable production Improvement of communications with the media and better articulation between representative bodies in the sector DRAFT

National Climate Change Policy (PNMC) DECREE N o 7,390, DECEMBER 9, 2010 Regulates articles 6, 11 and 12 of Law n o 12,187, of December 29, 2009, which establishes the National Climate Change Policy – PNMC – and takes other measures. THE PRESIDENT OF THE REPUBLIC, in the use of the powers conferred on him by article 84, subsection IV, of the Constitution, and considering the provision in articles 6, 11 and 12 of Law n o 12,187, of December 29, 2009, DECREEES: Article 5. The forecast for national greenhouse gas emissions for the year 2020 in the sole paragraph of article 12 of Law n o 12,187, 2009, is billion tonCO 2 eq according to the methodological detailing described in the Annex to this Decree, composed of the forecast for the following sectors: I – Change in Land Use: billion tonCO 2 eq II - Energy: 868 million tonCO 2 eq III – Livestock farming: 730 million tonCO 2 eq, and IV – Industrial Processes and Waste Treatment: 234 million tonCO 2 eq Article 6 § 1 To comply with the provision in the main section, the following action contained in the plans referred to in article 3 of this Decree will initially be considered: IV – recovery of 15 million hectares of degraded pastureland; DRAFT

Federal Government National Climate Change Policy ABC Plan (alternatives to reduce emissions from agriculture and livestock) ABC Program (credit lines to promote low carbon agriculture) - R$ 4,5 billion (Jun/13 to Jul/14) - R$ 1 million max. credit per producer - 5 % interest rate DRAFT

Protocol of Intentions On the 4 th of May 2012, GTPS signed a Protocol of Intentions with the Brazilian Ministry of Agriculture to cooperate with the Federal Government to achieve the goal of restoring 15 million ha of degraded pastures. DRAFT

Cooperation Agreement The new Forestry Code (Federal Law No /2012) DRAFT MMA – Ministry of the Environment Promoting and Supporting environmental compliance of rural properties  Focused ON CAR – Rural Environmental Registry

A PROJECT TO PUT IN PLACE DRAFT 1.Close the efficiency gap and promote pasture restoration by increasing the use of technology in livestock production 2.Increase the use of technology by building capacity in multiplier agents (public outreachers)

FSP – Farm Support ProgramU$ Production83% GTPS11% Administration6% States & Projects Bahia - 1 Rondônia - 1 Mato Grosso do Sul - 2 Pará - 2 Mato Grosso ranchers ha 856 ranchers ha DRAFT A PROJECT TO PUT IN PLACE

Some other initiatives 1.GRSB & GTPS Global Forum  2 nd Sustainable Livestock Global Forum in Brazil (1 st semester 2014) 2.European Comission (Salsa Project)  MS and MG 3.GAA 4.Traceability with McDonald’s, JBS, BRF and others  Amazon biome 5.Sustainable menu for the games  RJ / Milk  600 MM l to 1,2 BN l until NWF + Consumer Goods Forum  Meeting in Brazil (Nov, 26) DRAFT

Source: IPAM White Paper – deforestation x cattle DRAFT

DRAFT

THANK YOU MERCI GRACIAS OBRIGADO Eduardo Brito Bastos – President DRAFT