1. BRAZILIAN BEEF
Profile

2. Overview on Brazilian
A INDÚSTRIA DA CARNE
Beef Industry
Cattle herd
Cattle herd 195 million
195 million
Anual slaughtering
Anual slaughtering 44 million
44 million
Industrial units
Industrial units 1.100 plants
1.100 plants

3. Brazilian
Environment

5. Remaining Areas of
Original Biomes in Brazil
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%

6. Livestock per Municipality

12. Production Costs
US$ per 100kg carcass weight

13. Carro de boi, interior de SP
1916

19. Livestock per Municipality

20. Brazilian Livestock per Region %
Livestock 1974: +/-
+/- 100 million
2008: +/-
+/- 200 million

21. Brazil’
Brazil’s Rain
Seasons

22. Green mass production in tropical weather
80% 20% 80%

26. Animal Production on
Intensified Systems

27. Livestock price cycle
Boi gordo em R$/@ corrigidos pelo IGP-DI em SP a partir de
1996
Anos de preços altos Anos de preços baixos
100,00
95,00
90,00
85,00
80,00
75,00
70,00
65,00
60,00
55,00
abr/96
out/96
abr/97
out/97
abr/98
out/98
abr/99
out/99
abr/00
out/00
abr/01
out/01
abr/02
out/02
abr/03
out/03
abr/04
out/04
abr/05
out/05
abr/06
out/06
abr/07
out/07
abr/08
out/08
abr/09
out/09
Fonte: Scot Consultoria – www.scotconsultoria.com.br - twitter.com/scotconsultoria

28. Brazilian Beef Production
10.000
9.000
8.000
7.000
6.000
5.000
4.000
3.000
2.000
1.000
-
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009**
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
Thousand TON CWE
Source: CNPC

29. 90’
Beef Trade Flows 90’s

30. Beef Exports
2,5
2,0 Brazil
1,5
Australia
1,0
USA
Argentina
0,5
Canada
UE-27
0,0
97
98
99
00
01
02
03
04
05
06
07
08
09
19
19
19
20
20
20
20
20
20
20
20
20
20
Millions TON CWE
Source: USDA

31. 00’
Beef Trade Flows 00’s

32. Brazilian Beef Exports
USD Million
+ 20% - 24%
+ 28%
6.000 5.325
5.000 4.425
3.924 4.116
4.000
3.060
3.000 2.525
2.000 1.590
1.000
0
2003 2004 2005 2006 2007 2008 2009
Product 2003 2004 2005 2006 2007 2008 2009
FRESH 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
Source: MDIC

33. Brazilian Beef Exports
Fresh 2009
OTHER 18%
SAUDI ARABIA 3%
RUSSIA
NETHERLANDS 3% 910.651
31%
LEBANON 3%
ITALY IRAN
118.544 335.352
HONG KONG
4% ALGERIA EGYPT 11%
VENEZUELA 316.214
141.774 200.122
164.934 10%
5% 5% 7%
US$ 3.022.566.000
Source: MDIC

34. Brazilian Beef Exports
Processed 2009
PUERTO RICO
2% OTHER
JORDAN 17%
2%
FRANCE
2%
BELGIUM
2%
JAPAN
USA
16.558
223.148
3%
34%
GERMANY
23.967
4% NETHERLANDS ITALY UK
35.548 157.555
33.355
5% 24%
5%
US$ 649.072.000
Source: MDIC

35. Financial Crisis Impact
Main markets of Fresh Beef Evolution
000 US$
225.000
200.000
175.000
150.000
000 USD
125.000
100.000
75.000
50.000
25.000
0
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
Russia Hong Kong Egypt Iran Venezuela
Source: MDIC

36. Financial Crisis Impact
Trends
Fusions and Acquisitions
+ Merger - may/2009
6% of bovine slaughter in 2008;
+ R
Merger - sept/2009
Selected Brazilian Beef
25% of bovine slaughter in 2008;
: Acquisition - sept/2009
+
Chicken division;
:
Renting of 11 slaughterhouses -
+ set/2009 increased capacity of 8.800
heads/day;

37. Financial Crisis Impact
Trends
Internacionalization
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
R
Selected Brazilian Beef
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

38. Trends in the Beef Production:
Associations

39. Future Perspectives
• 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)

40. The State of Food and
Agriculture
“Food production must
expand by 70% in the world
and double in developing
countries, to
meet the food needs of a
world population expected to
reach 9.1 billion in 2050.”
Dr Jacques Diouf
FAO Director-General

42. Meat Consumption and GDP

43. Future Challenges
Political
Opening new markets
Negotiations at OMC
Protectionism
Sanitary
Foot and Mouth Disease
BSE
Traceability
Economic
Exchange rates
Environmental
Greenhouse gases emissions
Deforestation
Sustainability in beef production

44. FMD Map 2009
Free zone without vaccination
(Santa Catarina)
Free zone with vaccination
Alert Zone
Not free zone

47. Traceability
CRIA
MERCADOC
RECRIA
MERCADOC
ENGORDA
FEED LOT
INDUSTRIA

48. Exchange Rate
R$ x US$
2005-
2005-2010
2005 2006 2007 2008 2009 2010

49. Deforestation

50. Productivity Evolution
Livestock X Pasture area
180.000.000 200.000.000
160.000.000 180.000.000
140.000.000 160.000.000
140.000.000
120.000.000
120.000.000
(heads)
100.000.000
(ha)
100.000.000
80.000.000
80.000.000
60.000.000
60.000.000
40.000.000 40.000.000
20.000.000 20.000.000
0 0
1940 1950 1960 1970 1975 1980 1985 1996 2006
Livestock Pasture
Source: IBGE, Mapa

51. Greenhouse Gases Emissions
Reduction on CH4 emissions between 1988 and 2007
% of emissions reduction of CH4/kg of beef
Source: FMVZ

52. TECHNOLOGY Artificial
AND BEEF insemination
PRODUCTION Futures
Feed Integration
Protein lot Breeding
supplement Agriculture
Cross
breeding Forest
Genetic
Medication
selection Irrigation
Mineral Electronic
Salt Rotational tag
Pasture
system
Salt Fertilization
Pasture
management

65. Productivity
BRAZIL 1975 2007
Meat Production 2,16 7,05 + 227%
Million ton
Pasture area 165,63 171,85 + 4%
Million ha
WORLD 1975 2007
Meat production 43,73 59,85 + 37%
Million ton
Pasture area 3.193,32 3.378,17 + 6%
Million ha
Source: FAO

66. Productivity
MATO GROSSO 2000 2008
Livestock 18 26 + 44,4%
Million heads
Pasture area 23,3 25,8 + 10,7%
Million ha
Occupation 0,76 0,99 + 30,2%
Heads/ha
5,4 million hectares of forest were saved between 2000 and
2008 only because of evolution in productivity
Source: IMEA

67. LAND USE
SOIL DISTRIBUTION
(Million hectares)
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%
Total 853
Area used for agriculture
7,6%
Source: CONAB *Safra 2008/09

68. Suppliers control
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.

69. ABIEC Associates
R
Selected Brazilian Beef

70. Gracias!
Fernando Sampaio
Sustainability Coordinator
fernando@abiec.com.br
www.abiec.com.br