brazil the pet sector - pijac canada...e-mail: [email protected] title canada-italy...
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Brazil
The Pet Sector
PIJAC Webinar
November 2014
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A World within a Country
Countries with nominal GDP over US$ 600 billion
Countries with population over 100
million
Countries with area over 2 million km²
Australia
Russia
USA
Brazil
China Japan
Bangladesh
Nigeria
Pakistan
Indonesia
Canada
France
Germany Italy
Spain
Mexico
South Korea Netherlands
India
U K
Turkey
Algeria
Argentina
Congo
Kazakhstan
Saudi Arabia
Sources: IMF(GDP), UN
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3 Sources:
Brazil - Banco Central do Brasil
Brazil
GDP: US$2.4 tri (2011)
GDP per capita: U$12,696
South America’s Powerhouse
Brazil represents 50%
of South America’s
total GDP
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Brazil – Territorial Division Divided in 5 different regions (by the Brazilian Institute of Geography and Statistics)
1) North Region 2) Northeast Region 3) Central-West Region 4) Southeast Region 5) South Region
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A Country of Contrasts
NORTHEAST
POP – 27,6%
PP – 18%
SOUTHEAST
POP – 42,6%
PP – 51,6% SOUTH
POP – 14,6%
PP – 18,4%
MID-WEST
POP – 7,1%
PP – 6,6%
NORTH
POP – 8,1%
PP – 5,4%
POP=Population
PP=Purchasing Power
Globo presentation to MBAs
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Increasing Buying Power
Source: Cetelem BGN Observador Brasil, Fecomercio SP, Data Popular .
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C a n a d a
& B r a z i l
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Brazil
Canada’s 10th
Largest Export
Market
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9
Top 10 Canadian Exports
Source: Statistics Canada
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Top 10 Canadian Imports
Source: Statistics Canada
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11
Canada-Brazil Bilateral Investments 2011
CDI
C$ 9.8 billion
Sectors:
Agriculture, Mining,
Shopping Centres,
Telecommunications,
Software, Environmental
Ind. Automotive Parts
Brazil is the 12th largest
destination for Canadian
outward investment
FDI
C$ 18.6 billion
Sectors:
Mining,
Steel,
Beverages,
Cement,
Software
Canada is the 6th largest
destination for Brazilian
outward investment
Source: Statistics Canada
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Pet Market
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• Ranks as the 2nd largest pet market in the world (after the U.S.A.)
• Has the 4th largest pet population in the world
• Growth of 8.2% in 2014
• Revenues of R$16.4 billion (approx US$5.3 billion)
• Monthly expenditure vary from US$50.00 to US$150
• Dog food expenses may represent from 4.5% to 11% and cat food 1.8
and 4.1 of families’ budget (C and D respectively)
• 50% of pet owners are estimated to still feed pets with leftovers.
• High tax structure, representing approx 50% of the price.
Pet Market Highlights
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• Production of petfood is expected to reach 2.4 million tons in 2014 (increase
of 4.5% over previous year)
• Half of the production comes form the states of Parana, São Paulo and Minas
Gerais.
• Dog food represent 91.1% of the total volume, the equivalent of 470 thousand
tons,
• São Paulo is the largest market in the country, with an estimated population of
14 million pets and 4.800 petshops.
• 225 thousand direct jobs
Industry
Source: Canadian Consulate Analysis
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Strong competition from both local and foreign
Language
Logistics
Tax system (impact on landed cost)
Macroeconomic volatility (exchange rates, monetary)
Transportation and infra-structure (roads, ports, etc)
• Regulatory enviroment
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Challenges for Doing Business
Source: World Economic Forum, Morgan Stanley LatAm Economics.
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Challenges to Canadian Exporters
Strong competition from both local and foreign
Language
Logistics
Tax system (impact on landed cost)
Macroeconomic volatility (exchange rates, monetary)
Transportation and infra-structure (roads, ports, etc)
Regulatory enviroment
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Opportunities
• Large country with an expanding population, rising salaries and a favored
market for foreign investment in the region, Brazil’s medium-term prospects
remain encouraging
• Increasing demand for value-added products
• Increasing exposure of Brazilians to foreign cultures and products
• Shophisticated and expanding retail sector
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Pocket guide to understand Brazilians
What Brazilians say: Yes (Sim) What foreigners hear: Yes
What Brazilians mean: Anything from yes through perhaps to no
What Brazilians say: Perhaps (Talvez) What foreigners hear: Perhaps
What Brazilians mean: No
What Brazilians say: No (Não) What foreigners hear (on the very rare occasion a Brazilian says it): No
What Brazilians mean: Absolutely never, not in a million years, this is the craziest thing I've ever been asked
What Brazilians say: I'm nearly there (Tô chegando) What foreigners hear: He's nearly here
What Brazilians mean: I've left
What Brazilians say: I'll show up later (Vou aparecer mais tarde) What foreigners hear: He'll be here later
What Brazilians mean: I won't be coming
What Brazilians say: Let's stay in touch, ok? (vamos combinar, ta?) What foreigners hear: He'd like to stay in
touch (though, puzzlingly, we don't seem to have swapped contact details)
What Brazilians mean: No more than a Briton means by: "Nice weather, isn't it?“
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What Brazilians say: A hug! A kiss! (Um abraço! Um beijo!)
What foreigners hear: I've clearly made quite an impression—we've just met but he/she really likes me!
What Brazilians mean: Take care, cheers, bye
What Brazilians say: You speak Portuguese really, really well! (Você fala português super-bem!)
What foreigners hear: How great! My grammar and accent must be coming on a lot better than I thought
What Brazilians mean: How great! A foreigner is trying to learn Portuguese! Admittedly, the grammar and accent
are so awful I can barely understand a word... but anyway! A foreigner is trying to learn Portuguese!
By Brazil-based journalists Andrew Downie and Dom Phillips, who contributed items, and Olivier Teboul, a Frenchman living in Belo
Horizonte whose list of "Brazilian curiosities" (in Portuguese) has generated a huge response from amused, and sometimes
bemused, locals.
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21
Thank you!
Merci !
Obrigado!
Consulate General of Canada
Av. Das Nações Unidas, 12901
Torre Norte – 16º Andar
04578-000 São Paulo, SP
Brazil
Web site: www.brazil.gc.ca
E-mail: [email protected]