brazilian beef
TRANSCRIPT
BRAZILIAN BEEFBRAZILIAN BEEFBRAZILIAN BEEFBRAZILIAN BEEFProfileProfileProfileProfile
A INDÚSTRIA DA CARNE
Cattle herd 195 million
Anual slaughtering 44 million
Industrial units 1.100 plants
Cattle herd 195 million
Anual slaughtering 44 million
Industrial units 1.100 plants
Overview on Brazilian Overview on Brazilian Overview on Brazilian Overview on Brazilian Beef IndustryBeef IndustryBeef IndustryBeef Industry
BrazilianBrazilianBrazilianBrazilianEnvironmentEnvironmentEnvironmentEnvironment
Amazon: 84,98%
Caatinga: 62,76%
Cerrado: 60,41%
Pantanal: 86,77%
Atlantic For.: 26,77%
Pampas: 41,36%
Remaining area of original forests in Europe: 0,3%
Remaining Areas of Remaining Areas of Remaining Areas of Remaining Areas of Original Biomes in BrazilOriginal Biomes in BrazilOriginal Biomes in BrazilOriginal Biomes in Brazil
Livestock per MunicipalityLivestock per MunicipalityLivestock per MunicipalityLivestock per Municipality
Production CostsProduction CostsProduction CostsProduction CostsUS$ per 100kg carcass weightUS$ per 100kg carcass weightUS$ per 100kg carcass weightUS$ per 100kg carcass weight
Carro de boi, interior de SP
1916
Livestock per MunicipalityLivestock per MunicipalityLivestock per MunicipalityLivestock per Municipality
Brazilian Livestock per Region %Brazilian Livestock per Region %Brazilian Livestock per Region %Brazilian Livestock per Region %
Livestock 1974:Livestock 1974:Livestock 1974:Livestock 1974: +/+/+/+/---- 100 million100 million100 million100 million2008:2008:2008:2008: +/+/+/+/---- 200 million200 million200 million200 million
BrazilBrazilBrazilBrazil’’’’s Rains Rains Rains RainSeasonsSeasonsSeasonsSeasons
80% 20% 80%
Green mass production in tropical weatherGreen mass production in tropical weatherGreen mass production in tropical weatherGreen mass production in tropical weather
Animal Production onAnimal Production onAnimal Production onAnimal Production onIntensified SystemsIntensified SystemsIntensified SystemsIntensified Systems
55,00
60,00
65,00
70,00
75,00
80,00
85,00
90,00
95,00
100,00
ab
r/9
6
ou
t/9
6
ab
r/9
7
ou
t/9
7
ab
r/9
8
ou
t/9
8
ab
r/9
9
ou
t/9
9
ab
r/0
0
ou
t/0
0
ab
r/0
1
ou
t/0
1
ab
r/0
2
ou
t/0
2
ab
r/0
3
ou
t/0
3
ab
r/0
4
ou
t/0
4
ab
r/0
5
ou
t/0
5
ab
r/0
6
ou
t/0
6
ab
r/0
7
ou
t/0
7
ab
r/0
8
ou
t/0
8
ab
r/0
9
ou
t/0
9
Boi gordo em R$/@ corrigidos pelo IGP-DI em SP a partir de 1996
Fonte: Scot Consultoria – www.scotconsultoria.com.br - twitter.com/scotconsultoria
Anos de preços altos Anos de preços baixos
Livestock price cycleLivestock price cycleLivestock price cycleLivestock price cycle
Brazilian Beef ProductionBrazilian Beef ProductionBrazilian Beef ProductionBrazilian Beef Production
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
Série1 5.200 5.400 6.045 5.820 6.040 6.270 6.650 6.900 7.300 7.700 8.350 8.776 9.053 9.297 9.000 9.180
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009**
Thousand TON CWE
Source: CNPC
Beef Trade Flows 90Beef Trade Flows 90Beef Trade Flows 90Beef Trade Flows 90’’’’ssss
Beef ExportsBeef ExportsBeef ExportsBeef Exports
0,0
0,5
1,0
1,5
2,0
2,5
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Brazil
Australia
USAArgentina
Canada
UE-27
Millions TON CWE
Source: USDA
Beef Trade Flows 00Beef Trade Flows 00Beef Trade Flows 00Beef Trade Flows 00’’’’ssss
Brazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsUSD MillionUSD MillionUSD MillionUSD Million
1.590
2.5253.060
3.9244.425
5.325
4.116
0
1.000
2.000
3.000
4.000
5.000
6.000
2003 2004 2005 2006 2007 2008 2009
Product 2003 2004 2005 2006 2007 2008 2009FRESH BEEF 1.155 1.963 2.419 3.135 3.486 4.006 3.022
PROCESSED 338 447 525 654 694 853 649
OTHERS 97 115 116 135 245 466 445
TOTAL 1.590 2.525 3.060 3.924 4.425 5.325 4.116
+ 28%+ 20% - 24%
Source: MDIC
Brazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsFresh 2009 Fresh 2009 Fresh 2009 Fresh 2009
US$ 3.022.566.000US$ 3.022.566.000US$ 3.022.566.000US$ 3.022.566.000
Source: MDIC
LEBANON 3%
ITALY118.544
4% ALGERIA141.774
5%
VENEZUELA 164.934
5%
EGYPT200.122
7%
HONG KONG 316.214
10%
IRAN335.352
11%
NETHERLANDS 3%
SAUDI ARABIA 3%
RUSSIA 910.651
31%
OTHER 18%
Source: MDIC
USA223.148
34%
JORDAN2%
PUERTO RICO2%
UK157.555
24%
ITALY35.548
5%
NETHERLANDS33.355
5%
GERMANY23.967
4%
JAPAN16.558
3%
BELGIUM2%
FRANCE2%
OTHER17%
Brazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsBrazilian Beef ExportsProcessed 2009 Processed 2009 Processed 2009 Processed 2009
US$ 649.072.000US$ 649.072.000US$ 649.072.000US$ 649.072.000
Financial Crisis ImpactFinancial Crisis ImpactFinancial Crisis ImpactFinancial Crisis Impact
Main markets of Fresh Beef EvolutionMain markets of Fresh Beef EvolutionMain markets of Fresh Beef EvolutionMain markets of Fresh Beef Evolution
000 US$000 US$000 US$000 US$
Source: MDIC
0
25.000
50.000
75.000
100.000
125.000
150.000
175.000
200.000
225.000
ago/08 set/08 out/08 nov/08 dez/08 jan/09 fev/09 mar/09 abr/09 mai/09 jun/09 jul/09 ago/09
000
US
D
Russia Hong Kong Egypt Iran Venezuela
Financial Crisis ImpactFinancial Crisis ImpactFinancial Crisis ImpactFinancial Crisis ImpactTrendsTrendsTrendsTrends
Fusions and AcquisitionsFusions and AcquisitionsFusions and AcquisitionsFusions and Acquisitions
+ Merger - may/2009 6% of bovine slaughter in 2008;
Merger - sept/2009 25% of bovine slaughter in 2008;
Acquisition - sept/2009 Chicken division;
Renting of 11 slaughterhouses -set/2009 increased capacity of 8.800 heads/day;
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Selected Brazilian Beef
+
+
+ :
:
Financial Crisis ImpactFinancial Crisis ImpactFinancial Crisis ImpactFinancial Crisis ImpactTrendsTrendsTrendsTrends
InternacionalizationInternacionalizationInternacionalizationInternacionalization
Argentina: Swift
USA: Swift and Co., National Beef Packers, Smithfield
Foods, Pilgrim’s Pride (chicken);
Australia: Swift, Tasman, Tatiara Meat
Europe: Inalca
Uruguay: Canelones
Paraguay: Quality Meat and San Antonio
Argentina: AB&P, Estancias del Sur, Quickfood, Best Beef, Mirab
Uruguay: Tacuarembó, Inaler, Colonia
Chile: Quinto Cuarto, Patagonia
UK: CDB Meats, Weston, Kitchen Ham Packers
Northern Ireland:Moy Park, Dungannon Protein
Netherlands: Albert van Zoonen
France: Moy Park France
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Selected Brazilian Beef
:
Trends in the Beef Production: Trends in the Beef Production: Trends in the Beef Production: Trends in the Beef Production: AssociationsAssociationsAssociationsAssociations
• In 2007 the world’s urban population surpassed the rural population
• In 2050, the world population will be of
about 9 billion people (UN)
• In 2014, the GDP of developing
countries will surpass the GDP of developed countries (IMF)
•In 2009, about 1 billion people were
living in some degree of subnutrition
(FAO)
Future PerspectivesFuture PerspectivesFuture PerspectivesFuture Perspectives
The State of Food and The State of Food and The State of Food and The State of Food and AgricultureAgricultureAgricultureAgriculture
“Food production must expand by 70% in the world and double in developing countries, tomeet the food needs of a world population expected to reach 9.1 billion in 2050.”
Dr Jacques DioufFAO Director-General
Meat Consumption and GDPMeat Consumption and GDPMeat Consumption and GDPMeat Consumption and GDP
Future ChallengesFuture ChallengesFuture ChallengesFuture Challenges
PoliticalOpening new markets
Negotiations at OMC Protectionism
SanitaryFoot and Mouth Disease
BSETraceability
EconomicExchange rates
EnvironmentalGreenhouse gases emissions Deforestation
Sustainability in beef production
Free zone without vaccination (Santa Catarina)
Free zone with vaccination
Alert Zone
Not free zone
FMD Map 2009FMD Map 2009FMD Map 2009FMD Map 2009
INDUSTRIA
ENGORDA
CRIA
CMERCADO
RECRIA
CMERCADO
FEED LOT
TraceabilityTraceabilityTraceabilityTraceability
2005 2006 2007 2008 2009 2010
Exchange RateExchange RateExchange RateExchange RateR$ x US$R$ x US$R$ x US$R$ x US$2005200520052005----2010201020102010
DeforestationDeforestationDeforestationDeforestation
Productivity EvolutionProductivity EvolutionProductivity EvolutionProductivity Evolution
Livestock X Pasture area
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
140.000.000
160.000.000
180.000.000
1940 1950 1960 1970 1975 1980 1985 1996 2006
(hea
ds)
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
140.000.000
160.000.000
180.000.000
200.000.000
(ha)
Livestock Pasture
Source: IBGE, Mapa
Greenhouse Gases EmissionsGreenhouse Gases EmissionsGreenhouse Gases EmissionsGreenhouse Gases Emissions
Reduction on CH4 emissions between 1988 and 2007% of emissions reduction of CH4/kg of beef
Source: FMVZ
Artificial insemination
Salt
MineralSalt
Fertilization
Irrigation
Rotational Pasturesystem
CrossbreedingGenetic
selection
Electronic tag
Feedlot
IntegrationBreedingAgricultureForest
Protein supplement
Pasture management
Medication
TECHNOLOGYTECHNOLOGYTECHNOLOGYTECHNOLOGYAND BEEF AND BEEF AND BEEF AND BEEF
PRODUCTIONPRODUCTIONPRODUCTIONPRODUCTIONFutures
ProductivityProductivityProductivityProductivity
BRAZILBRAZILBRAZILBRAZIL 1975197519751975 2007200720072007
Meat ProductionMeat ProductionMeat ProductionMeat Production 2,162,162,162,16 7,057,057,057,05 + 227%+ 227%+ 227%+ 227%Million tonMillion tonMillion tonMillion ton
Pasture area Pasture area Pasture area Pasture area 165,63 165,63 165,63 165,63 171,85171,85171,85171,85 + 4%+ 4%+ 4%+ 4%Million haMillion haMillion haMillion ha
WORLDWORLDWORLDWORLD 1975197519751975 2007200720072007
Meat productionMeat productionMeat productionMeat production 43,7343,7343,7343,73 59,8559,8559,8559,85 + 37%+ 37%+ 37%+ 37%Million tonMillion tonMillion tonMillion ton
Pasture area Pasture area Pasture area Pasture area 3.193,323.193,323.193,323.193,32 3.378,17 3.378,17 3.378,17 3.378,17 + 6%+ 6%+ 6%+ 6%Million haMillion haMillion haMillion ha
Source: FAO
ProductivityProductivityProductivityProductivity
Source: IMEA
MATO GROSSOMATO GROSSOMATO GROSSOMATO GROSSO 2000200020002000 2008200820082008
Livestock Livestock Livestock Livestock 18 18 18 18 26262626 + 44,4%+ 44,4%+ 44,4%+ 44,4%Million headsMillion headsMillion headsMillion heads
Pasture area Pasture area Pasture area Pasture area 23,323,323,323,3 25,825,825,825,8 + 10,7%+ 10,7%+ 10,7%+ 10,7%Million haMillion haMillion haMillion ha
OccupationOccupationOccupationOccupation 0,760,760,760,76 0,990,990,990,99 + 30,2%+ 30,2%+ 30,2%+ 30,2%Heads/haHeads/haHeads/haHeads/ha
5,4 million hectares of forest were saved between 2000 and 5,4 million hectares of forest were saved between 2000 and 5,4 million hectares of forest were saved between 2000 and 5,4 million hectares of forest were saved between 2000 and 2008 only because of evolution in productivity2008 only because of evolution in productivity2008 only because of evolution in productivity2008 only because of evolution in productivity
LAND USELAND USELAND USELAND USESOIL DISTRIBUTION (Million hectares)
853Total
Source: CONAB *Safra 2008/09
7,6%Area used for agriculture
Amazon Rain Forest 350 41%
Native and Cultivated Pastures 220 26%
Legal Reserve 55 6,4%
Annual crops 48* 5,6%
Permanent Crops 14 1,6%
Cities, lakes, roads, etc. 20 2,4%
Cultivated forests 5 0,6%
Other uses (indian reserves, etc) 51 6%
Avaliable area 90 11%
Brazilian slaughterhouses are selecting suppliers using strict criteria on sustainability.
If you buy Brazilian Beef, you can be sure that beef is not coming from:
• Ilegally deforastated areas• farmers involved on using forced labor
That information is provided by competent government departments and controled daily by slaughterhouses on every animal purchase.
Suppliers controlSuppliers controlSuppliers controlSuppliers control
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Selected Brazilian Beef
ABIEC AssociatesABIEC AssociatesABIEC AssociatesABIEC Associates
Gracias!Gracias!Gracias!Gracias!
Fernando SampaioFernando SampaioFernando SampaioFernando SampaioSustainability Coordinator