November 2, 2007

ASSOCIATION OF

DMIABRAZILIAN BEEF EXPORTERS

Meat Sector

Great Opportunities

CURRENT LAND USELAND DISTRIBUTION (Millions of hectares)

Amazon Rainforest

Native and cultivated pastures

National Reserves

Annual crops area

Permanent cultures

Cities, lakes, roads, swamps

Cultivated forests

3502205546*14205

41%

26%

6%

5,4%

1,6%

2,3%

0,6%

851

Other uses (Indian reservations etc)

Available land for agriculture5190

6%

11%

Total

Source: CONAB* Crop 2006/07 – Forecast

7,6%Land area used for agriculture

AMAZON

Amazon Forest

“Cerrado”

VEGETATION

Legal Amazon (5 millions Km2) X Amazon Rainforest (3,5 millions Km2)

“Cerrado” (Savanna): Agriculture and Livestock Production

Preservation is a National Policy

Cattle raised in the Amazon region is for local consumption

Population: 19.676.745 inhab.Area: 5 millions Km2

3,9 inhab./Km2

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

Bovine 6.650 6.900 7.300 7.700 8.350 8.750 8.950

Tonnes (000 CWE)

BRAZILIAN BEEF EXPORTS

US

$

Mil

lio

ns

+ 28%

2006 (CWE)

Exports: 2,4 million T

Production: 8,9 million T

BRAZILIAN BEEF EXPORTS REPRESENT 27% OF PRODUCTION

 199

9200

0 2001 2002 2003 2004 2005 20062007

*

In natura 444 503 739 776 1.155 1.963 2.419 3.134 2.603

Processed 318 252 252 299 338 447 525 654 528

Offals 53 58 58 69 97 115 116 135 164

Total 815 814 1.049 1.144 1.590 2.525 3.060 3.923 3.295

Source: ABIEC, CNPC

* JAN - SEPT

N. Zeland8%

USA17%

Brazil16%

EU8%

Canada9%

Australia21%

Others21% Brazil

32%

Uruguay7%

USA7%

Others21%

Argentina7%

Australia19%

N. Zealand7%

WORLD BEEF TRADE - EXPORTS

Source: FAS/USDA

2002 2006

In natura

2006 2005 2004 % (06/04)EU-25 1.009.218 806.729 762.338 32,38Russia 743.187 555.273 239.107 210,82Egypt 364.185 252.714 161.853 125,01Algeria 101.707 75.693 61.434 65,55Bulgaria 101.562 69.424 27.336 271,53Saudi Arabia 80.983 57.686 72.867 11,14Israel 69.423 37.863 42.399 63,74Romania 48.921 37.832 12 -Switzerland 46.349 36.693 29.504 57,09

Source: MDIC

USD 000(Fresh/Chilled and Frozen)

BRAZILIAN BEEF: IMPORTANT MARKETS

2006 2005 2004 % (06/04)USA 273.226 205.658 197.113 38,61EU-25 267.043 231.082 192.772 38,53Cuba 22.615 1.984 1.230 1738,62Puerto Rico 8.250 4.024 3.121 164,34Egypt 7.650 5.393 3.599 112,56Japan 7.314 12.837 7.233 1,12Un. Arab Emirates 6.580 2.416 1.849 255,87Lebanon 4.691 4.302 2.292 104,67Jordan 4.642 6.024 2.538 82,93

BRAZILIAN BEEF: IMPORTANT MARKETS

Processed

Source: MDIC

USD 000

BRAZILIAN BEEF EXPORTS, European Union 25 - VALUE

USD (million) % Tons 000 % Tons CWE 000

World 3.923 100% 1.523 100% 2.403

EU - 25 1.298 33% 324 21% 565

301 8% 61 4% 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

0

100.000

200.000

300.000

400.000

TON 41.132 44.832 55.026 51.327 61.064 50.135

USD (000) 121.089 157.355 231.415 216.527 301.081 267.487

2002 2003 2004 2005 2006 2007*

Others 2%

Fresh 40%

Frozen 35%

Processed 23%

 Fresh 24.158

Frozen 21.593Processe

d 14.001

Others 1.312

Total 61.064

2006 TONS

Source: MDIC

BRAZILIAN BEEF EXPORTS TO THE NETHERLANDS

BRAZILIAN BEEF MARKETS 2006BRAZILIAN BEEF WAS EXPORTED TO OVER 180 COUNTRIES

GLOBALCHALLENGES

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!

www.abiec.com.brwww.brazilianbeef.org.br

Marcus Vinicius Pratini de Moraes