1. Meat – An Environmentally Responsible Industry? 17th WORLD MEAT CONGRESS South Africa - September 2008 Luiz Antonio Pinazza Director of the Brazilian Agribusiness Association – Abag Brazilian National Beef Cattle Council - CNPC abag@abag.com.br cnpc@cnpc.org.br In case Brazil

2. Brazil: Cattle Development Year 1997 1997 2007 2007% Herd - million head 156.0 156.0 193.0 193.0 23.7 23.7 Offtake Rate - % 18.6 18.6 23.3 23.3 25.0 25.0 Slaughter - million head 29.1 29.1 45.0 45.0 54.6 54.6 Production - million tonnes (*) 5.8 5.8 9.3 9.3 60.3 60.3 National Consumption – million tonnes (*) 5.7 5.7 6.9 6.9 21.0 21.0 Exportation – million tonnes (*) 0.3 0.3 2.35 2.35 710.0 710.0 Population (million persons) 160.0 160.0 190.0 190.0 18.7 18.7 Consumption per capita – kg 36.1 36.1 37.1 37.1 2.77 2.77 ( *) Equivalent carcass Source:CNPC The numbers show strong raising

3. Northeast13.0% Southeast18.8% South13.4% MidWest34.8% North20.0% Brazil: Regional distribuition livestock herd 2007: 193 million head 193193 Source:CNPC/IBGE

4. SP : 31.6 % GO : 23.4 % MS : 17.6 % MG : 16.4% Others : 11.0 % 2007: 2.3 million head 5.0% total slaughter herd Brazil: Cattle production on feed lot Source: Safras e Mercados

5. Fonte: MAPA Brazil: Strong reduction of FMD Foot and Mouth Disease WTO: Agreement Sanitary and Phytosanitary Measures (SPS) and Member of OIE Brasil is signatary

6. BRAZIL: FMD status certified by OIE Source: Source: OIE-World Organization for Animal Health FREE WITH OUT VAC. FREE WITH VAC. BUFFER ZONE ZONE IN ERADICATION LAST OUTBREAK 2005 AM PA MT BA MG PI MS RS GO MA TO SP RO PR RR AC CE AP SC PE PB RJ RN ES AL SE D August 2008 National Programm for FMD Eradication PA MT DF

7. World: Why is there desinformation about Brazil ? Would be INTENTIONAL? Would be real honest? Two key issues or

8. 1977 1850 16501000 World: Disappearing primary forests

9. World: Where are the intact forests? World: Where are the intact forests? 35% in Latin America (Brazil is the largest) 35% in Latin America (Brazil is the largest) Source: Greenpeace - USA 19% in Northern Asia: 19% in Northern Asia: 7% in South Asia Pacific; 7% in South Asia Pacific; Less than 0.3% in Western Europe Less than 0.3% in Western Europe. 28% in North America; 28% in North America; 8% in Africa; 8% in Africa;

10. Knowing Brazil use of land Knowing Brazil use of land Amazon Rain Florest.... 350 Breeding Pasture... 220 Protected Áreas... 55 Annual Cultures... 48 Permanent Cultures... 17 Cultivated Forest... 5 Cities, lakes, roads and others uses... 156 Total... 851 Total... 851 90 million hectares availables Source: IBGE e MAPA Territorial distribuition World : agriculture for producing food vs energy is a important discussion. vs energy is a important discussion. Brazil: in particular case, there is still enough land to meet both demands “Attention”

11. Brazil: Sugar Cane Production Map South Center > 87% national production sugar cane 3 million hectares = production to suply 50% of fuel national consumption (ethanol/gas)

12. Million hectares 2007/08: 234 million tonnes 1970/71: 52 million tonnes Brazil production 1,44 t/ha 3,82 t/ha 3,82 t/ha saved area saved area Source :ANDA/IBGE. 16 pricipal culturee no productivy area planted area Brazil has been saved agricultural area

13. Brazilian Legal Amazon : “ A big continent” Area : 510 million hectares Territory : 8 states National territory share: 60% Population: 23 million persons Source: National Space Survey Institute - INPE Area created by Law 1806/1953, with tax objetive Spain German Italy France BRAZIL 851 million hectares

14. Brazil and its biomes Tradicional envirommental concern

15. Cerrado is not Amazon Forest There is another common confusion Amazon forest 1970: 1.0 % - 50.000 km2 2007: 17.5% - 712.000 km2 Area deforestation Amazon Biome -420 million hectares and 82% Legal Amazon Amazon Biome - 420 million hectares and 82% Legal Amazon “Attention”

16. How give them improvement and welfare conditions ? They need better standard life and social - economic progress Brazilian Legal Amazon: 23 million persons and national share pasture with 7.8% ( Source: IBGE ) Are there solutions and options ? What are strategies questions ?

17. Brazil: Some cattle production figures Roughly 220 million hectares of pasture: extensive system predominance; Roughly 220 million hectares of pasture: extensive system predominance; Provide 5.5 million jobs, most of them in development rural area; Provide 5.5 million jobs, most of them in development rural area; Study has estimated that 23% of low-productivity pasture available; Study has estimated that 23% of low-productivity pasture available; Pasture support herd 193 million ( the second largest in the world); Pasture support herd 193 million ( the second largest in the world); Brazilian cerrado is the main beef production: about 50.0% Brazilian cerrado is the main beef production: about 50.0%; Lower pasture support: 0.88 cattle head by hectare Lower pasture support: 0.88 cattle head by hectare

18. Amazon: Deforestatiton has reduced Amazon: Deforestatiton has reduced ; Raise 50% last years; Raise 50% last years; Action envolves 13 ministries; Action envolves 13 ministries; Arrested: 700 persons and 1 million wood cubic meters arrested; Arrested: 700 persons and 1 million wood cubic meters arrested; Bankrupt of 1500 firms in illegally areas; Bankrupt of 1500 firms in illegally areas; US$ 2.5 billions in fines. US$ 2.5 billions in fines. Private farm: regularization. Private farm: regularization. Public land: control and monitoring. 76% of Amazon biome area. Public land: control and monitoring. 76% of Amazon biome area. Ecologic economic zone; Ecologic economic zone; Intensive system in deforested area; Intensive system in deforested area; Small farm: only in transition zone. 800 thousand in 42 million hectares; Small farm: only in transition zone. 800 thousand in 42 million hectares; Payment to stand tree: environmental asset; Payment to stand tree: environmental asset; Illegal commerce control: Europe buy 800 thousand tonnes ( US$ 570 million) of timber by year. Illegal commerce control: Europe buy 800 thousand tonnes ( US$ 570 million) of timber by year. Amazon: Sustentability plan is possible

19. Abundance soil and water; Abundance soil and water; Modern tecnology; Modern tecnology; Genetic and nutrition: in 18 months, animal with 510 kg; Genetic and nutrition: in 18 months, animal with 510 kg; Major priority: degradaded pasture recuperation; Major priority: degradaded pasture recuperation; Excellent condition for animal welfare; Excellent condition for animal welfare; Modern meat processing industry; Modern meat processing industry; Improve CO2 balance. Improve CO2 balance. Brazil: Cattle future scenario Sanitary evolution allows export live animal; Sanitary evolution allows export live animal; Intensive production system; Intensive production system; Raise cattle feed lot; Raise cattle feed lot; Modern production with better offtake rate: 29%; Modern production with better offtake rate: 29%; Mad Cow (BSE) free; Mad Cow (BSE) free; FMD erradication is almost complete FMD erradication is almost complete 2015 National cattle projection Herd : 205 million head Offtake rate – 29 % Production – 11,8 million tonnes Source: CNPC

20. Henning Steinfeld, Pierre Gerber, Tom Wassenaar et al. (FAO) “ LIVESTOCK`S LONG SHADOW ENVIRONMENTAL ISSUES AND OPTIONS” The brazilian aproaches Negative impact of agricultural subsidies; Negative impact of agricultural subsidies; Meat is important source of nutrient to health human; Meat is important source of nutrient to health human; Sector has contributed with job, earn, dignity and to avoid new deforestation; Sector has contributed with job, earn, dignity and to avoid new deforestation; Positives points Provides livelihoods to about 1.3 billion peoples; Provides livelihoods to about 1.3 billion peoples; Contributes about 40% to global agricultural output; Contributes about 40% to global agricultural output; Cattle must be analysed with especifics studies, without sensational news; Cattle must be analysed with especifics studies, without sensational news; Negative point Not to be consider CO2 keep pasture Not to be consider CO2 keep pasture Balance is essential Balance is essential

21. Emission: CO2 – 44.0 CO2 – 44.0 CH4 – 49.28 CH4 – 49.28 Total ( basis CO2): 1226.72 Total ( basis CO2): 1226.72 Important factors Brazil: Cattle CO2 balance kg/year/hectare Keep pasture: Degradaded pasture:1.000 Good management practices: 2.000 Average: 1772.72 (*) Positive balance: 546 (*) 23% low productive pasture (*) 23% low productive pasture Dry material; Dry material; Carbon and nitron relation; Carbon and nitron relation; Organic decomposition; Organic decomposition; Animal by hectare. Animal by hectare. Correct study against burn, deforestation, degradation soil and low tecnology. New study will be delivery on september

22. 1.Production: 2.6 million farmers; 2.6 million farmers; 46.5% of brazilian’s farmers; 46.5% of brazilian’s farmers; 81% of farmers: < 100 hectares; 81% of farmers: < 100 hectares; Brazil: Industrial pig production and environment 2. Environment protection: Brazil has with Sadia Alimentos a model project Brazil has with Sadia Alimentos a model project Project (MDL or 3S) validated worldwide by UNO; Project (MDL or 3S) validated worldwide by UNO; 1000 pork producers are envolved; 1000 pork producers are envolved; Credit is 389 tonnes of carbon/farm/year. Credit is 389 tonnes of carbon/farm/year.

23. Sequential lagoon uses: Sequential lagoon uses: No water contamination ( phosphates and nitrates); No water contamination ( phosphates and nitrates); Excrements reservoirs with material structure to avoid the infiltration and contamination of natural resources. Excrements reservoirs with material structure to avoid the infiltration and contamination of natural resources. Enviromment Project MDL or 3S Removes 98% of the organic pollution and 99.9% of the fecal coliforms; Removes 98% of the organic pollution and 99.9% of the fecal coliforms; 15% of the solids go to soil fertilizers ; 15% of the solids go to soil fertilizers ;

24. INTERNATIONAL MEAT SECRETARIAT-IMS/OPIC; SOUTH AFRICA MEAT INDUSTRY COMPANY-SAMIC BRAZILIAN NATIONAL BEEF CATTLE COUNCIL -CNPC FOR LETTING ME MAKE THIS PRESENTATION AND ALLOWING ME TO BE PART OF THE ROUND TABLE THANKS TO