November 2, 2007 ASSOCIATION OF DMIA BRAZILIAN BEEF EXPORTERS
Meat Sector Great Opportunities
CURRENT LAND USE LAND DISTRIBUTION (Millions of hectares) Amazon Rainforest Native and cultivated pastures National Reserves Annual crops area Permanent cultures Cities, lakes, roads, swamps Cultivated forests * % 26 % 6 % 5,4 % 1,6 % 2,3 % 0,6 % 851 Other uses (Indian reservations etc) Available land for agriculture % 11 % Total Source: CONAB* Crop 2006/07 – Forecast 7,6% Land area used for agriculture
AMAZON Amazon Forest “Cerrado” VEGETATION Legal Amazon (5 millions Km 2 ) X Amazon Rainforest (3,5 millions Km 2 ) “Cerrado” (Savanna): Agriculture and Livestock Production Preservation is a National Policy Cattle raised in the Amazon region is for local consumption Population: inhab. Area: 5 millions Km 2 3,9 inhab./Km 2
BRAZILIAN BEEF IN THE GLOBAL MARKET, 2006 CATTLE HERD HEAD ANNUAL SLAUGHTERING BEEF PRODUCTION YEAR BEEF EXPORTS CONSUMPTION PER CAPITA BEEF PROCESSING PLANTS 207 Millions 44 Millions 8,9 Million Tons CWE 2,4 Million Tons CWE 35 KG 1500 % of the world 21 % 18 % 16 % 32 % Safe beef from the farm to the consumer’s table 1 out of every 3 Kg of beef traded worldwide is Brazilian Source: IBGE, FNP, USDA, SECEX, CNPC
Grass fed animals Lean and healthy beef No hormones used Traceability and animal welfare BRAZIL, LAND OF “CHURRASCO” BRAZILIAN BEEF
BRAZILIAN BEEF PRODUCTION Source: ABIEC, CNPC Tonnes (000 CWE)
BRAZILIAN BEEF EXPORTS US$ Millions + 28% 2006 (CWE) Exports: 2,4 million T Production: 8,9 million T BRAZILIAN BEEF EXPORTS REPRESENT 27% OF PRODUCTION * In natura Processed Offals Total Source: ABIEC, CNPC * JAN - SEPT
WORLD BEEF TRADE - EXPORTS Source: FAS/USDA
In natura Source: MDIC USD 000 (Fresh/Chilled and Frozen) BRAZILIAN BEEF: IMPORTANT MARKETS
Processed Source: MDIC USD 000
BRAZILIAN BEEF EXPORTS, European Union 25 - VALUE USD (million)%Tons 000%Tons CWE 000 World % %2.403 EU %32421% %614%104 Brazilian Beef Exports 2006 Sweden 4% Netherlands 23% Others 18% United Kingdom 25% Germany 9% Italy 21% Source: MDIC Netherlands
BRAZILIAN BEEF EXPORTS TO THE NETHERLANDS Source: MDIC *JAN-SEPT
Others 2% Fresh 40% Frozen 35% Processed 23% Fresh Frozen Processed Others1.312 Total TONS Source: MDIC BRAZILIAN BEEF EXPORTS TO THE NETHERLANDS
BRAZILIAN BEEF MARKETS 2006 BRAZILIAN BEEF WAS EXPORTED TO OVER 180 COUNTRIES
GLOBAL CHALLENGES Animal Health, Food Safety, FMD and BSE Protectionism: EU (low Hilton quota, full levy, high rates) Sanitary Barriers (SPS) New Name of Protectionism Safety and quality = SUCCESS Traceability - All beef exported is traced Social concerns: Signatory of the ILO Technical Cooperation Project "Fighting Forced Labor in Brazil" Exchange rate Trade Negotiations: WTO
ABIEC’S ASSOCIATED COMPANIES
ASSOCIATION OF BRAZILIAN BEEF EXPORTERS THANK YOU! Marcus Vinicius Pratini de Moraes